(Boursier.com) — The first half of 2023 was marked by a less favorable economic situation than that of the previous year underlines Jacquet Metals :
– The decline in demand and prices observed at the start of the year has intensified since the 2nd quarter and continues in the 3rd quarter;
– Demand is affected by the general slowdown in manufacturing activities, particularly in Germany;
– This trend is accompanied by strong pressure on gross margins.
Under these conditions, the group recorded sales of 1,270 million euros, 14.2% lower than those of the first half of 2022.
The gross margin amounts to 22.4% of turnover compared to 27.3% a year earlier and the current EBITDA stands at 100 million euros, representing 7.9% of turnover. compared to 14.1% a year earlier.
Net Profit Share of the Group is 49 million euros, compared to 126 million euros at the end of June 2022. During the period, the Group generated 134 million euros in operating cash flows and consolidated its structure financial with equity of 690 million euros and a net debt to equity ratio (gearing) of 23% (35% at the end of 2022).
Investments (excluding external growth) represented 15 million euros, mainly dedicated to strengthening the capacities of distribution centers as well as improving and renewing their equipment.
The STAPPERT division was established in Italy at the beginning of 2023 with the acquisition of the company Delta Acciai (10 million euros turnover) and now has 2 distribution centers located in Turin and Milan.
More recently, in June 2023, the IMS group division acquired the German company Cometal Metallhalbzeuge (15 million euros turnover), specializing in the distribution of aluminum.
As a reminder, the IMS group division has signed an agreement for the acquisition in a few months of 7 distribution companies which will strengthen its positioning in Central and Eastern Europe. Completion of the transaction is subject to suspensive conditions, including the approval of the competent competition authorities.
In the 3rd quarter of 2023, changes in market conditions lead the Group to anticipate a level of activity significantly lower than that of the 3rd quarter of 2022.
In this environment, the Group will focus on managing its Working Capital Requirements and, with its financial strength, will continue its investment and development policy.
Financial structure in the first half of 2023
In the first half of 2023, the group generated positive operating cash flow of €134 million.
The operational working capital requirement amounts to 694 million euros (28% of turnover) compared to 746 million euros at the end of 2022 (28% of turnover), with inventories down by 39 million euros over the period (741 million euros at the end of June 2023 compared to 780 million euros at the end of 2022).
After financing investments and acquisitions of the companies Delta Acciai and Cometal Metallhalbzeuge, net debt amounted to 162 million euros at the end of June compared to 234 million euros at the end of 2022. The ratio of net debt to equity (gearing ) stands at 23% compared to 35% at the end of 2022.
Cash flow as of June 30, 2023 amounts to 266 million euros and credit lines to 813 million euros (including 385 million unused).
In July 2023, the financing structure was strengthened with the establishment of a new syndicated loan of 160 million euros with a maturity of 3 years (July 2026) replacing the previous syndicated loan of 125 million euros .