LEXIBOOK

HISTORIC FISCAL SALES FOR Q3 2023-24 OF €30M, UP 28.2%. OVER 9 MONTHS, SALES UP 19.2%. FULL-YEAR SALES AND EARNINGS EXPECTED TO REACH RECORD LEVELS. GOOD PROSPECTS FOR 2024-25. - Seite 2

After a very dynamic first half of fiscal 2023-24, with growth of 8.9%, the third quarter of 2023-24, traditionally the year's biggest contributor to sales, saw an acceleration in growth. Growth was 28.19%.

Star products continued to perform well, and the Group benefited from the launch of numerous new products in its main segments. Product consumption was excellent: Lexibook's case releases on all networks benefited from massive communication campaigns in EMEA and the USA, generating over a billion digital impressions in 2023 alone.

Growth was widespread across all the most profitable product families, including electronic and musical toys, educational products, cameras, clocks and walkie-talkies. Licensed products also contributed to this growth, both on existing, highly dynamic licenses such as Snow Queen, Patrol and Spiderman, and on new licenses such as Super Mario, Miraculous and Harry Potter. Less profitable tablet sales are now being replaced by sales in higher-margin segments.

In addition to the French market, the strong growth in sales is also widespread in all the countries in which the Group is positioned internationally. FOB sales (sales invoiced directly from HK on FOB HK deliveries by full containers) rose by 22.22%, thanks to long-standing customers and the winning of new international accounts. Non-FOB sales nevertheless accounted for the bulk of sales in the quarter, and rose by 28.38%, reflecting the dynamic international sales of Lexibook products.

Last but not least, the Group's digitalization drive is bearing fruit: digital sales are up sharply both in France and in other European markets.

Tensions on component supplies and freight were completely lifted over the period, enabling the Group to ensure its deliveries under optimal conditions from both a logistical and a financial point of view. This optimized logistics enabled us to provide customers with a service in line with their expectations for the Christmas season, while optimizing the Group's inventory levels.

Outlook

Q4 is traditionally a low-contribution quarter in terms of sales. In 2021-22 and 2022-23, due to catch-up deliveries made in January and February after the saturation of ports for the Christmas season, sales were exceptionally high. Q4 2023-24 is therefore logically expected to decline, as announced. Nevertheless, annual sales for the Lexibook Group over the full fiscal year are expected to reach a record level, in excess of €56 million.