AI Terminal
JENSEN-GROUP N.V.
Earnings Release • Mar 7, 2024
3967_iss_2024-03-07_57bba469-a401-4070-8128-8d3ca916d625.pdf
Earnings Release
Open in ViewerOpens in native device viewer
Press Release
Record revenue, profit and strategic investments in 2023
HIGHLIGHTS
| (in thousands of euro) | YTD Q4 2023 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
|---|---|---|---|---|---|
| Orders received | 363,092 | 135,818 | 71,274 | 70,458 | 85,542 |
| Revenue | 400,121 | 100,683 | 92,740 | 108,920 | 97,778 |
- JENSEN-GROUP's revenue of the fourth quarter amounts to 100.7 MEUR, resulting in a record annual revenue of 400.1 MEUR (+17%).
- The order intake in 2023 represents an amount of 363.1 MEUR, nearly matching the highest ever level reached in the previous year.
- The operating profit (EBIT) amounts to 40.7 MEUR, compared to 22.4 million euro in 2022, marking a substantial growth of 81.8%.
- Consequently, the cash flow from operations (EBITDA) amounts to 48.4 MEUR, representing an 85% increase compared to previous year.
- The consolidated result attributable to equity holders lead to an Earnings per Share of 3.39 euro per share, an increase of 61.4% in comparison to 2.10 euro per share per end of December 2022.
- The Board will propose at the Annual Shareholders' meeting to approve a gross dividend of 0.75 euro per share. Subject to approval at the Annual Shareholders' meeting of May 21, 2024, the share will trade ex-coupon as of May 28, 2024 and the dividend will be payable as from May 30, 2024 at the counters of KBC bank.
Expansion of the Executive Management Team
The JENSEN-GROUP is pleased to announce the appointment of Mads Andresen as Chief Innovation Officer, effective January 1, 2024. In his new role, Mr. Andresen, founder of Inwatec, is in charge of driving innovation across the entire JENSEN-GROUP portfolio of applications and technologies and developing a fully integrated laundry automation strategy, powered by AI, machine learning and robotics.
State of the business 2023
In 2023, the JENSEN-GROUP reached a new milestone of 400.1 million euro, representing a 17.1% growth compared to 341.6 million euro in 2022. This increase is attributable to an exceptionally high order backlog at the end of 2022, a modest order intake in the first semester and a notably stronger order intake in the second semester of 2023. With orders accumulated throughout 2023 totaling 363.1 million euros, nearly matching the record set in the previous year, this achievement confirms our strong market position.
The EBIT of the Group amounted to 40.7 million euro in 2023, compared to 22.4 million euro in 2022, marking a substantial growth of 81.8%. This remarkable increase can be attributed to enhanced revenues fueled by robust global demand and carefully implemented price increases as well as improved operational efficiency stemming from ameliorated supply chain conditions and reduced freight costs in specific global regions.
To pave the way for the next phase of growth, the Group executed the following investments during 2023:
- the acquisition of 49% of the shares of Inax Corporation, a leading Japanese manufacturer and distributor of commercial laundry equipment,
- the acquisition of Ole Almeborg, a manufacturing facility that will supplement production space and committed for additional capital expenditures of 6 million euro for 2024,
- the investment in larger production premises for Inwatec, the Group's AI and robotics subsidiary in Denmark.
Consequently, starting from April 2023, Inax has positively contributed of 1.8 million euro to the earnings from companies accounted for by the equity method. The combined earnings from Tolon and Inax, increased from 1 million euro to 2.1 million euro. However, this was adversely impacted by the hyperinflation effects on the Turkish entities of Tolon, leading to a negative impact of 0,9 million euro.
On the balance sheet, working capital increased from 127.9 million euro to 152.0 million euro at the end of 2023, due to the higher operating activities, and predominantly due to the economic environment wherein customers have sought extended payment terms to finance their projects. The Group reports a net financial cash position of 35.9 million euro, including 4 million euro of leasing debt, compared to 11.5 million euro at end 2022. The increase in net cash is mainly caused by the capital increase of 26.8 million euro in April 2023, related to our strategic acquisition of 49% interest in Inax Corporation. This positive impact on our cash has been somewhat mitigated by an increase in working capital demands.
Share buy-back program
As per March 9, 2023, we bought back 113,873 shares at an average price of 30.07 euro for a total amount of 3.4 million euro. In view of the transaction with Miura, the JENSEN-GROUP suspended its buy-back program. During the extra-ordinary shareholders' meeting of May 16, 2023, the shareholders voted on the cancellation of the treasury shares. On August 10, 2023, the program was re-launched to buy back the remaining 668,027 shares. As at December 31, 2023, 15,122 shares have been bought back at an average price of 33.02 euro for a total amount of 0.5 million euro.
Outlook
The JENSEN-GROUP received orders totaling EUR 363.1 million in 2023, close to the record level of orders received in the previous year. Whereas the incoming order volume was slightly lower than previous year's level in the first semester of 2023, the volume of orders received in the second half of 2023 showed an increase.
The Group's aim for 2024 is to keep the momentum and solidify its market position and profitability level by relentlessly focusing on commercial excellence and manufacturing productivity. The Group will continue to drive customer centricity and sustainable innovation through the development of new products and services and by means of its participating interest in Inwatec ApS. while further enhancing the optimization and digitalization of business processes and applications.
Risk factors to be taken into account for 2024 include the uncertainty regarding the overall political climate, the impact of geopolitical and military threats, travel restrictions across the world in the event of a new pandemic emerging, a slowing-down of demand due to an economic recession in our key markets, our customers' ability to access financing when confronted with higher interest rates, the fluctuating availability of raw materials, energy and transportation costs, exchange rate volatility, and competitive pressures.
| Key figures | |||
|---|---|---|---|
| Financial year ended (in thousands of euro) |
December 31 2023 |
December 31 Variance 2022 |
% |
| Revenue | 400,121 | 341,639 | 17% |
| Operating profit (EBIT) | 40,743 | 22,411 | 82% |
| EBITDA | 48,376 | 26,211 | 85% |
| Net interest charges | -341 | 1,092 | -131% |
| Share in result of associates and companies consolidated under equity method |
2,141 | 986 | 117% |
| Profit before taxes | 41,926 | 21,532 | 95% |
| Profit for the period from continuing operations | 31,432 | 16,564 | 90% |
| Result from assets held for sale | -124 | -139 | -11% |
| Result attributable to non-controlling interest | 277 | 100 | 177% |
| Consolidated result attributable to equity holders | 31,031 | 16,325 | 90% |
| Added value | 166,862 | 126,092 | 32% |
| Netto cashflow | 38,664 | 20,125 | 92% |
| Equity | 262,142 | 170,567 | 54% |
| Net financial debt (+) / net cash (-) | -35,873 | -11,524 | 211% |
| Working capital | 151,962 | 127,894 | 19% |
| Non-current assets (NCA) | 69,877 | 61,526 | 14% |
| Capital employed (CE) | 221,840 | 189,420 | 17% |
RATIOS
| EBIT / Revenue | 10.18% | 6.56% | 55% |
|---|---|---|---|
| EBITDA / Revenue | 12.09% | 7.67% | 58% |
| ROCE (EBIT / CE) | 19.81% | 13.09% | 51% |
| ROE (Net profit / equity) | 14.34% | 10.02% | 43% |
| Gearing (Net debt(+) net cash (-)/ equity) | |||
| EBITDA interest coverage | -141.87 | 24.00 | - |
| Net financial debt (+) or net cash (-)/ EBITDA | -0.49 | -1.00 | -51% |
| Working capital / revenue | 34.97% | 31.99% | 9% |
| EV/EBITDA (December 31) | 4.94 | 7.40 | -33% |
| Key figures per share | |||
|---|---|---|---|
| Financial year ended | December 31 | December 31 Variance | |
| (in euro) | 2023 | 2022 | % |
| Operating cash flow (EBITDA) | 5.29 | 3.37 | 57% |
| Consolidated result attributable to equity holders (= earnings per share) |
3.39 | 2.10 | 61% |
| Net cash flow | 4.23 | 2.58 | 64% |
| Equity (= book value) | 27.26 | 21.98 | 24% |
| Gross dividend | 0.50 | 0.50 | |
| Number of shares outstanding (average) | 9,150,330 | 7,786,615 | 18% |
| Number of shares outstanding (year-end) | 9,616,286 | 7,758,946 | 24% |
Consolidated statement of profit and loss
| (in thousands of euro) | December 31 2023 |
December 31 2022 |
|---|---|---|
| Revenue | 400,121 | 341,639 |
| Raw material expenses | -188,928 | -175,488 |
| Services and other goods | -45,772 | -39,151 |
| Employee benefit expenses | -118,486 | -99,881 |
| Depreciation and amortisation expense | -7,633 | -7,155 |
| Total expenses | -360,819 | -321,675 |
| Other operating income | 1,797 | 2,481 |
| Other operating expenses | -356 | -34 |
| Operating profit (EBIT) | 40,743 | 22,411 |
| Interest income | 1,994 | 891 |
| Other financial income | 1,703 | 2,554 |
| Financial income | 3,697 | 3,445 |
| Interest charges | -1,653 | -1,983 |
| Other financial charges | -3,002 | -3,327 |
| Financial charges | -4,655 | -5,310 |
| Share in result of associates and companies accounted for | ||
| using the equity method | 2,141 | 986 |
| Profit before tax | 41,926 | 21,532 |
| Income tax expense | -10,494 | -4,968 |
| Profit for the period from continuing operations | 31,432 | 16,564 |
| Profit / (loss) for the period from discontinued operations | -124 | -139 |
| Consolidated profit for the year | 31,308 | 16,425 |
| Result attributable to non-controlling interests | 277 | 100 |
| Result attributable to equity holders | 31,031 | 16,325 |
| Basic and diluted earnings per share (in euro) Weighted average number of shares |
3.39 9,150,330 |
2.10 7,786,615 |
| Consolidated statement of comprehensive income | |
|---|---|
| ------------------------------------------------ | -- |
| December 31 | December 31 | |
|---|---|---|
| (in thousands of euro) | 2023 | 2022 |
| Consolidated profit for the year | 31,308 | 16,425 |
| Items that may be subsequently reclassified to profit or loss | ||
| Financial instruments | 253 | -236 |
| Currency translation differences related to associates and companies accounted for using the equity method |
-3,589 | -690 |
| Currency translation differences - other | -1,633 | 1,624 |
| Items that will not be reclassified to profit or loss | ||
| Remeasurements gains/(losses) on defined benefit plans | -1,365 | 4,599 |
| Tax on OCI | 266 | -1,147 |
| Other comprehensive income for the year | -6,068 | 4,150 |
| Total comprehensive income for the year | 25,240 | 20,575 |
| Total comprehensive income attributable to: | ||
| Non-controlling interests | 273 | 100 |
| Equity holders of the company | 24,967 | 20,475 |
Glossary - definitions
- EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) = Operating profit (EBIT) Depreciation, amortization, write-downs on trade receivables, write-downs on contract assets, write-downs on inventory, changes in provisions
- Net cash flow = Consolidated result attributable to the equity holders + depreciation, amortization, write-downs on trade receivables, write-downs on contract assets, writedowns on inventory, changes in provisions
- Net financial debt (+)/Net cash (-) = Borrowings (non-current and current) + government grant - financial fixed assets at amortized cost - financial fixed assets at fair value through OCI - cash and cash equivalents
Consolidated cash flow statement
| (in thousands of euro) | December 31 December 31 | |
|---|---|---|
| 2023 | 2022 | |
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Consolidated result attributable to equity holders | 31,031 | 16,325 |
| Result attributable to non-controlling interests | 277 | 100 |
| Adjusted for | ||
| - Current and deferred tax | 10,494 | 4,968 |
| - Interest and other financial income and expenses | 958 | 1,865 |
| - Depreciation and amortization expenses | 5,995 | 6,405 |
| - Write down on trade receivables | 1,210 | 327 |
| - Write down on inventory | 309 | 403 |
| - Changes in provisions | 62 | -3,329 |
| - Gain/loss on the sale of tangible fixed assets | -22 | 0 |
| - Companies accounted for using equity method | -2,141 | -986 |
| Interest received | 1,994 | 891 |
| Changes in working capital | -24,014 | -41,612 |
| Decrease / increase (-) in advance payments on purchases | 3,081 | -2,304 |
| Decrease / increase (-) in inventory | -7,289 | -6,819 |
| Decrease / increase (-) in contract assets (before netting) | -11,227 | -46,843 |
| Decrease / increase (-) in long- and short-term amounts receivable | -28,466 | -16,875 |
| Increase / decrease (-) in trade and other payables | 9,788 | 4,075 |
| Increase / decrease (-) in contract liabilities (before netting) | 10,098 | 27,157 |
| Corporate income tax paid | -4,534 | -3,470 |
| Net cash generated / (used) by operating activities - total | 21,621 | -18,112 |
| CASH FLOW FROM INVESTING ACTIVITIES | ||
| Purchases of intangible and tangible fixed assets | -8,086 | -5,551 |
| Sales of intangible and tangible fixed assets | 137 | 11 |
| Acquisition of subsidiaries and participations (net of cash acquired) | -6,101 | 0 |
| Proceeds (+) from sale of financial instruments | 13,771 | 3,719 |
| Purchases (-) of financial instruments | -12,478 | -2,051 |
| Net cash generated / (used) by investing activities | -12,756 | -3,871 |
| Net cash flow before financing activities | 8,864 | -21,983 |
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Acquisition (-) of treasury shares | -2,074 | -1,850 |
| Capital increase | 26,820 | 0 |
| Dividend | -3,972 | -3,899 |
| Proceeds from government grants | 0 | 397 |
| Proceeds (+) from new borrowings | 1,502 | 1,233 |
| Repayment (-) of borrowings | -15,636 | -2,785 |
| Payments of lease liabilities | -1,328 | -1,857 |
| Interest paid | -1,653 | -1,983 |
| Other financial income | 121 | 50 |
| Other financial charges | -954 | -785 |
| Net cash generated / (used) by financing activities | 2,826 | -11,481 |
| Net increase / (decrease) in cash and cash equivalents | 11,691 | -33,463 |
| Cash, cash equivalent and bank overdrafts at the beginning | 29,913 | 60,682 |
| of the year Exchange gains / (losses) on cash and bank overdrafts |
-147 | 2,694 |
| Cash, cash equivalent and bank overdrafts at the end of the | ||
| year | 41,456 | 29,913 |
Audit
The Statutory Auditor has confirmed that the audit of the consolidated accounts of JENSEN-GROUP, which is substantially complete, has as of today not revealed any material misstatement in the draft consolidated accounts, and that the accounting data which are reported in the press release are consistent, in all material respects, with the draft consolidated accounts from which these data have been taken.
Financial calendar
- March 8, 2024: Annual results 2023 (Analysts' meeting).
- May 17, 2024: Trading update Q1 2024.
- May 21, 2024: Annual Shareholders' meeting.
- August 8, 2024: Half-year results 2024 (Analysts' meeting).
- November 7, 2024: Trading update Q3 2024.
About the JENSEN-GROUP
The JENSEN-GROUP, listed on Euronext Brussels, assists heavy-duty laundries worldwide to provide quality textile services economically. We have become a preferred supplier in the laundry industry by leveraging our broad laundry expertise to design and supply sustainable single machines, systems and integrated solutions. We are continuously growing by extending our offer and by developing environmentally friendly and innovative products and services that address specific customer needs. The JENSEN-GROUP is the top-of-mind supplier when it comes to sustainable solutions through its CleanTech concept, highly automated material handling solutions as well as groundbreaking new approaches utilizing robotics and AI in industrial laundries. Our success results from combining our global skills with our local presence. The JENSEN-GROUP has operations in 22 countries and has distribution in more than 50 countries. As per December 31, 2023, the JENSEN-GROUP employs worldwide 1,830 employees.
(End of press release)
For more information, please contact:
JENSEN-GROUP
Jesper Munch Jensen, Chief Executive Officer Markus Schalch, Chief Financial Officer Stefanie Roscam, Investor Relations Manager E-mail: [email protected]