- Continued unfavorable market context in the “Construction
& Materials” and “Hygiene & Protection” business areas and
delays in marketing approvals for new products
- Slight increase in revenue in the “Health, Beauty &
Nutrition” business area
- Good momentum in “Industry” business area sales, thanks to
investments made by the Group
- Revision of the Group's financial targets following the
review of its business plan within the framework of Kenerzeo1's
tender offer project
Regulatory News:
Groupe Berkem, a leading player in bio-based chemistry
(ISIN code: FR00140069V2 – Ticker: ALKEM), announces its 2024
first-year revenue and provides an update on its recent
activity.
Olivier FAHY, Chairman and CEO of Groupe Berkem, stated:
“As expected, revenue for the first half of 2024 are in line with
our previous publications. Our Group continues to be impacted by
the tensions observed for over a year in the “Construction &
Materials” and “Hygiene & Protection” business areas, coupled
with delays in obtaining marketing authorizations for the new
bio-based products we launched in recent months. At the same time,
and despite the decline in sales of nutritional supplements, we
were able to achieve a slight improvement on last year's
performance in the “Health, Beauty & Nutrition” business area,
demonstrating the quality of our solutions and our expertise in
these markets showing strong demand for naturalness. Finally, our
proactive investment policy is bearing fruit in the “Industry”
business area, which is increasingly emerging as a genuine growth
driver for the years ahead. Faced with the major challenges
affecting our industry and to pursue our development strategy,
which proved its worth in a highly complex market context, we have
decided to join forces with Eurazeo to write a new chapter for our
Group. This decision is reflected in a simplified tender offer
project that has been favorably received by the Board of Directors,
and which should be filed during the 4th quarter of 2024.”
2024 FIRST-HALF REVENUE
As at June 30, 2024, Groupe Berkem's revenue reached €27.3
million, compared with €28.0 million in the first-half of 2023,
i.e. a slight decrease of -2.2%.
Breakdown of revenue by business area
for the first half of 2024
In € thousands
30/06/2024
30/06/2023
Change
Construction & Materials
11,609
12,459
(6.8%)
Hygiene & Protection
5,768
6,479
(11.0%)
Health, Beauty & Nutrition
8,704
8,556
+1.7%
Industry
1,247
377
+231.0%
Central /Shared
-
86
(100.0%)
TOTAL
27,328
27,956
(2.2%)
The persistent difficulties affecting the “Construction &
Materials” and “Hygiene & Protection” business areas
resulted in a drop in revenue of -6.8% and -11.0% respectively
compared with the first half of 2023, coupled with significant
delays in marketing approvals for the Group's new products. The
“Health, Beauty & Nutrition” business area saw a slight
improvement in sales of 1.7% compared with the performance achieved
in the first half of 2023. In line with previously published
figures, the “Industry” business area continues its strong
growth momentum, rising from €0.3 million in the first half of 2023
to €1.2 million in the first half of 2024, while remaining marginal
in the Group's business mix.
2024 FIRST HALF AND POST-CLOSING HIGHLIGHTS
External growth operations
February 2024: Acquisition of
Naturex Iberian Partners, Givaudan's industrial site in
Valencia (Spain) specialized in plant and marine extraction
activities, for players in the food, nutrition (nutraceuticals) and
cosmetics markets. With this acquisition, Groupe Berkem
significantly increases its production capacity for plant extracts
destined for the “Health, Beauty & Nutrition” business
area.
Activity
January 2024: Extension of the
H2OLIXIR range of 100% natural floral waters, with the launch
of lavender water and thyme water, two new 97.5% organic floral
waters for the cosmetics industry.
May 2024: Presentation of
BiombalanceTM and Pineol® Premium, two active ingredients from
the Group's new range for the Nutraceuticals market.
Signature of a contribution agreement and conclusion of an
investment agreement between Kenercy2 and Eurazeo in view of a
simplified tender offer project
As announced in the press release issued on July 18, 2024,
Kenercy and Kenerzeo, a newly simplified joint-stock company (RCS
928 791 813) incorporated under French law, 100% owned by Kenercy
(RCS 804 788 503), itself managed by Olivier Fahy, signed a
contribution agreement on July 17, 2024, under which Kenercy will
transfer to Kenerzeo 100% of the Groupe Berkem shares it holds,
i.e. 12,069,833 shares representing 67.93% of Groupe Berkem's share
capital to date. Under the terms of the contribution agreement,
Groupe Berkem shares were valued at €3.10 each.
Kenerzeo and Danske Bank Asset Management (shareholder of Groupe
Berkem) today signed reciprocal commitments for the acquisition and
sale concerning the acquisition by Kenerzeo, and the sale by Danske
Bank Asset Management, of 1,322,931 Groupe Berkem shares. Under the
terms of these commitments, Kenerzeo irrevocably agreed to acquire,
and Danske Bank Asset Management irrevocably agreed to sell,
1,322,931 Groupe Berkem shares, representing 7.5% of Groupe
Berkem's share capital, at a price of €3.10 per share. Completion
of these commitments and the transfer of ownership of the shares
are expected to take place on July 31, 2024.
After the final completion of the contribution and commitments
described above, scheduled for July 31, 2024, Kenerzeo will hold
75.43% of Groupe Berkem's share capital.
At the same time, Kenercy and Eurazeo concluded an investment
agreement concerning the financing, by funds managed by Eurazeo, of
Kenerzeo up to a maximum amount of €23.5 million through the issue
of convertible bonds and the subscription of Kenerzeo shares.
This release is the first step in a simplified tender offer to
be initiated by Kenerzeo for all the Groupe Berkem shares it will
not hold. Completion of the tender offer is subject to the AMF's
declaration of conformity and could take place during the fourth
quarter of 2024.
At its meeting on July 17, 2024, the Group's Board of Directors
supported the proposed transaction and decided to enable Kenerzeo
to file a tender offer during the 4th quarter of 2024. Groupe
Berkem and Eurazeo will keep the market informed of any significant
developments in the planned transaction.
No change in the governance of Groupe Berkem is planned until
completion of the tender offer project. In the event that Groupe
Berkem remains a listed company following the proposed tender
offer, Eurazeo's appointment as a director of Groupe Berkem will be
put to a vote at the General Meeting.
An independent expert whose mission is to prepare a report on
the financial terms of the tender offer in accordance with the
provisions of article 261-1 of the AMF's general regulations will
be appointed shortly. The Group will keep the market informed of
the terms and conditions of the independent expert's appointment,
as well as the terms and conditions of his mission.
Outlook
Within the framework of the transaction announced today, Groupe
Berkem has reconsidered its business plan and financial
projections. This revision takes into account the persistent
difficulties affecting the “Construction & Materials” business
area since the Ukrainian crisis, as well as delays in obtaining
marketing authorizations for its bio-based products, both in France
and internationally. Lastly, in view of the numerous investments to
be made at its new production site in Valencia, Spain, and the
ever-changing economic and geopolitical context, Groupe Berkem has
no immediate plans to make any new acquisitions in the short to
medium term.
In view of the above, Groupe Berkem now expects to achieve
revenue of at least €70 million by 2025, and an EBITDA3 margin of
at least 16% by 2027.
Next financial report:
- 2024 First-Half Results: September 26, 2024 (after
market close)
ABOUT GROUPE BERKEM
Founded in 1993 by Olivier Fahy, Chairman and Chief Executive
Officer, Groupe Berkem is a leading force in the bio-based
chemicals market. Its mission is to advance the environmental
transition of companies producing the chemicals used in everyday
life (Construction & Materials, Health, Beauty & Nutrition,
Hygiene & Protection, and Industry). By harnessing its
expertise in both plant extraction and innovative formulations,
Groupe Berkem has developed bio-based boosters—unique high-quality
bio-based solutions augmenting the performance of synthetic
molecules. Groupe Berkem achieved revenue of €51.9 million in 2023.
The Group has almost 250 employees working at its head office
(Blanquefort, Gironde) and 5 production facilities in Gardonne
(Dordogne), La Teste-de-Buch (Gironde), Chartres (Eure-et-Loir),
Tonneins (Lot-et-Garonne) and Valence (Spain).
Groupe Berkem has been listed on Euronext Growth Paris since
December 2021 (ISIN code: FR00140069V2 - ALKEM).
www.groupeberkem.com
1 Simplified joint-stock company (RCS 928 791 813) with Kenercy
as Chairman. 2 Limited liability company (RCS 804 788 503) with
Olivier FAHY as manager. 3 Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA), corresponds to the
operating cash flow generated by the Group, taking into account
other operating income and other operating expenses, but excluding
depreciation and amortization and the Group's financing policy.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725017939/en/
Groupe Berkem Olivier Fahy,
Chairman and CEO Anthony Labrugnas, Chief Financial Officer Phone:
+33 (0)5 64 31 06 60 investisseurs@berkem.com
NewCap Investor Relations
Mathilde Bohin / Nicolas Fossiez Phone: +33 (0)1 44 71 94 94
berkem@newcap.eu
NewCap Media Relations
Nicolas Merigeau / Antoine Pacquier Phone: +33 (0)1 44 71 94 94
berkem@newcap.eu
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