(Boursier.com) — The Group Orapi records in 2021 a turnover of 226.6 ME, a decrease of -1.5% compared to 2019 at constant scope and exchange rates and -14% compared to the atypical year 2020 at LFL. Still marked by the health crisis, the group maintained strong activity, marked by a particularly dynamic fourth quarter (+5.6% versus 2019 at PCC). During the year, and thanks to innovation, a true pillar of the Group, Orapi was able to attract new customers looking for green products made in France, including the People & Baby, Alliance Healthcare and InVivo crèches. Moreover, the teams, mobilized, have seen the renewed confidence of UGAP and CROUS.
The 2021 annual results reflect the effect of strategic refocusing, despite lower activity:
The gross margin returned to its 2019 value at 115 ME, and increased by 3 pts to 50.7% of turnover.
The fine management of external expenses (-4.7 ME versus 2020 at CS) and personnel costs (-5.1 ME versus 2020 at CS), aligned with the slowdown in activity (lower demand for disinfectants and hydroalcoholic gel) allow EBITDA to stand at 19.8 ME (+5.2 ME versus 2019 at CS), i.e. 8.7% of turnover and current operating profit (ROC) to set at 8.4 ME (i.e. 3.7% of turnover), a significant increase vs 2019 (+6.5 ME at PC).
After taking into account the financial result for -6 ME, impacted by a non-recurring charge of -1.6 ME related to the early redemption of the Simple New Money Bonds, and the tax charge (-0.7 ME) on net income (Group share) amounted to 0.2 ME.
Cash flow from operating activities amounted to €17.2 million, i.e. -€11.9 million compared to 2020 at current scope. Cash flow amounted to +13.4 ME. The evolution of WCR was favorable, thanks to the control of trade receivables and the reduction of inventories, generating a positive cash flow of 3.8 ME.
Flows related to investment operations impact the cash position by -1.2 ME. They mainly correspond to industrial investments for -6.7 ME, offset by disposals of assets for 5.8 ME.
Cash flow related to financing operations amounted to -43.7 ME and consisted of -36.6 ME in repayment of loans, -6.4 ME in rent paid under rental contracts, and – 0.7 ME change in debts to factors.
As of December 31, 2021, net cash stood at €10.1 million.
In 2021, ORAPI proceeded to the full repayment of the ORA 1 for 23.7 ME including interest and of the OSNM in advance for 15.1 ME including interest. These redemptions have opened since December 22, 2021, and for a period of one year, the exercise period of the BSAs and released the option to exercise the purchase option of the ORA 2 by LA FINANCIERE MG3F.
The completion of these restructuring operations has enabled ORAPI to accelerate its debt reduction (gearing – Financial debts / Equity, excluding IFRS 16 – is now increased to 40%) and to reduce very significantly future financial expenses. The leverage ratio stands at 1.8 (net financial debt / EBITDA).
Confirmation of strategy and objectives
While the current economic situation calls for caution, with risks related to raw materials, supply, shortages and the cost of energy, the Group is solidly equipped to face these medium-term challenges. In the light of these initial results, ORAPI is confident that it will achieve its ambition of being recognized in 2025 as the best European challenger in professional hygiene and maintenance.
This objective is supported by the strength of the four pillars of its strategy, which are product innovation centered around its industrial tool, the strength of its brands, the multi-channel approach and international development, in order to achieve, by 2025, a organic growth of 5% and an EBITDA raised to more than 10%.
Next appointments:
Q1 2022 revenue, April 21, 2022.
General Meeting, April 29, 2022.