Activity impacted by the Covid-19 health crisis and economic context
Significant points for 1st quarter:
- Significant impact of Covid-19 pandemic in April and May. Partial recovery begins in June.
- Printing activity (-49%) is severely disadvantaged due to its direct links with sectors most hard hit by the measures and restrictions deployed. Home Décor activity however is up following an increase in on-line sales.
- Hardware activity continues to resist well. LED billboard sales are on the up for the period following the supply of international orders.
- Order backlog on June 30, 2020 stands at €9.6 million, up on June 30, 2019.
Q1 consolidated sales
|Q1: April 1, 2020 – June 30, 2020|
|Not audited||3 months||3 months|
|In € million (estimated)||2020-2021||2019-2020||Var €M||%|
|Total constant currencies||8.29||12.82||-4.53||-35.3%|
The foreign exchange impact is mainly due to variations in the value of the South African Rand.
Prismaflex International Q1 2020-2021 figures are down by 36% at €8.2 million. The figures are slightly better than anticipated mid-June with greater momentum towards the end of the period. The greater part of the decline in business occurred during March and April, when lockdown measures were imposed throughout Europe. Business picked up in June, ending at -9.8% for the month.
Printing Activity was the hardest hit over the period. The activity is directly affected by the economic slowdown resulting from the health crisis and that impacted a number of clients, namely from the events, advertising and retail sectors. Sales stand at €4.4 million, down by -49%. The downward movement was tempered by the return to growth of the Home Décor activity (+8% for the period), following an increase in sales on-line (+74%).
Hardware activity resisted well, with sales down only by -8,6%. LED billboard sales are positive for the quarter (€3.4 million vs €2.5 million, +37%), following deliveries to Italy and Brazil of orders placed the previous year. Traditional activities (static signs, trivision signs, street furniture) and sales of LED billboards in the USA were the worst hit.
Whereas order intake was quite logically slower during the 1st quarter, order backlog is up on the previous year (€9.6 million vs €9.1 million).
The recovery is happening, gradually, due to an uncertain economic context in which order issuers have adopted a wait-and-see attitude. The rate of recovery varies from one geographic zone to another and currently is very complicated in the United States where the subsidiary's key order issuer has frozen all orders. There are still a number of uncertainties and the expected rate of economic recovery as of September in France and North America will condition the Group's capacity to return to a level of activity in line with that recorded pre-Covid-19.
- The Annual Shareholders Meeting will take place on September 30, 2020 in Saint Clément les Places (69930) France at 2.30pm.
- Q2 sales figures, October 29, 2020 after closure.
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