THERMADOR GROUPE (EPA:THEP) - THERMADOR GROUPE : 2019 half year results

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31/07/2019 17:47

LETTER TO SHAREHOLDERS N°94

August 1, 2019
Dear Shareholder,
Here are the main indicators on the current situation of our group.

HALF YEAR TURNOVER 2019 : +14.8%
AT CONSTANT SCOPE : +5.0%

In thousands of euros
                        2019   2019     2018    2018    Variation  Variation
                              constant         constant  2019/2018    2019
                              scope*            scope*              constant
                                                                  scope*/2018
Total half year -
according to IFRS 15  190,699 172,671 166,055   164,511    +14.8%     +5.0%
1st quarter            93,048  84,140  81,349    80,706    +14.4%     +4.3%
2nd quarter            97,651  88,531  84,706    83,805    +15.3%     +5.6%
Breakdown by business:
Mecafer and Domac,
equipment tools        14,581  14,581  15,186    15,186     -4.0%     -4.0%
Dipra / Rousseau,
pumps, plumbing
and taps*              28,847  10,837  11,490    11,490   +151.1%     -5.7%
Isocel, components
for boilers             3,057   3,057   3,009     3,009     +1.6%     +1.6%
Aello, equipment for
swimming pools          5,863   5,863   4,525     4,525    +29.6%    +29.6%
Jetly, pumps           26,512  26,512  25,358    25,358     +4.6%     +4.6%
Thermador, central
heating and domestic
hot water accessories  22,234  22,234  20,723    20,723     +7.3%     +7.3%
PBtub, pipework for
the distribution       13,523  13,523   13,58    13,584     -0.4%     -0.4%
Axelair, ventilation
equipment and
accessories             3,320   3,320   2,282     2,282    +45.5%    +45.5%
Sferaco, valve,
connectors and meters  29,980  29,980  28,255    28,255     +6.1%     +6.1%
Sectoriel, motorised
valves and air
compressors            10,865  10,865  10,133    10,133     +7.2%     +7.2%
FGinox, stainless
steel connectors,
flanges, valves
and accessories         8,437   8,437   8,099     8,099     +4.2%     +4.2%
Syveco**               13,925  13,925  12,401    12,401    +12.3%    +12.3%
Sodeco Valves,
industrial valves ***   9,393   9,375  10,851     9,307    -13.4%     +0.7%
Other structures          162     162     159       159     +1.9%     +1.9%

* 2019 turnover: with Thermador Groupe's acquisition of Sanidom / Rousseau on
December 31, 2018, which has been consolidated since January 1, 2019.
** Syveco new name of Thermador International.
*** 2018 turnover: reprocessed according to the sale of the capital of Sodeco
Sedin, the French subsidiary of Sodeco Valves.

CONSOLIDATED HALF YEAR POSITION ON JUNE 30, 2019

Simplified P&L statement
(thousand euros) - Half year
                     2019      2019     2018    2018    Variation  Variation
                             constant         constant  2019/2018    2019
                              scope*            scope*              constant
                                                                  scope*/2018
Turnover
(according to
IFRS 15)             190,699  172,671 166,055  164,511    +14.8%      +5.0%
Current operating
income for the
business              25,017   23,762  23,454   22,679     +6.7%      +4.8%
Net profit as a
portion of the group  16,981   16,076  15,455   14,695     +9.9%      +9.4%

* 2019 turnover: with Thermador Groupe's acquisition of Sanidom / Rousseau on
December 31, 2018, which has been consolidated since January 1, 2019.

Detailed accounts are available on our website www.thermador-groupe.fr

Head office: Parc d'Activités de Chesnes - 80, rue du Ruisseau - CS 10710 -
38297 SAINT-QUENTIN-FALLAVIER CEDEX - FRANCE
Tel. +33 474 95 63 28 - Fax +33 474 95 46 35 - Website:
www.thermador-groupe.fr
Private limited company with capital of EUR36,439,008 - 339 159 402 companies
register of Vienne - SIRET n°: 339 159 402 00017

BUSINESS

Business growth over the 2nd quarter was along the lines of that of the 1st
quarter, with a few exceptions that require explanation.

Our retail activity has recovered with better performances for Mecafer, Domac
and Dipra in Q2. Rousseau reported the forecast level of turnover for its first
six months within the group.

Our subsidiary based in Brussels and specialised in the sale of industrial
valves to industry, Sodeco Valves, is back on the path to growth to constant
scope, which is an encouraging sign for the new director appointed at the
beginning of the year.

Axelair has produced an effective response to high demand on the market for
mobile air conditioners and fans, whilst continuing its development on
ventilation equipment for construction. It is about to hit the break- even
point 51/2 years after it started up from scratch, very close to the
commitments made at the outset.

Aello has made the most of a buoyant swimming pool market and confirms the
suitability of its business model, just 4 years after its launch.

Finally, Thermador International continues to grow, and has adopted a new name
that better corresponds to its identity. The subsidiary, created in 2006, is
now be called SYVECO. The explanation for this choice of name can be found at
www.syveco.com.

RESULTS AND FINANCIAL SITUATION

Including Rousseau's results, consolidated operating profit grew 6.7%. To
constant scope, it increased 4.8% in spite of a less favourable euro-dollar
exchange rate, and a dip in profitability for Dipra and Mecafer. The growth is
mainly due to good performances from Thermador, Syveco, Jetly, Aello, FGinox,
Sferaco and Sectoriel. We should note Dipra's mark-down provision on inventory
of EUR0.3 million further to our decision to concentrate all the bathroom and
kitchen tap retail range from 2020 onwards on the Rousseau logistics
platform.

Our stock levels have fallen by 4.1% since 31/12/2018. This is due to very
dynamic sales during the months of May and June and the thorough work done on
our sourcing processes. Our net cash position has benefited from that and is
now EUR12.5 million. Our financial debt of EUR41 million remains very
reasonable compared to our equity of EUR204.5 million.

PROSPECTS

Unsurprisingly, the number of new building starts continues to fall (-6.1% for
the quarter). Our wholesale customers from the heating-sanitation and
electricity sectors are however reporting sales growth thanks to peak demand
for heat pumps and air conditioning. This phenomenon should slow during the 3rd
quarter, especially as heat pump manufacturers are finding it very difficult to
honour wholesalers' orders. Thermador, our subsidiary specialising in heating
accessories, could therefore see its growth decelerate.

This will not affect our peace of mind as we head into the 2nd   half of the
year, given that the last quarter of  2018 returned growth of only 1.5%. The
base effect therefore seems more favourable. Also, the trend remains positive
for our export and industrial valves businesses.

Having focused our attention on the integration of companies having recently
joined the group, we have not been active on the market for new businesses to
acquire over the past 2 years. However, recent proposals and continued work on
a project started at the end of 2016 have led us to submit three suitable
external growth opportunities to the Board. In all, these companies would bring
additional turnover to our pro channels of a little under EUR40 million. As
always, we will be sure to keep you informed of any developments on these
projects.

INSTITUTIONAL WEBSITE - https://www.thermador-groupe.fr

In partnership with Middlenext, we have completely revamped our website to make
it easier for shareholders to access information. Please do not hesitate to
test it and get back to us with any suggestions via your dedicated email
address: actionnaires@thermador-groupe.fr

Yours faithfully,

The Chairman
Guillaume Robin

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