Jacquet Metals : Activity report as of March 31st, 2023

2023

Activity report

March 31, 2023

PRESS RELEASE

Q1 2023 results

Lyon, May 10, 2023 - 5.45 PM CEST

Sales: €692m (-4.4% vs Q1 2022)

EBITDA: €77m (11.1% of sales)

Net income (Group share): €44m

In Q1 2023, the Group posted sales of €692 million, down 4.4% compared to the same period in 2022.

The Group observed a decline in demand and prices in early 2023 which is likely to intensify in Q2.

The gross margin represented 25% of sales compared to 27.6% a year earlier and EBITDA amounted to €77 million, representing 11.1% of sales compared to 14% in Q1 2022.

Net income (Group share) amounted to €44 million compared to €63 million a year earlier.

During the period, the Group generated operating cash flow of €101 million and consolidated its financial structure with, as of March 31, 2023, shareholders' equity of €717 million and a net debt to equity ratio (gearing) of 23% compared to 35% at 2022 year-end.

The Group pursued its development, with capital expenditure of €8 million and the acquisition of Delta Acciai, an Italian company specializing in the distribution of stainless steel long products. This acquisition gives the STAPPERT division a foothold in Italy with 2 distribution centers in Turin and Milan.

Backed by its financial strength, the Group will continue its capital expenditure and development policy in an environment of reduced visibility.

The Board of Directors will propose a dividend of €1 per share to the General Meeting of shareholders on June 30, 2023.

Q1 2023 results

On May 10, 2023, the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the period ended March 31, 2023.

Consolidated sales amounted to €692 million, down -4.4% compared to Q1 2022, including the following effects:

• volumes sold: -10.6%;
• prices: +5.1% (-0.6% vs Q4 2022);
• scope: +1.1% following the acquisitions of Fidelity PAC Metals in May 2022 and Delta Acciai in February 2023.

Gross margin amounted to €173 million representing 25% of sales compared to €200 million in Q1 2022 (27.6% of sales).

Current operating expenses* amounted to €96 million (13.9% of sales) compared to €98 million a year earlier (13.5% of sales). Inflation and energy cost contributed for around €5 million to the increase in expenses.

* excluding depreciation, amortization and provisions €(9) million.

EBITDA amounted to €77 million and represented 11.1% of sales compared to €102 million a year earlier (14% of sales).

Adjusted operating income amounted to €68 million (9.8% of sales).

In this context, Net income (Group share) amounted to €44 million compared to €63 million in Q1 2022.