SOMFY SA (EPA:SO) - Somfy / Half year results and outlook for fiscal year 2020

Transparency directive : regulatory news

09/09/2020 17:45

PRESS RELEASE
9 SEPTEMBER 2020

                              2020 FINANCIAL YEAR

       RESILIENT FIRST HALF-YEAR RESULTS CAUTION OVER FULL-YEAR OUTLOOK

Consolidated data at end June
(EUR millions)                       2020      2019     Var.

Sales                               568.9     615.1    -7.5%
Current operating result            102.6     114.9   -10.7%
Consolidated net profit              80.9      91.2   -11.3%
Cash flow                           117.7     117.4    +0.2%

The Group was severely impacted by the pandemic over the first six months of
the year. However, it successfully limited the decrease in its sales while also
maintaining its profitability at a high level and preserving its strong
financial position, thereby demonstrating once again the relevance of its
positioning and the strength of its business model.

SALES

Group sales totalled EUR568.9 million for the first six months of the financial
year, a decline of 7.5% (down 7.2% on a like-for-like basis) compared with the
same period last year. Sales were up 2.9% over the first quarter and down 16.4%
over the second.

The discrepancy seen between the two quarters was due to the health crisis
caused by the global spread of Covid-19, which also concealed the highly
positive start to the year seen in a majority of countries. Its impact was most
notable between the middle of March and the end of April, when it then began to
ease gradually.

All regions - with the exception of Latin America, which was impacted later by
the pandemic - began their recovery midway through the second quarter, ending
the half-year on an upward trend, significantly so in the cases of Eastern
Europe, France, Central Europe, Northern Europe and North America.

Sales generated by Dooya, the equity-accounted Chinese subsidiary, stood at
EUR83.2 million, down 4.8% (3.8% on a like-for-like basis). They fell 17.3%
over the first quarter and increased 6.8% over the second in real terms.

RESULTS

Current operating result stood at EUR102.6 million over the half-year, down
10.7% year on year, and represented 18.0% of sales.

The decline was due to the fall in sales caused by the health crisis at one of
the key points of the year(1). This crisis led to a shortfall in earnings due
to lost sales, and caused disruption to the production and supply chains as a
result of the temporary closure of several manufacturing sites. Its impact has,
however, been partially offset by the savings made, notably in consultancy
fees, marketing and travel, thanks to the measures undertaken at the first
signs of the crisis.

The costs incurred by the protective measures have not had any material impact
on the financial statements, even though the safety of employees and compliance
with guidelines from the administrative authorities have been a priority, as
well as the safeguarding of jobs. The impact of external support has also been
marginal, since the Group has only made very limited use of it in some
countries (excluding France).

Consolidated net profit totalled EUR80.9 million, a decrease of 11.3%. It was
reduced by a small net financial expense and benefited from a fall in
corporation tax that was slightly higher than the fall in profits.

FINANCIAL POSITION

Shareholders' equity grew from EUR1,012.8 to EUR1,044.4 million over the half
year, and the net financial surplus increased from EUR310.5 to EUR325.6
million.

The continued strength of the financial position was due to the high level of
cash flow and a healthy level of working capital requirements, the result of
the close monitoring of customer receivables and the clearance of products
supplied to customers.

Another positive is that EUR184.0 million in undrawn credit facilities remained
available.

OUTLOOK

The recovery seen at the end of the first half-year has continued over the
summer in parallel with sales catching up and the replenishment of inventories
in use at customer premises.

(1) The second quarter is usually the most important, notably due to the
seasonality of sales of awnings. It accounted for 54% of first-half sales last
year compared with 49% this year, and for 28% of full-year sales.

Nevertheless, both the deteriorated economic climate and the uncertain
evolution of the health crisis dictate caution over the coming months and
quarters, without however calling into question the Group's fundamentals, as
demand for comfort in the home and the energy performance of buildings should
emerge stronger from this difficult period.

As a result, the outlook communicated for the year oscillate between two
points, corresponding to, firstly, a new, controlled, wave of the Covid
pandemic, and secondly, to a lasting respite in the said pandemic, and as such
anticipate a fall in sales of between 0 and 3% on a like-for-like basis and a
current operating margin of between 15 and 17%.

In addition to maintaining profitability and financial equilibrium, the
priorities remain ensuring customer satisfaction, with a special focus on
service, and the health of employees.

CORPORATE PROFILE

Founded in France in 1969, and today operating in 58 countries, Somfy is the
global leader in opening and closing automation for both residential and
commercial buildings.
A pioneer in the connected home, the Group is constantly innovating to
guarantee comfort, wellbeing and security in the home and is fully committed to
promoting sustainable development.
For 50 years, Somfy has been using automation to improve living environments
and has been committed to creating reliable and sustainable solutions, which
help promote better living and wellbeing for all.

DISCLAIMER

The half-year financial statements were reviewed by the Supervisory Board on 9
September 2020. They may be accessed via the Company's website
(www.somfyfinance.com).

The limited audit review has been completed and the Statutory Auditors' report
has been issued.

CONTACTS

Somfy: Pierre Ribeiro: +33 (0)4 50 40 48 49
Shan: François-Xavier Dupont: +33 (0)1 44 50 58 74 -
Alexandre Daudin: +33 (0)1 44 50 51 76

SHAREHOLDERS' AGENDA

Publication of third quarter sales: 20 October 2020 (after close of trading)

GLOSSARY

Sales: The sales figures refer to the sales amounts generated with customers
outside the Group. They are calculated based on customer location and therefore
the destination of the sales.

Change in real terms: The change in real terms corresponds to the change at
actual consolidation method and scope, and actual exchange rates.

Change on a like-for-like basis: The change on a like-for-like basis
corresponds to the change at constant consolidation method and scope, and
constant exchange rates.

Geographic regions: The Group is organised into two geographic divisions, the
first made up of Central Europe, Northern Europe, North America and Latin
America (North & West), and the second made up of France, Southern Europe,
Africa & the Middle East, Eastern Europe and Asia-Pacific (South & East).

Current operating margin: ratio of current operating result to sales
(COR/Sales).

Net financial surplus: The net financial surplus corresponds to the difference
between cash and cash equivalents and financial liabilities.

APPENDICES

SALES
                                                 Var.
Consolidated data             2020      2019     Real        Ver.
(EUR millions)                June      June     terms   Like-for-like

Central Europe               126.9     118.1     +7.5%      +6.7%
. of which Germany           103.2      95.5     +8.1%      +8.1%
Northern Europe               70.4      73.4     -4.1%      -3.3%
North America                 49.4      53.2     -7.2%      -9.3%
Latin America                  8.2      11.2    -27.0%     -16.3%
Total North & West           254.9     255.9     -0.4%      -0.5%
France                       148.1     178.8    -17.2%     -17.2%
Southern Europe               50.7      64.7    -21.7%     -22.1%
Africa & the Middle East      26.7      31.8    -16.0%     -13.6%
Eastern Europe                59.1      50.7    +16.6%     +19.7%
Asia-Pacific                  29.5      33.3    -11.3%     -10.3%
Total South & East           314.0     359.2    -12.6%     -11.9%
Group Total                  568.9     615.1     -7.5%      -7.2%

CONDENSED INCOME STATEMENT

Consolidated data                             2020      2019
(EUR millions)                                June      June

Sales                                        568.9     615.1
EBITDA                                       134.0     142.2
Current operating result                     102.6     114.9
Non-recurring operating items                 (0.8)     (0.7)
Net financial expense                         (4.0)     (1.9)
Income tax                                   (18.3)    (22.5)
Share of net profit from associates            1.4       1.3
Consolidated net profit                       80.9      91.2
. Attributable to Non-controlling interests    0.0       0.0
. Attributable to Group share                 80.9      91.2

RECONCILIATION OF CHANGES IN REAL TERMS WITH CHANGES ON A LIKE-FOR-LIKE BASIS

                                      Sales     Current operating result

Change on a like-for-like basis       -7.2%             -10.5%
Forex impact                          -0.4%              -0.1%
Scope impact                            -                  -
Change in real terms                  -7.5%             -10.7%

CONDENSED BALANCE SHEET

Consolidated data                       2020      2019      2019
(EUR millions)                          June      Dec.      June

Equity                                1,044.4   1,012.8    939.6
Goodwill                                94.5      95.6      95.4
Net non-current assets                 337.7     340.7     337.0
Investments in associates and
joint ventures                         137.0     136.5     134.2
Working capital                        559.2     515.6     455.3
Working capital requirements           184.1     159.8     225.6
Net financial surplus                  325.6     310.5     174.7

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