Return to profit levels in line with expectations
EXEL Industries posted revenue of €483.1 million for the first half of 2022–2023, up 18.7% as reported and up 16.1% at constant foreign exchange rates and scope.
Agricultural spraying revenue increased in Europe and North America, still benefiting from a stable full order book over the next 6 to 12 months for all Group brands. The Sugar beet harvesting business posted solid revenue growth driven by sales of new generation sugar beet harvesters and demand in Eastern Europe. In the Garden business, after declining in 2022, the market returned to pre-COVID volumes but continued to be impacted by adverse weather conditions lasting up until now and inventory clearance among distributors. Industry volumes remained broadly stable except in Asia, where they continue to grow.
Reported recurring EBITDA improved sharply to €29.0 million, or 6.0% of revenue. Several factors explain this increase:
Net income for the first half of 2022–2023 totaled €4.2 million versus €1.9 million in 2022.
Net financial debt at March 31, 2023 was €176.4 million, compared to €154.6 million in 2022. This increase, as expected and in line with seasonal trends, remained limited however after the high point reached at the end of September 2022 following the increase in inventories (mainly work-in-progress) to supply the substantial order book in Agricultural spraying and Sugar beet harvesting. Nevertheless, special attention is being paid to managing working capital across all Group business lines and this item is currently under control.
SUGAR BEET HARVESTING
Yves Belegaud, Chief Executive Officer of the EXEL Industries Group:
“An encouraging first half benefiting from a slight easing in supply chains and strong volume growth in agricultural equipment. The Group also benefits from a solid order book offering clear visibility over the coming quarters. Managing working capital remains a priority for the Group’s development.”
Second quarter 2022-2023 sales up 20.4%
“We have everything we need to continue to move the Group forward.”
Check out EXEL Industries' 2021-2022 Annual Report
First quarter 2022–2023 sales: up 16.1%