TRIGANO (EPA:TRI) - 2019/2020 First Half-Year Results

Transparency directive : regulatory news

06/05/2020 17:35

Paris, 6 May 2020

Current operating result for the first half-year: EUR 89.3M

Trigano achieved sales of EUR 1,163.4M in the first half-year 2019/2020, up
2.3% compared to the first half of previous financial year (+ 1.9% at constant
scope).

Consolidated current operating profit for the first half-year reached EUR 89.3M
and represents 7.7% of sales (8.8% in 2018/2019). First half-year results were
affected by an unfavourable sales mix in terms of margin, by a level of
productivity below expectations in the factories that were refitted a few
months ago, as well as by an increase in warranty costs.

The financial result (EUR -4.0M) benefited from an adjustment of the minority
debt amounting EUR 3.1M. Considering a corporate tax expense of EUR 22.4M and
the positive contribution of equity affiliates (EUR 2.1M), the net consolidated
profit reached EUR 65.7M (EUR 72.0M in 2018/2019) and represents EUR 3.41 per
share:

in EURM                            H1 2020                    H1 2019
Sales                              1,163.4                    1,136.8
Leisure vehicles                   1,082.5                    1,054.7
Leisure Equipment                     80.9                       82.1
Current operating result              89.3                      100.2
of which leisure vehicles             86.4                       98.9
of which leisure equipment             2.9                        1.3
Other operating income and charges     0.7                       (0.6)
Operating result                      90.0                       99.6
Net result                            65.7                       72.0

The level of investments is stable compared to the first half of the previous
financial year (EUR 20.1M compared to EUR 19.9M in 2018/2019). In addition,
Trigano acquired a factory previously rented in Poggibonsi (Tuscany) for EUR
9M, generating annual rental savings of around EUR 1M. This transaction is not
considered as an investment under IFRS 16.

During this half-year, Trigano again strengthened its financial structure: net
debt, traditionally at its peak at the end of February, reached EUR 78.0M (EUR
174.3M on 2019/02/28), i.e. 8.4% of consolidated shareholders' equity (21.6% on
2019/02/28). The application of IFRS 16 had the effect of increasing financial
debt by EUR 17.1 million as of February 29, 2020 (rental debts).

Covid-19 crisis management

Established in Europe and Tunisia, Trigano was affected since mid-March by
sanitary measures intended to curb the spread of the Covid-19 virus.

Trigano implemented an action programme to manage this crisis taking into
account, as a priority, the respect for the physical integrity of its
personnel, but also the interest of its dealer networks and suppliers.

The main components of these programmes are:

- Implementation of a remote working organisation for a large number of key
  functions

- Limitation of the activity of most business units to the completion of
  incomplete vehicles, delivery to still open retail customers and to websites
  as well as the reception of components to facilitate a restart of production

- Reduction of staff costs by anticipating holiday taking, termination of
  temporary contracts, non-renewal of fixed-term contracts and using partial
  unemployment compensation systems offered in different countries.

- Focus on the recovery of customer receivables as part of an active steering
  of cash management.

- Reorganisation of production schedules so as to favour the manufacture of
  vehicles already sold to end customers as soon as production resumes

- Solicitation of possible cancellations of orders from networks so as not to
  excessively delay the manufacture of new collections or overload dealers with
  unsold products.

Production activities resumed gradually since mid-April and almost all sites
should be operative from mid-May. To this end, in strict compliance with
instructions of the authorities, procedures were put in place, production lines
were refurbished, personal protective equipment was supplied and the social
premises were rearranged or even closed.

Trigano benefits from a solid financial structure supported by a high amount of
equity and a low financial debt. The company's cash flow level and the benefit
of undrawn credit facilities amounting to EUR 138M to date will enable it to
weather this crisis and to emerge from it stronger compared to the competition.

Outlook

Activity and results of the second half-year will be strongly impacted by the
crisis we are going through. It will not be possible to make up losses in
manufacturing volumes before the end of the financial year and expected levels
of productivity during the phases of restarting the production tool will be
significantly lowered due to sanitary constraints.

The Covid-19 crisis caused a major economic shock, consequences of which on
European demand for leisure vehicles are difficult to predict.

In the short term, restrictions on gathering people in one place could disturb
or even hinder the holding of fall fairs and exhibitions, and weakened dealers
could reduce their commitments to order new model vehicles. In this context,
Trigano will intensify its efforts to control its working capital requirement
and will remain attentive to the evolution of demand in order to adapt its
production means and the level of overhead costs.

In the medium and long term, Trigano's outlook for main European markets is
positive. Indeed, the leisure lifestyle made possible by the motorhome is an
individual lifestyle which avoids collective means of catering, accommodation
and transport. This gives motorhomes a decisive advantage in terms of sanitary
security which will be all the more taken into account by consumers after the
epidemic that we are experiencing. In addition, taxes based on CO2 emissions
from motorhomes have been fully lifted in the UK and are expected to be largely
lifted in Sweden.

2019/2020 Third-Quarter Sales will be disclosed on 29 June 2020

IR Contact
Laure Al Hassi
phone. : +33 1 44 52 16 31
communication@trigano.fr

Euronext Paris A - CAC All-Tradable - SRD - CAC Mid 60 - ISIN FR0005691656 -
REUTERS : TRIA.PA - BLOOMBERG : TRI:FP

2019/2020 First Half-Year Sales: 1.2 Billion Euros (+2.3%)

Paris, 18 March 2020

Trigano achieved sales of EUR 603.4M in the second quarter of 2019/2020, up
7.3% at constant scope and exchange rates:

                                                    2019/2020 change
in EURM
                                                                   Change at
                                                        of which    constant
(Non-audited      2020       2019       2018    Current  exchange     scope*
figures)       Financial   Financial  Financial  change rate effect    and
                  year        year      year                 **      exchange
                                                                      rates

Leisure
vehicles
  Q1 (Sept-Nov)    518.7      535.6      506.2      -3.2%    +0.1%      -3.3%
  Q2 (Dec-Feb)     563.6      519.1      513.8      +8.6%    +0.7%      +7.9%
  Half-Year      1,082.3    1,054.7    1,020.0      +2.6%    +0.4%      +2.2%

Leisure equipment
  Q1 (Sept-Nov)     41.0       42.2       38.5      -2.8%    -0.2%      -2.6%
  Q2 (Dec-Feb)      39.8       40.0       37.9      -0.5%    +0.3%      -0.8%
    Half-Year       80.8       82.2       76.4      -1.7%     0.0%      -1.7%
Q2 Sales           603.4      559.1      551.7      +7.9%    +0.6%      +7.3%
Half-Year Sales  1,163.1    1,136.9    1,096.4      +2.3%     0.4%      +1.9%

* Restatement of perimeter effect of newly consolidated entities consists of:

- for entities entering the consolidation scope in the current year,
  subtracting the contribution of the acquisition from the aggregates of the
  current year;

- for entities entering the consolidation scope in the previous year,
  subtracting the contribution of the acquisition from September 1 of the
  current year, until the last day of the month of the current year when the
  acquisition was made the previous year.

No entities left the consolidation scope during the periods mentioned in this
press release.
** Restatement of the foreign exchange effect consists of calculating
aggregates for the current year at the exchange rate of the previous year.

Leisure vehicles

The European leisure vehicle markets continued to grow in the first half of the
year with the exception of the Scandinavian and British markets, which remained
depressed, affected by the introduction of high taxes on CO2 emissions.

Activity in the second quarter was marked by the total or partial resolution of
problems of vehicles type-approval, chassis availability and refitting of
certain plants encountered in the previous months. Sales of motorhomes (+
10.6%) returned to a high pace of growth, while those of caravans (-3.2%) were
slightly down compared to the previous year.

Deliveries of static caravans (-7.9%) were affected by the late receipt of
orders from some campground managers. Finally, sales of accessories for leisure
vehicles (+ 9.7%) benefited from the market dynamism in Netherlands and
Germany.

Leisure equipment

Trailers activity (+ 4.9%) remained well oriented, camping equipment (-38.2%)
and garden equipment (+ 8.3%) are in low season and changes in their sales in
Q2 are therefore not significant.

COVID-19

The activity of Trigano will naturally be impacted by measures of closure of
non-food businesses across a large part of the European territory, as well as
by containment measures. Most of production units have been put into reduced
activity or temporarely closed.
The experience acquired during the 2008 economic crisis will enable Trigano to
take the appropriate measures to emerge strengthened from this ordeal and to be
able to restart quickly production in order to satisfy a high order backlog.
The financial strength of Trigano is also a fundamental asset in this crisis
period.

Outlook

Excluding the influence of exogenous phenomena, Trigano's prospects on the main
markets are positive. Indeed, motorhomes are experiencing a significant
expansion in the important markets and the fences corresponding to taxes based
on CO2 emissions have been completely removed in United Kingdom and should be
largely lifted in Sweden.

The leisure mode made possible by motorhomes is an individual mode which avoids
collective means of accommodation and transport. This gives motorhomes a
decisive advantage over other means of leisure and this will be especially true
after the end of the epidemic that we are experiencing.
The very positive results of sales to the public in January and February 2020
illustrate this.
Trigano will continue to implement all internal growth operations that have
been initiated and will seize any acquisition opportunity corresponding to its
external growth policy.

2019/2020 First Half-Year results should be published on 6 May 2020

IR Contact
Laure Al Hassi
phone. : +33 1 44 52 16 31
communication@trigano.fr

Euronext Paris A - CAC All-Tradable - SRD - CAC Mid 60 - ISIN FR0005691656 -
REUTERS : TRIA.PA - BLOOMBERG : TRI:FP

                                  APPENDIX

                  Breakdown of sales by product category

2019/2020 Q2

EURM                     from       from      Current    Change at   of which
(non-audited figures) 12/01/19    12/01/18     change     constant   exchange
                          to         to                  perimeter*    rates
                   02/29/20  02/28/19                       and       effect**
                                                      exchange rates

Motorhomes            465.7        420.9    44.8  10.6%  0.1  0.0%   2.8  0.7%
Caravans               42.1         43.5    -1.4  -3.2%  0.0  0.0%   0.3  0.7%
Static caravans        23.3         25.3    -2.0  -7.9%  0.0  0.0%   0.0  0.0%
Accessories            26.0         23.7    2.3    9.7%  0.0  0.0%   0.2  0.8%
Others                  6.5          5.7    0.8   14.0%  0.0  0.0%   0.1  1.8%
Leisure vehicles      563.6        519.1   44.5    8.6%  0.1  0.0%   3.4  0.7%
Trailers               29.9         28.5    1.4    4.9%  0.0  0.0%   0.0  0.0%
Camping equipment       3.4          5.5   -2.1  -38.2%  0.0  0.0%   0.0  0.0%
Garden equipment        6.5          6.0    0.5    8.3%  0.0  0.0%   0.1  1.7%
Leisure equipment      39.8         40.0   -0.2   -0.5%  0.0  0.0%   0.1  0.3%
Total sales           603.4        559.1   44.3    7.9%  0.1  0.0%   3.5  0.6%

2019/2020 H1

EURM                     from      from      Current   Change at    of which
(non-audited figures) 12/01/19    12/01/18    change   constant     exchange
                          to         to                perimeter*    rates
                       02/29/20  02/28/19                 and        effect**
                                                  exchange  rates


Motorhomes               899.8     869.9    29.9   3.4%  0.1  0.0%   3.4  0.4%
Caravans                  86.6      89.4    -2.8  -3.1%  0.0  0.0%   0.3  0.3%
Static caravans           30.8      33.7    -2.9  -8.6%  0.0  0.0%   0.0  0.0%
Accessories               51.6      48.6     3.0   6.2%  0.0  0.0%   0.2  0.4%
Others                    13.5      13.1     0.4   3.1%  0.0  0.0%   0.1  0.8%
Leisure vehicles       1,082.3   1,054.7    27.6   2.6%  0.1  0.0%   4.0  0.4%
Trailers                  63.9      61.2     2.7   4.4%  0.0  0.0%  -0.1 -0.2%
Camping equipment          5.9      10.5    -4.6 -43.8%  0.0  0.0%   0.0  0.0%
Garden equipment          11.0      10.5     0.5   4.8%  0.0  0.0%   0.1  1.0%
Leisure equipment         80.8      82.2    -1.4  -1.7%  0.0  0.0%   0.0  0.0%
Total sales             1,163.1  1,136.9    26.2   2.3%  0.1  0.0%   4.0  0.4%

* Restatement of perimeter effect of newly consolidated entities consists of:

- for entities entering the consolidation scope in the current year,
  subtracting the contribution of the acquisition from the aggregates of the
  current year;

- for entities entering the consolidation scope in the previous year,
  subtracting the contribution of the acquisition from September 1 of the
  current year, until the last day of the month of the current year when the
  acquisition was made the previous year.

No entities left the consolidation scope during the periods mentioned in this
press release.

** Restatement of the foreign exchange effect consists of calculating
aggregates for the current year at the exchange rate of the previous year.

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14/05/2024 17:45

TRIGANO (EPA:TRI) - 2019/2020 First Half-Year Results

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