MG INTERNATIONAL: First-half 2023 results release – 08/01/2023 at 08:40

La Ciotat, July 31, 2023

Results of 1

^er

semester 2023

(Unaudited accounts)

MG International – In a swimming pool equipment market in decline after several years of growth driven by the health crisis environment, Maytronics France maintains its leading position in the segments of electric robots and motion detection alarms immersion.

In the first quarter of 2023, revenue fell by 16% and reached €54.1m.

Operating income amounted to €4.4m, down 33%, net income amounted to €3.9m, down 32%.

The interim financial statements (unaudited), approved by the Board of Directors on July 31, 2023, show the following items:

A half-year in decline for the entire industry

All of the private swimming pool activities (electric robots, covers and alarms) experienced a marked drop compared to the first half of 2022. This is mainly due to a phenomenon of a natural landing in the market after three years of significant growth, but also to the macro-economic (inflation) and meteorological context (winter drought followed by a gloomy Spring).

The Poseidon activity (security of public swimming pools) is slightly down compared to the first half of 2022.

Turnover for the first half thus stands at €54.1m, down €10m.

Operating profitability

The company was nevertheless able to maintain its gross margin rate thanks to an appropriate pricing policy and a slightly favorable mix effect.

In this context of slowing activity, the implementation of a cost control policy and good control of payroll costs have reduced operating expenses by 6% compared to the first half of 2022.

Operating income was thus down by only €2.1m to €4.4m compared to €6.5m in the first half of 2022.

The financial result mainly consists of interest charges on bank loans and lines of credit. The deterioration compared to the first half of 2022 results from the unfavorable change in interest rates on short-term credit lines dedicated to financing working capital requirements and an increased need for this type of financing.

After taking into account exceptional items and corporation tax, net income was down €1.9m to €3.9m compared to €5.8m in the first half of 2022.

Evolution of the balance sheet structure and indebtedness

The drop in activity over the first half results in a slight decrease in the Company’s total balance sheet, which fell from €72.1 million to €67.2 million between June 30, 2022 and June 30, 2023. the fall in trade receivables, a consequence of the fall in turnover.

In April 2023, the Company took out a medium-term loan for an amount of €3,000,000.

Outlook

In a macro-economic context that remains uncertain, and in a market that is emerging from several years of sustained growth, the Company remains cautious about the trend in the second half, which historically weighs around 25% of annual activity.

Although the downward trend in the first half of the year is expected to slow down, the seasonality and wait-and-see attitude of the market should not allow a return to significant growth in the second half of 2023.

The Poseidon activity, which had experienced a strong rebound in 2022, should also experience a slight slowdown from the second half pending the start of new projects.

For more details on the accounts, refer to the half-yearly financial statements published on the website

www.maytronics.fr

MG INTERNATIONAL

ISIN code: FR001204453 – MNEMO: ALMGI

contacts:

Nicolas Dams, Administrative and Financial Director

Such. +33 (0)4 42 98 14 90 – [email protected]

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