HERIGE: 2022 HALF-YEAR RESULTS – 09/13/2022 at 6:00 p.m.

A performance confirming the Group’s robustness in an inflationary environment

• Growth in the 3 business segments: +10.2%
  

• Improvement in operational performance: EBITDA +14.9% and REX +15.9%
  

• Continued external growth
  

HERIGE today publishes its results for the first half of the 2022 financial year. The consolidated financial statements were reviewed by the Supervisory Board which met on September 9, 2022.

1

Integration of the Vitrolles site (formerly Activence) for Industrial Joinery and of the Audoin et Fils company for the Concrete Industry

2

EBITDA: REX + net depreciation charges

3

Operating income before depreciation and amortization of goodwill

4

Restated for current account liabilities (€0.5m in H1 2022 and €0.3m in H1 2021) and excluding adjustment in July 2022 of receivables not factored in H1 2022

On the occasion of the publication of the 2022 half-year results, Benoît Hennaut, Chairman of the Management Board of the HERIGE Group, declared: ”

HERIGE recorded a very good performance in the first half of 2022 with solid growth while improving its operating profitability. The Group’s discipline has enabled us to pass on cost increases, thus protecting our margins, while remaining very attentive to inflation, which is the subject of particular attention. In addition, we continued our acquisition strategy in order to strengthen our positioning in our various businesses with operations able to serve our ambitions for profitable growth and our long-term commitment.

»

Continued improvement in operational performance despite a complex environment

For the first half of the 2022 financial year, HERIGE achieved revenue of €413.0 million, up +10.2% (+8.7% on a like-for-like basis) driven by the Group’s three businesses , benefiting from a favorable price effect and, to a lesser extent, a volume/product mix effect.

Gross margin amounted to €162.9 million, up €16.9 million compared to the first half of 2021, representing a gross margin rate of 39.4% of revenue, up 0.5 point compared to 2021.

Despite inflationary pressures on raw materials, transport and energy, EBITDA for the first half of 2022 increased by 14.9% to €31.0m compared to the same period in 2021 and the EBIDTA margin s at 7.5% (+0.3 point vs H1 2021).

Thus, the momentum recorded in all of HERIGE’s business lines, combined with continued vigilance on costs, allows the Group to achieve an improved operating result (+15.9% vs H1 2021) at 22.5 M€, representing an operating margin rate of 5.4% against 5.2% a year earlier.

After taking into account financial income of -€0.6m (vs. -€0.8m in H1 2021), exceptional income of -€0.4m (vs. -0, €2 million a year earlier), the net income Group share for the first half of 2022 represents a profit of €14.4 million compared to €12.4 million at June 30, 2021.

Solid financial structure

In the first half of 2022, investments amount to €9.3 million. As of June 30, 2022, the positive net cash position published at €14.0 million was temporarily penalized by an IT incident at the factoring level. Restated for this impact adjusted in July 2022, net cash amounted to €23.1 million compared to €25.5 million at June 30, 2021 and net financial debt remained under control at €105.1 million (vs. €m as reported).

With shareholders’ equity of €133.5 million, the restated net debt ratio stood at 78.7% (vs. 85.6% as published) against 69.9% a year earlier.

Thus, the Group maintains a solid financial structure enabling it to carry out new acquisition projects.

Developments and prospects

In a more uncertain environment, marked among other things by the first signs of a downturn in the construction market, the Group’s attention will remain focused over the coming quarters on:

• the acceleration of CSR actions within all activities and the implementation of the first non-financial reporting elements for 2023,

• the deployment of its offers contributing to energy efficiency,

• the consolidation of its performance, particularly in terms of resilience in the face of inflationary pressures which require finding the right balance between volume and operational performance,

• the integration of the latest acquisitions in Industrial Joinery and the Circular Concrete activity.

Furthermore, HERIGE intends to pursue its active and contributive policy of external growth to improve its sustainable performance, like the major strategic project aimed at the acquisition of PORALU Groupe announced on July 28th. In this respect, activity in the second half of 2022 should benefit from the activity of MGT Menuiseries Bois, the Group’s last acquisition made after closing.

Next communication:

Turnover of 3

^th

quarter of 2022, November 8, 2022 (after market)

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