Dear Shareholders,
At its 19 September 2024 meeting in Paris, the EXACOMPTA CLAIREFONTAINE Board of Directors, chaired by Mr François Nusse, reviewed and approved the Group financial statements for the six months ended 30 June 2024.
Consolidated results
| (€000) |
H1 2024 |
H1 2023 |
| Revenue |
408,424 |
421,860 |
| Operating income |
21,156 |
46,206 |
| Net income before tax |
21,670 |
44,831 |
| Net income after tax |
16,504 |
38,218 |
| Group share |
16,504 |
38,218 |
First half 2023 earnings were boosted by a €10.5 million capital gain on sale of real estate.
Segment information
| (€000) |
Paper |
Processing |
Inter-segment
transactions |
Total |
| Revenue |
188,327 |
287,693 |
(67,596) |
408,424 |
| Operating income |
23,166 |
(2,521) |
511 |
21,156 |
| (€000) |
France |
Europe |
Outside Europe |
Total |
| Revenue |
209,627 |
181,337 |
17,460 |
408,424 |
Paper
European sales of printing and writing papers fell by 23% between 2022 and 2023. This year, sales rose 17% driven by excess inventory clearance among customers (source: CEPI).
Paper reel production at our four mills increased by 3%, but our margins fell as a result of the sharp rise in pulp prices. Furthermore, unlike in 2023, we did not benefit from favourable contractual terms for our energy costs.
Processing
GfK market research consultants noted a 3.3% drop in revenue from manufactured papers in France and an 8.9% decline in filing item revenue versus first half 2023.
As a result of this sluggish overall consumption, our own sales fell by 4.6%, with volumes down sharply. Margins were also adversely affected by the clearance of inventories built up at high costs in 2023.
Outlook
In the second half of the year, while our paper production should benefit from lower raw material prices, there is no guarantee of sustained demand for paper.
In processing, revenue for many product lines is much higher during the second half, when we can also expect to see a better workload in the workshops.
As in the first half, full-year operating income is likely to be well below the 2023 figure of €62 million (excluding real estate gains).
Group financial results
At 30 June 2024, gross borrowings stood at €213,058,000 including €46,439,000 of financial liabilities arising from the capitalisation of leases. Consolidated shareholders' equity was €520,562,000.
The Group has negotiated additional lines of credit with its banks totalling €9,080,000. Commercial paper outstanding at 30 June 2024 amounted to €20 million out of a global programme of €125 million. With gross cash and cash equivalents of €109,539,000 at 30 June 2024, Group net borrowings amounted to €103,519,000.
Excluding financial liabilities generated by the application of IFRS 16, net debt at 30 June 2024 was €57,080,000 compared to €100,137,000 at 30 June 2023.
The limited review procedures for the financial statements are almost complete and the report will be published shortly.
THE BOARD OF DIRECTORS
Head of Financial Reporting Jean-Marie Nusse - Executive Vice President