Activity impacted by the Covid-19 health crisis and economic context
Significant points for 1st quarter:
Q1 consolidated sales
Q1: April 1, 2020 – June 30, 2020 | ||||
Not audited | 3 months | 3 months | ||
In € million (estimated) | 2020-2021 | 2019-2020 | Var €M | % |
Printing activity | 4.39 | 8.61 | -4.22 | -49.0% |
Hardware activity | 3.85 | 4.21 | -0.36 | -8.6% |
Total Q1 | 8.24 | 12.82 | -4.58 | -35.7% |
Total constant currencies | 8.29 | 12.82 | -4.53 | -35.3% |
The foreign exchange impact is mainly due to variations in the value of the South African Rand.
Prismaflex International Q1 2020-2021 figures are down by 36% at €8.2 million. The figures are slightly better than anticipated mid-June with greater momentum towards the end of the period. The greater part of the decline in business occurred during March and April, when lockdown measures were imposed throughout Europe. Business picked up in June, ending at -9.8% for the month.
Printing Activity was the hardest hit over the period. The activity is directly affected by the economic slowdown resulting from the health crisis and that impacted a number of clients, namely from the events, advertising and retail sectors. Sales stand at €4.4 million, down by -49%. The downward movement was tempered by the return to growth of the Home Décor activity (+8% for the period), following an increase in sales on-line (+74%).
Hardware activity resisted well, with sales down only by -8,6%. LED billboard sales are positive for the quarter (€3.4 million vs €2.5 million, +37%), following deliveries to Italy and Brazil of orders placed the previous year. Traditional activities (static signs, trivision signs, street furniture) and sales of LED billboards in the USA were the worst hit.
Outlook
Whereas order intake was quite logically slower during the 1st quarter, order backlog is up on the previous year (€9.6 million vs €9.1 million).
The recovery is happening, gradually, due to an uncertain economic context in which order issuers have adopted a wait-and-see attitude. The rate of recovery varies from one geographic zone to another and currently is very complicated in the United States where the subsidiary's key order issuer has frozen all orders. There are still a number of uncertainties and the expected rate of economic recovery as of September in France and North America will condition the Group's capacity to return to a level of activity in line with that recorded pre-Covid-19.
Forthcoming dates:
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Contacts:
Florence Therond – CFO - Phone: +33 (0)4 74 70 68 00 – finance@prismaflex.com
Guillaume Le Floch – Analysts/investors/press contacts - +33 (0)1 53 67 36 70 - glefloch@actus.fr
Marie-Claude Triquet – Press relations - Phone: +33 (0)4 72 18 04 93 – mctriquet@actus.fr
Regulated information:
Quarterly financial reporting:
- First quarter financial report
Full and original press release in PDF: https://www.actusnews.com/news/64412-pri-230720-ca-t1-20-21-gb.pdf