(AOF) – Munic announces a net loss of 1.79 million euros in 2023, for a turnover down 32% to 14.75 million euros compared to 21.56 million in 2022. The specialist company of embedded technologies and artificial intelligence for the valorization of automobile data, highlights the increase in its gross margin in value to 5.62 million euros, and the significant increase in the gross margin rate raised to 38.1%
Munic cites a degraded market context, characterized by “high inventory levels among Munic’s main customers, following the electronic components crisis in 2022”, and by “a reluctance on their part in launching their projects due to the uncertain economic environment. The volume of several orders was partially reduced or completely shifted, leading to a 42% decline in product sales over the year.
The increase in gross margin is attributed to the strong growth in sales from services and the increase in the share of this activity in the company’s turnover, but also to the development and marketing of variants of existing products at better cost prices and the renegotiation of sales prices with the company’s main customers in an inflationary context.
Munic’s available cash stood at 0.6 million euros as of December 31, 2023, compared to 3.2 million euros a year earlier. It allows the company to finance its activity until the end of July 2024.
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A French market in good shape
The French automobile market recorded its tenth consecutive month of growth in October 2023 with 152,383 registrations of new passenger vehicles (+22% year-on-year). It increased by 16.49% over the first 10 months of 2023, with 1.44 million registrations, almost as many as in 2022 (1.52 million) but much less than the level of 2019 (2.2 million ). However, the forecast indicators are not good because new orders fell by 13% at the end of September 2023. The slowdown in orders could be explained by inflation, the rise in interest rates, and more prudent management of their cash flow by companies (half of the market). If Stellantis (Peugeot, Citroën, Fiat, Opel, Jeep) remains the leader of the French market, with a market share greater than 28%, the Renault group (Renault, Dacia, Alpine) benefited from good performances in October 2023, with almost 31% additional new registrations over one year. The French group represents 24.6% of the private car market.