2023 annual results, a record year

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PRESSRELEASE

2023 annual results, a record year

●    FY’23 Net sales of €m 2,871, +22% vs. FY’22, +23% like for like⁽¹⁾

●    Recurring operating income at €m 211.6 (7.4%) vs. €m 84.6 (3.6%) in 2022

●    Net income group part at €m 143.4 vs. €m 54.7 in 2022

●    EBITDA⁽²⁾ at €m 260 (9.0%) vs. €m 130 (5.5%) in 2022

●    Net debt⁽³⁾ at €m 389, gearing⁽³⁾ at 44%, leverage⁽³⁾ at 1.5

●    Dividend payment proposition at €1.35 per share

●    Expectation of stable revenue in 2024 compared with 2023

●    Expectation of recurring operating profit for 2024 to be over 6.5% of revenues

The development of our profitability in 2023 is the result of substantive work initiated at the beginning of 2022 to react to the explosion in inflation following the outbreak of war in Ukraine. Sales price rises have gradually offset inflation in raw materials and expenses, and the supply-chain tensions encountered since the Covid pandemic have eased, giving way to improvements in industrial efficiency.

The improvement of these parameters and the anticipated deflation of our order book have led us to return to the operating modes we knew before the inflation peak of 2022, such as delivery times close to our targets, as well as the fixity of order prices, which we have begun to restore.

For 2024, we anticipate stable revenues compared with 2023. The downturn in European markets, particularly in construction, should be offset by the dynamism of the North American market. This polarisation of markets will affect our production sites in different ways, with some remaining at record production rates, and others slowing down compared with 2023.

This outlook leads us to expect recurring operating profit for 2024 to be over 6.5% of sales."

Percentage data in parentheses expresses a percentage of revenue. Audit procedures performed by the auditors.

Business review by division

As a result, the Product division's recurring operating profit is increasing by €139.9 million (+320%) to €183.6 million (7.4% of sales), compared with €43.7 million in 2022 (2.2% of sales).

The Services & Solutions division recorded growth revenues of 2% over the year (+3% at constant scope and exchange rates). The division was driven by its spare parts activity, with a gradual improvement in the supply chain. Margin on cost of sales rose by €1.7 million (+1.6%) to €109.9 million. This change is mainly attributable to higher sales. The margin rate over the period was almost stable, thanks to a pricing policy that limited the impact of inflation. Administrative, commercial, marketing and service expenses rose by 22.4% (+€15.0m) in an inflationary environment. The division strengthened its after-sales teams, the capacity of its logistics platforms, and continued to reinforce its service offerings.

As a result, the division's profitability stood at 28.0 million euros (7.0% of sales), down 13.0 million euros compared with 2022 (41.0 million euros, or 10.5% of sales).

Dividend proposed at the next Shareholders’ meeting

The Board of directors has decided to propose to the Annual general shareholders’ meeting, to be held on June 13, 2024, the payment of a dividend of €1.35 per share.

Glossary

(1)  Like for like, so at constant scope and exchange rates: - Scope:

- for the company Lifttek acquired in May 2022, restatement from January 1 of the current year to the anniversary date of its acquisition,

- for the companies acquired in 2023 (easyLi in January 2023 and GI.ERRE SRL in March 2023), restatement from the date of their acquisition to December 31, 2023,

- no company exited the scope in 2022 and 2023.

- Application of the exchange rate of the previous year on the aggregates of the current year.

(2)  EBITDA: Earnings before interest, taxes, depreciation, and amortization, restated from IFRS 16 impact

(3)  Net debt, gearing and leverage: excluding lease commitments IFRS 16

Order book :

The order book corresponds to machine orders received and not yet delivered, for which the group:

- has not yet provided the promised machines to the customer;

- has not yet received consideration and has not yet been entitled to consideration.

These orders are delivered within less than one year and may be cancelled.

The order book may vary due to changes in consolidation scope, adjustments, and foreign currency translation effects.

In order to limit the effects of inflation, the group had integrated since H1 2022 mechanisms for adjusting its sales prices at the time of delivery. These mechanisms were likely to influence the valuation of the orderbook on equipment, which was booked and valued at the price on the day of the order. This mechanism has been stopped for new orders as from the last quarter of 2023.

ISIN code: FR0000038606

Indices: CAC ALL SHARES, CAC ALL-TRADABLE, CAC INDUSTRIALS, CAC MID & SMALL, CAC SMALL, EN FAMILY BUSINESS

                                                       FORTHCOMING EVENT                                    April 25, 2024 (after market closing)

Q1’24 sales revenues

Company information is available at www.manitou-group.com

Shareholder information: communication.financiere@manitou-group.com

As a world reference in the handling, aerial work platform and earth moving sectors, Manitou Group’s mission is to improve working conditions, safety and performance around the world, while protecting people and their environment. Through its flagship brands – Manitou and Gehl – the group designs, produces, distributes and services equipment for construction, agriculture and industry. By placing innovation at the heart of its development, Manitou Group constantly seeks to bring value to all its stakeholders. Through the expertise of its network of 800 dealers, the group works more closely with its customers every day. Staying true to its roots, Manitou Group is headquartered in France. It achieved a 2023 turnover of €2.9 billion and brings together 5,500 talented people worldwide, all driven by a shared passion.

 FINANCIAL EXTRACT 2023

1.STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED INCOME STATEMENT

EARNINGS PER SHARE (IN EUROS)  

OTHER COMPONENTS OF COMPREHENSIVE INCOME AND EXPENSES & COMPREHENSIVE INCOME

ASSETS  

EQUITY & LIABILITIES  

3.CONSOLIDATED SHAREHOLDERS’ EQUITY

CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY

CHANGE IN SCOPE

§   easyLi

On January 23, 2023, the group acquired a stake of 82% in the company easyLi, specialized in the design and production of lithium-ion batteries. This operation allows the group to equip itself with specific skills as part of its energy transition. Based in Poitiers (France), the easyLi company has a workforce of 18 employees and achieved a turnover of 0.9 million euros in 2023.

Crossed call and put options have been contracted with minority shareholders on 18% of the capital. The Group has taken these options into account in calculating its percentage interests, which is 100% at December 31, 2023. A discounted debt for the investment of 0.6 millions euros has been recognized in this regard (earn-out). A social debt has also been booked for 0.1 million euros between the estimated repurchase value of the shares and their nominal value, difference qualified as additional remuneration.

Besides, a BSPCE plan with a share buyback option has been set up to encourage the managers and staff concerned to participate in the development of Easyli’s business within the Group. A social debt has been recorded for 0.1 million euros in this respect (IFRS 2 share-based payment).

§   GI.Erre SRL

On 1 March 2023, the group acquired all the shares of the Italian company GI.ERRE SRL, based in Castelfranco, Italy and specialized in service activities for Manitou products. GI.ERRE achieved a turnover of 3.6 million euros in 2023 with a workforce of 17 employees.

§   Manitou PS

In May 2023, the Manitou group completed its participation in the company Manitou PS (United Kingdom), itself holder of 100% of the share capital of Mawsley Machinery, and now holds 90% of the share capital of the company. The impact of this operation is not significant on the group's financial statements.

No disposals took place during the period.

JCB

In May 2017, Manitou Group was sued by JC Bamford Excavators Limited (JCB) in France, the United Kingdom and then Italy for alleged infringement of two European patents and one UK patent (respectively European patent EP 1 532 065 B2(EP 065) its equivalent UK Patent GB 2390 595 B (GB565) and European patent EP 2 263 965 B9) relating to certain features concerning the overload cut-off control system of certain telescopic forklift trucks manufactured and/or marketed in these three countries.

In December 2018, JCB served Manitou Group with a new patent infringement suit in France and the United Kingdom relating to a third European patent (EP 2 616 382 B3 (EP 382), also relating to certain features concerning the overload cut-off control system of certain telescopic forklift trucks.

Since 2017, these disputes have led to a succession of legal proceedings in France, the UK and Italy, and JCB had estimated its loss at 190 million euros.

During these proceedings, the group has always contested the infringements and defended itself with the utmost firmness.

In December 2023, Manitou BF and J.C. Bamford Excavators Limited agreed to terminate all patent infringement litigation between them.

The end of this litigation has no impact on the present or future business of either party, nor on the characteristics of the products marketed by each of them.

CONTINGENT LIABILITIES

The Group has contingent liabilities relating to legal, arbitration and regulatory proceedings arising in the normal course of its activities. Each known litigation or ongoing proceeding in which Manitou BF or Group companies are involved has been reviewed at the end of the reporting period.

The spare parts and accessories distribution business, which is integrated within the Services & Solutions division, benefits from services provided by the Product division (R&D, qualification of parts, qualification of suppliers), the already existing basis of sold units, as well as the brand name recognition built by those divisions.

In order to compensate for all of these benefits, the group’s divisional reporting includes fees from the Services & Solutions division to the Product division. This fee is calculated based on comparable indicators of external independent spare parts distributors for which the median operating income over a five year period amounted to 3.90% in Europe and the US, the main regions in which the S&S division operates. That fee is included in the line item «Cost of goods and services sold» of each division, which therefore includes the charges related to goods and services sold plus or minus the interdivision fees.

Assets, cash flows or even liabilities are not allocated to the individual divisions, as the operating segment information used by the group’s management does not incorporate those various item.

NET SALES BY DIVISION AND GEOGRAPHICAL REGION

* Asia, Pacific, Africa, Middle East                                                                                                 

POST-CLOSING EVENTS

SIGNATURE OF AN ADDITIONAL CREDIT LINE OF 160 MILLION EUROS

In January 2024, the Group signed an amendment to the July 2022 credit agreement to set up an additional RCF (Revolving Credit Facility) line for an amount of 160 million euros and a maturity of 5 years, with the possibility of a one-year extension.

This additional line of financing strengthens the group’s financial structure to allow it to continue its development and finance its investment projects.

ACQUISITION OF A MAJORITY STAKE IN THE ITALIAN COMPANIES COME AND METAL WORK

In January 2024, the group completed a 75% stake in COME S.R.L and Metal Work S.R.L, based in Emilia Romagna (Italy). 

The acquisition of these two historical partners will help support the growth of Manitou Group by integrating the production of strategic components. 

COME and Metal Work will also continue to develop the business with all their customers.

COME S.R.L is specialized in the production of mechanically welded parts. It generated revenue of €46 million in 2022 and employs 280 people.

Metal Work S.R.L is specialized in laser cutting and folding. It achieved a turnover of €31 million in 2022 and employs 70 employees.

LIST OF SUBSIDIARIES AND AFFILIATES

FC: Full Consolidation

EM: Equity Method

* Holdings and companies without activity 

The adress of Manitou BF’s headquarters is 430, rue de l’Aubinière, 44158 Ancenis, France.