AVENIR TELECOM: First-half 2022-2023 revenue: successful refocusing on the core business of sales of mobiles and accessories – 2022-10-28 at 18:30

• +10% growth in sales of mobiles and accessories;
  

• Confirmed cessation of the sale of laptops and tablets.
  

Marseilles, October 28, 2022

. Avenir Telecom, designer and distributor of mobile phones and mobility accessories marketed under an exclusive worldwide brand license

Energizer®

announces its half-year revenue as well as its earnings forecast for the period from 1

^er

April 2022 to September 30, 2022.

Performance of the core business activity

The group is now refocused on its core business, the sale of mobiles and accessories, for which the growth prospects seen at the start of the year have been confirmed. Thus, the turnover of this division is up 10%, to 11.8 million euros.

Avenir Telecom benefited from a large catalog of products and increasingly dense geographic coverage to generate this growth. The Europe Middle East Asia zone (68% of half-year sales) thus recorded growth of 72% and offset the 37% decline in the Asia Oceania zone (32% of sales) linked entirely to activity in Australia where accessories accessories

Energizer®

enjoyed a high penetration rate (30%).

In parallel, the 1

^er

semester 2022-2023 marks the effective cessation of sales of laptop computers and tablets, in accordance with the announcement made on June 22, 2022. Avenir Telecom has decided to end its partnership in the field, as it has did not generate the expected synergies and prospects. This results in residual revenue of 1.8 million euros at 1

^er

semester against 10.5 million in the 1

^er

half of the previous year.

Volume effect offset by currency gains

This growth in the core business took place in a context of component shortages, generalized inflation and logistical difficulties. This proves the Group’s very good operational control and makes it possible to maintain an operating margin rate, before central costs, estimated at the level that prevailed in 2021-2022. However, the overall reduction in the volume of activity carried out (13.6 million euros against 21.2 million) will weigh on the operating result for 1

^er

semester (-0.7 million in the 1

^er

semester 2021-2022).

This unfavorable change should be offset by the change in monetary parities (exchange gains on the valuation of assets) and interest rates (discounting the value of liabilities) so that net income from continuing operations is expected to be positive ( -1.6 million to 1

^er

semester 2021-2022).

Available cash of more than 25 million euros at the end of September 2022 and active search for acquisition opportunities

In accordance with its policy of sound management, Avenir Telecom perfectly managed this decline in activity as evidenced by its available cash estimated at 25.7 million euros at the end of September 2022 against 25 million euros at the end of March 2022. During this semester, the Group made marginal use of the equity financing line in the amount of 1.5 million euros.

In this context, Avenir Telecom continues its analysis of investment opportunities according to the 3 complementary axes defined in the strategic plan (enrichment of the license portfolio, signature of industrial and commercial partnerships and equity investments). After more than a year of active research through its own network, the Group commissioned a firm specializing in the field to help it identify and evaluate the files. The Group hopes to finalize an operation before the end of the financial year.

About

Future Telecom

The Avenir Telecom Group is a designer and distributor of mobile phones and mobility accessories marketed under an exclusive and worldwide brand license.

Energizer®

.

The products are currently present in more than 55 countries and more than half of the sales are made internationally. Avenir Telecom is listed on Euronext in Paris – compartment C (FR0013529815 – AVT). The Avenir Telecom share is part of the CAC Mid & Small and CAC Technology indices.

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