EXEL Industries // 2020 Universal registration document

Management report

Company operations, consolidated and parent company fi nancial statements

3.4.1.1 Income statement  Consolidated sales are 2.9% lower than for the period ended September 30, 2019, down from €776.7 million to €754.4 million.  Sales from exports fell 1.7% from €607.3 million to €596.9 million. International sales accounted for 79.1% of total sales, compared with 78.2% in the previous fi scal year.  Sales were negatively impacted by a translation loss of €2.8 million due to the appreciation of certain currencies, notably the US dollar.  Current operating income (EBIT) rose from €32.8 million to €35.3 million after net depreciation allowances and provisions of €22.3 million, compared with €15.3 million in the prior period.  The amount of net non-recurring income and expenses is negative at -€29.9 million. It mainly re fl ects the impairment of our goodwill, and the fi nalization of the restructuring plans we have under way in the Agricultural Spraying and Sugar Beet Harvesters businesses (see note 20 to Chapter 5).  Net financial expenses were -€11.1 million. This includes net borrowing costs of -€3.0 million plus net foreign exchange gains of €7.9 million.  Pro fi t before tax went from €9.6 million to -€5.6 million.  The tax expense decreased from€5.8 million in the previous fi scal year to €5.4 million.  Net income attributable to the Groupwas -€10.7 million, compared with €4.1 million last year, i.e . -1.4% of sales.

3.4.1.2 Balance sheet Equity attributable to owners of the parent decreased from €358.9 million to €341.5 million, down €17.3 million, breaking down as follows:

Total recognized income and expenses

€17.3 M

Dividend distribution

€0.0 M

Shareholders’ equity represented 44.7% of the balance sheet total, compared with 50.5% at the end of the previous fi scal year. Provisions for contingencies and expenses (current and non-current) of €56.9 million were set aside or maintained to cover risks identi fi ed by the Company. Working capital decreased by €48.2 million, from €239.3 million to €191.1 million, as a result of the following:

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+ Change in shareholders’ equity:

€(17.3) M

+ Change in short-term provisions

€(5.6) M

+ Change in non-current fi nancial debt

€(3.3) M

- Change in non-current assets

€(22) M

Theworking capital requirement, established on the basis of net asset values, amounted to €224.8 million as of September 30, 2020. This fall of €20.4 million is explained by:

+ Change in current assets (excluding cash and cash equivalents)

€2.3 M

- Change in current liabilities (excluding provisions and current fi nancial debt) Impact Currencies/Changes in consolidated Group structure

€(19.0) M

€3.8 M

At September 30, 2020, current financial debt amounted to €133.0 million, and cash and cash equivalents at €99.3 million, resulting in a negative balance of €33.7 million.

3.4.2 Separate fi nancial statements

Parent company fi nancial highlights:

2019

2020

(in € millions)

Revenue

20.1

20.8

Operating results

9.4

10.8

Net fi nancial income/(expense)

19.8

34.2

Net income

21.0

14.2

Financial income includes primarily dividends paid by subsidiaries and interest income from cash and cash equivalents.

EXEL Industries group I 2020 Universal Registration Document

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