Delfingen Industry: DELFINGEN INDUSTRY: First half 2021 results
Strong organic growth and outperformance of the automotive market
Current Operating Profit (ROC) of 9.8% of sales
Net income of 6.6% of sales
Improved liquidity and financial structure ratios
|Net sales||current operating income||Equity||Cash flow from
|€ 193.7m||€ 19.1 million
(or 9.8% of sales)
|131.0 million euros||€ 7.9 million|
|In millions of euros||S1 2021||H1 2020|
|current operating income||19.1||1.4|
|Net income, Group share||12.7||-1.4|
|Cash flow from operating activities||7.9||8.5|
|Net financial debt||101.6||70.1|
Sales for the first half of 2021 reached € 193.7 million, up 130% compared to the first half of 2020 (+ 52% in organic growth).
Automotive Division sales were up 55% at constant scope and exchange rates at the end of June 2021 (46% as reported).
At constant scope and exchange rates, the two main businesses have evolved as follows:
• The “Protection Systems” activity grew by 70%, confirming the strategic positioning of the DELFINGEN Industry Group as a key player in the transition to sustainable mobility with hybrid and electric vehicles.
• The “Fluid Transfer Tubing” activity grew by 32%, despite the shortage of microchips which crippled several customer factories in North America.
• The “Logistics and assembly services” activity is down 55%, following the disposal of the Tangier site in December 2020.
Industrial Market sales increased by 40% at constant exchange rates (+ 30% as reported):
• Drossbach sales in North America increased by 60% (+ 46% based on reported figures);
• The “Electrical and Thermal Insulation” activity grew by 34% (+ 24% based on reported figures);
• The “Straps and Technical Belts” activity grew by 4% (same variation in the published data).
Revenue for the Schlemmer scope, which will be fully integrated on January 1, 2021, amounted to € 73.6 million at the end of June, or 38% of total Group revenue. The level of activity is higher than expected at the time of acquisition.
The effect of exchange rates on sales was negative by 7.5 million euros.
Current operating income amounted to € 19.1 million in the first half of 2021 (i.e. 9.8% of revenue), mainly impacted by:
• Full integration of ex-Schlemmer entities, increased profits;
• The increase in the price of the main raw materials (€ 4.0 million);
• Adaptation of cost structures
Other operating results include a loss of € 2.6 million on the sale of the “straps and technical belts” activity, carried out on June 26, 2021, and a profit of € 2.6 million linked to the agreement of the administration to waive the repayment of a PPP loan granted in 2020 to deal with the covid crisis.
Net financial expenses amounted to 1.6 million euros, compared to 1.8 million euros in the first half of 2020.
Net income (group share) stood at 12.7 million euros, compared to 1.4 million euros in the first half of 2020.
Net financial debt amounted to € 101.6 million as of June 30, 2021 compared to € 103.7 million as of December 31, 2020. Investments amount to € 6.3 million, while the working capital requirement increases of € 17.5 million. Gearing is 78% versus 96% as of June 30, 2020, the leverage ratio is 1.79 versus 2.98 as of June 30, 2020.
In a market context that remains volatile (variability in demand, shortage of materials and components, soaring purchase prices, logistical difficulties, development of the COVID crisis in Asia, etc.), the DELFINGEN Industry Group is doing everything possible to adapt the management of its operations in order to strengthen its leadership as a privileged partner of its customers by offering a unique and quality service.
Under these conditions, DELFINGEN expects a lower performance in the second half of 2021 than in the first half. Barring a more unfavorable market environment, sales in 2021 should reach 360 million euros with an operating margin of 8%.
The development of hybrid and electric powertrains, as well as the connectivity of cars, make electrical wiring the real nervous system of the vehicle. DELFINGEN’s mission is to protect it by providing more innovative solutions with higher added value.
* source: IHS
Safe Harbor Declaration
Although the management of DELFINGEN believes that these forward-looking statements are reasonable as of the date of this document, investors are cautioned that forward-looking statements are subject to many factors, risks and uncertainties, many of which are difficult to predict and generally independent of. will of DELFINGEN. , which could cause actual results and events to differ materially from those expressed or implied in the forward-looking statements.
DELFINGEN, world leader in protection
and routing solutions for on-board electrical and fluid networks
|EURONEXT Growth Paris
ISIN code: FR 0000054132
|Next release: November 5, 2021
Publication: Third quarter 2021 revenue
Contact: M. Christophe Clerc: +33 (0) 18.104.22.168.00
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