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Prismaflex International — Earnings Release 2018
May 14, 2019
1609_iss_2019-05-14_f789eab2-b30e-4e3c-8e49-e03e222d005a.pdf
Earnings Release
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PRESS RELEASE Lyon, May 14, 2019
2018-2019 total sales: €48.7 million Sound printing activity Hard cyclical downturn in Hardware activity
Significant points 2018-2019
- Printing activity is up slightly for the period, notably benefitting from the integration of FPI (€1.1 million total sales);
- Hardware activity is down following delayed deliveries and a pronounced wait-and-see policy among clients after a positive 2017-2018 period;
- Total sales for Anthem Displays in the United States stands at €5.4 million (€5.0 million for LED billboards) confirming its strong potential for the coming years;
- The global drop in total sales gives an operating loss for the period. The Group has deployed a cost-saving plan of €1 million that will take effect as of 2019-2020;
Annual consolidated sales figures (April 1, 2018 – March 31, 2019)
| April 1, 2018– March 31, 2019 | Q4: 01/01/2019 – 31/03/2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Non audited | 12 Months | 12 Months | 3 Months 3 Months | |||||
| In € million | 2018-2019 | 2017-2018 | Var. €M | Var. % | Q4 18/19 Q4 17/18 | Var. M€ | Var. % | |
| Printing activity | 31.04 | 30.88 | +0.16 | +0.5% | 7.97 | 8.09 | -0.11 | -1.4% |
| Hardware activity | 17.68 | 23.95 | -6.27 | -26.2% | 4.50 | 6.95 | -2.46 | -35.3% |
| Total 12 months | 48.72 | 54.83 | -6.12 | -11.2% | 12.47 | 15.04 | -2.57 | -17.1% |
| Total (constant currencies) | 48.95 | 54.83 | -5.88 | -10.7% | 12.43 | 15.04 | -2.62 | -17.4% |
Foreign currency impact for the period is mainly due to fluctuations in the South African Rand and USD and CAD.
For the period, printing activity, strengthened by the integration of FPI (consolidated as of November 1, 2018) continues to resist with 0.5% growth for the period to stand at €31.0 million. On a constant currency and consolidation basis, the downturn is limited to –2,3%. This was primarily due to a downturn in Home Decor activity (-€0.7 million to €5.0 million), despite the support of online ecommerce sales.
Hardware activity for the period is down -€6.3 million. The development of Anthem Displays' activity in America does not make up for the negative impact of the delayed deliveries to Germany amounting to several million Euros and the wait-and-see attitude of a number of clients, notably in Europe. For the other activities (street furniture, billboards …), activity is down, principally due to an unfavourable comparison basis following the delivery of large orders for scrolling signs and bus shelters the previous period.
The overall downturn in total sales of around -11,2% and increased fixed costs, notably due to recent acquisitions, will have an adverse impact on the Group's operating profitability that will subsequently be negative.
Outlook 2019-2020
On April 30, 2019, order backlog stood at €9.2 million. For the delayed deliveries of LED screens to Germany, an agreement was signed with the client presenting the new delivery schedule for fiscal year 2019-2020. Prismaflex International currently manage numerous projects in Europe and the United States and expect to return to profitable growth rapidly. The Group has deployed a €1 million costsaving plan and is to internalise the mechanical activities for its US LED screens, currently outsourced.
Next press release: 2018-2019 annual sales figures, 19 June, 2019 after closure. SFAF Meeting: at 10 am on June 20, 2019, 135 boulevard Haussmann, 75008 Paris
PRISMAFLEX INTERNATIONAL OUTDOOR ADVERTISING SOLUTIONS MANUFACTURER AND WIDE FORMAT DIGITAL PRINTING ISIN : FR0004044600-ALPRI - Reuters : ALPRI.PA – Bloomberg : ALPRI.FP EURONEXT GROWTHTM www.prismaflex.com
Contacts:
Luc Cormoreche – CFO - Phone: +33 (0)4 74 70 68 00 – [email protected] Guillaume Le Floch – Analysts/investors/press contacts - +33 (0)1 53 67 36 70 - [email protected] Marie-Claude Triquet – Press relations - Phone: +33 (0)4 72 18 04 93 – [email protected]