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JENSEN-GROUP N.V.
Earnings Release • Mar 9, 2023
3967_er_2023-03-09_38de78d9-8818-413f-a56b-d44488081ce9.pdf
Earnings Release
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Regulated information Confidential until March 9, 2023 - 17:40 CET
Press Release
High revenue growth, strong net profit despite supply chain disruptions and soaring inflation.
Performance 2022
- Revenue increased from 259.7 million euro in 2021 to 341.6 million euro in 2022, an increase of 31.5%. This is the result of a higher order backlog at the end of 2021 and a continuous strong order intake during 2022.
- The Group received orders for 364.4 million euro in 2022, a 6% increase compared to previous year and the highest order intake in its history. This rise in order intake was also influenced by the announcement of a second price increase, effective as from 1st of July 2022.
- For both revenues and new orders, the JENSEN-GROUP is back at pre-Covid-19 activity levels, earlier than anticipated.
- Operating profit (EBIT) amounted to 22.4 million euro in 2022 compared to 21.3 million euro in 2021, an increase of 5.1%, which is the result of:
- The positive impact of higher revenues as well as lower organizational costs due to the measures taken by the Group in the previous years to structurally decrease the cost base.
- The negative impact of supply chain disruptions, resulting in lower operational efficiency as well as higher than anticipated cost increases from suppliers.
- Cash flow from operations (EBITDA) amounts to 26.2 million euro in 2022, a 15% decrease compared to last year. EBITDA is lower in 2022 versus 2021 as restructuring provisions for an amount of 2.2 million euro recorded in 2021, have been effectively incurred as cash expenses in 2022.
- Total net finance cost amounts to 1.9 million euro and relates to interest charges (1.1 million euro), net currency charges (0.1 million euro) and other financial charges (0.7 million euro).
- Result of companies (TOLON) accounted for by the equity method, increased from 0.5 million euro to 1.0 million euro.
- Net profit attributable to the shareholders amounts to 16.3 million euro (Earnings per Share of 2.10 euro) compared to 14.6 million euro last year (Earnings per Share of 1.86 euro).
- The Group reports a net financial cash of 11.5 million euro compared to 41.0 million euro at year-end 2021. The decrease in net cash is mainly caused by higher working capital, negatively affected by the industry-wide increase in material prices as well as higher work-in-progress due to components scarcity.
- The Board proposes to members of the Annual Shareholders' meeting to approve a dividend of 0.50 euro per share.
Subject to approval at the Annual Shareholders' meeting of May 16 ,2023, the share will trade ex-coupon as of May 24, 2023 and the dividend will be payable as from May 26, 2023 at the counters of KBC bank upon presentation of coupon n°17.
Other activities
The Board of Directors decided to enter into a joint-venture agreement with MIURA Group and refers to a separate press release issued on March 9, 2023.
This press release is available on the Company website www.jensen-group.com.
Share Buy Back
At its meeting held on March 10, 2022, the Board of Directors decided to implement a share buy back program limited to a maximum of 781,900 or 10% of its own shares. The shares are bought at the stock exchange by an investment bank mandated by the Board. The buy-back mandate expires on May 18, 2026.
As per December 31, 2022, the Group holds 60,053 treasury shares for a total value of 1.9 million euro. And per March 9, 2023, the Group holds 113,873 treasury shares representing 3.4 million euro.
In view of the transaction with MIURA, the Board of Directors decided at its meeting of March 9, 2023, to suspend the share buy back program until further notice and to cancel the 113,873 treasury shares for a total value of 3.4 million euro.
Outlook and risk factors
The Group expects manufacturing productivity, production output, and supplier delivery schedules to gradually improve in 2023 and normalize towards the end of the year.
The main risk factors to be considered include the impact of geopolitical and military threats, travel restrictions across the world in the event of new pandemic emerging, a slow-down in demand due to an economic recession in our key markets, the access to financing for our customers, fluctuating raw material, energy and transportation prices, the exchange rate volatility, uncertain overall political climate and competitive pressures.
Despite a challenging business environment, the Group remains confident in its ability to stay the course. Our aim for 2023 is to gradually improve the Group's profitability while strengthening our market position and increasing market share. The Group will continue to focus on customer centricity and sustainable innovation through the development of new products and services and its participation in Inwatec ApS, while further enhancing the optimization and digitalization of its business processes.
Key figures
| Dec 31, 2022 | Dec 31, 2021 | Change | |
|---|---|---|---|
| (million euro) | 12M | 12M | |
| Revenue | 341.6 | 259.7 | 31.5% |
| Operating result (EBIT) | 22.4 | 21.3 | 5.1% |
| Cash flow from operations (EBITDA) + | 26.2 | 30.8 | -15.0% |
| Financial result | -1.9 | -2.1 | -10.2% |
| Profit before taxes | 21.5 | 19.8 | 8.8% |
| Income tax expense | -5.0 | -5.5 | -9.9% |
| Profit for the period from the continuing operations | 16.6 | 14.3 | 16.0% |
| Result from assets held for sale | -0.1 | -0.1 | 113.8% |
| Share in result of associates and joint ventures | 1.0 | 0.5 | 81.6% |
| Result attributable to Non Controlling Interest | 0.1 | -0.4 | -127.6% |
| Consolidated result attributable to equity holders | 16.3 | 14.6 | 12.0% |
| Net cash flow 4 | 20.1 | 24.1 | -16.4% |
| Dec 31, 2022 Dec 31, 2021 | Change | ||
|---|---|---|---|
| million euro) | 12M | 12M | |
| Equity | 170.6 | 155.4 | 9.7% |
| Net financial debt (+)/Net cash (-)3 | -11.5 | -41.0 | -71.9% |
| Assets held for sale | 0.5 | 0.4 | 6.3% |
| Total assets | 340.9 | 329.6 | 3.4% |
| Dec 31, 2022 | Dec 31, 2021 | Change | |
|---|---|---|---|
| euro ) | 12M | 12M | |
| Cash flow from operations (EBITDA) 2 | 3.4 | 3.9 | -14.5% |
| Profit before taxes | 2.8 | 2.5 | 9.5% |
| Consolidated result attributable to equity holders (EPS) | 2.1 | 1.9 | 12.9% |
| Net cash flow 4 | 2.6 | 3.1 | -16.2% |
| Equity | 22.0 | 19.9 | 10.6% |
| Number of shares (end of period) | 7,758,946.0 | 7,818,999.0 | 0.8% |
| Number of shares (average) | 7,786,615.0 | 7,818,999.0 | 0.4% |
Definitions
- 1 : 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
- 2 : 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
- 3 : 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 statement of comprehensive income
| (in thousands of euro) | December 31 2022 |
December 31 2021 |
|---|---|---|
| Revenue | 341,639 | 259,716 |
| Trade goods | -175,488 | -120,713 |
| Services and other goods | -39,151 | -29,050 |
| Remuneration, social sec. costs and pensions | -99,881 | -82,043 |
| Depreciation, amortisation, write downs of assets, impairments |
-7,155 | -7,533 |
| Total expenses | -321,675 | -239,339 |
| Other Income / ( Expense) | 2,447 | 950 |
| Operating profit (EBIT) | 22,411 | 21,327 |
| Interest income | 891 | 513 |
| Other financial income | 2,554 | 1,250 |
| Financial income | 3,445 | 1,763 |
| Interest charges | -1,983 | -1,787 |
| Other financial charges | -3,327 | -2,053 |
| Financial charges | -5,310 | -3,840 |
| Share in result of associates and companies accounted for using the equity method |
986 | 543 |
| Profit before tax | 21,532 | 19,793 |
| Income tax expense | -4,968 | -5,515 |
| Profit for the period from continuing operations | 16,564 | 14,279 |
| Result from assets held for sale | -139 | -65 |
| Consolidated profit for the year | 16,425 | 14,214 |
| Result attributable to non-controlling interests | 100 | -362 |
| Consolidated result attributable to equity holders | 16,325 | 14,575 |
| December 31 | December 31 2021 |
|---|---|
| -236 | -183 |
| -690 | -894 |
| 1,624 | 3,505 |
| 4,599 | 1,697 |
| -1,147 | -377 |
| 4,150 | 3,748 |
| 0 | 0 |
| 4,150 | 3,748 |
| 20,575 | 17,962 |
| -362 | |
| 16,325 | 14,575 |
| -362 | |
| 20,475 | 18,324 |
| 1.86 | |
| 7,818,999 | |
| 2022 100 100 2.10 7,786,615 |
Financial calendar
- March 31, 2023: Publication Annual Report 2022 on the Company website.
- May 16, 2023 (10.00 a.m.): Annual Shareholders' meeting.
- August 10, 2023 (evening): Half year results 2023 (Analyst Meeting August 11, 2023).
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.
About JENSEN-GROUP
JENSEN-GROUP 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. Our success results from combining our global skills with our local presence.JENSEN-GROUP has operations in 23 countries and has distribution in more than 50 countries. As per December 31, 2022, JENSEN-GROUP employs worldwide 1,555 employees.
This press release is available on the Company website www.jensen-group.com.
(End of press release)
For more information, please contact:
JENSEN-GROUP
Jesper Munch Jensen, Chief Executive Officer Markus Schalch, Chief Financial Officer Veronique De Ridder, Investor Relations Manager Tel. +32.9.333.83.30 E-mail: [email protected]