- Strong revenue growth in the first half of 2022 of
+33.8%
- Improvement in recurring EBITDA of €16.1 million in H1 2022
despite inflation pressure and global adverse economic
situation
- 2022 outlook confirmed, including increased trading activity
and significant improvement in recurring EBITDA
- Latecoèere is on track to deliver on its M&A strategy:
Post integration of Malaga Aerospace, Defence & Electronics
Systems SA (MADES) as of May 2022, target is to close the
acquisitions of Figeac Aero’s Hermosillo industrial site (Mexico)
and Avcorp Industries Inc. during Q4’2022.
Regulatory News:
Latecoere, a tier 1 partner to major international aircraft
manufacturers, today announced that the Board of Directors with
Chairman Pierre Gadonneix approved Latecoere’s financial statements
for the six-month period ended June 30, 2022, on September 19,
2022.
Thierry Mootz, Group Chief Executive Officer, stated: “We
are on track to deliver our targets for 2022. The half year results
reflect the increased level of production in the aeronautical
sector and the changes implemented by management to optimize the
group footprint and operating cost base, resulting in an
improvement in recurring EBITDA. We are starting to see the result
of our cost reduction programs, the optimization of the group’s
footprint as well as our commercial efforts, supported by an
industry backdrop that is experiencing a recovery in demand.”
1st Half Year 2022 Results
(€ million)
Jun 30, 2022
Jun 30, 2021 ³
Revenue
242,3
181,1
Reported growth
33,8%
-21,9%
On like-for-like and constant exchange
rate basis1
18,8%
-31,7%
Recurring EBITDA2
(6,9)
(23,0)
Recurring EBITDA margin on revenue
-2,8%
-12,7%
Recurring operating income
(22,7)
(36,5)
Recurring EBIT margin on revenue
-9,4%
-20,2%
Non recurring items
0,3
(2,8)
Other non recurring items
0,3
(2,8)
Operating income
(22,4)
(39,3)
Net Cost of debt
(3,3)
(1,4)
Other financial income/(expense)
1,2
(14,2)
Financial result
(2,1)
(15,6)
Income tax
(2,8)
(1,7)
Net result
(27,3)
(56,6)
Operating free cash flows
(75,5)
(16,7)
Latecoere's half-year financial results for 2022 reflect the
increased level of production in the aeronautical sector as a
whole. Revenues amounted to €242.3 million, up by €61.2 million or
+33.8%. At constant exchange rates and scope, the increase was
+18.8%. The increase in revenues benefited from higher production
rates, notably for the A320 and Embraer programs, albeit the
long-haul market segment continues to be challenging and impacted
by the B787 production halt that ended in August 2022.
The Group also benefited over the period from the contribution
of the activities of the new acquisitions, with a perimeter
variance effect of €19.0 million, and a favorable currency effect
of €14.1 million.
The Group reported a recurring EBITDA for the first half of 2022
of €(6.9) million, a demonstrable improvement of €16.1 million over
the first half of 2021. This improvement was mainly driven by a
recovery in margins in both business lines, in line with the
recovery in production rates, and in addition by a favorable
currency effect of €5.1 million and the impact of acquisitions
€(0,7) million.
Latecoere's net financial income amounted to €(2.1) million in
the first half of 2022, compared with €(15.6) million in the first
half of 2021. The previous period had been impacted by a one-off
effect related to the amortization of the shareholder loan in the
amount of €(16.4) million following its early repayment.
The Group's net income for the first half of 2022 amounted to
€(27.3) million, compared with €(56.6) million for the previous
period.
Free cash flow from operations for the period amounted to
€(75.5) million, which was mainly impacted by an increased working
capital requirement of €(38.0) million in connection with the
recovery in activity, and by the acquisition of MADES for an amount
of €(19.0) million.
At June 30, 2022, net debt amounted to €147.9 million, an
increase of €83.0 million compared to December 31, 2021, mainly due
to the €80.6 million reduction of the cash position. The cash
position at June 30, 2022 was €197.0 million.
The hedging portfolio amounted to $570 million at June 30, 2022
at an average EUR/USD rate of 1.16. Since June 30, 2022, the Group
has continued to put in place hedges for 2024, enabling it to
improve the average realized hedging rate.
Aerostructures
Revenues for Latecoere's Aerostructures Division rose by +22.3%
at constant exchange rates and scope of consolidation, compared to
€82.8 million for the first half of 2021. The segment's activity
benefited from significant overall recovery in production rates,
notably on the A320 and Embraer programs, despite ongoing
production challenges of the Boeing 787 program, following the
temporary halt in production in July 2021. Boeing has resumed 787
deliveries in August 2022, and Latecoere expect the Boeing 787
program will gradually resume production in the second half of
2022.
The division's recurring EBITDA amounted to €(2.4) million, an
improvement of €11.1 million, benefiting in particular from the
upturn in activity and the improvement in the hedged rate for the
period.
Aerostructures (€ million)
30/06/2022
30/06/2021*
Consolidated revenue
114,9
82,8
On like-for-like and constant exchange
rate basis
22,3%
-36,5%
Inter-segment revenue
11,6
10,2
Revenue
126,5
93,1
Recurring EBITDA
(2,4)
(13,5)
Recurring EBITDA margin on revenue
-1,9%
-14,5%
Recurring operating income
(11,2)
(21,0)
Recurring EBIT margin on revenue
-8,9%
-22,6%
* Adjusted data. See Note 4 to the Condensed Consolidated
Financial Statements
Interconnection Systems
Revenues of €127.4 million were up +15.4% at constant exchange
rates and scope of consolidation compared with €98.3 million in the
first half of 2021. This growth is notably driven by the increase
in deliveries from the A320 program.
Recurring EBITDA for the Interconnection Systems division
reached €(4.5) million, up by +€4.0 million compared to the
previous period, benefiting from the improving production dynamics
for the A320 and A350 programs during the period.
Systèmes d'interconnexion (€ million)
30/06/2022
30/06/2021*
Consolidated revenue
127,4
98,3
On like-for-like and constant exchange
rate basis
15,4%
-26,3%
Inter-segment revenue
0,5
0,5
Revenue
127,9
98,8
Recurring EBITDA
(4,5)
(9,5)
Recurring EBITDA margin on revenue
-3,5%
-9,6%
Recurring operating income
(11,4)
(15,6)
Recurring EBIT margin on revenue
-8,9%
-15,7%
* Adjusted data. See Note 4 to the Condensed Consolidated
Financial Statements
Confirmation of 2022 outlook
The Group confirms its guidance for the fiscal year 2022 in
terms of recurring EBITDA and free cash flow from operations,
namely:
• Revenue growth in excess of +20% on a reported basis and
organic growth (at constant exchange rates and scope of
consolidation) at the high end of the range of 15 to 19%;
• Significant improvement in recurring EBITDA, derived from
ongoing cost reduction arising from Latecoere’s footprint
optimization strategy and the ongoing recovery within the
commercial aerospace sector, offset by inflationary pressure
impacting 2022 and beyond. We expect EBITDA close to breakeven but
still negative in 2022; and
• Operating free cash flow will be impacted by the remaining one
off costs of Latecoere’s restructuring plans, the increase in
working capital due to revenue growth and key investments to
strengthen Latecoere's competitive position, including M&A.
Post-closing events
None to report
_________________________________________________________________________________
About Latecoere
As a "Tier 1" international partner of the world's major
aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault,
Embraer and Mitsubishi Aircraft), Latecoere is active in all
segments of the aeronautics industry (commercial, regional,
business and military aircraft), in two areas of activity:
- Aerostructures (46% of turnover): fuselage sections and
doors,
- Interconnection Systems (54% of turnover): wiring, electrical
furniture and on-board equipment.
As of December 31, 2021, the Group employed 4,764 people in 14
different countries. Latecoere, a French limited company
capitalised at €133,912,589.25 divided into 535,650,357 shares with
a par value of €0.25, is listed on Euronext Paris - Compartment B,
ISIN Codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg:
LAT.FP.
1 Growth at constant exchange rates and scope of consolidation:
Organic growth is obtained by neutralizing the effect of the
EUR/USD exchange rate (use of a constant exchange rate for the
periods concerned) and by applying a constant scope of
consolidation (neutralization of the impact of
acquisitions/disposals).
2 Recurring EBITDA corresponds to current operating income
before depreciation, amortization and impairment of current
tangible and intangible assets.
3 Adjusted data. See Note 4 to the Condensed Consolidated
Financial Statements. In 2021, the Group presented, in parallel
with the IFRS consolidated financial statements, an adjusted income
statement (of a strictly non-accounting nature) mainly due to the
significant volume of transactions that did not qualify as hedge
accounting and which did not allow the Group to recognize the
foreign exchange gains and losses arising from these instruments at
the same level as the underlying asset concerned. As the use of
instruments not qualifying for hedge accounting has become
immaterial, the Group has concluded to no longer present adjusted
financial statements from January 1, 2022. However, in order to
ensure comparability of information, the Group presents adjusted
data as of June 30, 2021 in its business report. The reconciliation
table between the 2021 adjusted data and the consolidated data is
available in Note 4 of the notes to the Group's condensed
consolidated financial statements.
Appendix – Table of content
Half-Year Consolidated financial statements (IFRS)
Consolidated Income statement
('000 EURO) - 6 monts
June 30, 2022 June 30, 2021
Revenue
242 303
178 476
Other operating revenue
782
460
Change in inventory: work-in-progress & finished goods
7 100
-7 997
Raw material, Other Purchases & external charges
-168 108
-118 519
Personnel expenses
-97 622
-78 758
Taxes
-2 777
-2 431
Amortization
-15 797
-13 554
Net operating provisions charge
2 521
-3 609
Net depreciation of current assets
2 261
819
Other operating income
8 014
6 308
Other operating expenses
-1 355
-543
RECURRING OPERATING INCOME
-22 678
-39 348
Other non-recurring operating income and expenses
292
-2 753
OPERATING INCOME
-22 386
-42 101
Net Cost of debt
-3 328
-1 428
Foreign Exchange gains/losses
2 580
5 730
Change in fair value of financial derivative instruments
89
2 784
Other financial incomes and expenses
-1 457
-16 903
FINANCIAL RESULT
-2 116
-9 816
Income tax
-2 829
-1 700
NET RESULT FOR THE PERIOD
-27 331
-53 617
• Of which, Owners of the parent
-27 331
-53 617
• Of which, Non-controlling interests
0
0
Hal-Year Consolidated Balance sheet
('000 EURO)
June 30, 2022 Dec 31, 2021
Goodwill
28 584
16 431
Intangible assets
65 847
67 541
Tangible assets
153 476
155 433
Other financial assets
5 268
5 105
Deferred tax assets
766
913
Financial derivative instruments
292
4 299
Other non-current assets
1 417
775
TOTAL NON-CURRENT ASSETS
255 650
250 497
Inventories
156 756
124 298
Accounts receivable
127 432
85 771
Tax receivable
12 131
9 829
Financial derivative instruments
0
2 574
Other current assets
2 913
1 613
Cash & Cash Equivalents
197 030
277 659
TOTAL CURRENT ASSETS
496 262
501 746
TOTAL ASSETS
751 912
752 243
LIABILITIES &
EQUITY ('000 EURO)
June 30, 2022
Dec 31, 2021 Share capital
133 913
132 746
Share premium
327 265
326 064
Treasury stock
-481
-477
Other reserves
-301 384
-196 695
Derivatives future cash flow hedges
-31 420
323
Group net result
-27 331
-110 975
EQUITY ATTRIBUTABLE TO PARENT OWNERS
100 562
150 986
NON-CONTROLLING INTERESTS
0
0
TOTAL EQUITY
100 562
150 986
Loans and bank borrowings
320 774
325 453
Refundable Advances
21 273
20 886
Employee benefits
12 549
16 060
Non-current provisions
26 779
25 281
Deferred tax liabilities
2 599
3 012
Financial derivative instruments
15 416
4 568
Other non-current liabilities
10 259
6 297
TOTAL NON-CURRENT LIABILITIES
409 648
401 557
Loans and bank borrowings (less than 1 year)
24 165
17 353
Refundable Advances
2 254
2 966
Current provisions
7 723
15 046
Accounts payable
152 730
122 729
Income tax liabilities
2 963
1 811
Contracts liabilities
31 261
33 700
Other current liabilities
4 618
4 262
Financial derivative instruments
15 988
1 832
TOTAL CURRENT LIABILITIES
241 702
199 700
TOTAL LIABILITIES
651 350
601 257
TOTAL EQUITY & LIABILITIES
751 912
752 243
Half-Year Consolidated cash flow statement
('000 EURO)
June 30, 2022 June 30,
2021 30/06/2022 Net result for the
period
-27 331
-53 617
Adjustments related to non-cash
activities : Depreciation and
provisions
10 062
15 571
Fair value gains/losses
-89
-2 784
Net (gains)/losses on disposal of assets (**)
-10 619
290
Other non-cash items
1 633
16 528
CASH FLOWS AFTER COST OF DEBT AND INCOME TAXES
-26 344
-24 011
Income taxes
2 829
1 700
Net Cost of debt
2 098
1 435
CASH FLOWS BEFORE COST OF DEBT AND INCOME TAXES
-21 417
-20 876
Changes in inventories
net of provisions
-15 993
10 999
Changes in client and other receivables net of provisions
-36 267
-7 585
Changes in suppliers and other payables
14 317
7 671
Income tax paid
-1 069
-3 095
CASH FLOWS FROM OPERATING ACTIVITIES
-60 429
-12 887
Effect of changes in group
structure (*)
-18 965
3 973
Purchase of tangible and intangible assets (including changes in
payables to fixed asset suppliers)
-8 215
-10 449
Purchase of financial assets
0
0
Increase (decrease) in loans and advances made
60
-504
Proceeds from sale of tangible and intangible assets (**)
11 000
92
Dividends received
0
0
CASH FLOWS FROM INVESTING ACTIVITIES
-16 120
-6 888
Proceeds from issue of shares
2 367
0
Purchase or disposal of treasury shares
-4
-4
Proceeds from borrowings
250
1 562
Repayments of borrowings
-205
0
Repayments of lease liabilities
-4 303
-2 815
Financial interest paid
-2 280
-1 516
Flows from refundable advances
-324
-635
Other flows from financing operation
0
811
Increase (decrease) in loans and advances made from financing
activities
0
CASH FLOW FROM FINANCING ACTIVITIES
-4 499
-2 596
Effects of exchange rate changes
419
270
Other changes without cash impact
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
-80 630
-22 102
Opening cash and cash equivalents position
277 620
77 589
Closing cash and cash equivalents position
196 990
55 487
(*) Composed of opening cash of Malaga
Aerospace, Defence & Electronics Systems SA (MADES) and put
option on this company paid at theend of May 2022 (**) Composed of
a net gain on the sale of property complex (Lot 2 Périole) for 11
M€.
Reconciliation of the consolidated financial statements to
the adjusted financial statements for the 1st half of 2021
In order to better monitor and compare its operating and
financial performance, the Group presents, in parallel with the
consolidated financial statements, adjusted financial
statements:
- for the foreign exchange result of instruments not eligible
for hedge accounting under IFRS. This result, presented as
financial result in the consolidated financial statements, is
reclassified as revenue (operating result) in the adjusted
financial statements,
- for changes in fair value, which include all changes in the
fair value of derivatives not eligible for hedge accounting and
relating to flows in future periods and the revaluation at the
hedged rate of balance sheet positions (trade receivables and trade
payables denominated in USD), the amount of which is presented in
operating income.
- changes in deferred taxes resulting from these items are also
adjusted if necessary.
Income statement for the 1st half of 2021
('000 EURO)
ConsolidatedincomestatementJune 30, 2021
Hedging
Adjusted incomestatementJune 30, 2021
Exchange rateresult Change infair value
Revenue
178 476
2 590
181 066
Other operating revenue
460
460
Change in inventory: work-in-progress & finished goods
-7 997
-7 997
Raw material, Other Purchases & external charges
-118 519
-118 519
Personnel expenses
-78 758
-78 758
Taxes
-2 431
-2 431
Amortization
-13 554
-13 554
Net operating provisions charge
-3 609
-3 609
Net depreciation of current assets
819
819
Other operating income
6 308
220
6 528
Other operating expenses
-543
-543
RECURRING OPERATING INCOME
-39 348
2 590
220
-36 538
Operating Income / Sales
-22.05%
-20.18%
Other
non-recurring operating income and expenses
-2 753
-2 753
OPERATING INCOME
-42 101
2 590
220
-39 291
Net Cost of
debt
-1 428
-1 428
Foreign Exchange gains/losses
5 730
-2 590
-438
2 702
Change in fair value of financial derivative instruments
2 784
-2 784
0
Other financial incomes and expenses
-16 903
-16 903
FINANCIAL RESULT
-9 816
-2 590
-3 222
-15 628
Income tax
-1 700
-1 700
NET RESULT FOR THE PERIOD
-53 617
0
-3 002
-56 619
• Of which, Owners of the parent
-53 617
0
-3 002
-56 619
• Of which, Non-controlling interests
0
0
0
0
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220920005982/en/
Taddeo Antoine Denry / Investor Relations +33 (0)6 18 07
83 27
Thibault Gential / Media Relations +33 (0)6 76 21 42 05
teamlatecoere@taddeo.fr
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