Exel Industries : Fourth-quarter 2019‐2020 revenue up 13% despite the health crisis

PRESS RELEASE                                                                                                                                                                                                                                                   October 27, 2020

Fourth-quarter 2019‐2020 revenue

up 13% despite the health crisis

*like-for-like = at constant foreign exchange rates and scope.

Q4 REVENUE

The 4th quarter 2020 (July-August-September) generated revenue of €229.6 million, up €26.7 million (+13.1%) compared with Q4 2019. At constant foreign exchange rates and scope, Q4 revenue amounted to €218.6 million, up 7.7% from Q4 2019.

This good performance is down to the hard work of our teams, who showed flexibility both during and after the lockdown. It also demonstrates the appropriateness and resilience of the Group’s business model, based on rapid adaptation to market conditions, combined with sectoral and geographical diversification.

The change in scope and exchange rates effect in Q4 concern the following items:

• A favorable change in scope (+ €14.6 million) following the acquisition of iNTEC, which has been consolidated since February 2020.
• An adverse currency effect (-€3.6 million) chiefly attributable to the Australian dollar, the Russian ruble and the Mexican pesos

• AGRICULTURAL SPRAYING

Revenue was €76.4 million, up €3.2 million (+4.4%), due to the deferral of deliveries and billing from Q3 to Q4, during which we were able to manufacture more machines despite COVID-19, thanks to the adaptability of our teams.

• SUGAR BEET HARVESTERS

Revenue was €60.3 million, up €0.9 million (+1.6%). We duly met the challenge of delivering over 50% of annual sales during the 4th quarter within the unusual context of the health crisis.

• GARDEN WATERING AND SPRAYING

Revenue was €31.7 million, up €13.6 million (+75%). The optimistic forecast for Q3 was borne out. Q4 2020 revenue marked a record high. The garden watering market remains fairly unpredictable, being heavily dependent on the weather. Numerous market operators source their supplies in Asia, requiring them to stock products ahead of season, and affording them little flexibility. Although we had difficulty in making timely deliveries to our customers due to the Covid-19 crisis, we believe that the location of our production sites in Europe  enabled us to provide a better service than the competition. 

• INDUSTRIAL SPRAYING

Revenue was €61.2 million, up €8.9 million (+17%), of which €14.6 million is attributable to the consolidation of iNTEC. At constant foreign exchange rates and scope, revenue fell in the wake of the difficulties in the automotive industry (primarily in Europe and North America) and the deferral of major summer projects until winter 2021.

Responses to the productivity and environmental challenges facing the automotive industry are being found in the innovative bonding solutions developed by iNTEC. Among other benefits, bonding allows the use of lighter composite materials, thereby increasing the operating range of electric vehicles and reducing consumption in fuel-burning engines.

ANNUAL REVENUE

For the full financial year ended September 30, 2020, the EXEL Industries Group generated revenue of €754.4 million, down €22.3 million (-2.9%) compared with end September 2019. At constant foreign exchange rates and scope, revenue came to €728.3 million, down €48.4 million (-6.2%). Although we ended our first financial half-year down 10%, this second half-year returned 3% growth.

In 2020, our agricultural activities recorded a slight increase, contrasting with the 5% fall in the global agricultural equipment market, despite the persistently low agricultural commodities prices.

The market for sugar-beet harvesters appears to have stabilized over the past 2 years, at the level to which we adapted our industrial plant in a depressed climate for the sugar industry.

The garden-watering sector is averaging 4% annual growth. It has benefited from the upsurge in enthusiasm of locked-down households, exceptional weather and a creditable rate of service considering the very high business levels of the last quarter.

Finally, the industrial-spraying sector was impacted by the slowdowns in the automotive and aeronautical industries, reflected in a lower demand for wearing parts and the deferral of painting-booth installation projects. On a positive note, over 9 months of the financial year, iNTEC contributed revenue of €28.9 million.

2020 – 2021 FORECAST

• AGRICULTURAL SPRAYING

Globally:

• A likely 2% to 4% fall on the French agricultural equipment market in 2021,
• Government support plans (in France, Australia, the USA and elsewhere),
• Brighter short-term trends in agricultural prices.

For EXEL Industries:

                  ·Finalization of the transformation plan in France, well received by the distributors,

                  ·New product launches.

• SUGAR BEET HARVESTERS
  
                    ·Uncertainty surrounding areas allocated to sugar beet growing in view of depressed sugar prices and the specific difficulties in the agricultural sector,
  
                     ·Increase in sales in France of our Terra Variant (a fast, multi-purpose transport vehicle suitable for field use).
• GARDEN WATERING AND SPRAYING
  
              ·Increase in production capacities and productivity in line with rising demand. Furthermore, we believe that our European production will become a major asset as consumers are seeking locally-manufactured products.
• INDUSTRIAL SPRAYING
  
                    ·Gradual recovery in the automotive industry,
  
                    ·Buoyant trends for new products,
  
                    ·Materialization of synergy gains between SAMES KREMLIN and iNTEC.

Yves Belegaud, CEO of the EXEL Industries Group, said: “Within this highly unusual context of a major health crisis, our teams throughout the world have shown great adaptability in compensating as far as possible for deferrals of business. Our decentralized economic model is once again proving its resilience. ”

Upcoming events

- December 17, 2020 before market opening: 2019-2020 Full-Year Results.

- January 26, 2021 after market closing: 2019-2020 Q1 Revenue.

About EXEL Industries:

EXEL Industries’ core business is agricultural and industrial spraying. The Group also competes in the consumer watering products market and in sugar beet harvesters. The goal of EXEL Industries is to expand in its markets through a policy of constant innovation and an international growth strategy. EXEL Industries employs approximately 3 544 people spread across 27 countries and five continents.

Euronext Paris, SRD Long only – compartment B (Mid Cap)

EnterNext© PEA-PME 150 index (Mnemo EXE / ISIN FR0004527638)

The SFAF presentation is available on the website

This press release is available in French and in English.

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