WINFARM : H1 2023 revenue up 16.2%.
PRESS RELEASE Loudéac, 5 September
2023
H1 2023 revenue up 16.2%
WINFARM (ISIN: FR0014000P11 - ticker:
ALWF), the number-one French distance seller of goods and
solutions and provider of advisory and other services for the
farming and breeding industry, today released its H1 2023
revenue.
In millions of euros, unaudited |
H1 2022 |
H1 2023 |
Change |
Change at constant scope 1 |
Farming Supplies |
55.2 |
65.6 |
+18.8% |
+0.3% |
Farming Production |
5.5 |
4.8 |
-12.6% |
-12.6% |
Other 2 |
0.8 |
1.0 |
+39.0% |
+39.0% |
TOTAL |
61.5 |
71.5 |
+16.2% |
-0.1% |
WINFARM posted consolidated revenue of €71.5m in
H1 2023, up 16.2% compared with H1 2022 and stable on a
like-for-like basis.
Over the period, Farming
Supplies (92% of half-year revenue), marketed under the
Vital Concept brand, posted revenue of €65.6m, up 18.8% (+0.3%
like-for-like). Business was driven by the contribution of the
Kabelis Group companies (€10.0m of the total), consolidated in the
Group scope since August 2022. BTN de Haas, acquired in the
Netherlands in July 2021, also contributed significantly to
business in the first half, reflecting both the relevance of the
acquisitions made by WINFARM in recent years and the Group’s
ability to successfully integrate the businesses acquired.
The widespread easing in selling prices in some
markets in recent months, including nutrition and health, weighed
mechanically on revenue. Against this backdrop, Group sales
remained stable, with an increase in the number of orders and the
acquisition of new market share. Having built up inventories
consistent with its reasonable purchasing policy, WINFARM has taken
a successful proactive approach by adapting its catalogue prices to
remain competitive with its customers while maintaining its
operating margins.
Revenue from the Farming
Production business (7% of half-year revenue), marketed
under the Alphatech brand, amounted to €4.8m, down 12.6%. After a
sharp increase in sales in 2022, stemming in particular from the
recovery in sales for export (30% of Farming Production sales),
business slowed in H1 2023 as some countries (including Pakistan,
Bangladesh and Egypt) experienced difficulties accessing euro
currencies, which limited their ability to place orders. The
situation has now returned to normal and order intakes have
resumed.
In the current quarter, the Company will also be
able to count on the increase in its production level, bolstered by
the commissioning of its new production line in April 2023.
Currently in the ramp-up phase, this extension to the existing
plant will enable the Group to boost its price-volume
competitiveness in segments where it already enjoys a strong
reputation.
“Other activities”, comprising Farming
Advisory (marketed under the Agritech brand) and
Farming Innovation (marketed by the Bel-Orient
pilot farm), a technological showcase and demonstration of the
Group’s farming expertise, posted a 40% increase in sales.
2023: Focus on preserving
margins
With selling prices expected to continue
declining over the coming months, WINFARM has established a sales
strategy to safeguard order-intake momentum, operating margins and
the Company’s leading position in its market. The strategy has four
key strategic priorities:
- Offer competitive
prices on loss leaders, including in healthcare, seeds and harvest
products;
- Increase the
average basket by offering complementary products, particularly
own-brand, which have stronger margins;
- Increase order
volumes, in particular by encouraging customers who make occasional
orders to make more frequent orders;
- Continue to enhance
purchasing by favouring the marketing of higher-contribution
products.
The decline in selling prices, combined with
persistently high expenses, is expected to temporarily weigh on
half-year margins. To shore up profitability, the Group will
continue to exercise strict financial discipline.
After the successful acquisition of BTN de Haas
in 2021 and the Kabelis Group companies in 2022, WINFARM will
continue to explore external growth opportunities, the aim being to
strengthen its positions and gain a stronger foothold at the
European level.
In addition to the one-off price adjustment and
its mechanical effect on revenue for the period, the Group in the
long term is reasserting its target of annual revenue of around
€200 million by 2025 and an EBITDA margin of around 6.5%. To that
end, WINFARM will draw on the strength of its model which is
underpinned by key fundamentals that create results:
- A solid business
model combining an established long-standing business activity and
high-potential growth drivers;
- An extensive
catalogue constantly renewed through continuous innovation;
- Competitive prices
fully transparent to customers, along with optimised costs;
- A proven ability in
acquisitions and integrations;
- A unique
positioning at the centre of the agricultural market, creating
competitive offers for its farmer customers.
Next release:H1 2023 results on
5 October 2023, after market close.
About WINFARM
Founded in Loudéac, in the heart of Brittany, at
the beginning of the 1990s, the Winfarm group is today the leading
French player offering the agricultural, livestock, horse-breeding
and landscape markets a range of consultancy, service and distance
selling products and global, unique and integrated solutions to
help them meet the new technological, economic, environmental and
social challenges of the new generation of agriculture.
With a vast catalogue of more than 35,000
product references (seeds, phytosanitary, harvesting products,
etc.), two-thirds of which are marketed under own brands, WINFARM
has more than 45,000 customers in France, Belgium and the
Netherlands.
By 2025, WINFARM aims to achieve revenue of
around €200m and an EBITDA margin of about 6.5%.
For more information about the company:
www.winfarm-group.com
Contacts:
WINFARMinvestisseurs@winfarm-group.com |
|
ACTIFIN, Financial CommunicationsBenjamin
Lehari+33 (0) 1 56 88 11 11winfarm@actifin.fr |
ACTIFIN, Financial Press RelationsJennifer
Jullia+33 (0)1 56 88 11 19jjullia@actifin.fr |
1 Excluding the consolidation of Kabelis Group
companies in revenue.2 Revenue from farming advisory services
(under the Agritech brand) and experimental farm activities (under
the Bel-Orient brand).
- WINFARM_PR_SALES_H1_2023_EN_vdef
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