Thursday 30 July 2020
PUBLICATION OF TURNOVER FIGURES FOR THE 1st HALF OF 2020
- Turnover down by 31.7%
- Gradual recovery of the business
- A high level of cash flow generation
AKWEL (FR0000053027, AKW, PEA-eligible), the automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, has posted consolidated turnover of €387m in the first half of 2020, down by 31.7% compared to the first half of 2019.
Consolidated turnover (1 January to 30 June 2020)
|In € millions – unaudited||2020||2019||Variation||Like-for-like variation (1)|
|1st quarter||273.5||293.0||-6.6 %||-5.9 %|
|2nd quarter||113.6||273.5||-58.5 %||-57.8 %|
|1st half-year||387.0||566.5||-31.7 %||-31.0 %|
(1) Comparing like-for-like figures.
THE FULL IMPACT OF THE HEALTH CRISIS WAS FELT IN THE SECOND QUARTER
The virtual stoppage of global car production for more than two months was felt to full effect in April and May 2020, particularly in Europe and North America, whereas China gradually began to recover. In this context, AKWEL’S turnover in the second quarter of 2020 was down by 58.5% (57.8% when comparing like-for-like figures, including an exchange rate impact of -€1.9m chiefly for the Turkish lira). These developments produced highly contrasting monthly results, with a fall of almost 90% in April, the low point for the global market, a fall of 70% in May and one of 22% in June 2020 for a comparable number of days worked. During the first half year, AKWEL outperformed its market with global production falling by 34% and 40% in Europe and North America.
ANALYSIS OF THE BREAKDOWN OF REVENUE
The geographical breakdown of turnover by production zone was as follows:
- France: €110.6m (-38.2%)
- Europe (excluding France) and Africa: €118.1m (-32.9%)
- North America: €97.3m (-26.2%)
- Asia and the Middle East (including Turkey): €59m (-21.7%)
- South America: €2m (-55.3%)
Against this backdrop of a global downturn, the early recovery of the market in China enabled the group to achieve positive half-yearly figures thanks to the ramp-up of new projects and the commercial success of a number of models for which AKWEL is well positioned.
Published turnover for Products and Functions was down by 32.3% at €364.8m. All activities saw a significant downturn but the Air products line resisted this trend, limiting its falls to 7.9%, and accounted for almost 10% of consolidated turnover for the period. The turnover for Tooling was also down by 27.8% at €18.1m.
NET DEBT DOWN AS OF 30 JUNE 2020
Thanks to financial management adapted to this crisis situation, the net financial debt (excluding the impact of IFRS 16) fell by €42m over the half-year, with a new fall of €17.5m in the second quarter after disbursement of the dividend. The group now has a positive net cash position (excluding IFRS 16) of €17.5m, with available cash reserves of €158m, to which should be added its confirmed and unused financing facilities, bringing the overall total to €200m.
The group’s financial solidity has enabled it to come through this unprecedented crisis in global car production, with an upturn in its activities confirmed in the first available figures for July 2020. It should be remembered that AKWEL has suspended its growth objectives for the financial year in view of the lack of visibility of developments in the global market up to the end of 2020.
|Next press release: 2020 half-year results, Thursday 24 September, after the markets close.
|An independent, family-owned group listed on the Euronext Paris Stock Exchange, AKWEL is an automotive and HGV equipment and systems manufacturer specialising in fluid management and mechanisms, offering first-rate industrial and technological expertise in applying and processing materials (plastics, rubber, metal) and mechatronic integration.
Operating in 20 countries across every continent, AKWEL employs almost 12,000 people worldwide.
Euronext Paris – Compartment B – ISIN: FR0000053027 – Reuters: AKW.PA – Bloomberg: AKW:FP
Jean-Louis Thomasset – Vice-President of the Executive Board/Financial VP – Tel.: +33 4 50 56 99 25
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