(Boursier.com) — The normalization of the market with a return to price levels prior to the COVID 19 crisis and the drop in demand have resulted in a sharp erosion of the group’s consolidated turnover over the past 12 months. Euromedis. It amounts to 29.3 million euros (71.9 ME for the 1st half of 2021 and 40 ME for the 2nd half of 2021).
Consolidated EBITDA was -5.1 ME (10.5 ME in the 1st half of 2021 and -4.1 ME in the 2nd half of 2021).
Net income group share stands at -6 ME (3.8 ME in the 1st half of 2021 and -1.5 ME in the 2nd half of 2021).
As of June 30, gearing stood at -45.9% as of June 30, 2022 against -1.2% a year earlier, with -16.1 ME of net debt for 35.1 ME of equity.
What consequences of the war in Ukraine?
After suffering the brutal impact of the market reversal in the 2nd half of 2021 with the end of the Covid-19 crisis, the effects of which are lasting on business, the group had to deal in the 1st half of 2022 with the first consequences of the war in Ukraine.
Thus, the improvement in purchasing conditions in Asia prompted the group to record sales with negative margins in order to ensure its resupply under better price conditions. At the same time, the appreciation of the dollar, making the purchase price of goods imported from Asia more expensive, also had a negative impact on the level of margin observed over the period. Finally, the increase in transport costs, which represents the first item of the group’s external expenses, weighed significantly on the level of profitability recorded in the first half of 2022.
Outlook for the 2nd semester
The global geopolitical environment induces great uncertainty on the evolution of the price of energy, currencies and certain raw materials. The activities of the group’s subsidiaries will continue to be adversely affected in the second half of 2022. Thus, “the 2022 financial year will remain loss-making on all of the group’s activities”warns Euromedis.
About the activity “own brand”the improvement in the production capacities of Asian suppliers, the drop in pressure on freight rates observed in recent weeks and the recent gain in new hospital markets should make it possible to return to a profitable level of activity from 2023.
About the activity “distribution”, despite the difficult economic conditions, we are continuing with the store network reorganization plan, the opening of service centers and the recruitment of sales forces. The development of the network of members as well as a more sustained activity of our e-commerce site should allow the company to reach a profitable level of activity.