EXEL INDUSTRIES

2017-2018 first-half results : first-half results less positive than last year's - Seite 2

Revenue in the Agricultural Spraying division fell 5.8% over the period with sales down in the USA and Australia coupled with a flat sales performance in France. Despite an improvement in the divisional gross margin, operating income declined due to more limited absorption of fixed costs.

Sustained activity in the Sugar Beet Harvesters made for a slight improvement in the gross margin. This year, the Group's decision to optimize production smoothing prompted a sharp increase in inventories and work-in-progress at the end of the first half, but will enable the Company to reduce production spikes in the fourth quarter.

Regarding the Garden Spraying and Watering, the beginning of the season was pushed back to the second half due to poor weather conditions in the Spring, but product listing in stores is good and operating income is higher than it was last year.

Net income over the period came to €4.1 million, compared with the year-earlier level of €8.4 million. This decline was due to a drop in operating income and a negative foreign exchange impact to the tune of €2.8 million (versus +€1.4 million last year).

In the first half of the 2017-2018 fiscal year, net investments amounted to €11.9 million, of which €7 million related to the finalization of real estate projects in Germany and the Netherlands.

Net financial debt at end-March 2018 amounted to €151.9 million, compared with €145.5 million at the same period last year.

Audit Process

The Group Internal Audit Committee met on the afternoon of May 28, 2018.
The Statutory Auditors reported to the Internal Audit Committee regarding their limited reviews of the financial statements of the major subsidiaries and the Group and had no reserve or comment with respect to the parent company and consolidated financial statements as at March 31, 2018.
On these bases, the Board of Directors on May 29, 2018 approved EXEL Industries Group's half-year consolidated financial statements.

·        Outlook and Strategy

Mr. Guerric Ballu, CEO of EXEL Industries Group, said:

"Our first-half results were impacted by the decline in Agricultural Spraying sales, margin erosion of certain projects in the Industrial Spraying division and unfavorable foreign exchange rates.
Current operating income (Current EBIT) amounted to €10.9 million at end-March 2018, compared with €15.1 million last year. Company debt increased slightly due to higher investments and our decision to build up stocks to meet seasonal spikes in activity.  Given the seasonal nature of our activities, the first half of the fiscal year represents a relatively small percentage of the Group's full-year performance.