Significant points for 1st quarter:
- Hardware activity is down. Significant N-1 base effect. A number of important tenders have recently been submitted and the Group is awaiting the results
- Home Décor activity on the down; Unfavourable impact of the launch of new product lines by a key customer
- Printing activity is buoyant and stands at +9.2% incorporating the adverse impact of exchange rate fluctuations
Q1 consolidated sales
|Q1: April 1 – June 30 2016|
|Non audited||3 months||3 months|
|In €M (estimated)||2016/2017||2015/2016||Var. €M||%|
|Total constant currencies||12.41||13.49||-1.08||-8.0%|
The foreign exchange impact is mainly due to a sharp drop in the value of the South African Rand (21%) and to a lesser extent the fall in value of the Canadian Dollar against the Euro.
Prismaflex International Q1 2016/2017 sales stand at €11.93 million, down 11.6% (-8% at constant currencies) and can be analysed as follows:
- Unfavourable base effect on Hardware; the German and US subsidiaries performed extremely well during the same period in N-1;
- Last year S1 sales in Russia were high, whereas the Russian market is today depressed;
- A drop in orders for Home Décor products from a key customer coupled with the launch of new product lines. The situation is expected to improve in S2.
Excluding Home Décor, Printing activity at €6.26 million (€5.74 million in N-1) is significantly up 9.2% at current exchange rates and +15.8% at constant currencies. Activity in South Africa and France is particularly good while sales in Canada are down.
Home Décor at €1.67 million is down for the period (€2.41 million in N-1), and the trend is forecast to continue into Q2 until our key customer has fully replaced its product lines.
Hardware activity (excluding Home Décor) stands at €4.0 million (€5.35 million in N-1). LED sign sales are stable at €1.16 million and a significant number of major projects are at the negotiation stage.
On June 30, 2016, order backlog, essentially for hardware stands at €5.3 million (€5.4 million in n-1) with a number of significant orders for the German zone.
In 2016, one of the Group's key challenges will be the acceleration in the change of its business model with a strong focus on digital products.
The Annual Shareholders' Meeting will take place on September 29, 2016 in Saint Clément les Places (69930) at 2.30pm. Next press release: Q2 sales, October 20, 2016 after closure.
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