(BFM Bourse) – The Isère company announced on Friday that it anticipates growth at a standstill on a like-for-like basis for the 2023-2024 financial year, and a fall of 15% in the first half. This due to inventory on the smartphone supply chain.
While the markets have closed their doors until Tuesday morning, Soitec is issuing a warning for its next financial year this Friday.
The manufacturer of semiconductor materials is evolving in a staggered fiscal year, closing its annual accounts at the end of March. For the financial year which just ended a few days ago, the group confirms its objectives, namely an increase in its revenues at constant exchange rates and scope of around 20% and a gross operating margin ( Ebitda) around 36%.
On the other hand, for the future, the group announces a major slowdown, delivering its outlook for the financial year which will end at the end of March 2024. The Isère company thus anticipates stable income for this fiscal year, excluding currency and scope, compared to the 2022-2023 financial year. The same is true for the Ebitda margin, which is again expected to be stable at 36%.
Above all, in the first half of this 2023-2024 financial year alone, Soitec forecasts a 15% plunge over one year in its revenues at constant scope and exchange rates.
Stocks to sell
To justify these prospects, Soitec evokes the state of the smartphone market, an industry that obviously consumes a lot of electronic components and which is currently experiencing a high level of stocks, with therefore sales in sharp decline.
According to data from the firm Counterpoint cited by the bank UBS, global smartphone sales thus plunged 14.5% year on year in February, falling to their lowest level since March 2020.
“As already communicated to the market, inventory absorption across the entire smartphone market supply chain is expected to last throughout the first half of fiscal year 2023-2024,” Soitec said.
The company thus anticipates a “strong correction” of its stocks over its next financial year, in particular in the first half, which will weigh on the activity of its Mobile Communications division.
“Consequently, the stability in revenue anticipated for the 2023-2024 financial year will also reflect a strong acceleration between the first and second half of the year,” the company adds.
Medium-term objective lowered
Soitec has also adjusted its revenue target for the fiscal year ending March 2026 downwards. The Isère-based company now expects revenue of around $2.1 billion, compared to a previous target of $2.3 billion. dollars, communicated in June 2022. On the other hand, the company confirmed its EBITDA margin target of 40% on the same date.
The company will give more information on its medium-term outlook during a day dedicated to investors on June 8, the day after the publication of its annual results. Previously, it will release its revenue for the 2022-2023 fiscal year on April 26.
All of these announcements could be sanctioned by the market, when the Paris Stock Exchange reopens on Tuesday morning. In a recent note, UBS, for example, forecast, in its reference scenario, growth of 5.5% for the financial year ending March 2024.
Julien Marion – ©2023 BFM Bourse
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