Igny (France)
–
August 8, 2022
– Archos (Euronext Growth Paris: ALJXR), European pioneer in consumer electronics (the “
Company
“), announces its results for the first half of 2022.
The Group recorded revenue of €5.9 million in the first half of 2022 compared to €6.8 million in the first half of 2021, a decrease of 13%.
Consolidated turnover (in M€) |
1 |
1 |
Variation |
Change in % | |
ARCHOS SA | 1.9 | 3.9 |
-2.1 | -52% | |
INSTRUMENT LOGIC | 4.0 | 2.9 |
1.1 | 37% | |
Others | 0.1 | ||||
Total |
5.9 |
6.8 |
-0.9 |
-13% |
This decline is mainly due to the reduction in the market for consumer tablets. Sales of Logic instrument (B2B) are progressing well.
Simplified income statement (in M€)
Synthetic Consolidated Income Statement (in €m) |
06/30/2022 |
06/30/2021 |
Change in K€ |
Change in % |
Turnover |
5.91 |
6.82 |
-0.91 |
-13% |
Other Operating Income (Excluding Resumption of Prov.) | 0.26 | 0.34 | -0.08 |
-22% |
Consumed purchases | 4.46 | 5.47 | -1.01 |
-18% |
Gross margin (1) |
1.45 |
1.35 |
0.10 |
8% |
Gross margin rate on turnover |
25% |
20% | ||
Other operating expenses (Excluding Amortization and Depreciation) | 3.71 | 3.96 | -0.25 |
-6% |
EBITDA(2) |
-1.99 |
-2.27 |
0.28 |
12% |
Reversal of provision | 0.39 | 0.23 | 0.16 | NS |
Depreciation, depreciation and provisions | -0.08 | -0.14 |
0.06 | N/S |
Operating result |
-1.69 |
-2.18 |
0.50 |
+23% |
Financial income and expenses | 0.01 | 0.06 |
-0.05 | N/S |
Exceptional income and expenses | 1.29 | -0.34 |
1.63 | N/S |
Income taxes | -0.02 | 0.01 |
-0.03 | N/S |
Consolidated net income |
-0.40 |
-2.47 |
2.07 |
N/S |
N/S: “Not significant” | ||||
(1) Gross margin = Turnover – Purchases consumed |
(2) EBITDA – Operating income before depreciation and amortization is an indicator used by Management to measure operational and financial performance and to make investment and resource allocation decisions. The EBITDA subtotal is not necessarily comparable to similarly titled indicators presented by other companies.
The gross margin rate
of the Group stands at 25% compared to 20% in the first half of 2021.
Other operating expenses
amounted to €3.7 million against €4 million, a decrease of 6%, marking the continuation of efforts to reduce fixed costs.
The operating result
amounts to -€1.7m compared to -€2.2m in the first half of 2021
.
The exceptional result
amounted to +€1.29 million mainly resulting (for +€1.5 million) from the impact of the capital increase (subscribed by third parties) carried out on Medical Devices Venture in February 2022.
Consolidated net income
stood at -€0.4 million for the first half of 2022 compared to -€2.5 million in the first half of 2021.
Main consolidated balance sheet items
Asset |
06/30/2022 |
31/12/2021 |
Fixed assets |
0.54 |
0.80 |
Inventories and work in progress | 2.56 | 2.39 |
Customers and related accounts | 2.69 | 1.75 |
Other receivables and adjustment accounts | 2.72 | 2.48 |
Marketable securities | ||
Availability | 13.48 | 15.96 |
Total assets |
21.99 |
23.38 |
Passive |
06/30/2022 |
31/12/2021 |
Equity – Group share and minority interests |
-0.69 |
-2.75 |
Provisions |
0.83 |
4.88 |
Borrowings and financial debts | 9.33 | 11.59 |
Accounts payable | 9.41 | 6.35 |
Other debts and adjustment accounts | 3.12 | 3.31 |
Total liabilities |
21.99 |
23.38 |
Accounts receivable amounted to €2.7 million, up €1 million mainly due to the increase in turnover over the last two months of the period.
Provisions for contingencies and charges are down €4.7 million, mainly due to the transfer of the provision for litigation to supplier debt.
Cash stood at €13.5 million, down €2.5 million compared to 12/31/2021.
Other highlights
IPO of Medical Devices Venture
ARCHOS announced on February 8, 2022 the listing on the Euronext Access+ market of its subsidiary Medical Devices Venture by way of direct admission following a private placement for an amount of 2.3 million euros. The first listing took place on February 10, 2022. Medical Devices Venture was born from the meeting between renowned scientists in the medical field and ARCHOS, a specialist in the design and democratization of technology products, having in common to have the innovation rooted in their DNA. Launched in June 2021, Medical Devices Venture is a unique platform for investing in and accelerating new health technologies.
Reverse stock split
The Company announced on February 4, 2022 the launch of a share consolidation operation comprising its share capital at the rate of 10,000 old shares for 1 new share, in accordance with the first resolution approved by the extraordinary general meeting of shareholders dated of October 28, 2021. The launch of this merger was decided by the Board of Directors meeting of January 18, 2022, as announced by press release dated January 19, 2022. The merger operations took place from February 8, 2022 to March 10, 2022 inclusive. They took effect on March 11, 2022, the first day of listing of the shares resulting from the combination.
Impact of the Coronavirus or Covid-19 epidemic and the war in Ukraine
The coronavirus epidemic has had significant impacts on the global economic environment, with in particular the closure of certain activity areas, the modification of production rates but also the modification of lifestyles and consumption. This epidemic has had a significant impact on the ARCHOS Group since January 2020. Indeed, the Group’s main suppliers are located in China and they were impacted from January 2020, leading to supply interruptions and then logistical disruptions for the Band. A very sharp drop in sales was suffered from March 2020 when Europe began containment measures which continued intermittently until the beginning of 2022.
In 2021 and 2022, the group again suffered the commercial consequences linked to restrictions on access to major points of sale and those linked to the significant impacts of the pandemic on the availability of electronic components and on international transport costs (supplies from China in particular).
At this date, the supply situation remains quite tense for certain components that go into the composition of some of the Group’s products and it is difficult to predict when the situation will return to normal. These crises also influence consumer behavior and will probably have an impact on consumer trade-offs that the Group does not know how to assess.
Outlook for the ARCHOS Group
Group strategy for 2022
Faced with increased Chinese competition, ARCHOS decided in 2019 to make a profound change in its economic model. Thus ARCHOS is now deploying its strategy and its organization in the professions of the future where services and innovation are at the heart of the activity.
The Company now has the means to continue deploying its strategic plan in 2022, namely:
Carry out more than 50% of its activity in B2B in support of large accounts;
Accelerate the deployment of Medical Devices Venture and its innovative start-ups.
Furthermore, the Company does not rule out carrying out external growth operations if these are likely to accelerate the Group’s development program.
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About Archos
ARCHOS, an expert in mobile solutions, has constantly revolutionized this market both in the consumer electronics sector and in B to B with its subsidiary Logic Instrument. The French brand was thus the first to offer Google Android tablets in 2009. Today, ARCHOS designs and democratizes products with high innovation value and in 2021 created a MedTech division, Medical Devices Venture, which will bring together several startups. With a head office in France, offices in Europe and Asia, ARCHOS is asserting itself as a key pan-European player, listed on the Euronext Growth Paris market, ISIN Code: FR0000182479. www.archos.com
Contact @ ARCHOS
Investors
:
Loïc Poirier – Chief Executive Officer
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– Press release on accounts, results
Full and original press release in PDF format:
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