LUMIBIRD: FY 2022 RESULTS

Lannion, March 14, 2023 – 5:45 pm

FY 2022 RESULTS

• A €31.3m EBITDA (-4% yoy) in a year of investment and global economic tensions
• Return to a 19% EBITDA margin (23% excluding non-recurring costs) in the second half of the year
• Extension of growth and profitability targets 2023

The LUMIBIRD Group, European leader in laser technologies, improved its margins in the second half of the year and ended the year with an EBITDA of €31.3 million, down 4%. Tensions on supplies and structural costs necessary to anticipate growth explain the lower profitability for the year. These impacts are gradually being absorbed, thanks to the growth in activity and the measures put in place to address difficulties linked to the supply chain and rising costs. The Group is therefore extending its medium-term objectives of organic growth of 8 to 10% and is targeting an increase in EBITDA margin to 25% in 2026, with an objective of 18 to 23% for the year 2023.

Extract from the condensed FY consolidated financial statements
approved by the Board of Directors on March 14, 2023

Accelerated growth for both divisions in a complex global environment

After a record-high fourth quarter (+32% to €66m), the LUMIBIRD Group’s consolidated annual turnover reached €191m in 2022, evenly split between the Photonics (€93.5m, +23%) and Medical (€97.5m, +13%) divisions. The Group’s annual growth was 18%, and 12% at constant scope and exchange rates. The perimeter impact is linked to the integration of the Lumibird Photonics Sweden defence rangefinder business on 31 May, which contributed €5.7m over the year. The annual currency effect was positive at €3.7m, mainly due to the appreciation of the dollar over the period.

The Photonics division recorded strong growth in Europe (+38%) and the US (+26%), but sales declined slightly in China, where the zero COVID policy weighed on the economy.

The Medical division was more resilient in Asia (+11%), with dynamic growth in the US (+18%) and limited growth (+5%) in Europe, which was affected by the conflict in Ukraine.

This pursuit of vigorous growth was achieved in a complex political and economic context to which the Group adapted, notably by increasing its stock levels, using brokers to secure its supplies and reallocating part of the R&D staff to sourcing components in short supply. Lumibird has also continued to make strategic investments both in its human resources, with a 13% increase in staff, and in its industrial resources, with investments in 4 sites (Lannion, Villejust, Ljubjana, Göteborg). These elements shed light on the structuring of the 2022 results.

Improved results in the second half of the year

Summary of results for each division

The Group’s gross margin rate remained high in 2022, at 61.8% compared to 63.6% a year earlier. Inflationary pressures have less impacted the Medical division (61.3% gross margin vs. 61.9% in 2021) where price increases can be passed on rapidly, while the Photonics division (62.2% vs. 65.4%) is held back by a longer-term contract structure.

Growth investments in organisational structuring and costs to adapt to supply pressures resulted in a slight decline in EBITDA from €32.6m to €31.3m, i.e. an EBITDA margin of 16.4%. The margin improved significantly in the second half of the year, to 19% compared to 13% in the first half. Adjusted for non-recurring items (brokerage effects and the mobilisation of R&D teams to requalify components, i.e. a total of €5m), the EBITDA margin was 19% for FY 2022 and 23% in the second half.

The improvement in profitability in the second half of the year affected both divisions, but for the year as a whole, the Photonics division, which was more affected by growth investments, suffered a more marked decline (EBITDA margin of 15.2% vs. 21.1% in 2021) than the Medical division (17.6% vs. 19.2% in 2021).

Current operating profit was €16.4m in 2022, compared with €19.8m in 2021.

After a financial result of €2.8m (vs. €1.5m in 2021) and taxes of €3.1m (vs. €3.7m in 2021), net profit was €11.4m, compared to €13.9m in 2021.

Cash flow: rising inventories and strong investments

The securing of raw material inventories, as well as the integration of Lumibird Photonics Sweden’s inventories (defence rangefinder activities in Sweden) have resulted in an increase in inventories of €19.6m in 2022. With the increase in trade receivables resulting from business growth, the increase in WCR (+29.2 M€) consumes almost all the operating cash flow (30.1 M€).

In addition, 2022 was a year of strong investment in industrial facilities, in particular for the expansion of the Lannion site, the creation of the Göteborg site to integrate the rangefinder activities, and the preparation of the new Villejust and Ljubljana sites. Net industrial investments thus amounted to €20.7m over the year. The overall cash requirement of €27.9m is fully covered by existing cash.

Balance sheet position

Net financial debt, comprising €114.2m in gross financial debt and €61.7m in cash and cash equivalents, amounted to €52.5m at 31 December, compared with €49.2m at 30 June 2022 and €14.9m at 31 December 2021.

LUMIBIRD maintains a solid financial position with a gearing of 27%, which allows the Group to preserve its financial flexibility and its ability to continue to finance its external growth ambitions, in particular thanks to €82.5m of available acquisition debt.

Outlook

Lumibird’s markets remain extremely buoyant and the strengthening of capacities thanks to investments in industrial plant and equipment should support a strong commercial dynamic in the coming half-years.

In this context, the Group is targeting in 2023 reported revenues of €250m (including organic growth of 8 to 10% and possible external growth), and a return of the EBITDA margin to a range of 18 to 23%. In the medium term (up to 2026), the objective is to maintain a 8-10% organic growth and reach an EBITDA margin increase to 25%.

Next date: Q1 2023 revenues on April 24, 2023 after close of trading

LUMIBIRD is one of the world’s leading specialists in lasers. With 50 years of experience and a mastering of solid state laser, laser diodes and fiber laser technologies, the Group designs, manufactures and markets high performance lasers for scientific (laboratories and universities), industrial (manufacturing, defense, Lidar sensors) and medical (ophthalmology, ultrasound diagnostic) markets.

Born from the combination of Keopsys Group with Quantel in October 2017, LUMIBIRD has more than 1000 employees and €191 million of consolidated revenues in 2022 and is present in Europe, America and Asia.

LUMIBIRD shares are listed on the Euronext Paris B Compartment. FR0000038242 – LBIRD    www.lumibird.com
Since 2022, LUMIBIRD is part of Euronext Tech Leaders

Contacts

1 The cash position corresponds to “cash and cash equivalents” on the asset side of the balance sheet, net of current bank borrowings (cash liabilities) included in current financial liabilities on the liability side of the balance sheet /passive)
2 Financial liabilities (current and non-current) include lease liabilities under IFRS 16

Attachment

• 230314_LUMIBIRD_RA_2022_EN