(BFM Bourse) – The manufacturer of the Rafale and the Falcon business jet range has published results that are well above expectations. The decline in revenue forecast by the company for 2023 was also already anticipated by analysts.
The 2022 financial year is a milestone for Dassault Aviation. Despite the tensions on the production chain, due to the persistence of the pandemic, the manufacturer of the Rafale recorded sustained activity and managed to improve its margins.
“In the continuity of 2021, the year 2022 is a historic year in terms of order intake”, rejoiced the CEO, Eric Trappier, quoted in a press release.
The group had already communicated in January its order intake and its deliveries in units of Rafale and Falcon, its range of business jets. But the amounts remained unknown. They turn out, in the end, to be impressive.
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Last year Dassault accounted for 21 billion euros in orders, with a total of 92 Rafale and 64 Falcon. The “book to bill”, i.e. the ratio of orders to sales, is more than 3.
At the end of December 2022, the order book amounted to more than 35 billion euros, against 20.76 billion at the end of 2021, which is simply the largest amount in the history of the group. Based on 2022 revenues, this order book ensures approximately five years of activity for the company.
Defense surprises analysts
Regarding the results strictly speaking, Oddo BHF notes that they “far exceed expectations”.
Adjusted revenue was 6.93 billion euros, down 4% year-on-year, mainly due to lower Rafale deliveries. Nevertheless, revenues are 7% higher than the consensus quoted by UBS, thanks to the defence.
Both export and French activities in this segment exceeded expectations, by 11% respectively for the former and 19% for the latter, according to UBS, with respective turnover of 3.6 billion euros. euros and 1.2 billion euros.
Although below the expectations of the design offices, revenues from the Falcons increased by 7%, with 32 aircraft delivered last year compared to 30 in 2021.
Adjusted operating profit surprised analysts even more, coming in at 572 million euros, 23% above consensus. The corresponding margin improved by 1 percentage point to 8.3%, the group citing “the good quality of contract execution” to explain this increase.
Net income stood at 591 million euros compared to 545 million euros in 2021.
Cash almost doubled
Another notable increase: that of available cash. In aeronautics, if the majority of payment for an aircraft takes place on delivery, orders are generally accompanied by the payment of a deposit by the ordering party. In view of the group’s exceptional year in terms of order intake, Dassault Aviation logically received many more deposits and therefore cash. Its available cash at the end of December thus amounted to 9.53 billion euros, a figure described as “impressive” by the bank UBS, not very far from double the 4.65 billion euros at the end of 2021.
On the strength of these results, Dassault Aviation proposes to distribute to its shareholders a dividend per share of 3 euros, up 20% over one year.
Regarding its outlook for 2023, Dassault Aviation intends to deliver 15 Rafale and 35 Falcon aircraft and is counting on a decline in turnover compared to 2022. This hardly surprises UBS, which recalls that the consensus anticipates this year a decline in revenues from 18% group.
At the Paris Stock Exchange, the entire publication delights the market. Dassault Aviation shares rose 11.7% to 178.40 euros around 1:40 p.m., marking by far the largest increase in the SBF 120.
Julien Marion – ©2023 BFM Bourse
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