In H1 2022, the LISI Group confirms the resilience of its results in a remaining complex environment
• Return to organic growth supported by Aerospace, Medical and new products in Automotive
• Resilience of operational profitability in a complex environment
• Securing supplies of strategic raw materials and increasing industrial investments in view of future growth
• Annual objectives confirmed
Consolidated sales for H1 2021 amounted to €695.2M, up +17.1 % compared to the same period last year and taking into account the following elements:
• A scope effect of + €11.7 M resulting from the following transactions in the LISI AEROSPACE division:
- Deconsolidation of LACE (France) on March 4, 2021, i.e. an impact of - €1.7 M (- 0.2 % of sales),
- Acquisition of B&E Manufacturing, a US company that had been consolidated since August 1, 2021, i.e. a contribution of + €13.4 M ( 1.9 % of sales);
• A favorable currency effect of + €28.8 M (i.e. + 4.1 % of sales), mainly tied to the appreciation of the average US dollar exchange rate against the euro;
• A price effect corresponding to the passing through to customers of the impact of inflation on manufacturing costs, estimated at €16 M.
In line with the objective of a return to organic growth in 2022, sales growth on a like-for-like basis and restated for currency fluctuations stands at + 10.3 %.
It should however be noted that EBIT increased by 1.5 % to €41.3 M. At 5.9 %, the current operating margin showed resilience and fell by only -1.0 point compared to the same period of the previous financial year.
Net income increased to €33.4 M (i.e. 4.8 % of sales), compared to €29.7 M (5.0% of sales) in H1 2021.
LISI AEROSPACE (50% of total consolidated sales)
• Confirmed ramp-ups with the main customers
• Implementation of actions aimed at neutralizing the impact of inflation on the current operating margin
• Negative Free Cash Flow due to the implementation of measures to respond to the sharp increase in activity in the coming months
LISI AUTOMOTIVE (40% of total consolidated sales)
• Pursuit of adaptation measures in a global automotive market marked by persistent high volatility
• Reinforcement of actions intended to neutralize the consequences of inflation on the current operating margin
• Positive momentum of order intake for new products for the electromobility market
• Positive Free Cash Flow
LISI MEDICAL (10% of total consolidated sales)
• Very positive business momentum driven by the ramp-up of new products and growing needs
• Accelerating effect linked to the gradual catch-up of surgical procedures postponed during the COVID-19 period
• Improved operating margin driven by increased volumes and better cost absorption made possible by the New Deal plan
LISI GROUP OUTLOOK & TARGETS FOR 2022
The Group remains mobilized to face the challenges of a global economic environment that remains complex, such as volatility in the automotive industry, historical inflation levels in manufacturing costs and tensions in the job market.
The robustness and resilience that it continues to display testifies to the effectiveness with which the actions undertaken quite some time ago are conducted to lower the breakeven point of its activities, make its production capacities more flexible, digitize and automate both industrial processes and administrative procedures as well as deploy a social and environmental responsibility (CSR) policy. The compensation effects between the divisions smooth the magnitude of the variations in short-term results and the positive orientation of volumes in the Aerospace and Medical divisions constitutes a positive lever in the short term. The levels of order intake for new products in the three divisions position the Group favorably in its various markets for the future.
In this context and excluding the immediate recession of its markets, the Group confirms its objectives for 2022 as published on April 20: return to positive organic growth, improvement of the main financial indicators and maintenance of positive operating Free Cash Flow, while ensuring the planned increase in investments in equipment and productivity.