LISI Group results in H1 2021: annual objectives confirmed
- Continuation of the global plan to adapt to market conditions caused by the global health crisis
- Increase of + 33.5 % in EBIT and 1.6 percentage point in comparable current operating margin1 despite the unfavorable impact of the industrialization costs of new products
- Main financial indicators improved compared to H2 2020
- Refocus on high added value activities continued with the sales of Jeropa (LISI MEDICAL, United States) on January 11, 2021 and LACE (LISI AEROSPACE, France) on March 4, 2021
LISI AEROSPACE (46 % of total consolidated sales)
- Business level at a low ebb in a context of gradual recovery in global air traffic
- Unfavorable basis of comparison given the strength of the "Fasteners" sector in Q1 2020
- Main management indicators improved compared to H2 2020 despite the numerous new product launches that weigh on the margin
LISI AUTOMOTIVE (44 % of total consolidated sales)
- Significant rebound in global sales of passenger vehicles which benefited from a very favorable base effect after the closure of car dealerships in Q1 2020 in China and in Q2 2020 in Europe and the United States
- Positive sales momentum disrupted in Q2 2021 by the impact of the global shortage of electronic components affecting all car makers
- Global tensions particularly marked in Europe and North America on the prices and supply of steel and plastics
- Sustained level of business in the development and industrialization of new products intended for new electric vehicle platforms, which weighs on the margin
- Good level of operating margin and definitely positive Free Cash Flow
LISI MEDICAL (10 % of total consolidated sales)
- Good visibility due to the resumption of surgical activities (minimally invasive and orthopedic)
- Ramp-up of new products in the minimally invasive surgery sector
- Improved operating margin for the third consecutive six-month period
- Continued refocus on high value-added activities with the sale of Jeropa in the United States on January 11, 2021 (€ 8.4 million sales in 2020)
Signs of recovery are perceptible in the markets in which the LISI Group's three divisions operate. The perspective of the end of the crisis is however made uncertain by the emergence of variants of the COVID-19 virus.
The robust performance of the Group should be confirmed in the second half of the year. As soon as business volumes pick up, it will be able to benefit from a significant operational leverage effect.
As previously announced, and barring a relapse in the global economic context, the LISI Group confirms that it has set itself the objective of achieving EBIT in 2021 at least equal to that of 2020, positive net income and a good level of Free Cash Flow.