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Memscap
Earnings Release • Mar 27, 2025
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Earnings Release
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2024 EARNINGS :
RESILIENT PROFITABILITY MODEL CONFIRMED DESPITE A CHALLENGING ECONOMIC ENVIRONMENT
2024 ADJUSTED EBITDA1 : €2,148K (17.0% OF REVENUE)
2024 NET PROFIT: €1,374K (10.9% OF REVENUE)
GROUP EQUITY UP 3.4% TO €18,270K VS. PRIOR YEAR
STRONG VISIBILITY AND SOLID ORDER BACKLOG IN AEROSPACE FOR 2025
SUCCESSFUL COMPLETION OF TECHNICAL TESTS AND MAJOR MILESTONES IN THE "ENGINE CONTROL" PROGRAM, SUPPORTING PROFITABLE GROWTH TARGETS OF THE 4G PLAN FOR 2026
INVESTOR WEBINAR – MONDAY, MARCH 31, 12:00 PM
- Proven resilient profitability model in a challenging sectoral environment
- Audited annual revenue of €12,660 thousand, in line with previous quarterly publications, down 10% despite significant growth from MEMSCAP's top four clients. This decline follows a 51% increase in consolidated sales in 2023, resulting in a particularly high comparison base.
- Net profit of €1,374 thousand for FY 2024 (10.9% of revenue)
- Adjusted EBITDA1 for FY 2024 to €2,148 thousand (17.0% of revenue)
- Available cash of €5,452 thousand as of December 31, 2024, after the near-completion of the share buyback program (€478 thousand out of the €500 thousand planned)
- Net available cash (excluding lease liabilities) of €5,426 thousand as of December 31, 2024
- Strong visibility in the aerospace sector for 2025
- Investor webinar: Monday, March 31, 12:00 p.m. Registration link: https://app.livestorm.co/euroland-corporate/memscap-webinaire-actionnaires?s=38fbe7eb-9004-4c2e-a655- 39667f178ab1
Grenoble (France) – March 27, 2025 – 06:30 p.m.
MEMSCAP (Euronext Paris: MEMS), leading provider of high-accuracy, high-stability pressure sensor solutions for the aerospace and medical markets using MEMS technology (Micro Electro Mechanical Systems), today announced its earnings for the 2024 financial year ending December 31, 2024.
Consolidated revenue analysis
In line with previous quarterly publications, the Group's audited revenue for the fiscal year 2024 amounted to €12,660 thousand, compared to €14,073 thousand for the fiscal year 2023. The breakdown of consolidated revenue from continuing operations by business sector for the fiscal year 2024 is as follows:
| Market segments / Revenue (In thousands of euros) |
2023 | 2023 (%) | 2024 | 2024 (%) |
|---|---|---|---|---|
| Aerospace | 8,801 | 63% | 8,195 | 65% |
| Medical | 3,589 | 26% | 3,147 | 25% |
| Optical communications | 1,555 | 11% | 1,237 | 10% |
| Others (Royalties from licensed trademarks) | 128 | 1% | 81 | 1% |
| Total revenue from continuing operations | 14,073 | 100% | 12,660 | 100% |
(Any apparent discrepancies in totals are due to rounding.)
The revenue from continuing operations for the fiscal year 2024 decreased by -10.0% in euros and -9.9% in U.S. dollars compared to the fiscal year 2023, following a +51% growth recorded in the previous year, which created a particularly challenging base effect. It is important to note that sales denominated in U.S. dollars accounted for approximately 66% of the consolidated revenue from continuing operations in 2024.
The Group's activities evolved in a challenging sectoral environment, with the aerospace industry facing significant tensions within supply chains. Aerospace sales amounted to €8,195 thousand (-€606 thousand / -6.9% vs. 2023). In the Group's largest business segment (64.7% of consolidated sales in 2024), demand remained strong across both civil and military sectors. However, supply chains struggled to keep pace, with disruptions and delays affecting various industry players. Following a growth-driven first half of the year, these disruptions impacted the Group's sales in H2 2024. While the Group's major clients remained aligned with their targets and posted significant growth, these industry-wide challenges weighed heavily on smaller customers.
Medical segment sales amounted to €3,147 thousand (-€442 thousand / -12.3% vs. 2023), accounting for 24.9% of the Group's consolidated revenue in 2024. The decline in medical activities was entirely attributable to the sharp drop in revenues from implantable solutions.
The optical communications division recorded €1,237 thousand in revenue (-€318 thousand / -20.5% vs. 2023), representing 9.8% of the Group's consolidated sales in 2024. This niche market is characterized by high volatility, driven by fiber optic investments in Asia, particularly in China. Thanks to its fabless business model, this segment remains a profitability driver for the Group, regardless of market fluctuations.
Royalties from licensed trademarks amounted to €81 thousand for the fiscal year 2024.
Presentation of the consolidated income statement
The Group's consolidated income statement for the fiscal year 2024 is as follows:
| In thousands of euros | 2023 | 2024 |
|---|---|---|
| Revenue from continuing operations | 14,073 | 12,660 |
| Cost of revenue | (8,033) | (7,638) |
| Gross margin | 6,040 | 5,022 |
| % of revenue | 42.9% | 39.7% |
| Operating expenses* | (3,563) | (3 850) |
| Operating profit / (loss) | 2,477 | 1,172 |
| Financial profit / (loss) | (304) | 226 |
| Income tax expense | (33) | (24) |
| Net profit / (loss) | 2,140 | 1,374 |
(Financial data were subject to an audit by the Group's statutory auditors who will issue their reports at a later date. On March 27th , 2025, the MEMSCAP's board of directors authorized the release of the FY 2024 consolidated financial statements. Any apparent discrepancies in totals are due to rounding.)
* Net of research & development grants.
The gross margin for the fiscal year 2024 amounted to €5,022 thousand, bringing the annual gross margin rate to 39.7% of consolidated revenue, compared to 42.9% in the previous fiscal year, a direct result of lower business volume year-on-year.
Operating expenses, net of research and development grants, amounted to €3,850 thousand, compared to €3,563 thousand in 2023. Research and development expenses, net of grants, totalled €1,434 thousand in 2024, a level similar to the previous year, and primarily included developments related to new generations of aerospace and medical products. Research and development expenses before grants accounted for 14.4% of consolidated revenue (2023: 11.0%). As part of the Group's business evolution and structuring, selling and administrative expenses increased by +23.0% and +5.5%, respectively, in 2024 compared to 2023.
The Group's average full-time equivalent workforce increased from 54.5 employees in 2023 to 59.6 employees in 2024, reflecting a +9.4% growth.
Forthe fiscal year 2024, operating profit stood at €1,172 thousand (9.3% of revenue), compared to €2,477 thousand (17.6% of revenue) in 2023. The financial result, a net financial gain of €226 thousand in 2024 (2023: Net financial loss of €304 thousand), included a foreign exchange gain of €165 thousand (2023: Foreign exchange loss of €234 thousand). The tax expense recognized for both fiscal years 2024 and 2023 corresponded to deferred tax asset variations and had no impact on the Group's cash flow.
As a result, the Group reported a net profit of €1,374 thousand (10.9% of revenue) for the fiscal year 2024, compared to a net profit of €2,140 thousand (15.2% of revenue) for the fiscal year 2023.
Evolution of the Group's cash / Consolidated shareholders' equity
The adjusted EBITDA1 from continuing operations for the fiscal year 2024 amounted to €2,148 thousand (17.0% of revenue), compared to €3,263 thousand (23.2% of revenue) for the fiscal year 2023. It should be noted that research and development expenses were fully recorded as operating expenses and were not capitalized in the Group's balance sheet for both fiscal years 2024 and 2023.
As of December 31, 2024, the Group had available cash of €5,452 thousand (December 31, 2023: €6,237 thousand), including cash and financial investments recorded as other non-current financial assets. The increase in inventory levels during 2024, amounting to €1,182 thousand and primarily resulting from a less dynamic second half in terms of business activity, impacted the cash position at year-end. Additionally, the Group carried out a share buyback program at the end of 2024, with a total investment of €478 thousand as of December 31, 2024.
As of December 31, 2024, the amount of financial debts and borrowings (excluding lease liabilities) stood at €26 thousand, while net cash (excluding lease liabilities) amounted to €5,426 thousand (December 31, 2023: €6,109 thousand).
As of December 31, 2024, MEMSCAP Group's shareholders' equity totalled €18,270 thousand (December 31, 2023: €17,676 thousand).
1 Adjusted EBITDA means operating profit before depreciation, amortisation, and share-based payment charge (IFRS 2) and including foreign exchange gains/losses related to ordinary activities.
Perspectives
Despite a temporarily deteriorated sectoral environment, the fiscal year 2024 demonstrated the robustness of MEMSCAP's business model, whose foundations ensure a significant and sustainable level of profitability.
Additionally, the Group holds a strong order backlog in the aerospace sector for the fiscal year 2025.
The successful validation of technical tests and major milestones in the "Engine Control" development and industrialization program reinforces the profitable growth objectives outlined in the 4G Plan by 2026.
Shareholders and investors video conference - Monday, March 31, 2025 at 12:00 p.m.
Thank you for registering and sending your questions in advance using the following link: https://memscap.com/fr/visio/
MEMSCAP is a leading provider MEMS based pressure sensors, best-in-class in term of precision and stability (very low drift) for two market segments: aerospace and medical.
MEMSCAP also provides variable optical attenuators (VOA) for the optical communications market.
Yann Cousinet Chief Financial Officer Ph.: +33 (0) 4 76 92 85 00 [email protected] For more information, visit our website at: www.memscap.com
MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap - ISIN code: FR0010298620 - Ticker symbol: MEMS)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
at 31 December 2024
| 31 December 2024 |
31 December 2023 |
|
|---|---|---|
| €000 | €000 | |
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 1 087 | 937 |
| Goodwill and intangible assets | 6 531 | 6 682 |
| Right-of-use assets | 4 657 | 5 354 |
| Other non-current financial assets | 1 489 | 1 436 |
| Employee benefit net asset | 39 | 1 |
| Deferred tax asset | 80 | 106 |
| 13 883 | 14 516 | |
| Current assets | ||
| Inventories | 5 032 | 4 054 |
| Trade and other receivables | 2 746 | 2 714 |
| Prepayments | 205 | 197 |
| Cash and short-term deposits | 3 963 | 4 801 |
| 11 946 | 11 766 | |
| Total assets | 25 829 | 26 282 |
| Equity and liabilities Equity |
||
| Issued capital | 1 927 | 1 869 |
| Share premium | 17 972 | 17 972 |
| Treasury shares | (599) | (134) |
| Retained earnings | 2 520 | 1 095 |
| Foreign currency translation | (3 550) | (3 126) |
| 18 270 | 17 676 | |
| Non-current liabilities | ||
| Lease liabilities | 4 237 | 4 646 |
| Interest-bearing loans and borrowings | -- | 26 |
| Employee benefit liability | 90 | 80 |
| 4 327 | 4 752 | |
| Current liabilities | ||
| Trade and other payables | 2 391 | 2 780 |
| Lease liabilities | 782 | 937 |
| Interest-bearing loans and borrowings | 26 | 102 |
| Provisions | 33 | 35 |
| 3 232 | 3 854 | |
| Total liabilities | 7 559 | 8 606 |
| Total equity and liabilities | 25 829 | 26 282 |
CONSOLIDATED STATEMENT OF INCOME
| 2024 | 2023 | |
|---|---|---|
| Continuing operations | €000 | €000 |
| Sales of goods and services | 12 660 | 14 073 |
| Revenue | 12 660 | 14 073 |
| Cost of sales | (7 638) | (8 033) |
| Gross profit | 5 022 | 6 040 |
| Other income | 388 | 142 |
| Research and development expenses | (1 822) | (1 548) |
| Selling and distribution costs | (985) | (801) |
| Administrative expenses | (1 431) | (1 356) |
| Operating profit / (loss) | 1 172 | 2 477 |
| Finance costs | (173) | (380) |
| Finance income | 399 | 76 |
| Profit / (loss) for the year from continuing operations before tax | 1 398 | 2 173 |
| Income tax expense | (24) | (33) |
| Profit / (loss) for the year from continuing operations | 1 374 | 2 140 |
| Profit / (loss) for the year | 1 374 | 2 140 |
| Earnings per share: | ||
| - Basic, for profit / (loss) for the year attributable to ordinary equity holders of the parent (in euros) |
€ 0.179 | € 0.286 |
| - Diluted, for profit / (loss) for the year attributable to ordinary equity holders of the parent (in euros) |
€ 0.179 | € 0.278 |
| - Basic, profit / (loss) for the year from continuing operations attributable to ordinary equity holders of the parent (in euros) - Diluted, profit / (loss) for the year from continuing operations |
€ 0.179 | € 0.286 |
| attributable to ordinary equity holders of the parent (in euros) | € 0.179 | € 0.278 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| 2024 | 2023 | ||
|---|---|---|---|
| €000 | €000 | ||
| Profit / (loss) for the year | 1 374 | 2 140 | |
| Items that will not be reclassified subsequently to profit or loss | |||
| Actuarial gains / (losses) | 28 | (30) | |
| Elimination of intra-group restructuring operations | -- | (1 195) | |
| Income tax on items that will not be reclassified to profit or loss | -- | -- | |
| Total items that will not be reclassified to profit or loss | 28 | (1 225) | |
| Items that may be reclassified subsequently to profit or loss | |||
| Net gain / (loss) on available-for-sale financial assets | 59 | 108 | |
| Exchange differences on translation of foreign operations | (424) | 742 | |
| Income tax on items that may be reclassified to profit or loss | -- | -- | |
| Total items that may be reclassified to profit or loss | (365) | 850 | |
| Other comprehensive income for the year, net of tax | (337) | (375) | |
| Total comprehensive income for the year, net of tax | 1 037 | 1 765 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| (In thousands of euros, except for number of shares) |
Number of shares |
Issued capital |
Share premium |
Treasury shares |
Retained earnings |
Foreign currency translation |
Total shareholders' equity |
|---|---|---|---|---|---|---|---|
| €000 | €000 | €000 | €000 | €000 | €000 | ||
| At 1 January 2023 | 7 476 902 |
1 869 |
17 972 |
(144) | (242) | (3 868) |
15 587 |
| Profit for the year |
-- | -- | -- | -- | 2 140 |
-- | 2 140 |
| Other comprehensive income for the year, net of tax | -- | -- | -- | -- | (1 117) |
742 | (375) |
| Total comprehensive income |
-- | -- | -- | -- | 1 023 |
742 | 1 765 |
| Treasury shares | -- | -- | -- | 10 | -- | -- | 10 |
| Share-based payments | -- | -- | -- | -- | 314 | -- | 314 |
| At 31 December 2023 |
7 476 902 |
1 869 |
17 972 |
(134) | 1 095 |
(3 126) |
17 676 |
| At 1 January 2024 | 7 476 902 |
1 869 |
17 972 |
(134) | 1 095 |
(3 126) |
17 676 |
| Profit for the year |
-- | -- | -- | -- | 1 374 |
-- | 1 374 |
| Other comprehensive income for the year, net of tax | -- | -- | -- | -- | 87 | (424) | (337) |
| Total comprehensive income |
-- | -- | -- | -- | 1 461 |
(424) | 1 037 |
| Capital increase |
230 000 |
58 | -- | -- | (58) | -- | -- |
| Treasury shares | -- | -- | -- | (465) | -- | -- | (465) |
| Share-based payments | -- | -- | -- | -- | 22 | -- | 22 |
| At 31 December 2024 |
7 706 902 |
1 927 |
17 972 |
(599) | 2 520 |
(3 550) |
18 270 |
CONSOLIDATED CASH FLOW STATEMENT
| 2024 | 2023 | |
|---|---|---|
| €000 | €000 | |
| Operating activities: | ||
| Net profit / (loss) for the year | 1 374 | 2 140 |
| Non-cash items written back: | ||
| Amortization and depreciation | 790 | 721 |
| Loss / (capital gain) on disposal of fixed assets | 4 | 17 |
| Other non-financial activities | 32 | 410 |
| Accounts receivable | (144) | (328) |
| Inventories | (1 182) | (1 598) |
| Other debtors | (137) | 120 |
| Accounts payable | (54) | (163) |
| Other liabilities | (135) | 433 |
| Total net cash flows from / (used in) operating activities | 548 | 1 752 |
| Investing activities: | ||
| Purchase of fixed assets | (206) | (346) |
| Proceeds from sale / (purchase) of other non-current financial assets | 14 | (145) |
| Total net cash flows from / (used in) investing activities | (192) | (491) |
| Financing activities: | ||
| Repayment of borrowings | (102) | (101) |
| Payment of principal portion of lease liabilities | (620) | (502) |
| Sale / (purchase) of treasury shares | (464) | 10 |
| Total net cash flows from / (used) in financing activities | (1 186) | (593) |
| Net foreign exchange difference | (8) | (47) |
| Increase / (decrease) in net cash and cash equivalents | (838) | 621 |
| Opening cash and cash equivalents balance | 4 801 | 4 180 |
| Closing cash and cash equivalents balance | 3 963 | 4 801 |