2022

Activity report

December 31, 2022

A leader in the distribution of special metals

Table of contents

pages

04 Press release dated March 14, 2023 - Annual results 2022

  1. The Group
  2. 1 A leading distributor of special metals
  3. 2 Brand management
  4. 3 Stock market information and shareholder structure
  5. 4 Financial communication schedule
  6. Activity report 2022
  7. 1 Group's sales and earnings

18 2 Sales and earnings by division

22

3 Consolidated financial position

PRESS RELEASE

2022 annual results

14.03.2023 - 6.00PM CET

Sales: €2.68bn (+36% vs 2021)

EBITDA: €312m (11.6% of sales)

Net income (Group share): €180m

Solid performances and international development

In 2022, the Group benefited fully from its investments in new distribution and finishing capacities and from favorable market conditions which boosted both sales and margin despite a decline in demand and raw material prices observed since Q2, which appears to be continuing in 2023.

Sales increased by 36% to €2.68 billion (Q4 +7% to €565 million) and the gross margin by +29% to €681 million, representing 25.4% of sales (Q4 23.5%) compared to 26.7% in 2021.

EBITDA amounted to €312 million, representing 11.6% of sales (Q4 7.6% to €43 million) compared to 10.2% in 2021.

Net income (Group share) amounted to €180 million compared to €121 million in 2021.

In this context, operating working capital increased, representing 28% of sales at 2022 year-end, compared to 26% a year earlier.

During the period, the Group generated operating cash flow of €43 million and consolidated its financial structure with shareholders' equity of €675 million. The net debt to equity ratio (gearing) amounted to 35% at 2022 year-end.

The Group pursued its development on key markets via a sustained capital expenditure policy (€30 million in 2022) and the JACQUET division's acquisition of Canadian company Fidelity PAC Metals (€33 million sales).

In early 2023, the Group completed the acquisition of Delta Acciai (€10 million sales), an Italian company specializing in the distribution of stainless steel long products. This acquisition gives the STAPPERT division a foothold in Italy with 2 distribution centers in Turin and Milan.

The Group also signed a definitive agreement to acquire 11 distribution centers from SWISS STEEL Group. This acquisition, due to be completed in Q2, will strengthen the IMS group division in Central and Eastern Europe. The transaction perimeter encompasses companies based in the Czech Republic, Poland, Slovakia, Hungary, Lithuania, Estonia and Latvia, which generated sales of €158 million in 2022.

Backed by its financial strength, the Group will continue its capital expenditure and development policy in an environment of reduced visibility.

Press release

4

2022 results

On March 14, 2023 the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the year ended December 31, 2022, which have been audited by the Statutory Auditors. The certification report is currently in the process of being issued.

€m

Sales

Gross margin

  • of sales
    EBITDA 1
  • of sales

Adjusted operating income 1

  • of sales
    Operating income
    Net income (Group share)

1 Adjusted for non-recurring items.

Q4 2022

Q4 2021

565

527

133

137

23.5%

26.0%

43

55

7.6%

10.5%

30

58

5.2%

10.9%

30

48

19

38

2022

2021

2,683

1,970

  1. 526
    25.4% 26.7%
  1. 201
    11.6% 10.2%
  1. 175
    9.8% 8.9%
  1. 163
  1. 121

Consolidated sales amounted to €2,683 million, up +36.2% (Q4 +7.3%) compared to 2021, including the following effects:

  • volumes sold: -2.9% (Q4 2022 -10.6% vs Q4 2021);
  • prices: +38.1% (Q4 2022 +16.8% vs Q4 2021 and -3.7% vs Q3 2022);
  • scope: +1% (Q4 2022 +1.1% vs Q4 2021) following the acquisition of Fidelity PAC Metals in May 2022.

Gross margin amounted to €681 million and represented 25.4% of sales compared to €526 million in 2021 (26.7% of sales). In order to take into account the evolution of market conditions, inventory valuation and gross margin include the recording of an impairment representing 19.6% of the gross value of inventories at 2022 year-end, compared to 17.1% at 2021 year-end.

Current operating expenses* amounted to €369 million (13.7% of sales) compared to €325 million in 2021 (16.5% of sales). Inflation and rising energy costs contributed for around €20 million to the increase in expenses.

* excluding depreciation and amortization €(39)m and provisions €(14)m.

EBITDA amounted to €312 million and represented 11.6% of sales compared to €201 million in 2021 (10.2% of sales).

Adjusted operating income amounted to €263 million (9.8% of sales).

In this context, Net income (Group share) amounted to €180 million compared to €121 million in 2021.

Press release

5

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Disclaimer

Jacquet Metal SA published this content on 14 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2023 18:05:10 UTC.