ABEO, a designer of sports and leisure equipment, today announces its revenue for the first half of 2017/2018.
|Revenue as of 30/09||82.3||88.7||+7.8%||+2.1%|
- : like-for-like, at constant consolidation scope and exchange rates
ABEO recorded revenue of €44.3 million for the second quarter of the 2017/2018 financial year. This represented an increase of 6.3%, which breaks down between organic growth of 0.3%, a 1.3% currency loss and a 7.3% contribution from the change in the consolidation scope (external growth).
The Sports Division was affected by an unfavourable comparison basis partly due to the non-recurring impact of a Belgian school gymnasium equipment programme completed during the same period last year. The ramp-up of the Climbing Division continued, with organic growth of 20.2%. The Changing Room Division succeeded in stemming the decrease recorded in the first quarter and reported virtually flat sales for the half-year period (down 0.5% like-for-like). Excluding the impact of the postponement of some projects in the swimming pool market, the division would have registered growth, which should therefore materialise during the second half of the financial year.
Accordingly, H1 2017/2018 revenue amounted to €88.7 million, up 7.8% compared with the same period last year. First half organic growth amounted to 2.1%, thus consolidating the strong organic growth achieved last year (13.1%). This expected slowdown in organic growth is largely offset by dynamic external growth of 7.1% driven by recent acquisitions (Erhard Sport, consolidated in November 2016, Clip 'n Climb International in December 2016 and Sportsafe UK in January 2017). Lastly, revenue was impacted by a currency loss of 1.4%, primarily due to the depreciation of the British pound.
Sports Division revenue suffered from a significant base effect (organic growth of 18.2% in H1 of 2016/2017). The division recorded strong growth in export sales, including Gymnova. The consolidation and roll-out of Sportsafe UK and Erhard Sport are continuing as planned. These two acquisitions now account for around 10% of the division's revenue. The momentum generated by Erhard is beginning to bear fruit, since the brand has just been selected as the Official Supplier to the Women's (Germany, December 2017) and Men's (Germany, 2019) Handball World Championships.
The Climbing Division continues to benefit from the boom in climbing walls and deployment of Clip 'n Climb's innovative equipment. The Changing Room segment has remained impacted by a wait-and-see market in France, where the trend appears to have improved since the summer. The measures aimed at reinvigorating the Sanitec business are yielding results, including double-digit sales growth for the period as a whole.
External growth is boosting ABEO's sales momentum in keeping with its development plan.
The expansion of the Group's order backlog confirms its recent successes in terms of signing partnerships for major sporting events. In fact, in addition to the agreements signed via Erhard, ABEO has also been appointed Official Supplier to the 49th Artistic Gymnastics World Championships in Stuttgart in October 2019, the Basketball World Championships in China in September 2019 and the Olympic and Paralympic Games in Tokyo in 2020.
ABEO is expecting a higher growth rate in the second half of 2017/2018 on the basis of a sound order backlog.
Lastly, ABEO has closed the acquisition of Meta Trennwandanlagen in Germany, in keeping with the 2020 strategy plan designed to step up international growth. The company will be consolidated from 1 November 2017, as the conditions precedent have been lifted. This new entity will allow ABEO to penetrate the German market and thereby considerably strengthen its Changing Room business. Meta has 84 employees and generates revenue of €15-20 million, with an EBITDA margin of over 15%.
ABEO has also signed an agreement to acquire Shandong Kangnas Sports in China. This acquisition is expected to be closed in the near future.
Both transactions will contribute to Group growth during the second half of 2017/2018.
ABEO continues to review potential acquisitions that could boost the Group's market positioning and drive profitable growth over the coming years, in keeping with its development strategy.
- Next release
7 December 2017 after market close H1 2017/2018 results
Find out more at www.abeo-bourse.com
|ABEO is a major player in the sports and leisure (“sportainment”) market. The Group posted revenue of €167 million for the year ended 31 March 2017, 70% of which was generated outside France. At year-end it had 1,200 employees.
ABEO is a designer, manufacturer and distributor of sports and leisure equipment. It also provides assistance in implementing projects to professional customers in the following sectors: specialised sports halls and clubs, leisure centres, education, local authorities, construction professionals, etc.
ABEO has a unique global offering, and operates in a wide variety of market segments, including gymnastics apparatus and landing mats, TEAM sports equipment, physical education, climbing walls, leisure equipment and changing room fittings. The Group has a portfolio of strong brands which partner sports federations and are featured at major sporting events, including the Olympic Games.
ABEO (isin code: FR0013185857, ABEO) is listed on Euronext Paris – Compartment C.
For any questions relating to this press release or the ABEO Group, please contact ACTUS finance & communication:
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 EBITDA: Recurring operating income + depreciation of fixed assets