(Boursier.com) — Revenue recorded in the 1st half of 2022 by Delfingen amounted to €203.9 million, up 3.2% compared to the first half of 2021 at constant scope and exchange rates (+5.3% in published data).
Mobility division sales were up 2.7% at the end of June 2022 at constant scope and exchange rates (+6.5% in published data).
Global automotive production was down 1.8% in the first half in a still difficult context with tensions over electronic components, the Russian-Ukrainian crisis and health restrictions in China (two months of confinement in April and May).
DELFINGEN Industry outperformed the market by 4.5 points and by 7.6 points excluding the geographic mix effect of its sales. Indeed, the decline in automobile production is particularly marked in Europe/Africa (-10%) where the group generates 51% of its sales.
Gross margin stood at €96.1 million, or 47.1% of revenue (€101.6 million at June 30, 2021), down 5.3 points due to the continued rise in raw material prices raw materials, passed on to customers at different times.
Current operating income amounted to €11 million in the first half of 2022 (i.e. 5.4% of revenue), it was mainly impacted by:
– the drop in the gross margin of 5.3 points;
– Increase in the weight of other purchases and external charges by 0.9 points (energy and transport) and decrease in payroll by 1.9 points.
Other operating expenses include a loss of 2.7 ME corresponding to the disposal of the subsidiary DELFINGEN RU Volga.
The financial result is -1 ME, compared to -1.6 ME in the 1st half of 2021. The net result group share is 3.3 ME, compared to 12.7 ME in the 1st half of 2021.
Net financial debt amounted to €106.3 million at June 30, 2022, compared to €101.6 million at June 30, 2021, including €6.1 million from the increase in IFRS 16 debt. Investments amounted to €6.5 million, the working capital requirement increased by 8.9 ME under the combined effect of higher activity in the 2nd quarter and the increase in the value of raw materials in stock. The Gearing is 73% compared to 78% as of June 30, 2021, the leverage ratio is 2.88 compared to 1.79 as of June 30, 2021.
Prospects displayed
Uncertainty weighs on the markets with multiple factors such as the rise in production costs or the disruption of supply chains.
According to estimates from S&P Global Mobility (ex-IHS Markit) published in July 2022, global automotive production should stand at 81.1 million units in 2022, up 5% compared to 2021.
DELFINGEN Industry remains very cautious on market expectations. However, given its strategic positioning in vehicle electrical wiring protection solutions, its leadership and its global presence, DELFINGEN Industry anticipates a market outperformance of 2 to 3 points.
DELFINGEN Industry is adapting to these extreme economic conditions while seizing growth opportunities linked to the transformation of the market towards cleaner and responsible mobility.
Under these conditions, DELFINGEN Industry anticipates a performance in the second half of 2022 lower than that of the first half. Subject to a more unfavorable market context, 2022 turnover is expected to exceed 380 ME with an operating margin of around 5%.
The development of hybrid and electric engines, as well as car connectivity, make electrical wiring the true nervous system of the vehicle. DELFINGEN’s mission: to protect it by providing ever more innovative solutions with greater added value.