Consolidated Revenue Growth Driven by the Strong Dynamism of
the Aerospace Business
Half-Year Adjusted1 EBITDA of 19% of Revenue and Consolidated
Half-Year Net Profit of 14% of Revenue
MEMSCAP Confirms Its Trajectory and Drivers for Profitable
Growth
- Growth of more than 8% in aerospace
business leading to a 3% increase in consolidated half-year
revenue
- Slight decline in medical activities (-3%) due to the sharp
drop in half-year sales relating to implantable solutions
(-69%)
- Half-year adjusted1 EBITDA of EUR 1,410 thousand (19% of
revenue)
- Half-year operating profit of EUR 899 thousand (12% of
revenue)
- Consolidated half-year net profit of EUR 992 thousand euros
(14% of revenue)
- Consolidated available cash at EUR 6,017 thousand as of June
30, 2024
- Intensification of efforts related to the "Engine Control"
development and industrialization program
- Increase in sales and marketing resources dedicated to
medical activities to expand the number of applications and
clients, reducing the volatility of this segment
- Planned emphasis on the Group's sales and technical programs
reflected in operating expenses expected to decrease over the
coming quarter
Regulatory News:
MEMSCAP (Euronext Paris: MEMS), leading provider of
high-accuracy, high-stability pressure sensor solutions for the
aerospace and medical markets using MEMS technology (Micro Electro
Mechanical Systems), today announced its earnings for the first
half of 2024 ending June 30, 2024.
Analysis of consolidated revenue
In accordance with the previous quarterly press releases,
consolidated revenue from continuing operations for the first half
of 2024 amounted to EUR 7,275 thousand compared to EUR 7,089
thousand for the first half of 2023.
Over the first half of 2024, the distribution of consolidated
revenue from continuing operations by market segment is as
follows:
Market segments / Revenue (In
thousands of euros)
H1 2023
H1 2023 (%)
H1 2024
H1 2024 (%)
Aerospace
4,515
64%
4,899
67%
Medical
1,709
24%
1,664
23%
Optical communications
798
11%
667
9%
Others (Royalties from licensed
trademarks)
67
1%
45
1%
Total revenue from continuing
operations
7,089
100%
7,275
100%
(Any apparent discrepancies in totals are
due to rounding.)
Consolidated revenue from continuing operations for the first
half of 2024 increased by 3% compared to the first half of
2023.
The aerospace segment, the Group's largest market, recorded
revenue of EUR 4,899 thousand for the first half of 2024 (first
half of 2023: EUR 4,515 thousand euros), representing an increase
of more than 8% compared to the first half of 2023. This segment
represents 67% of the Group's consolidated revenue in the first
half of 2024 (first half of 2023: 64%).
Revenue from the medical sector amounted to EUR 1,664 thousand
for the first half of 2024 (first half of 2023: EUR 1,709
thousand), reflecting a 3% decreased compared to the first half of
2023. This evolution is due to the sharp drop in half-year sales
relating to implantable solutions (-69% compared to the first half
of 2023). The medical segment represents 23% of the Group's
consolidated revenue in the first half of 2024 (first half of 2023:
24%).
The optical communications business, which includes the design
and commercialization of variable optical attenuators (VOA) under a
fabless organization, reported consolidated revenue of EUR 667
thousand for the first half of 2024 (first half of 2023: EUR 798
thousand), accounting for 9% of the Group's consolidated revenue
(first half of 2023: 11%).
Royalties from licensed trademarks amounted to EUR 45 thousand
for the first half of 2024, a similar level to the first half of
2023 at EUR 67 thousand.
Analysis of consolidated income statement
MEMSCAP’s consolidated earnings for the first half of 2024 are
given within the following table:
In thousands of euros
H1 2023
H1 2024
Revenue from continuing
operations
7,089
7,275
Cost of revenue
(4,030)
(4,339)
Gross margin
3,059
2 936
% of revenue
43.2%
40.4%
Operating expenses*
(1,901)
(2,037)
Operating profit /
(loss)
1,158
899
Financial profit / (loss)
23
110
Income tax expense
(47)
(17)
Net profit / (loss)
1,134
992
(Financial data were subject to a limited
review by the Group’s statutory auditors. On August 30, 2024,
MEMSCAP’s board of directors authorized the release of the interim
condensed consolidated financial statements on June 30, 2024. Any
apparent discrepancies in totals are due to rounding.)
* Net of research & development
grants.
For the first half of 2024, the gross margin rate stood at 40.4%
of consolidated revenue compared to 43.2% in the first half of
2023. It should be noted that the gross margin rate for the first
half of 2023 benefited from a particularly favourable product mix.
Thus, the gross margin amounts to EUR 2,936 thousand for the first
half of 2024 compared to EUR 3,059 thousand for the first half of
2023.
Operating expenses, net of research and development grants,
amounted to EUR 2,037 thousand for the first half of 2024 compared
to EUR 1,901 thousand for the first half of 2023. In the first half
of 2024, these expenses reflected the emphasis on the Group’s sales
and technical programs. The Group anticipates a decrease in
operating costs over the coming quarter following the
non-recurrence of some of these expenses linked to this significant
effort during the first half.
The average full-time equivalent workforce of the Group
increased from 51.7 employees in the first half of 2023 to 61.8
employees in the first half of 2024.
For the first half of 2024, the operating profit from continuing
operations amounted to EUR 899 thousand (12% of consolidated
revenue) compared to an operating profit of EUR 1,158 thousand (16%
of consolidated revenue) for the first half of 2023.
The financial income posted a gain of EUR 110 thousand for the
first half of 2024, primarily due to the exchange rate fluctuations
of the US dollar and the Norwegian krone, compared to a break-even
result for the first half of 2023.
The tax expense recorded for the first half of 2024 and 2023
corresponded to the variation in deferred tax assets. This charge
has no impact on the Group's cash flow.
The Group therefore posted a consolidated net profit of EUR 992
thousand for the first half of 2024 (14.0% of consolidated revenue)
compared to a net profit of EUR 1,134 thousand for the first half
of 2023 (16% of consolidated revenue).
Evolution of the Group’s cash / Consolidated shareholders’
equity
Adjusted EBITDA1 from continuing operations for the first half
of 2024 amounted to EUR 1,410 thousand (19% of consolidated
revenue) compared to EUR 1 677 thousand for the first half of 2023
(24% of consolidated revenue).
As of June 30, 2024, the Group posted available cash of EUR
6,017 thousand (December 31, 2023: EUR 6,237 thousand) including
cash investments (Corporate bonds / investment securities) recorded
under non-current financial assets. It should be noted that the
inventory amount increased by EUR 943 thousand compared to December
31, 2023.
As of June 30, 2024, MEMSCAP shareholders’ equity totalled EUR
18,631 thousand (December 31, 2023: EUR 17,676 thousand).
1 Adjusted EBITDA means operating profit before depreciation,
amortisation, share-based payment charge (IFRS 2) and including
foreign exchange gains/losses related to ordinary activities.
Perspectives
With a recognized expertise and driven by promising and
high-visibility markets, MEMSCAP reaffirms its trajectory through
2026, focused on achieving an average annual hyper-growth rate of
20% (4G plan stands for consistent growth, competitive growth,
profitable growth, and responsible growth). The Company is now
concentrating on finalizing its "Engine Control" development and
industrialization program, which is expected to accelerate growth
in the coming years and propel MEMSCAP beyond 2026.
Individual shareholder webinar: Monday, September 02, 2024 –
11:00 a.m. Thank you for registering and sending your questions
in advance using the following link:
https://memscap.com/fr/visio/
Q3 2024 earnings: October 28, 2024
About MEMSCAP
MEMSCAP is a leading provider MEMS based pressure sensors,
best-in-class in term of precision and stability (very low drift)
for two market segments: aerospace and medical.
MEMSCAP also provides variable optical attenuators (VOA) for the
optical communications market.
For more information, visit our website at: www.memscap.com
MEMSCAP is listed on Euronext Paris (Euronext Paris - Memscap -
ISIN code: FR0010298620 - Ticker symbol: MEMS)
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
Interim condensed consolidated
financial statements at 30 June 2024
30 June 2024
31 December 2023
€000
€000
Assets
Non-current assets
Property, plant and equipment
1 165
937
Goodwill and intangible assets
6 644
6 682
Right-of-use assets
5 099
5 354
Other non-current financial assets
1 513
1 436
Employee benefit net asset
1
1
Deferred tax asset
88
106
14 510
14 516
Current assets
Inventories
4 997
4 054
Trade and other receivables
3 237
2 714
Prepayments
283
197
Cash and short-term deposits
4 504
4 801
13 021
11 766
Total assets
27 531
26 282
Equity and liabilities
Equity
Issued capital
1 927
1 869
Share premium
17 972
17 972
Treasury shares
(124)
(134)
Retained earnings
2 093
1 095
Foreign currency translation
(3 237)
(3 126)
18 631
17 676
Non-current liabilities
Lease liabilities
4 614
4 646
Interest-bearing loans and borrowings
--
26
Employee benefit liability
86
80
4 700
4 752
Current liabilities
Trade and other payables
3 215
2 780
Lease liabilities
891
937
Interest-bearing loans and borrowings
77
102
Provisions
17
35
4 200
3 854
Total liabilities
8 900
8 606
Total equity and liabilities
27 531
26 282
CONSOLIDATED STATEMENT OF
INCOME
Interim condensed consolidated
financial statements at 30 June 2024
For the six months ended 30
June
2024
2023
Continuing operations
€000
€000
Sales of goods and services
7 275
7 089
Revenue
7 275
7 089
Cost of sales
(4 339)
(4 030)
Gross profit
2 936
3 059
Other income
147
157
Research and development expenses
(903)
(938)
Selling and distribution costs
(520)
(415)
Administrative expenses
(761)
(705)
Operating profit / (loss)
899
1 158
Finance costs
(83)
(97)
Finance income
193
120
Profit / (loss) for the period from
continuing operations before tax
1 009
1 181
Income tax expense
(17)
(47)
Profit / (loss) for the period from
continuing operations
992
1 134
Profit / (loss) for the period
992
1 134
Earnings per share:
- Basic, for profit / (loss) for the
period attributable to ordinary equity holders of the parent (in
euros)
€ 0.129
€ 0.152
- Diluted, for profit / (loss) for the
period attributable to ordinary equity holders of the parent (in
euros)
€ 0.129
€ 0.147
- Basic, profit / (loss) for the period
from continuing operations attributable to ordinary equity holders
of the parent (in euros)
€ 0.129
€ 0.152
- Diluted, profit / (loss) for the period
from continuing operations attributable to ordinary equity holders
of the parent (in euros)
€ 0.129
€ 0.147
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
Interim condensed consolidated
financial statements at 30 June 2024
For the six months ended 30
June
2024
2023
€000
€000
Profit / (loss) for the period
992
1 134
Items that will not be reclassified
subsequently to profit or loss
Actuarial gains / (losses)
--
--
Income tax on items that will not be
reclassified to profit or loss
--
--
Total items that will not be
reclassified to profit or loss
--
--
Items that may be reclassified
subsequently to profit or loss
Net gain / (loss) on available-for-sale
financial assets
42
(34)
Exchange differences on translation of
foreign operations
(111)
(778)
Income tax on items that may be
reclassified to profit or loss
--
--
Total items that may be reclassified to
profit or loss
(69)
(812)
Other comprehensive income for the
period, net of tax
(69)
(812)
Total comprehensive income for the
period, net of tax
923
322
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
Interim condensed consolidated
financial statements at 30 June 2024
(In thousands of euros, except for
number of shares)
Number
Issued
Share
Treasury
Retained
Foreign
Total
of shares
capital
premium
shares
earnings
currency translation
shareholders’ equity
€000
€000
€000
€000
€000
€000
At 1 January 2023
7 476 902
1 869
17 972
(144)
(242)
(3 868)
15 587
Profit for the period
--
--
--
--
1 134
--
1 134
Other comprehensive income for the period,
net of tax
--
--
--
--
(34)
(778)
(812)
Total comprehensive income
--
--
--
--
1 100
(778)
322
Treasury shares
--
--
--
26
--
--
26
Share-based payment
--
--
--
--
144
--
144
At 30 June 2023
7 476 902
1 869
17 972
(118)
1 002
(4 646)
16 079
At 1 January 2024
7 476 902
1 869
17 972
(134)
1 095
(3 126)
17 676
Profit for the period
--
--
--
--
992
--
992
Other comprehensive income for the period,
net of tax
--
--
--
--
42
(111)
(69)
Total comprehensive income
--
--
--
--
1 034
(111)
923
Capital increase
230 000
58
--
--
(58)
--
--
Treasury shares
--
--
--
10
--
--
10
Share-based payment
--
--
--
--
22
--
22
At 30 June 2024
7 706 902
1 927
17 972
(124)
2 093
(3 237)
18 631
CONSOLIDATED CASH FLOW
STATEMENT
Interim condensed consolidated
financial statements at 30 June 2024
For the six months ended 30
June
2024
2023
€000
€000
Operating activities:
Net profit / (loss) for the period
992
1 134
Non-cash items written back:
Amortization and depreciation
401
356
Loss / (capital gain) on disposal of fixed
assets
8
(3)
Other non-financial activities
34
182
Accounts receivable
(439)
(1 367)
Inventories
(991)
(597)
Other debtors
(251)
(44)
Accounts payable
480
(67)
Other liabilities
(1)
296
Net cash flows from / (used in)
operating activities - continuing operations
233
(110)
Investing activities:
Purchase of fixed assets
(144)
(190)
Proceeds from sale / (purchase) of other
non-current financial assets
(31)
19
Net cash flows used in investing
activities - continuing operations
(175)
(171)
Financing activities:
Repayment of borrowings
(51)
(50)
Payment of principal portion of lease
liabilities
(317)
(242)
Sale / (purchase) of treasury shares
10
26
Net cash flows used in financing
activities - continuing operations
(358)
(266)
Net foreign exchange difference
3
(40)
Increase / (decrease) in net cash and
cash equivalents
(297)
(587)
Opening cash and cash equivalents
balance
4 801
4 180
Closing cash and cash equivalents
balance
4 504
3 593
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240901632566/en/
Yann Cousinet Chief Financial Officer +33 (0) 4 76 92 85 00
yann.cousinet@memscap.com
Matthews Emerging Market... (NASDAQ:MEMS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Matthews Emerging Market... (NASDAQ:MEMS)
Historical Stock Chart
From Sep 2023 to Sep 2024
