Third quarter revenue - Activity has been gradually improving since May

Third quarter revenue
Activity has been gradually improving since May

LACROIX Group (LACR - FR0000066607), an international technological equipment manufacturer, reveals its revenue for the third quarter of the 2019-2020 financial year (from 1 April to 30 June 2020).

Over the period, the Group has seen a progressive improvement in activity, despite the significant impact of the health crisis. Although revenue fell by more than 60% in April, in May it was only 40% down and in June, 10%.

In total, revenue for the third quarter came to €80.1 million, down 36.1% compared with the same period in 2018-2019. At constant scope, the decline was 36.2%. In total over the first nine months of the financial year (from 1 October 2019 to 30 June 2020), activity fell by 12.5% to €318.9 million (-14.2% at constant scope).

All activities remain impacted by the health crisis despite the gradual improvement observed from May. 

Over the third quarter, LACROIX Electronics recorded a revenue of €45.1 M, a drop of 43.1%. As expected, this decline includes the significant drops in volumes ordered, in particular for the avionics and automotive sectors. Since June, and despite still limited visibility, a clear recovery has been observed outside of the avionics sector. The level of recovery will become clearer over the next few months. Over nine months, the LACROIX Electronics business fell by 17% to €200.9 M.

At LACROIX City, business held up better with sales of €20.5 M, down 26.6% (-27.3% at constant scope). After a sharp slowdown observed during the lockdown, the gradual lifting of restrictions resulted in a clear recovery in activity from May. Over the first nine months of the year, the decline in activity was limited to 11% (-12% at constant scope) at €69.4 M

Lastly, at LACROIX Environment, revenue for the third quarter was €14.5 M, down 19.8%.  Activity remains supported by the integration of SAE-IT Systems acquired in February 2019, which continued to grow over the period. In total, over the first nine months of the FY, LACROIX Environment had a revenue of €48.5 M, up 9.7% (-4.7% at constant scope).

2019-2020 objectives confirmed

Given the encouraging signs of recovery which were evident over the first few weeks of July, the Group confirms all its objectives for the 2019-2020 financial year: a fall of around 10% in revenue with a trading operating margin of more than 2%. Given the still limited visibility on the evolution of the health situation, a return to normality is not expected before the end of 2020.

LACROIX Group thus reaffirms its confidence in its ability to overcome the crisis and return to the solid growth and margin appreciation that it demonstrated in the months leading up to the health crisis.

This confidence was further demonstrated in early July with the acquisition of eSoftThings (press release of 9 July), an international benchmark in the design and industrialisation of IoT solutions and in the field of artificial intelligence (computer vision, classification of objects, prediction of behaviour). This acquisition is perfectly in line with the Group's values, which will be at the heart of the new strategic plan to be presented in 2021.

Lastly, LACROIX Group reiterated its plan to change the closing date of its financial year from 30 September to 31 December. This project will be submitted for approval to the Extraordinary General Meeting of 28 August. If this proposal were approved, the current fiscal year would therefore have an exceptional duration of 15 months from 1 October 2019 to 31 December 2020.

 Upcoming dates

Fourth quarter revenue: 12 November 2020 after the Stock Exchange

ABOUT LACROIX Group

LACROIX Group is an international technological equipment manufacturer, aiming to serve a connected and responsible world with its technical and industrial excellence.  As a listed family-run SME, LACROIX Group combines the essential agility required to innovate in an ever-changing technological sector with the industrial capacity to produce robust, secure equipment and the long-term vision to invest and build for the future. LACROIX Group designs and produces its customers’ electronic equipment, in particular in the automotive, home automation, aeronautical, industrial and health sectors. LACROIX Group also provides safe, connected equipment for the management of critical infrastructures such as smart roads (street lighting, traffic signs, traffic management, V2X) and the management and operation of water and energy systems. Drawing on its extensive experience and expertise, the Group works with its customers and partners to build the connection between the world of today and the world of tomorrow. It helps them to build the industry of the future and to make the most of the opportunities for innovation that surround them, supplying them with the equipment for a smarter world.  

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