FINANCIAL PRESS RELEASE
Paris, France, June 3, 2019
2018/2019 Results
Noted improvement in profit
EBITDA: +49%, EBITDA Margin: +3 points
Operating income: x2.5
Generix Group, Industrial, Logistical and Retail Ecosystems provider with leading Collaborative SaaS Solutions, issued today the results for its fiscal year 2018/2019 ended March 31, 2019.
According to Jean-Charles Deconninck, Chairman of the Management Board, “as announced, Generix Group posted solid sales performance for the fiscal year along with a substantial increase in its financial result. I would like to thank our entire team for their commitment to this push for growth and performance. This year will be remembered as one of strengthening our organization and expanding our offerings: we hired for key operational roles, bought back minority interests in Generix North America, and opened a shared service center in Portugal. The group is structured to deliver on its profitable growth strategy driven by high international ambitions and an insistence on quality of service and operational excellence.”
Key figures on March 31, 2019
| Twelve months ended March 31, | Variation | |||
| IFRS consolidated accounts, in millions of Euros | 2019 | 2018 | M€ | % |
| Key elements of the consolidated income statement | ||||
| Revenues | 76,6 | 70,3 | 6,3 | 9% |
| EBITDA | 8,5 | 5,7 | 2,8 | 49% |
| Operating income | 5,3 | 2,2 | 3,1 | 145% |
| Financial result | - 0,9 | - 0,5 | - 0,4 | 89% |
| Income taxes benefit | - 2,0 | - 0,5 | - 1,5 | 319% |
| Net profit Group share | 2,3 | 0,6 | 1,7 | 305% |
| Key elements of the consolidated Balance Sheet | ||||
| Net debt | - 7,8 | - 7,2 | - 0,6 | 8% |
| Free cash flow | - 0,8 | - 0,2 | - 0,6 | 310% |
Noted improvement in profit
Fiscal 2018/2019 was characterized by:
- revenues up by 9%, driven in part by dynamic international business and the strategic SaaS model;
- a substantial improvement in all profitability aggregates.
EBITDA, for example, grew by 49% to €8.5 M. EBITDA margin totaled 11% of revenues, an increase of 3 points over the previous fiscal year. The group is reaping the full benefit of the growth momentum driving its business and the stability of its operating charges.
Recurring operating income was €5.3 M, an increase of €2.5 M with respect to end March 2018, after accounting for the activation of software design costs, expenses related to current free share allocation plans, depreciation and provisions.
With no other operating charges or revenue, operating income was €5.3 M, an increase of €3.1 M with respect to end March 2018. Recall that operating expenses for the previous year corresponded to the additional initial payment made for the acquisition of Generix North America (-€0.7 M).
The financial result for the year includes €0.5 M in earn-outs tied to the acquisition of 30% of the remaining shares of Generix Group North America1.
After accounting for the impact of updating tax rates in the calculation of deferred taxes and minority interests, net income for the Group share is €2.3 M, as compared to €0.6 M for the preceding fiscal year.
A solid financial situation
Our cash flow for the fiscal year 2018/2019 was primarily characterized by:
- A significant improvement in self-financing capacity related to a dynamic of profitability;
- The acquisition of 30% of the remaining shares of Generix Group North America for a total of €3.9 M, €3.2 M of it financed by taking out a medium-term loan;
- The subscription of warrants by Group management for €0.9 M2.
Prospects
Active in the growth market for supply chain solutions, Generix Group sets itself apart with a unique SaaS offering that provides efficiency, visibility, and security for clients managing their flows. The Group has been recognized by Gartner as one of the leading publishers of WMS solutions and appeared in the 2019 Magic Quadrant for Warehouse Management Systems (WMS) published on May 8, 2019. On the basis of these strong fundamentals, Generix Group has set two strategic aims: continuously improving its operating excellence and accelerating its international roll-out. These operational ambitions, combined with solid fundamentals, put the Group in a position to pursue continued growth in revenues and profitability for the 2019/2020 fiscal year.
Supplemental and non-IFRS Financial Information
Supplemental non-IFRS information (above-mentioned as EBITDA or net debt) presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Company’s supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS measures used by other companies.
Next financial press release: July 29, 2019, after closing of the stock exchange
Release of first quarter revenues for the fiscal year 2019/2020
About Generix Group
Generix Group is a Collaborative Supply Chain expert present in 60 countries, thanks to its subsidiaries and network of partners. More than 6,000 companies around the world use its SaaS solutions. The group’s 550 employees provide daily support for such customers as Carrefour, Danone, FM Logistic, Fnac-Darty, Essilor, Ferrero and Geodis in the digital transformation of their Supply Chain.
Its collaborative platform, Generix Supply Chain Hub, helps companies to keep the promises they make to their customers. It combines the capabilities to execute physical flows, digitalize information flows, manage collaborative processes and connect companies to all their partners, in real time.
Generix Supply Chain Hub is aimed at all players in the Supply Chain: manufacturers, third- and fourth-party logistics providers (3PL/4PL) and retailers.
Founded in France in 1990, the company is listed on the Eurolist market of Euronext Paris, compartment C (ISIN: FR0010501692). To learn more: www.generixgroup.com
Appendices
| Twelve months ended March 31, | Variation | |||
| IFRS consolidated accounts, in millions of Euros | 2019 | 2018 | M€ | % |
| Revenues | 76,6 | 70,3 | 6,3 | 9% |
| Other income from operations | 2,2 | 2,1 | 0,1 | 7% |
| Operational expenses | - 70,4 | - 66,7 | - 3,7 | 6% |
| Other purchases and external charges | - 22,7 | - 21,9 | - 0,8 | 4% |
| Personnel costs | - 43,5 | - 40,0 | - 3,5 | 9% |
| Taxes and similar payments | - 1,7 | - 1,7 | 0,0 | -2% |
| Other | - 2,5 | - 3,0 | 0,6 | -20% |
| EBITDA | 8,5 | 5,7 | 2,8 | 49% |
| EBITDA margin | 11% | 8% | 3% | 37% |
| Software design costs activated net of depreciation | - 0,5 | - 0,5 | 0,0 | -8% |
| Net depreciation and provisions | - 2,2 | - 2,3 | 0,1 | -5% |
| Expenses relative to free shares | - 0,5 | - | - 0,5 | N/A |
| Recurring operating income | 5,3 | 2,9 | 2,5 | 86% |
| Other operational income and expenses | - | - 0,7 | 0,7 | -100% |
| Operating income | 5,3 | 2,2 | 3,1 | 145% |
| Financial result | - 0,9 | - 0,5 | - 0,4 | 89% |
| Income taxes benefit | - 2,0 | - 0,5 | - 1,5 | 319% |
| Net result after tax | 2,4 | 1,2 | 1,2 | 98% |
| Net profit Group share | 2,3 | 0,6 | 1,7 | 305% |
(1) EBITDA = current operating income + net provisions on current assets + net provisions for risks and charges + depreciation on fixed assets + Expenses relative to free shares - capitalized production costs.
| | Twelve months ended March 31, | Variation | ||
| Net debt, in millions of Euros | 2019 | 2018 | M€ | % |
| Cash and cash equivalents, end of period | 9,2 | 6,2 | 3,0 | 48% |
| Short-term and long-term portions of financial obligations | - 17,0 | - 13,4 | - 3,6 | 27% |
| Net debt | - 7,8 | - 7,2 | - 0,6 | 8% |
| Twelve months ended March 31, | Variation | |||
| Consolidated statements of cash flows, in millions of Euros | 2019 | 2018 | M€ | % |
| Net income adjusted by non-cash items | 6,8 | 3,9 | 2,9 | 73% |
| Change in working capital | - 1,7 | - 1,3 | - 0,4 | 31% |
| Net cash by operating activities | 5,0 | 2,6 | 2,5 | 95% |
| Net cash used in investing activities | - 5,8 | - 2,8 | - 3,0 | 109% |
| Free cash flow | - 0,8 | - 0,2 | - 0,6 | 310% |
| Net cash by financing activities | 3,8 | - 0,5 | 4,3 | -840% |
| Net increase in cash and cash equivalent | 3,0 | - 0,7 | 3,7 | -526% |
| Cash and cash equivalent, end of period | 9,2 | 6,2 | 3,0 | 48% |
1 See financial press release dated November 6, 2018
2 See financial press release dated November 5, 2018
Financial Information Contacts:
Generix Group – Ludovic Luzza – Chief Financial Officer – Tel: +33 (0)1 77 45 42 80 – lluzza@generixgroup.com
CM-CIC Market Solutions – Stéphanie Stahr – Tel: +33 (0)1 53 48 80 57 – stephanie.stahr@cmcic.fr
Attachment
Source(s) : Generix Group
