Lucibel

First-half 2014 Results in Line With Development Plan - Seite 2

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1. EBITDA=Current Operating Result adjusted for non-cash items (notably depreciation and amortization costs, payments in shares)

2. EBIT=Earnings before interest and corporate tax

At the international level, the performance was more nuanced but its growth potential remains intact thanks to Lucibel's extensive network. The Group's international subsidiaries generally continue to experience substantial business volatility from one half-year period to the next, given their still moderate size. Besides, The Group decided in the course of 2013 to withdraw from its 'white-label' products trading activity, which relates mainly to European clients, to concentrate on distributing Lucibel's products. This logical move causes a dip in European sales excluding France, with revenues down from €1.6 million in the first half of 2013 to €0.4 million for the same period of 2014, but improves margins further out.

The Lucibel Middle East subsidiary, set up in 2013, continues to enjoy rapid development, with revenues up 60% to €0.6 million in the first half of 2014. Overall, international business generated revenues of €1.4 million in the first half of 2014, down 45% from the €2.6 million reported for the same period of 2013.

Lucibel took advantage of the first half of the year to reorganise its commercial teams in Belgium and Spain to make the most of the potential offered by these regions. In addition, as part of its strategy of rolling out its international development in stages, Lucibel is preparing to open a sales office in Singapore, having confirmed the potential offered by this market and the local interest in its products. The development of Lucibel's business with major international clients, as highlighted by the recent contracts signed with PSA (see press release issued on 18 July 2014), is also likely to bolster Lucibel's export activity: following the success of the products installed in the first 20 dealerships, PSA is planning to deploy Lucibel's products for export in the coming months.

Significant gross margin growth and operating expenses rising as the Group's scope of consolidation expands 

Thanks to growth in new generation product sales, the optimisation of its industrial processes and the integration of companies acquired in 2013, the Group's gross margin reached 46.3%, versus 34.4% in the first half of 2013, marking a very significant gain of almost 12 percentage points.