● Sales down -35% (at constant exchange rates, excluding IAS 29)
● A current operating margin of +2.3% of sales (excluding foreign exchange gains and losses, excluding IFRS 16 & IAS 29)
● Net loss of € -8.7 million, heavily penalized by FOREX impacts
|Revenue by business line - excl. IAS 29 - in € millions||H1 2020||H1 2019||Var. %|
The changes presented below are at constant exchange rates, excluding IAS 29 (hyperinflation in Argentina).
The COVID-19 health crisis has impacted the vast majority of the Group's activities in all regions of the world since the beginning of 2020. The first effects were felt in China in January, forcing the Group to close its commercial and industrial activities in this country, then from March in Europe and April in North and Latin America. Against this unprecedented backdrop, Haulotte posted half-year sales of € 222.7 million, down -35% compared to the first half of 2019 (a record half-year in the Group's history), representing a -50% drop in business over the second quarter compared to 2019.
Group half-year sales in Europe were down -39% year-on-year, with almost all markets posting a very sharp decline in the second quarter. In Asia-Pacific, half-year sales declined by -23%, despite a sharp rebound in sales in the Chinese market during the second quarter, China being the only significant market in the world to grow over the semester. Despite a sharp decline in the North American market, Group half-year sales held up well, particularly in the aerial work platforms business, and declined by -28% over the period. As for Latin America, already strongly affected by a difficult economic and political context, the arrival of Covid-19 only aggravated the situation in all markets, resulting in a -47% drop in activity over the semester.
Equipment sales were down -36% over the period, the services business held up well and posted a -21% decline, while the rental business ended the period at -39%, strongly impacted by the health situation in Latin America.
|Income statement highlight - in € millions||H1 2020||H1 2019||Var. %|
|Excl. IFRS 16 & excl. IAS 29||Revenue||222,7||342,6||-35%|
|Current operating income excl. exchange gain & loss||5,2||23,8||-78%|
|IAS 29 & IFRS 16 impacts on net result||0,7||0,9||-22%|
|Consolidated net result||(8,7)||18,3||-148%|
The figures below are presented for continuing operations, excluding IAS 29 and excluding IFRS 16.
Current operating income (excluding exchange gains and losses) decreased -78% to € 5.2 million (i.e. +2.3% of sales). It remains positive despite the significant impact of lower volumes on gross margin, partly offset by a significant decrease in fixed costs in the first half of the year (-15% at constant exchange rates).
Operating income ended at € 3.1 million and net income for the half-year was negative at € -9.4 million, significantly penalized by the weakening of the vast majority of currencies against the euro, particularly those of Latin America.
The Group's net debt (excluding guarantees and IFRS 16) increased by € +19.5 million to € 140.9 million, impacted by the sharp and unforeseen drop in activity.
In this unprecedented context, Haulotte submitted to all of the lenders of the syndicated loan a request for a waiver of the bank covenants for two periods (June and December 2020) and a request for an extension for an additional year of the maturity. These requests were unanimously accepted and without any condition on June 30, 2020. Therefore, the maturity date of the contract has been changed to July 17, 2025.
In a very uncertain environment, where the lack of visibility remains a reality, Haulotte forecasts a decline in sales of -25% to -30% in 2020 and a current operating income (excluding exchange gain and loss) that should remain positive at year-end.
Quarter 3 sales: October 13, 2020.