LECTRA: 2024: improved financial results in what remains a degraded
environment
2024: improved financial results in what remains a
degraded environment
- Revenues: 526.7 million euros
(+10%)*
- EBITDA before non-recurring items:
91.1 million euros (+15%)*
- Net income: 29.6 million euros
(-9%)*
- Free cash flow before non-recurring
items: 72.1 million euros (+59%)*
- Dividend**:
€0.40 per share (+11%)
* Change at actual exchange rates (%)
** Proposed to the Annual Shareholders’ Meeting on April 25,
2025
|
|
|
In millions of euros |
October 1 – December 31 |
January 1 – December 31 |
|
2024(1) |
2023 |
2024(1) |
2023 |
Revenues |
132.5 |
119.3 |
526.7 |
477.6 |
Change at actual exchange rates (%) |
11% |
|
10% |
|
EBITDA before non-recurring
items(2) |
22.6 |
19.8 |
91.1 |
79.0 |
Change at actual exchange rates (%) |
14% |
|
15% |
|
EBITDA margin before non-recurring items
(in % of revenues) |
17.1% |
16.6% |
17.3% |
16.5% |
Income from operations before non-recurring
items(2) |
11.9 |
12.3 |
49.3 |
49.1 |
Change at actual exchange rates (%) |
-3% |
|
0% |
|
Net income |
8.4 |
7.7 |
29.6 |
32.6 |
Free cash flow before non-recurring
items(2) |
22.2 |
13.2 |
72.1 |
45.3 |
|
|
|
|
|
(1) 2024 figures include Launchmetrics
since January 23,2024
(2) The definition for performance indicators
appears in the Management Discussion of December 31, 2024
Paris, February 12, 2025.
Today, Lectra’s Board of Directors, chaired by Daniel Harari,
reviewed the consolidated financial statements for the fiscal year
2024. Audit procedures have been performed by the Statutory
Auditors. The certification report will be issued at the end of the
Board of Director’s meeting of February 27, 2025.
To facilitate analysis of the Group's results,
the accounts of Lectra excluding Launchmetrics (the "Lectra 2023
scope") are analyzed separately from the Launchmetrics accounts.
The detailed 2024 vs 2023 comparisons for the Lectra 2024 scope and
for Launchmetrics are based on actual exchange rates, whereas the
comparisons for the Lectra 2023 scope are stated on a like-for-like
basis.
1. SUMMARY OF THE
YEAR 2024
The year 2024 was marked by a severely degraded
macroeconomic and geopolitical environment, prompting the Group's
customers to exercise prudence in their investment decisions,
though situations varied across geographies and market sectors.
Under these conditions, for the Lectra 2023
scope, orders for new systems were stable, and new SaaS
subscriptions grew by 8%, confirming their success and increasing
adoption by the Group’s customers.
2024 earnings in line with recent
estimates
On October 30, the Group reported that revenues
and EBITDA before non-recurring items were expected to be near the
lower end of the ranges indicated on February 14, i.e., revenues of
480 million euros and EBITDA before non-recurring items of 85
million euros for the Lectra 2023 scope; and 42 million euros in
revenues and EBITDA margin before non-recurring items of over 15%
for Launchmetrics, i.e., revenues of 522 million and 91.3 million
euros of EBITDA margin before non-recurring items for the Lectra
2024 scope.
In total, full-year 2024 revenues grew 10% to
526.7 million euros and EBITDA before non-recurring items increased
15% to 91.1 million euros.
Successful integration of
Launchmetrics
Launchmetrics achieved revenues of 41.2 million
euros and an EBITDA before recurring items of 7.0 million euros,
and exceeded the Group’s profitability expectations with an EBITDA
margin before non-recurring items of 16.9%.
What’s more, this acquisition has considerably
expanded Lectra's SaaS activity, providing the basis for a twofold
increase in SaaS revenues to 77.4 million euros at end-2024 and
strengthening SaaS’s future potential.
The integration -- in terms of processes, teams
and products -- is already a proven success and enables Lectra to
form a coherent set of SaaS activities. Launchmetrics has also
contributed its top-level practices in the area of SaaS, thus
enriching the customer experience across the Group.
Continuing improvement in the
fundamentals of the Group's business model
The fundamentals of the Group's business model
were substantially improved, notably on the basis of the strict
cost control policy implemented since May 2023, and the
contribution of Launchmetrics. Recurring revenues increased by 18%,
with margins covering nearly all fixed costs. The EBITDA margin
before non-recurring items rose 0.8 percentage point, to 17.3%.
Free cash flow before non-recurring items generated in 2024 came to
72.1 million euros (+59%) and the Group's net debt was brought down
to 20.6 million euros at December 31, 2024.
2. Q4
2024
Q4 2024 revenues were up 11% compared to Q4
2023, at 132.5 million euros, with Launchmetrics contributing 11.0
million euros.
EBITDA before non-recurring items (22.6 million
euros) was up 14% and the EBITDA margin before non-recurring items
came to 17.1% (+0.5 percentage points).
Free cash flow before non-recurring items rose
sharply to 22.2 million euros (+68%).
Lectra 2023 scope
Currency changes had only a limited impact on
revenues and results.
Orders for new systems were stable compared to
Q4, 2023, at 38.6 million euros, and new SaaS subscriptions came up
to 3.6 million euros (+17%).
Revenues came to 121.5 million euros, up 1%:
revenues for new systems were down 6%, while recurring revenues
were 5% higher.
EBITDA before non-recurring items was 21.0
million euros and the EBITDA margin before non-recurring items came
to 17.3%, up 0.3 percentage point.
3. 2024
Full-year 2024 revenues came to 526.7 million
euros, up 10% with the following breakdown: 28% of total revenues
for new systems, down 5%, 72% of total revenues in recurring
revenues, up 18%, including Saas revenues of 77.4 million euros
(x2.5).
Launchmetrics, which has been consolidated since
January 23, 2024, contributed 41.2 million euros to 2024
revenues.
Gross profit came to 376.9 million euros, up
13%, and the gross profit margin was 71.6%, up 1.8 percentage
points over 2023.
EBITDA before non-recurring items came to 91.1
million euros, up 15%, and the EBITDA margin before non-recurring
items rose 0.8 point to 17.3%.
Income from operations before non-recurring
items amounted to 49.3 million euros, stable compared to 2023. This
included a 22.7-million-euro charge for amortization of intangible
assets arising from the acquisitions carried out since 2021.
Research and development costs, which were fully
expensed in the period and included in fixed overhead costs,
represented 12.8% of revenues (11.7% in 2023).
Financial income and expenses represented a net
charge of 6.0 million euros (2.8 million euros in 2023) due to
higher interest rates and the financing of the Launchmetrics
acquisition.
Foreign exchange gains and losses generated a
net loss of 2.2 million euros.
Taking into account the amortization of
intangible assets, the increase in financial expenses, and an
income tax expense of 10.9 million euros, net income amounted to
29.6 million euros, down 9% compared to 2023.
Free cash flow before non-recurring items was
significantly higher, at 72.1 million euros (+59%).
A particularly robust balance
sheet
At December 31, 2024, the Group had a
particularly robust balance sheet with a consolidated shareholders’
equity of 374.4 million euros, a negative working capital
requirement of 25.2 million euros and net debt of 20.6 million
euros. The net debt consisted of financial debt of 102.5 million
euros and cash of 81.9 million euros.
Lectra 2023 scope
Currency changes had only a limited impact on
revenues and results.
Orders for new systems (144,9 million euros)
were stable compared to 2023.
Orders for perpetual software licenses (11.4
million euros) fell by 18% — as most new software is now sold in
SaaS mode— while orders for equipment and accompanying software
(113.0 million euros), and for training and consulting (17.3
million euros) rose by 2% and 9%, respectively.
Revenues were up 2% at 485.5 million euros, and
recurring EBITDA was up 7% at 84.2 million Euros.
4. DIVIDEND
The Company maintained its attractive
shareholder compensation policy with dividends representing a
payout ratio of about 40% of net income in 2023 and, as a result of
the strong increase in free cash flow, the company has decided on a
payout ratio of 50% of net income for the year 2024.
The Board of Directors will propose to the
Shareholders’ Meeting of April 25, 2025 the payment of a dividend
at €0.40 per share in respect of fiscal year 2024.
5. CHANGES
IN GOVERNANCE
Following a disagreement with the Chairman and
Chief Executive Officer regarding the role of the Lead Director,
Ross McInnes has decided to resign from his position as Director,
effective April 24, 2025. The Board of Directors thanks him for his
contribution over the past three years.
As of April 25, 2025, the Board of Directors of
Lectra will consist of 7 members: Daniel Harari (Chairman and Chief
Executive Officer), Nathalie Rossiensky (Lead Director, Independent
Director), Céline Abecassis-Moedas (Independent Director), Karine
Calvet (Independent Director), Pierre-Yves Roussel (Independent
Director), Jérôme Viala (non-Independent Director) and Hélène
Viot-Poirier (Independent Director).
6. ASSESSMENT
OF THE 2023-2025 STRATEGIC ROADMAP – SECOND PROGRESS
REPORT
Launched in 2017, the Lectra 4.0 strategy aims
to position the Group as a key Industry 4.0 player in its three
strategic market sectors: fashion, automotive and furniture, before
2030. The strategy has been implemented up to now through three
strategic roadmaps.
The first strategic roadmap, which covered the
2017-2019 period, established the key fundamentals for the future
of the Group.
The second roadmap, which ran from 2020 through
2022, achieved a new dimension for the Group – primarily through
the acquisition of Gerber in June 2021 – and opened new
perspectives, with a financial position stronger than ever before,
an extended worldwide presence, a broader customer base, a powerful
product portfolio, a growing number of customers using its new
offers for Industry 4.0, and a new brand image.
The Group's ambition over the 2023-2025 period
is to take full advantage of its change in dimension to accelerate
growth, to significantly increase the volume of SaaS in revenues,
and to seize acquisition opportunities.
Despite the unstable economic and geopolitical
climate, Lectra successfully maintained its long-term strategic
orientations. Further, all the fundamentals of the Group's business
model improved significantly and customer adoption of the SaaS
model accelerated. The Group acquired Launchmetrics and strategic
partnerships were concluded with Six Atomic and AQC.
With the commitment of employees and recognition
by customers, Lectra stands at the forefront in building a more
sustainable future. The Group has taken numerous steps to enhance
its offering to reduce environmental impact for its customers,
notably through material traceability for fashion, thanks to the
acquisition of a majority stake in TextileGenesis in early
2023.
Details of the second progress report on this
2023-2025 strategic roadmap can be found in the
December 31, 2024 “Management Discussion and Analysis”
document, available on Lectra.com.
7. OUTLOOK
In the challenging environment of 2024, Lectra
proved to be highly resilient, confirming the relevance of its
strategy and the quality of its fundamentals—crucial assets for the
Group's continued development.
Outlook for 2025
While initial positive signs can be detected,
the lack of visibility in what remains an uncertain economic and
geopolitical context, could continue to weigh on investment
decisions by the Group’s customers going forward.
In this context, the Group has begun the year
2025 with confidence and will pursue its strategy by meeting the
needs of its customers as closely as possible via the quality of
its offers for Industry 4.0 and by developing its SaaS
activity.
As in the previous two years, visibility
regarding orders for new systems remains low, with no way of
anticipating the timing or magnitude of a possible rebound, which
could nevertheless occur during the course of the year.
Recurring revenues, which accounted for 72% of
total revenues in 2024, are expected to grow further in 2025,
largely on the strength of expanding SaaS activity.
Furthermore, the Group will maintain strict cost
controls and anticipates a mix of orders that will favorably impact
the gross margin.
In light of the above, Lectra has set the 2025
objective of achieving recurring revenues of over 400 million
euros, including 90 million euros of SaaS revenues.
Overall, revenues are expected to be between 550
and 600 million euros, with an EBITDA margin before non-recurring
items close to 20%, based on exchange rates at December
31st, 2024, particularly of $1.04/€1.
The Management Discussion and Analysis of
Financial Conditions and Results of Operations and the financial
statements for Q4 and the fiscal year 2024 are available on
lectra.com. First quarter earnings for 2025 will be published on
April 24. The Annual Shareholders' Meeting will take place on April
25, 2025.
About
Lectra
As a major player
in the fashion, automotive and furniture markets, Lectra
contributes to the Industry 4.0 revolution with boldness and
passion by providing best-in-class technologies.The Group
offers industrial intelligence solutions - software, equipment,
data and services - that facilitate the digital transformation of
the companies it serves. In doing so, Lectra helps its customers
push boundaries and unlock their potential. The Group is proud to
state that its 3,000 employees are driven by three core values:
being open-minded thinkers, trusted partners and passionate
innovators.Founded in 1973, Lectra reported revenues of
527 million euros in 2024. The company is listed on Euronext, where
it is included in the following indices: CAC All Shares, CAC
Technology, EN Tech Leaders and ENT PEA-PME 150.
For more
information, visit lectra.com.
Lectra – World Headquarters: 16–18, rue Chalgrin • 75016 Paris •
France
Tel. +33 (0)1 53 64 42 00 – www.lectra.com
A French Société Anonyme with capital of €37,966,274 • RCS Paris B
300 702 305
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