ABEO: ABEO: solid 2022/23 annual results – 06/06/2023 at 18:00

• Revenue growth target achieved at +16.3%
  

• Current EBITDA
  [1]
  of €27.5 million, i.e. an EBITDA margin of 11.5%
  

• Positive free cash flow of €4.8 million
  

• Prospects for 2023/24 well oriented
  

ABEO, one of the world leaders in sports and leisure equipment, publishes its consolidated annual results for 2022/23.

• Consolidated annual results 2022/23
  
  (1
  
  ^er
  
  April 2022 to March 31, 2023) audited – ABEO’s Board of Directors met on June 6, 2023 and approved the accounts for the 2022/23 financial year. The auditors’ audit procedures have been carried out. The certification report will be issued after the finalization of the procedures required for the publication of the 2023 Universal Registration Document.

On the occasion of the publication of the 2022/23 annual results, Olivier Estèves, Chairman and Chief Executive Officer of ABEO, comments:

“In a complex macroeconomic environment, the Group once again achieved a solid financial year in line with the guidelines set. Despite the impact of the inflationary context on our profitability, the quality of our results illustrates the relevance of our economic model, characterized in particular by a very wide geographic and market diversity, as well as the mobilization and responsiveness of the teams to adapt to a volatile environment.

Over the 2023/24 financial year, the Group will continue to rely on its know-how, its organization and its optimized operational performance model, to support profitable growth.

Finally, as Official Supporter of the Paris 2024 Olympic and Paralympic Games, we will have the honor of showing the quality of our products and services, commensurate with the sporting performance of the best athletes. »

Revenue up 16.3%, of which 12.2% organically, in line with the set trajectory

During the 2022/23 financial year, ABEO achieved a turnover of €238.8 million, up sharply by 16.3% (+12.6% organically) in line with the announced objectives. For the second year in a row, the Group’s 3 divisions posted growth momentum: +22.0% for Sport, +8.4% for Sportainment & Climbing and +12.4% for Changing rooms.

Operational performance maintained despite a highly inflationary environment

Driven by the recovery of activity and by good control of operating expenses, current 2022/23 EBITDA stands at €27.5 million

[2]

up 4.1%, i.e. a margin rate of 11.5% of revenue, a contained decline of 1.3 points compared to the 2021/22 financial year in an inflationary context and a recruitment strained.

This development includes:

• a limited decline of 0.7 point in the gross margin rate to 60.4%, thanks to the impact of raw material inflation in selling prices,

• control of operating expenses

  [3]

  (+15%) which decreased by 0.6 point as a percentage of revenue (51.7% compared to 52.3% in 2021/22).

Compared to the 2019/20 financial year before the health crisis, the Group’s current EBITDA margin rate improved by 2.1 points, confirming the lasting effects of the performance plan.

The division

Sport

posted a current EBITDA of €17.1 million, or 13.8% of the division’s turnover, down 1.6 points compared to the previous financial year, mainly due to the inflation suffered on the 1

^er

semester, but attenuated in the 2

^n/a

semester (current EBITDA margin of 15% of sales).

The division

Sportainment & Climbing

achieves a current EBITDA of €1.6 million, at 3.3% of the division’s turnover, down slightly by 0.5 points compared to the 2021/22 financial year. The control of fixed costs allows the division to demonstrate operational resilience despite a more competitive environment on the 2

^n/a

semester and a market situation still below the pre-covid level.

The current EBITDA of the division

Cloakrooms

amounted to €8.8 million, representing 13.3% of the division’s sales, down 2.1 points compared to the 2021/22 financial year, suffering the inflationary effects while maintaining an optimized cost structure.

After accounting for depreciation and amortization (-€12.2 million, of which -€5.6 million related to IFRS 16), current operating income amounted to €15.2 million, up 0.5%, i.e. 6.4% of turnover.

Finally, operating profit stands at €14.6 million in 2022/23, up 3.0% compared to the previous financial year, and net profit, Group share for the period stands at €6.7 million compared to €7.2m over the previous financial year, impacted in particular by unfavorable exchange rate effects (-€1.1m compared to +€0.6m in 2021/22).

Sound financial situation

During the 2022/23 financial year, ABEO generated a largely positive cash flow of €27.2 million. As announced, the free cash flows on the 2

^n/a

have improved significantly (+€19.6m vs. -€14.8m in H1), to stand at +€4.8m over the year, thanks to good control of the working capital requirement on the 2

^n/a

semester (+€10.0m vs. -€22.2m in H1 2022/23).

As of March 31, 2023, ABEO has available cash of €31.6 million. Net financial debt amounted to €87.1 million (€53.1 million excluding IFRS 16) for shareholders’ equity of €111.2 million (€112.4 million excluding IFRS 16). Thus, excluding IFRS 16, ABEO shows a gearing

[4]

of 0.47 and a leverage ratio

[5]

controlled by 2.4.

Dividend proposal of €0.33 per share for the 2022/23 financial year

The Board of Directors will propose to the General Meeting of July 18, 2023 a dividend of €0.33 per share for the 2022/23 financial year.

Evolution of the Board of Directors

The Board of Directors, meeting today, took note of the resignation of Crédit Mutuel Equity SCR, represented by Mrs. Agnès Tixier, from her term of office as director with effect from June 6, 2023. The Board thanked Agnès Tixier for the work done during his tenure. ABEO’s Board of Directors is now made up of 7 directors, including 3 independent directors.

Trends and outlook

Commercial activity as of March 31, 2023 is dynamic, with order intake

[6]

well oriented which amounted to €238.6 million, up 7.2% compared to the previous financial year. Thus, ABEO is confident in maintaining its commercial development at a sustained pace over the 2023/24 financial year, with the preparation of the Paris 2024 Olympic Games in sight, where ABEO will be present through 3 of its brands: Gymnova (Gymnastics), EP (Climbing) and Schelde Sports (Basketball).

While taking into account the persistent inflationary environment, the Group reaffirms its priorities:

• maintenance of a solid level of operational performance in a context of growth,

• generation of free cash flow resulting both from the expected growth in cash flow and from a return to a more normal level of the working capital requirement.

Finally, the Group intends to pursue its value creation strategy combining organic growth and targeted acquisitions in order to consolidate its market share, complete its brand portfolio and conquer new segments.

Upcoming meetings

July 18, 2023 – Combined General Meeting (Rioz)

July 20, 2023 – Turnover of 1

^er

quarter 2023/24 (after market)

Find all the information on www.abeo-bourse.com

contacts

For any questions related to this press release, or to ABEO, please contact

NEWS finance & communication

Investor Relations – Corinne Puissant

[email protected]

Phone: 01 53 67 36 77

Press relations – Serena Boni

[email protected]

Tel: 04 72 18 04 92

[1]

Current Operating Income + depreciation and amortization

[2]

2022/23 current EBITDA excluding IFRS 16 of €21.5m, i.e. 9.0% of revenue

[3]

of which staff costs adjusted for government aid

[4]

Net financial debt to equity ratio (excluding IFRS 16)

[5]

Net financial debt to current EBIDTA ratio (excluding IFRS 16)

[6]

Non-financial data – to measure the commercial momentum of its activities, the Group uses, among other things, the valued amount of orders taken over a given period. This indicator of commercial dynamics represents the total of all orders recorded over the period mentioned and compared with the same period for the previous year.

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