Manitou. H1 20 net sales of ˆ762m
04.08.2020 10:45 "Agro Perspectiva" (Kyiv) —
H1 20 net sales of ˆ762m down-35% vs. H1 19 and -35% on a comparable basis*
Q2 order intake on equipment of ˆ180m vs. ˆ286m in Q2 19
Order book on equipment at the end of Q2 20 of ˆ555m vs. ˆ643m in Q2 19
Recurring operating income at ˆ30.1m (3.9%) vs. ˆ90.1m (7.7%) in H1 19
EBITDA1 ˆ48m (6.3%) vs. ˆ107m in H1 19
Net income at ˆ13.5m vs. ˆ60.1m in H1 19
Taking into account the COVID-19 crisis and its economic consequences, the outlook for 2020 is for an annual turnover of around ˆ1.5 billion
Outlook for current operating income in the 2.7% to 3.2% range for 2020
The Board of Directors of Manitou BF, meeting on this day, closed the accounts for the first half of 2020.
Michel Denis, Chief Executive Officer, said : "The first half of 2020 was highlighted by the sudden COVID-19 crisis that has been disrupting our markets since mid-March, resulting in a 35% drop in our sales compared to a record first half of 2019.
As soon as the health crisis emerged, we reacted very quickly to implement health and operational measures to protect our employees and continue to meet the urgent needs of our customers. A crisis management steering committee was immediately activated to define the direction and priority actions to be implemented. We established constant communication with our teams, stakeholders and Board of Directors. The agility and reactivity of our employees enabled us to maintain support to our customers and users throughout the period, particularly in terms of spare parts and technical assistance. On the industrial side, we were able, from mid-April, to gradually restart the French and Italian plants production lines by introducing strict health and safety procedures. Significant production re-planning work has been carried out with our customers and suppliers in order to be able to deliver the most urgent orders. This was particularly the case for those in the agricultural sector or in remote geographical areas whose seasonality required shipment before the summer shutdown.
All of these measures helped us to get through this very difficult period in the best possible way and we have now returned to a market order adjusted to the current volumes of activity in our markets.
On the financial level, we have deployed measures from the beginning of the crisis to reduce all of our expenses and investments, implemented measures to reduce working hours and certain government aid in order to protect the groups cash flow and sustainability as much as possible. These measures were reinforced by the Board of Directors decision not to proceed with the payment of the ˆ30m dividend that had been announced a few weeks before the health crisis erupted. The group ended the half-year with a current operating profit of 3.9% of sales.
After suffering an air pocket from mid-March to mid-May, the recovery was encouraging in June. The agricultural market remains the most buoyant, while the industrial and construction sectors recorded more significant decreases, particularly among rental companies, whose business outlook for the remaining part of 2020 and 2021 is still gloomy.
On the strength of the upturn at the end of the quarter, the group ended the first half of the year with an order book of ˆ555m, which enables us to estimate a sales outlook for 2020 that is around 30% lower than in 2019 and, in the absence of any further deterioration in the global economic context, a current operating profit in the range of 2.7% to 3.2%.
We also believe that the crisis we are going through, will have economic consequences beyond 2020 and that our current operating income target of more than 8% of sales under the Ambition 2022 plan will not be achieved by the initial target date.