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ABEO SA
Investor Presentation • Aug 26, 2024
1061_cgr_2024-08-26_a37f3a05-2d9e-4edd-972b-5ea34eedccc8.pdf
Investor Presentation
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Full Year results 2023/24
June 5, 2024
Olivier ESTÈVES CEO
Operational supervision of all divisions
Sports, Sportainment & Climbing, Changing Rooms
M&A Coordination
Jean FERRIER Deputy CEO In charge of all the Group's support functions
IT systems, Industrial organisation, HR, Finance, integration of acquisitions and R&D
1 FY 2023/24 (from 1 April 2023 to 31 March 2024) 2 Recurring operating income + depreciation of fixed assets
A unique position with a portfolio of leading brands
7
French accounting standard until 31/03/2013, and IFRS from 01/04/2013 1Proforma – unaudited data - on the basis of full-year consolidation of Janssen-Fritsen
73% of revenue 2023/24 -1 pt vs 2022/23
54% of revenue generated in Europe (excl. France)
19% of revenue generated outside Europe
13% of revenue generated in North America
Regional breakdown of 2023/24 revenue (% of total revenue)
Financial performance
The 2022/23 financial statements presented and commented on have been restated for the impact of the disposal of ABEO's stake in Vogoscope, in accordance with IFRS 5
A solid performance
MARKET
New center openings held back by
- Slowdown in credit growth
- Rising interest rates
Aggressive Chinese competition.
OFFICIAL SUPPORTER
FUN SPOT BUSINESS -45%
REPOSITIONING & RESIZING FUN SPOT
REPOSITIONING on the secondary equipment market > PROXIMITY Installed base' needs that can be anticipated
▪ A service-oriented, bespoke offering
RESIZING > AGILITY
- Maintaining a single production site
- Increase in outsourcing
NEW MARKET
▪ Sourcing from Cannice (China) for production
2023/24: another year of growth +4.6% Like-for-like (+4.2% as reported)
134,9
123,6
+9.3% lfl1 (+9.2%)
Revenue change - €m 2023/24 organic growth excl. Fun Spot +7.8%
49,0 48,0 2022/23 2023/24 -0.7% lfl1 (-2.0%) S&C 65,7 65,5 2022/23 2023/24 -0.4% lfl1 (-0.4%) CHANGING ROOMS | Sportainment: severely disrupted in US > repositioning of Fun Spot (revenue: -45%) | Core business: climbing wall segment recorded organic growth of 24.0% | Good trends in France and Germany | Lower activity in the UK, but a strong backlog for 2024/25 2022/23 2023/24 | Good momentum of the Gymnastics business in France, boosted by the Paris 2024 Olympic and Paralympic Games Limited short-term impact Paris 2024: contrasting figures for France (+) and outside
France (~0)
SPORT
1.2 pp increase in the gross margin at 61.6%
| 31.03.2024 - IFRS In €m |
TOTAL | SPORT | SPORTAINMENT & CLIMBING |
CHANGING ROOMS |
|---|---|---|---|---|
| Revenue | 248.4 | 134.9 | 48.0 | 65.5 |
| Change | +4.2% | +9.2% | -2.0% | -0.4% |
| Gross margin1 | 152.9 | 80.6 | 32.4 | 39.9 |
| % of revenue | 61.6% | 59.7% | 67.6% | 60.9% |
| Change. vs 2022/23 |
+1.2 pp | +0.8 pp | +1.1 pp | +2.2 pp |
| Full impact of the pass-through of inflation into sale prices and the optimisation of the supply chain
› Gross margin improved in each Division
1 Margin on cost of sales
Recurring EBITDA margin: 11.7%
| 31.03.2024 - IFRS In €m |
TOTAL | SPORT | SPORTAINMENT & CLIMBING |
CHANGING ROOMS |
|---|---|---|---|---|
| Revenue | 248.4 | 134.9 | 48.0 | 65.5 |
| Change | +4.2% | +9.2% | -2.0% | -0.4% |
| EBITDA1 Recurring |
29.0 | 19.0 | 1.4 | 8.7 |
| % of revenue | 11 7% |
14 0% |
2 9% |
13 3% |
| Change. vs 2022/23 | +0.1 pp | -0.1 pp | -0.4 pp | - |
| Recurring EBITDA excl. IFRS 16 |
22.3 | 14.9 | -0.2 | 7.7 |
| % of revenue excl. IFRS 16 |
9.0% | 11.0% | -0.4% | 11.7% |
| Change vs 2022/23 | -0.2 pp | -0.1 pp | -0.8 pp | -0.2 pp |
2023/24: resilient operating performance
- › Gross margin effect +1.2 pp
- › Increase of staff costs representing 29% of revenue vs 27.9% in 22/23 (+€5.4m)
- › Non-renewal of US grants (+€0.9m in 22/23)
- 10 › Limited increase in other operating expenses (up 7.4%) to support business growth
Recurring EBITDA margin excl. Fun Spot: 12.8%
An optimized cost structure maintained
Annual change in recurring EBITDA1 & recurring EBITDA margin
0 5
14
0% 2% 4% 6% 8% 10% 12% 14% 16%
Improvement in recurring operating income > €16.7m, +7.5%
| IFRS - €m |
31.03.23 | 31.03.24 | Change | |
|---|---|---|---|---|
| Revenue | 238.3 | 248.4 | +4.2% | |
| Recurring EBITDA1 | 27.8 | 29.0 | +4.6% | |
| % of revenue | 11.6% | 11.7% | +0.1 pp | |
| Recurring Operating Income | 15.6 | 16.7 | +7.5% | |
| Non-recurring income and expenses | (0.6) | (3.1) | ||
| Operating income | 15.0 | 13.6 | -9.3% | |
| Cost of debt | (3.8) | (4.3) | ||
| Currency gains and losses | (1.1) | (0.1) | ||
| Other financial income and expenses | (0.3) | 1.4 | ||
| Earnings before tax | 9.9 | 10.7 | +8.1% | |
| Tax | (3.1) | (8.7) | ||
| Net income from discontinued operations | (0.3) | (0.8) | ||
| Total net income | 6.5 | 1.2 | ||
| Net income, Group share | 6.7 | 1.7 | €-5.0m | |
| % of revenue | 2.8% | 0.7% | -2.1 pp |
Change in net income, affected by non-recurring items
› D&A in line vs 2022/23 › IFRS 16 Impact > €6.7m (€+0.8m vs N-1) › ROI: 6.7% of revenue vs 6.5% in 2022/23 › Non-recurring > +€2.5m (M&A, restructuration)
› Cost of financial debt excluding IFRS 16 €2.8m down €0.3m vs 2022/23
› Earn out and put > Eurogym and BigAirBag
› Effective tax rate: 86% vs 31.4%
› €2.9m in non-activated tax losses and €2.9m in derecognized deferred taxes
Positive free cash-flows: €3.2m
| IFRS - €m |
31.03.23 | 31.03.24 |
|---|---|---|
| Cash-flows from operations before change in working capital and tax |
27.5 | 25.8 |
| Change in working capital | (12.7) | (4.9) |
| Tax paid | (5.1) | (4.6) |
| Discontinued operations | 0.2 | (0.1) |
| Cash-flows from operations after tax | 9.9 | 16.1 |
| Capex | (4.7) | (6.6) |
| M&A | (0.3) | (6.4) |
| Discontinued operations | (0.1) | (0.1) |
| Cash-flows from investing activities | (5.1) | (13.0) |
| Free cash-flows | 4.8 | 3,2 |
| Dividends | (3.0) | (2.5) |
| New borrowings | - | 7.8 |
| Repayment of borrowings etc. | (27.5) | (29.1) |
| Net interest paid | (3.0) | (2.6) |
| Cash-flows from financing activities | (33.5) | (26.4) |
| Currency translation difference | 0.2 | - |
| Change in cash and cash equivalents | (28.9) | (23.3) |
- › A €7.8m reduction in WCR
- › CAPEX back to pre-crisis levels
-
› Completion of BigAirBag's acquisition of + VOGO stake
-
› Net drawdown on revolving credit facility (€5.0m out of a total facility of €20m) + new CAPEX loan of €2.8m › Repayment of bank loans: €22.3m
- › Payment of IFRS 16 lease liabilities: €6.8m
Balance sheet structure at 31/03/2024
| IFRS - €m |
31.03.23 | 31.03.24 | |
|---|---|---|---|
| ASSETS | |||
| Goodwill & trademarks | 125.0 | 124.9 | |
| Other non-current assets | 63.6 | 64.5 | |
| Total non-current assets | 188.6 | 189.5 | |
| Gross inventories | 43.5 | 40.4 | |
| Gross trade receivables | 45.2 | 44.5 | |
| Trade payables | (49.8) | (46.3) | |
| Operating working capital | 38.9 | 38.5 | |
| Other working capital | (16.3) | (10.0) | |
| Total working capital | 22.7 | 28.5 | |
| EQUITY &LIABILITIES | |||
| Equity | 111.2 | 109.7 | |
| Net debt | 87.1 | 96.4 | |
| Capital employed | 198.3 | 20.,1 | |
| Provisions, DT & other non-current liabilities | (13.0) | (11.9) | |
| Gearing1 excl. IFRS 16 |
0.48 | 0.58 |
Leverage2 excl. IFRS 16 2.4 2.8
› Consolidation of BigAirBag
› Operating working capital (excl. factoring): 18% of revenue, stable vs N-1
- › Cash and cash equivalents of €11.0m, €15m short-term facility not drawn
- › Net debt excl. IFRS 16 of €63.0m i.e.+€9.9m vs 31/03/23
1 17 Net debt-to-equity ratio 2 Net debt-to-recurring EBITDA ratio
Controlling financial balances
Outlook
Robust order intake1
at 31/03/2024
248,3 M€, +4,6% pcc2
Confidence in continued sales momentum
Secured organic growth
1 : Non-financial and unaudited data – to measure the sales momentum of its business activities, the Group uses the quantified amount of its order intake over a given period, inter alia. The sales momentum indicator represents the aggregate value of all orders booked over the period from 1 April 2023 to 31 March 2024 compared to the same period for the previous financial year.
2 like-for-like: at constant consolidation scope and exchange rates
OUR PRIORITIES
Supporting growth
Expected positive impact of the repositioning of Fun Spot
Operating performance improvement
Generation of free -cash flows Improved operating performance against a backdrop of continued business momentum
OFFICIAL SUPPORTER
Basketball competitions Concorde Urban Parc for the 3x3 Basketball Arena Bercy and Pierre Mauroy stadium (Lille) for the 5x5 Basketball
Gymnastics competitions Bercy Arena for the artistic gymnastics and trampoline Chapelle Arena for the rhythmic gymnastics
Climbing competition Le Bourget
Governance and shareholder structures
| Shareholders structure 31 MARCH 2024 |
|---|
| 7,9% VESTA (ex. SERDON) |
| controlled by Jacques Janssen, Janssen Fritsen 47,7% former CEO |
| JALENIA, 18,4% controlled by Crédit Mutuel Olivier Estèves Equity SCR CEO |
| 26,0% |
| Free float incl: Bpifrance : 3,9% Fonds Nobel : 7,9% |
| 7,543,305 SHARES |
OFFICIAL SUPPORTER
EURONEXT Paris
Compartiment C FR0013185857 ABEO Market cap: €92m as of 03/06/2024
ANALYSTS
CIC Market Solutions Emmanuel Chevalier
Kepler Chevreux Alessandro Cuglietta
CONTACT
INVESTOR RELATIONS
[email protected] +33 (0)153 67 36 77
Upcoming events
Annual Shareholders' Meeting 16 July 2024
Q1 2024/25 revenue 18 July 2024 after close of trading
Equipment or complex turnkey projects
Designing and equipping specialized sports facilities, leisure centers, gymnasia, indoor climbing walls, changing rooms, schools, etc.
Designer, manufacturer and distributor
Firm structural growth
Increased emphasis by governments on sport as forging a social bond and promoting health
A strongly -expanding middle class with access to sports facilities in the emerging countries
Growing urbanization and democratization of sports pursuits, with increased participation by women and seniors
Construction and renewal of ageing infrastructures in Western countries
Development of new activities: e.g. Sportainment
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