(AOF) – Lectra announces that it will now directly ensure the production of its cutting equipment manufactured in China and mainly dedicated to its Asian customers. This specialist in technological solutions accelerating the transition to industry 4.0 for fashion, automobile and furniture players specifies that the Suzhou site, located to the west of Shanghai, will thus be able to benefit from the standards of operational excellence that it has already implemented at its two sites in Bordeaux-Cestas, France, and Tolland, in the United States.
Lectra underlines that after the resumption of internal production at the Tolland site in October 2022, the creation of the subsidiary Suzhou Lectra Equipment Manufacturing Co. Ltd. marks a new stage in the deployment of its industrial excellence strategy on a global scale. This involves favoring regional industrial production, “beneficial for local economic dynamism”.
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=/ Key points /=
– World number one in flexible material cutting systems;
– Turnover of €740 million achieved 49% in fashion, 29% in automobiles (airbags and seats), 11% in furniture and distributed between the Americas for 36%, Europe for 31% and Asia-Pacific for 25%;
– Business model of essential positioning in the textile industry 4.0 by 2030 and based on the recurrence of contracts (at 60% of turnover including 40% for perpetual software licenses), a strong generation of self-financing and, finally, the creation of a high technological heritage;
– Capital held at 14.6% by the founder Daniel Hariri and Rudi de Winter being president and CEO, the board comprising 8 directors;
– Healthy balance sheet with equity of €406 million and net debt of €4.8 million.
=/ Issues /=
– Strategy 2025:
– based on the optimization of synergies with Gerber, the acceleration of software sales on the SaaS model (from €21 million in 2022 to €70 million) and the pursuit of acquisitions,
– targeting a turnover of more than 700 million euros, including 10% SaaS turnover, and an operating margin of +20%;
– Innovation strategy financed by 10.1% of revenues:
– covering the development of software and Internet services, electronics, mechanics and customer business expertise;
– accelerated by scientific partnerships,
– aimed at connectivity and traceability of operations,
– supplemented since 2021 by the systemization of eco-design;
– Environmental strategy aimed at reducing environmental impact and recycling 80% of water;
– Dynamic external growth (after Gerber, acquisition of the Dutch TextileGenesis);
– Continued growth in the order book, by €39.8 million at the end of June.
=/ Challenges /=
– Negative impact of foreign exchange;
– Towards disposals of non-strategic assets, i.e. less than 5% of turnover;
– Towards an evolution of governance;
– After a decline of 4% in sales and 31% in net profit on 1
er
half-year, 2023 objectives of €485 to €525 million in turnover and €78 to €95 million in operating profit.
Learn more about the Software Publishers industry
Beautiful dynamics
According to the latest Truffle 100 ranking, the sector’s total turnover in France jumped 15% last year to cross the 25 billion euro mark. The sector has benefited from an unprecedented growth rate and confirms its recovery after the health crisis. The average annual growth over fifteen years is 12 times higher than that of GDP! Dassault Systèmes retains first place with more than 5.6 billion euros in revenue last year. Cegid, specialist in software for accountants, and the fintech Murex are placed in second and third position with respectively 791 and 711 million euros in turnover. Polarization is one of the characteristics of the sector: the gap in turnover between the 50th and the 100th publisher has increased further in 2022 to reach almost 28 million euros. Performance was improved as the profitability rate (as a percentage of turnover) increased from 9.1% to 10.4%. The outlook is good because artificial intelligence, seen as revolutionary, is expected to drive the market in 2023, as is cybersecurity.