THERMADOR GROUPE LETTER TO SHAREHOLDERS N° 111
July 27, 2023
Dear Shareholder,
Here are the main indicators on the current situation of our group.
2023 HALF YEAR TURNOVER : + 12.6% AT CONSTANT SCOPE : + 4.1%
In thousands of euros | 2023 | 2023 | 2022 | Variation | Variation |
2023 /2022 | |||||
Constant scope* | 2023/2022 | ||||
Constant scope* | |||||
Total half year - according to IFRS 15 | 323,665 | 299,366 | 287,553 | 12.6% | 4.1% | ||
1st quarter | 170,513 | 157,411 | 142,682 | 19.5% | 10.3% | ||
2d quarter | 153,152 | 141,955 | 144,871 | 5.7% | -2.0% | ||
Breakdown by business: | |||||||
Mecafer and Domac, equipment and tools | 17,982 | 17,982 | 17,258 | 4.2% | 4.2% | ||
Odrea (Dipra / Rousseau), pumps, technical plumbing | 38,882 | 38,882 | 36,515 | 6.5% | 6.5% | ||
accessories and taps | |||||||
Isocel, supply of components to OEMs | 6,024 | 6,024 | 5,729 | 5.1% | 5.1% | ||
Aello, equipment for swimming pools | 13,128 | 13,128 | 13,746 | -4.5% | -4.5% | ||
DPI*, plastic piping for wet and dry networks | 24,299 | ||||||
Jetly, pumps, tanks and lifting stations | 34,658 | 34,658 | 32,798 | 5.7% | 5.7% | ||
Thermador, accessories for central heating | 55,868 | 55,868 | 49,023 | 14.0% | 14.0% | ||
solar and domestic water | |||||||
PBtub | Heating - cooling surfaces | 15,886 | 15,886 | 16,323 | -2.7% | -2.7% | |
Thermacome | and piping systems | 11,800 | 11,800 | 13,033 | -9.5% | -9.5% | |
Axelair, ventilation equipment and accessories | 4,126 | 4,126 | 4,018 | 2.7% | 2.7% | ||
Sferaco, valves, meters and connectors | 43,340 | 43,340 | 40,288 | 7.6% | 7.6% | ||
Sectoriel, motorised valves and air compressors | 15,599 | 15,599 | 15,475 | 0.8% | 0.8% | ||
Distrilabo, measurement and control | 3,521 | 3,521 | 3,233 | 8.9% | 8.9% | ||
FGinox stainless steel connectors, flanges, valves | 8,865 | 8,865 | 9,955 | -10.9% | -10.9% | ||
and accessories | |||||||
Syveco, international | 17,590 | 17,590 | 17,272 | 1.8% | 1.8% | ||
Sodeco valves, industrial valves | 11,878 | 11,878 | 12,722 | -6.6% | -6.6% | ||
Other structures | 219 | 219 | 165 | 32.7% | 32.7% | ||
* 2023 turnover: with acquisition of DPI on October 31, 2022 by Thermador Groupe. Its turnover is consolidated since November 1st, 2022.
CONSOLIDATED HALF YEARLY SITUATION AT JUNE 30, 2023
Simplified Profit & Loss statement | 2023 | 2023 | 2022 | Variation | Variation |
2023 /2022 | |||||
in thousands of euros first half year | Constant scope* | 2023/2022 | |||
Constant scope* | |||||
Turnover (according to IFRS 15) | 323,665 | 299,366 | 287,553 | 12.6% | 4.1% |
Current operating income for the business | 47,182 | 45,762 | 41,311 | 14.2% | 10.8% |
Net profit as a portion of the group | 34,516 | 33,537 | 30,816 | 12.0% | 8.8% |
Detailed accounts are available on our websitehttps://www.thermador-groupe.fr/en/finance-en/regulated-information/
… / …
Head office: Parc d'Activités de Chesnes - 60, rue du Luzais - CS 10710 - 38297 SAINT-QUENTIN-FALLAVIER CEDEX - FRANCE
Tel. +33 474 95 63 28 - email :actionnaires@thermador-groupe.fr- Website:www.thermador-groupe.fr
Private limited company with capital of €36,803,396 - 339 159 402 companies register of Vienne - SIRET n°: 339 159 402 00017
BUSINESS
On a like-for-like basis, turnover was stable in the second quarter, taking into account two fewer billing days compared to 2022. However, there was a marked slow-down compared to Q1 2023, due to the unfavourable environment described below.
The MaPrimeRénov' funding mechanism seems to have stopped working. We have had communications to that effect from some of our customers who are experiencing major difficulties in obtaining funding from ANAH, the State-appointed body responsible for checking that work has been done properly and releasing grants accordingly: the engine room driving Thermador sales is clearly losing momentum.
The number of new housing starts continued to fall, with a direct impact on around 10% of consolidated business, affecting PBtub and Thermacome in particular, whose products are almost exclusively designed for this market.
The French swimming pool market is in sharp decline (at least 15%), hitting Aello's sales to their long-standing customers.
Manufacturing activity in France and Europe is declining, reducing demand for our industrial valve ranges.
The prices of certain raw materials, such as polyethylene, PVC and stainless steel, have fallen sharply in recent months, resulting in price-drops for specific products sold by DPI and FGinox. Fortunately, this phenomenon remains marginal. For the activities of Thermador Groupe subsidiaries, the average rate of inflation passed on to customers in the first half of the year was estimated at 8.2%, compared with sales growth of 4.1% at constant scope.
In order to gain greater control over the financing of energy-efficient building renovations and to anticipate regulatory changes affecting our products, we plan to acquire a minority stake in Femat Solutions (cf: our June 29th press release on our website).
RESULTS AND FINANCIAL POSITION
Despite a significant increase in costs (salaries, energy prices), our subsidiaries have managed to maintain their profitability. For Odrea, price increases have resulted in a return to profit levels close to those of June 2021. As a result, consolidated operating profitability is slightly higher than in 2022, at 14.6%.
At constant scope, our inventory continues to decline in line with the economic slowdown: 196 days of purchases, compared with 204 days at the end of June 2022. Our consolidated operating working capital requirement (without the company DPI) represents 42.6% of turnover for a 12-month rolling period (44% in June 2022 on the same basis).
At June 30, 2023, our cash position net of bank overdrafts was €11.9 million and our bank debt was €40.5 million. When compared to our equity of €335 million these are very reasonable amounts.
PROSPECTS
The business context described in the first section above suggests that we are entering a period of several months of decline in demand for many of our products. Our subsidiaries will step up their sales efforts to offset part of this expected downturn and, above all, to prepare for the future.
At the same time, they are working to develop new product ranges to ensure future growth and to meet environmental challenges: reducing greenhouse gas emissions from our products, saving energy and conserving water.
They are also considering how they can best support the energy renovation of buildings. This is a hot topic for the French authorities, who recently announced their intention to increase the 'MaPrimeRénov' budget to €4bn for 2024 onwards (compared to around €2.4bn in 2023).
For context, our sales only fell 5.5% during the 2009 financial crisis. We sell products and solutions that meet essential needs, which makes our Group very resilient. Over a 10-year period, we are therefore in line with the targets outlined on page 10 of our Universal Registration Document.
SUSTAINABLE DEVELOPMENT (ENVIRONMENTAL, SOCIAL AND GOVERNANCE)
We are keeping a close eye on discussions surrounding the new European regulations on the publication of a sustainability report for companies (CSRD), with a view to updating our current extra-financial performance statement when required.
As usual, we invite you to join us for a live web conference on Friday 28 July at 3pm CEST. To register, please click on this link.
Yours faithfully,
The Chairman
Guillaume Robin
To contact us:actionnaires@thermador-groupe.fr
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Thermador Groupe SA published this content on 27 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2023 16:01:31 UTC.
