Hardware and Home Décor activity down over the summer period
1S results likely to be impacted
Record order backlog on 30 September 2016
|Significant points for the first half-year period:|
- Notable drop in sales over the summer period;
- Home Décor Activity on the down following the launch of new product lines by a key customer;
- Hardware Activity figures hit in S1 by the absence of any major sale and an unfavourable base effect. However, a significant number of orders have been recorded (notably for LED signs and also analogue products). Current order backlog is up sharply to stand at €15.12 million vs €5.85 million in N-1;
- Printing Activity continues to resist well with variations in activity according to geographic areas.
Consolidated figures - first six months (April 1 - September 30, 2016)
|YTD April 1 - September 30, 2016||2Q: July 1 - September 30, 2016|
|Non audited||6 Months||6 Months||3 Months||3 Months|
|In €M||2016/2017||2015/2016||Var. M€||Var. %||2Q 16/17||2Q 15/16||Var. M€||Var. %|
|Total 6 months||22.18||25.38||-3.20||-12.6%||10.25||11.89||-1.64||-13.8%|
|Total constant currencies||22.87||25.38||-2.51||-9.9%||10.47||11.89||-1.42||-12%|
The foreign exchange impact is mainly due to a sharp drop in the South African Rand (17.5%) and the GBP (13.7%) and to a lesser degree, the fall in value of the Canadian Dollar against the Euro.
For the first six-month period 2016/2017, total sales stand at €22.18 million, down 9.9% at current exchange rates, due to the fall in Hardware Activity (analogue signs and decoration). Order intake, notably for LED products, concerns relatively high volumes and will impact Q4 and S1 N+1 activity.
Excluding Home Décor, Printing is up 4.8% for the period at €12.05 million compared with €1.50 million for the same period the previous year with good results in South Africa, France and Spain while activity in England remains sluggish. After a mixed first six months, activity in Canada finally began to take off in September.
Home Décor sales at €3.42 million (€4.51 million in N-1) were affected by the launch of new product lines by a key customer.
Hardware sales (excluding Home Décor) at €6.71 million are down €2.66 million on N-1, mainly due to an unfavourable base effect for billboard sales (significant orders reported in Germany, USA and Russia in N-1) and a sluggish Street Furniture Activity. LED display sales remained practically stable at €2.1 million (vs €2.3 million in N-1).
On September 30, 2016 order backlog, mainly for Hardware, is high at €15.12 million against €5.85 million in N-1. This increase is mainly due to:
- LED displays, an order from a major German company (146 signs) with initial delivery programmed for T4 2016/2017 and the remainder in S1 2017/2018;
- Analogue products, orders for street furniture for Madrid and Saint Etienne.
In view of the low level of activity during the first six-month period, the Group estimates that on September 30, 2016 operating profit will come to a loss of about €1 million. S2 activity will be more dynamic. To accompany and transform this upturn, the Group is deploying a cost-reduction plan that will begin to produce positive results as of Q1 2017/2018.
In the medium term, the Group will build on the success of its LED activity, its digital printing expertise and the implementation of the cost-reduction plan.
Nest press release:
Six-month results: December 7, 2016 after closure - Conference call - December 8, 2016 at 10am
Emmanuel Guzman - CFO - phone: +33 (0)4 74 70 68 00 - firstname.lastname@example.org
Amalia Naveira - Analysts/Investors contact - phone: +33 (0)4 72 18 04 92 - email@example.com
Marie-Claude Triquet - Press contact - phone: +33 (0)4 72 18 04 93 - firstname.lastname@example.org
OUTDOOR ADVERTISING SOLUTIONS MANUFACTURER AND WIDE FORMAT DIGITAL PRINTING
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