LECTRA: Q1 2024: growth in revenue and EBITDA before non-recurring items

Q1 2024: growth in revenue and EBITDA before non-recurring items

• Revenues: 129.6 million euros (+5%)*
• EBITDA before non-recurring items: 21.1 million euros (+7%)*
• Net income: 6.7 million euros (-9%)
• Free cash flow before non-recurring items: 22.0 million euros (x 2.4)*

*At actual exchange rates

(1)  The 2024 amounts include Launchmetrics since January 23, 2024
(2)  The definition for performance indicators appears in the Management Discussion of December 31, 2023
(3)  At December 31 and March 31 2024

Paris, April 24, 2024. Today, Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the unaudited consolidated financial statements for the first quarter of 2024. These financial statements include those of Launchmetrics, which have been consolidated since January 23, 2024.

To facilitate the analysis of the Group's results, the accounts of Lectra excluding Launchmetrics (the "Lectra 2023 scope") and those of Launchmetrics are analyzed separately.

1- SUMMARY FOR Q1 2024

The macroeconomic environment remained highly challenging in the first quarter, with limited visibility and an extremely heterogeneous situation across markets.

Q1 2024 revenues (129.6 million euros) was up compared to Q1 2023. EBITDA before non-recurring items (21.1 million euros) increased by 7% and the EBITDA margin before non-recurring items was 16.3%.

Launchmetrics contributed 8.3 million euros to revenues and 1.1 million euros to EBITDA before non-recurring items (representing an EBITDA margin before non-recurring items of 13.2%).

Income from operations before non-recurring items (11.2 million euros) was down 8%. This included a 5.2 million euros charge for amortization of intangible assets arising from the acquisitions carried out since 2021, of which 2.0 million euros for Launchmetrics.

Net income amounted to 6.7 million euros, down 9% at actual exchange rates.

A tremendous free cash flow before non-recurring items

Free cash flow before non-recurring items stated at 22.0 million euros, an increase of 12.7 million euros compared to Q1 2023, due in particular to a higher level of downpayments and the contribution of free cash flow before non-recurring items of Launchmetrics.

A still robust balance sheet, after the Launchmetrics acquisition

At March 31, 2024, the Group had a particularly robust balance sheet with a consolidated shareholders’ equity of 341.6 million euros and a net financial debt of 18.8 million euros. The cash position consisted in financial debt of 119.3 million euros and cash of 100.5 million euros, after the payment of 39.3 million euros in respect of the first tranche of the acquisition of Launchmetrics, or roughly half the total amount, (the balance of this first tranche will be paid in June 2024).

Lectra 2023 scope

Q1 2024 orders reflect a mixed picture, with a high level in the automotive market in Asia, primarily due to the increased number of airbags per vehicle, and a low level on the other market sectors or geographies.

Orders from perpetual software licenses, equipment and accompanying software, and training and consulting remain stable. The annual value of orders for new software subscriptions (2.4 million euros) decreased by 0.2 million euros on a like-for-like basis compared to 2023.

Revenues amounted 121.3 million euros, down 1% from the same period a year before. Recurring revenues continued to grow (+5%) whereas revenues from new systems decreased by 12%. Revenues in the first quarter of 2023 had benefited from the high level of new system orders in Q4 2022.

Recurring EBITDA (€20 million), rose by 5% on a like-for-like basis.

2- BUSINESS TRENDS AND OUTLOOK

In its financial report on the fourth quarter and full year 2023, published February 14, 2024, Lectra reiterated its long-term vision, as well as the objectives of its 2023-2025 strategic roadmap.

The Group also stated that while the substantial improvement in the fundamentals of the Group's business model in 2023 would have a positive impact on 2024 results, persistent macroeconomic and geopolitical uncertainties could continue to weigh on investment decisions by its customers.

2024 financial objectives confirmed

On February 14, the Group reported its objectives for 2024, before including the Launchmetrics acquisition (i.e., for the Lectra 2023 scope): to achieve revenues in the range of 480 to 530 million euros (+2% to +12%) and EBITDA before non-recurring items in the range of 85 to 107 million euros (+10% to +40%).

The Group also reported that Launchmetrics revenues (for the consolidation period from January 23 to December 31, 2024) were projected to be in the range of 42 to 46 million euros, with an EBITDA margin before non-recurring items of more than 15%.

These scenarios were prepared on the basis of the closing exchange rates on December 29, 2023, and particularly $1.10/€1.

The results for Q1 2024 are in line with this outlook.

The 2023 Financial Report, as well as the Management Discussion and analysis of financial conditions and results of operations and the financial statements for Q1 2024 are available on lectra.com. The Shareholders' Meeting will be held on April 26, 2024, in the Company’s offices. Q2 and H1 2024 earnings will be published on July 25, 2024, after the close of trading on Euronext.

As a major player in the fashion, automotive and furniture markets, Lectra contributes to the Industry 4.0 revolution with boldness and passion by providing best-in-class technologies. The Group offers industrial intelligence solutions - software, equipment, data and services - that facilitate the digital transformation of the companies it serves. In doing so, Lectra helps its customers push boundaries and unlock their potential. The Group is proud to state that its 3,000 employees are driven by three core values: being open-minded thinkers, trusted partners and passionate innovators. Founded in 1973, Lectra reported revenues of 478 million euros in 2023. The company is listed on Euronext, where it is included in the following indices: SBF 120, CAC Mid 60, CAC Mid&Small, CAC All Shares, CAC All-Tradable, CAC Technology, EN Tech Leaders and ENT PEA-PME 150.

For more information, visit www.lectra.com

Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris • France
Tel. +33 (0)1 53 64 42 00 – www.lectra.com
A French Société Anonyme with capital of €37,832,965 • RCS Paris B 300 702 305

Attachment

• Lectra_PressRelease_Q12024