Press Release
Bollène, October 22, 2024- 08:00am (CET)
RESULTS FOR THE 1ST HALF OF 2024
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H1 2024 sales: €15.4M, down 19% EBITDA breakevenNet loss of €1.4M in the first half of 2024 compared with €0.9M in the first half of 2023Launch of a capital increase, by issuing shares with subscription rights, of around €1.8 millionAppointment of Philippe BENSUSSAN as Chairman of the Board of DirectorsOutlook Supply difficulties and the decline in activity of some customers will impact 2024 sales.Business diversification to pay off in earnings by 2025.The Group remains confident in its future thanks to its investments and the modernization of its industrial facilities.
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Egide Group (Euronext Growth Paris™- ISIN : FR0000072373 - Ticker: ALGID), worldwide provider of hermetic packages and heat dissipation solutions for sensitive electronic components, is today announcing its results for the 1st half of 2024.
The main financial indicators below illustrate Egide's rapid and significant recovery:
H1 2024* H1 2023*H1 2022 Variation
H1 2024/H1 2023 2023 €M%sales€M% sales €M% sales €M% sales €M% salesSales 15.43 19.19 16.02 -3.76-19% 36.71 EBITDA ** 0.13 0.8%1.30 7%-0.040% -1.17-90% 0.03-5%Operating loss -0.94-6%-0.34 -2%-1.29-8% -0.60-76% -2.06-13%Net Loss -1.40-9%-0.89-5%-2.02-13% -0.51-57% -3.12-17% * Unaudited
** Operating income excluding depreciation and amortization
The Audit Committee and the Board of Directors met to approve the half-year financial results as of June 30, 2024. As a reminder, on Euronext Growth, the half-year financial statements are not submitted to an audit by the statutory auditors (Euronext Growth Rules, art. 4.2.1). The financial statements presented below are not and will not be audited.
1. H1 2024 consolidated revenue
In the first half of 2024, consolidated sales amount to €15.6 M, down 19% compared with the first half of 2023. This €3.8 M decrease is due to :
€1.58 M from Egide SA, impacted by a very sharp drop in revenue from one of its main customers, which had its export licenses withdrawn. Business was also impacted by the lack of sales in China due to the geopolitical context.
€1,2M from Egide USA, impacted by a slowdown in sales to its main customer, due to overstocking and manufacturing problems, and by limited cash flow. Despite this difficult context, Egide USA maintained its diversification strategy by developing two new market segments: products for thermal batteries and for pyrotechnic and energetic devices for missiles. These new activities, although promising, encountered delays in their implementation, due to longer-than-expected customer qualification processes.
€0,98 M, from Santier impacted by disruptions to its supply chain due to limited cash and the failure of some of its suppliers to meet quality and delivery deadlines.
Revenue by facilities
Millions of euros
H1 2024 *H1 2023*VariationLike-for-like variation**€M% sales€M% sales€M% sales% salesEgide SA7.0446%8.6245%-1.58-18%-18%Egide USA5.1533%6.3533%-1.20-19%-19%Santier3.2421%4.2222%-0.98-23%-23%Group15.43100%19.19100%-3.76-19%-20% * Unaudited
** Like-for-like variation: at constant exchange rates
The Group's share of sales rose in the rest of the world (from 20% to 31%) but decreased in Europe (from 29% to 22%) and North America (from 51% to 47%). This is mainly due to the decline in activity from a major customer in France and the development of new customers and sales in the Middle East.
Revenue by Region
Millions of euros
H1 2024*H1 2023*Variation€M% sales€M% sales€M% salesNorth America7.2847%9.7251%-2.44-25%Europe3.4022%5.5629% -2.16-39%Asia & ROW4.7531%3.9120% 0.8421%Group15.43100%19.19100%-3.76-20% * Unaudited
2. Ongoing cost-cutting initiatives
Despite a €3.8m drop in sales, Egide limited the impact on its profitability in the first half (the net loss increased by only €0.5m) compared with the first half of 2023, thanks to two targeted measures:
A reduction in operating costs, notably staff costs, generating savings of 0.8 million euros in six months. This measure to reduce staff costs concerned in particular the executive management and management costs of the American subsidiaries.An increase in the purchase margin (sales less purchases and inventory variations) of 3.3 points (65.1% as of June 30, 2024 vs. 61.9% in the first half of 2023), i.e. around 0.5 million euros, driven by better control of purchasing costs. The breakdown of consolidated operating results by entity as of June 30, 2024 is as follows:
Operating Result (in €K, IFRS)
H1 2024*H1 2023*H1 2022Variation H1 2024/H1 2023 H2 2023*2023K€% salesK€% salesK€% salesK€%sales K€% salesK€%salesEgide SA- 299 21%- 34 4%-844%- 265 13% 13 -1%- 21 1%Egide USA- 1 051 75%- 710 80%-40320%- 341 17% -1 376 62%-2 086 67%Santier- 46 3%- 133 15%-95447% 87 -4% - 859 38%-992 32%Egide USA LLC (holding) - 8 1%- 11 1%-57529% 3 0% - 10 0%- 21 1%Group operating result-1 404 100%- 888 100%-2 016100%- 516 100% -2 232 100%-3 120100% * Unaudited
The Group's net loss was €0.5 million higher in the first half of 2024 than in the first half of 2023, but €0.8 million better than in the second half of 2023.
This loss is mainly attributable to Egide USA, which accounts for 75% of the total loss for the first half of 2024 and remains the main contributor to losses over the last three quarters.
3. Consolidated balance sheet as of June 30, 2024
Assets Liabilities In K€June 30, 2024Dec.31, 2023 In K€June 30, 2024Dec.31, 2023Intangible assets68 Shareholders' equity5 5947 029Rights of use assets2 8673 213 Tangible assets4 9415 504 Long-term liabilities654837Financial assets616539 Right-of-use liability - non-current2 7232 958Deferred tax assets251252 Long-term financial debt2 9003 298Non-current assets8 6819 516 Other non-current liabilities804896 Non-current liabilities7 0807 990Inventories and outstanding7 2457 003 Trade and other receivables6 0266 332 Suppliers and other creditors7 1676 471Cash 1 1623 201 Current portion of long-term debt5 1245 873Other current assets2 5902 137 Right-of-use liability - current739826Current Assets17 02318 673 Current liabilities13 03013 170Total Assets 25 70428 189 Total liabilities25 70428 189 Shareholders' equity amounted to €5.59 million, or 21.7 % of the balance sheet total.
The 1.435k€ decrease in shareholders' equity from 7.029 k€ as of December 2023 to 5.594k€ as of June 30, 2024, is explained by:
1.404k€ net loss, 39k€ currency exchange adjustment and 71k€ other P&L items.The decrease is mainly due to depreciation of 563k€ and 346K€ in the net value of fixed assets and rights of use respectively, the 909K€ decrease in non-current liabilities and the 1,510k€ decrease in working capital (calculated as the difference between current assets and liabilities). Net debt (defined as the difference between shareholders' equity and debt) increased from €5,970k as of December 31, 2023 to €6,862k as of June 30, 2024.
4. Launch of a capital increase with preferential subscription rights
Egide today announces the launch of a new capital increase in cash with preemptive subscription rights (the "Preemptive Subscription Rights”) for shareholders (the "Capital Increase”) for an amount of €1,806,596 through the issue of 3,613,192 ordinary shares (the "New Shares”) to witch will be attached 3,613,192 warrants (bons de souscription d'actions) (the "Warrants”) giving entitlement to 1,806,596 ordinary shares in the Company (the "Additional Shares”) (together, the "Shares with Warrants”). The Shares with Warrants will be issued at a unit price of €0.5, representing a premium of approximately 56.6% compared to the average closing prices of the 20 trading sessions preceding the determination of the issue price by the Board of Directors (€0.32).
Egide's shareholders will be able to subscribe to the Capital Increase at the rate of two (2) Shares with Warrants for nine (9) existing shares.
In this context, Egide received the following commitments:
From iXCore Group, an entity affiliated to Mr. Hervé Arditty, a commitment to subscribe on a non-reducible basis and, as the case may be, on a reducible basis and/or on a free basis, to 2,900,000 Shares with Warrants, for an amount of €1,450,000, representing 80% of the issue. The subscription of iXCore Group will be paid up (a) up to an amount of €750,000, by way of set-off with the shareholder's current account granted and paid to the Company on 19 September 2024 and (b) up to an amount of €700,000 (i.e. a maximum of 1,400,000 Shares with Warrants), in cash; andFrom SOGEFIP, a company affiliated to Mr. Michel Faure, a commitment to subscribe on a non-reducible basis and, as the case may be, on a reducible basis and/or on a free basis, to 100,000 Shares with Warrants, for an amount of €50.000, i.e. 3% of the issue. The subscription of SOGEFIP will be paid up by way of set-off with the €50,000 debt owed by the Company to SOGEFIP under the consultancy agreement dated 20 July 2023. These subscription commitments represent approximately 83% of the Capital Increase, thus guaranteeing that the transaction will be completed.
Details of the calendar and terms of this operation are attached at the end of this press release.
5. Egide Group governance evolves: Philippe BENSUSSAN appointed Chairman of the Board of Directors
The Egide Group's Board of Directors, meeting on October 21, 2024, today announced the appointment of Philippe BENSUSSAN as Chairman of the Board, succeeding Michel FAURE. This appointment marks a new era in the Group's development.
Mr. BENSUSSAN, who joined Egide's Board of Directors two weeks ago, will leverage his recognized expertise in the high-tech and defense sectors. With his successful track record at the head of Lynred and at the Direction Générale de l'Armement, he is perfectly positioned to steer Egide's strategy and enable it to seize future growth opportunities.
Biography Philippe BENSUSSAN
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