The Board of Directors of BOIRON, at its meeting on March 10, 2021 chaired by Thierry Boiron, made up the statutory and consolidated financial statements of the financial year ended on December 31, 2020. It was decided to call a Mixed Shareholders' Meeting on May 27, 2021 at the company's headquarters in Messimy.
Audit of the statutory and consolidated financial statements have been performed and the audit reports concerning their certification are currently in the process of being issued.
BOIRON GROUP RESULTS
|in thousands of euros||2020||2019||Variation|
|Net income - group share||26,209||40,630||-35.5%|
|Cash flow (3)||104,944||103,033||+1.9%|
|Net cash position||234,313||207,957||+12.7%|
(1) The main information on the variation of the yearly sales were the subject of a financial statement on January 21, 2021 (https://www.boironfinance.fr/en/releases/sales).
(2) -6.6% at constant exchange rate.
(3) Before cash revenue, financing expenses and corporate income tax.
2020 operating income amount to €38,185 thousand down €28,730 thousand versus 2019.
The announcement of the delisting of homeopathic medicines and the considerable decline in our activity in France over the past two years (down 30%) have prompted an in-depth reorganisation which has led to the elimination of 566 positions and the creation of 122. Based on the information currently available, the overall cost is estimated at €63,780 thousand, €58,714 thousand of which was provisioned for in 2020 pursuant to applicable accounting standards. The difference with the overall cost will be recorded in 2021.
At the same time, we recorded a €25,995 thousand write-back on provisions in light of the reduction in social security commitments generated by the reorganisation.
|In thousands of euros|
|Provision for reorganisation expenses recorded in 2020||+ 58,714|
|Neutralisation of the provision write-back in respect of the reduction in social security commitments||- 25,995|
|Operating income before impact of reorganisation||70,904|
|% of revenue||13.8%|
Before taking the impact of reorganisation into account, operating income amount to €70,904 thousand, up €3,955 thousand compared to 2019, following:
- the decline in sales, which negatively impacted the gross margin by €35,158 thousand (despite strong growth in North America, sales were strongly impacted by lower sales of non-proprietary medicines in France and specialties in Russia),
- the deployment of a global savings plan and the slowdown in expenditure due to the health crisis, which led to a reduction in operating expenses of €31,203 thousand,
- the comparison effects in 2019 relating to the reorganisation of our activities in Belgium (€5,875 thousand) and the impairment of ALKANTIS trademarks, patents and equipment (€2,069 thousand).
The reorganisation plan had no significant impact on cash flow in 2020, as most of the €58,714 thousand provision will be disbursed in 2021 and 2022. The first site closures began in January 2021 and will end at the end of 2021, with the closure of the Montrichard site.
The Board of Directors will recommend that the General Meeting of Shareholders distribute a dividend of €0.95 per share. The dividend will be paid out on June 4,2021.
Due to the effective delisting of homeopathic medicines in France and the ongoing global health crisis, we anticipate a significant decline in sales in 2021. Given the very sharp economic decline in the winter pathologies market and a base effect marked by the strong sales of the BOIRON group in the first quarter of 2020, the decline in sales will be particularly significant in the current first quarter.
Full-year earnings will benefit from the comparison effect of the reorganisation provisioned in 2020 as well as initial savings resulting from site closures, but is nevertheless expected to decline.
Since January, BOIRON has released communications aimed at the general public to highlight the specific features of homeopathy and the role it plays in the daily lives of French people.
Our next update:
April 22, 2021, at market close, publication of quarterly sales and financial information as of March 31, 2021.
Person responsible for financial information: Valérie Lorentz-Poinsot
Contact for financial information: Fabrice Rey
Investor relations: +33 (0) 184.108.40.206.01 - e-mail: firstname.lastname@example.org
ISIN Code: FR0000061129 (BOI) - Bloomberg: BOI FP - Reuters: BOIR.PA
The group's financial information is online at: www.boironfinance.com