On the strength of the diversification of its activities and regions, the Group stands out for its adaptability and resilience.
What is your assessment of 2023/24?
The year was characterized by fairly disparate levels of business. In Agricultural Spraying, our sales remained strong over the first three quarters. However, the gradual decline in the order book led to a reduction in fourth quarter revenue. Dealers still hold high levels of inventories and are prioritizing the reduction of these inventories over orders for new machines.
The Sugar Beet Harvesting activity saw a strong level of business as well as a favorable evolution of orders with marked growth in Western Europe and the United States, which more than offset the decline in our sales in Central and Eastern Europe. Driven by high sugar prices, our customers continued to equip themselves and to invest, both in new and used equipment. The Garden activity, for its part, was marked by a significant decline.
The high rainfall that characterized the year, combined with the post-Covid backlash, a period during which customers equipped themselves massively, largely explain the sluggishness of the market. However, our market shares remained stable overall. The Nautical activity also suffered as a consequence of high inventory levels at dealerships. Lastly, Industry posted a very strong year with an increase in sales of more than 9% with, notably, interesting growth in Europe, North America and Central America.
What do these performances say about EXEL Industries’ trajectory?
First of all, in contrasting economic conditions, the Group held up well with revenue of €1.1 billion, a very slight increase compared to the previous year. Diversifying our activities and regions is therefore more relevant than ever. The Group stands out for its adaptability and resilience, two qualities that help it to overcome difficulties and weather crises. EXEL Industries continues to develop and grow.
What were the main initiatives that marked EXEL Industries’ year?
Our employees’ strong commitment is a major vector for the Group’s progress. This is why, for the first time, EXEL Industries rolled out a social barometer aimed at measuring the commitment rate of all its employees. Prepared in 17 languages, this tool enabled our 4,150 employees to share their views and expectations with us. Among the strengths that came to light was a positive assessment of working relationships within teams.
This barometer, which will be conducted on a recurring basis, provides us with a precise snapshot of EXEL Industries and its companies, and gives us the keys to take action. The year was also marked by an extension of our geographical presence with new establishments in Nebraska (United States) and Kazakhstan, which, on the one hand, will enable us to pursue our development in Agricultural Spraying and in Industry and, on the other, as regards Central Asia, to broaden our scope of action.
In addition, Sames opened a powder application laboratory in Michigan (United States) dedicated to process validation tests. Lastly, in June 2024, we laid the symbolic foundation stone for the reconstruction of the Sames plant, located in Stains in the Paris region (France).
In a context marked by growing uncertainty, what are the Group’s main challenges in 2025?
I see four. The first concerns financial management, with the need to continue the reduction of our debt and to optimize our cash generation. In this context, we must regain control of the trajectory of our working capital requirements and carry out work to rationalize our inventories. This issue is particularly important to improve our future room for maneuver. The second is strategic. First of all, it means reinvigorating the Agricultural Spraying business by developing our after-sales activities in order to generate value over the entire life- cycle of our products. All this with the dual challenge of profitability and sustainability.
The third challenge is technological. At a time when artificial intelligence is becoming ever more important, we are continuing our reflection on this major issue, which introduces new perspectives in our business lines, our processes and our methods. Although the issue is not new for EXEL Industries, it nevertheless seems clear that in most of our activities, whether intellectual or technical, it will become more commonplace in the years to come. Lastly, I am not forgetting our sustainability challenges at a time when the European CSRD regulations will come into force. The course has been set, the Group is on the move, and each company has its own roadmap and priorities for the year ahead. This is an issue where we are fully involved, since CSR is inseparable from the Group’s history, and one where all our stakeholders – customers, employees, job applicants, financial organizations – are observing us and expecting our response.
Daniel Tragus, Chief Executive Officer of EXEL Industries