EXEL INDUSTRIES :2016-2017 first-quarter revenue Recession in Agricultural Spraying in France

PRESS RELEASE                                                                                                        January 24, 2017

*Constant scope = 2015-2016 current scope excluding ET Works acquired in January 2016

Revenue for the first quarter of 2016-2017 (October to December 2016) was €134 million, identical to the same quarter 2015-2016.
At constant consolidation scope, revenue was €120.7 million, a drop of €14.8 million largely due to Agricultural Spraying. As predicted, the recession in agriculture in France has been severe, while growth was significant in Russia, Ukraine and Australia.

• Agricultural Spraying

Agricultural spraying in France and the United States remained in the strong grip of recession during the first quarter. The positive effect from the Macron Law occurred the previous year. As a consequence, at constant consolidation scope excluding ET Works (USA) there was a €16.5 million decline in revenue. 

• Sugar Beet Harvesters

Volume here was better than last year, and sales took off largely thanks to Russia and Ukraine. First-quarter revenue rose €3.3 million.
The outlook for revenue is better than last year, with the recovery plans in Russia and Ukraine along with an increase in hectares planted in Europe following the agreement reached between sugar producers and beet producers.

• Spraying and Watering for Garden

Revenue is in line with the same quarter last year, bearing in mind that the first quarter generally accounts for 10% of yearly revenue.
This Q1 was devoted to making logistical preparations for new distribution contracts.

• Industrial Spraying

Revenue is in line with last year, with a large order book that should create revenue throughout the 2016-2017 fiscal year.
Staff have been working on the merger of Kremlin-Rexson and Sames Technologie, enabling the new entity to speed development of our Industrial Spraying business in its various markets.

• Outlook and Strategy

Guerric Ballu, CEO of EXEL Industries Group, noted:

"The first quarter showed the ongoing recession in agricultural spraying in France and the USA, as well as good performance from the other businesses. Our subsidiary ET Works has started to benefit from the Group's marketing synergies, and for the first time sold agricultural self-propelled sprayers in Ukraine, through the Berthoud Agricole network.
Matrot Equipements and Hardi Evrard have the project to merge, in order to optimize their manufacturing and customer contact.
Sugar Beet Harvesters have been buoyed by the stimulus programs in Russia and Ukraine.
The reorganization of Industrial Spraying via merger will increase our synergies and competitiveness in all markets worldwide, and help us serve our customers better. This merger will create a leader among the large global companies in this sector.

All Garden employees are now involved in implementing new distribution contracts, which will greatly give access to countries in Europe where Hozelock products were not before, and that will  impact the revenue from February onward.

In line with our growth strategy, we continue to carry out our innovation policy in all of our business lines, with new products launched on the markets in the Watering and Gardening activity with the Super Hose and Pice Power, and in the Industrial Spraying activity with the Infinistream and the electrostatic chemical conversion for spraying aluminium sheets.
In the agricultural business, all our brands will be represented at the next SIMA in February 2017, featuring many innovations, including a carbon-fiber spraying ramp, sprayers by drones, adjustable ground clearance, spraying equipements for straddle tractors, and fully automatic  truck filling for cleaner loader in the Suger Bettes Harvesters business.

New fiscal year: new basis of comparison

The Annual General Meeting on January 12, 2016 agreed that, from the 2015-2016 fiscal year onwards, the EXEL Industries group's fiscal year would end on September 30.
This will mean a 13-month fiscal year for 2015-2016. Thus, fiscal year 2016-2017 will begin October 1, 2016 and end September 30, 2017.  The quarters will henceforth be the calendar quarters.

Next event: Annual Ordinary General Meeting: February 9, 2017
        2016-2017 first-half revenue: April 20, 2017

About EXEL Industries: www.exel-industries.com,   @EXEL_Industries

EXEL Industries' main businesses are agricultural sprayers (world leader) and industrial spraying. The Group also competes in the consumer watering products market (European leader) and in sugar beet harvesters (world leader). EXEL Industries is continually expanding its markets by means of constant innovation and an international strategy. EXEL Industries employs around 3,750 people spread over 29 countries on 5 continents.

NYSE-Euronext Paris, SRD Long, CAC Mid&Small 190
EnterNext© PEA-PME 150 index (Ticker EXE / ISIN FR0004527638)

This press release is available in French and English on the website, Facebook and Twitter.
The SFAF presentation is available at www.exel-industries.com.

Guerric Ballu                                                               Sylvain Rousseau                                                                               
Group Chief Executive Officer                                 Group Chief Financial Officer / Investor Relations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Group Chief Financial Officer/Investor Relations
                                                                                       Sylvain.Rousseau@exel-industries.com   
                                                                                       Tel.: + 33 (0)1 71 70 49 50