COMMUNIQUÉ RÉGLEMENTÉ

par GUILLEMOT (EPA:GUI)

GUILLEMOT CORPORATION: 2023 ANNUAL RESULTS

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Carentoir, March 27, 2024

2023 ANNUAL RESULTS

 

Guillemot Corporation’s financial statements (audited financial statements approved by the Board of Directors at its meeting held March 26, 2024, pending the statutory auditors’ certification report) may be summarized as follows:

(€m)

January 1 – December 31, 2023

Dec. 31, 2023

Dec. 31, 2022

Change

Turnover

119.1

188.0

-37%

Thrustmaster

          104.9

175.5

-40%

Hercules

           14.2

12.5

+14%

Net income from ordinary activities

2.5

34.2

-93%

Net operating income

2.5

34.2

-93%

Net financial income*

-1.4

-6.7

-

Corporate income tax

-0.1

-7.2

-

Consolidated net income

1.0

20.4

-95%

Basic earnings per share

€0.06

€1.33

-95%

                   * Net financial income includes the cost of net financial debt as well as other financial income and expenses.

The Group generated full-year 2023 turnover of €119.1 million, down 37% year-on-year, with sales down 40% at Thrustmaster but up 14% at Hercules. Following the audit of the financial statements and a reassessment of the variable consideration offered to customers, this figure has been revised down from the €120.6 million initially reported on January 26, 2024.

Turnover in the fourth quarter of 2023 was down 24% to €35.6 million amid a downturn in European accessory markets.

The Group’s customers held high levels of inventory in 2023, due to a mismatch between expected strong sales and a market downturn. The Group stepped up its promotional activities over the course of the year to lower its customers’ inventories, which are now well balanced.

The Group generated net income from ordinary activities of €2.5 million and consolidated net income of €1 million after taking into account an unrealized financial loss of €1.5 million on the Group’s portfolio of Ubisoft Entertainment shares.

The accounting gross profit margin came out at 49% for 2023, down 5 percentage points year-on-year in an inflationary and highly-competitive environment. By the fourth quarter of 2023, the Group was able to restore accounting gross profit margin levels higher than those for the fourth quarter of 2022.

The Group increased its investment in research and development to €9.0 million in 2023, equating to 7.5% of consolidated turnover. At the same time, total expenses fell 18%.

The net financial expense of €1.4 million included a €1.5 million revaluation loss on current financial assets (available-for-sale securities) consisting of 443,874 Ubisoft Entertainment shares.

Consolidated net income for the year totaled €1 million. At its meeting held March 26, 2024, the Board of Directors of Guillemot Corporation S.A. did not propose the payment of any dividend.

Balance sheet items

(€m)

Dec. 31, 2023

Dec. 31, 2022

Shareholders’ equity

101.8

104.4

Inventories

45.7

57.2

Net debt*

-16.7

-21.3

Current financial assets (AFS securities)

10.3

11.7

* Available-for-sale (AFS) securities are not taken into account when calculating net debt.

Group shareholders’ equity stood at €101.8 million at December 31, 2023. Net debt at December 31, 2023 was negative at -€16.7 million, with the Group having positive net cash of €25.7 million and debt of €9.1 million. Net cash flows from operating activities were positive at €5.5 million, while working capital requirements increased by €1.9 million over the year.

Strategic assessment and development priorities

In 2024, the Group will focus its efforts on:

•        Continuing to invest in research and development, in order to ensure that its products are significantly differentiated from and offer substantially higher added value than competitors’ products;

•        Expanding its product ranges in its traditional segments and deploying its latest offerings in farming for Thrustmaster and streaming for Hercules;

•        Stepping up and expanding its sales strategy in the Asia-Pacific region and the Middle East, to tap into the growth potential offered by these areas;

•        Synchronizing its commercial campaigns with new game releases scheduled for the second half of the year, so as to maximize sales;

•        Optimizing performance through the use of artificial intelligence-based tools.

2024  outlook

The Group will leverage the growing momentum in sales of recently-launched accessories, and is preparing to launch major new Thrustmaster products in the second half of 2024.

For fiscal year 2024, the Group expects to return to growth and deliver a net operating profit.

Guillemot Corporation is a designer and manufacturer of interactive entertainment hardware and accessories. The Group offers a diversified range of products under the

Hercules and Thrustmaster brand names. Active in this market since 1984, the Guillemot Corporation Group is currently present in 11 countries (France, Germany, Spain, the

UK, the United States, Canada, Italy, Belgium, Romania, the Netherlands and China [Shanghai, Shenzhen and Hong Kong]) and distributes its products in more than 150 countries worldwide. The Group’s mission is to offer high-performance, ergonomic products which maximize the enjoyment of digital interactive entertainment for end users.

Contact: Guillemot Financial Information — Telephone: +33 (0) 2 99 08 08 80 www.guillemot.com

APPENDICES

(All figures in €k)

 

Consolidated income statement at December 31, 2023

                 

Net turnover

 

Purchases 

Change in inventories

          External expenses Employee expenses

Taxes and duties

      Additions to amortization and depreciation

Additions to provisions

Other income from ordinary activities

          Other expenses from ordinary activities Net income from ordinary activities

 

119,132 

-51,534

-9,581

-24,263

-16,269

-542 -6,493

-1,865

246

-6,310

2,521

 

188,047

-105,064

18,553

-31,931

-14,421

-806 -5,444

-2,206

289

-12,774

34,243

             

Other operating income

0

0

Other operating expenses

0

0

Net operating income

2,521

34,243

Income from cash and cash equivalents

629

135

Cost of gross financial debt

-94

100

Cost of net financial debt

535

35

Other financial income

0

706

Other financial expenses

-1,979

-7,397

Corporate income tax

-113

-7,235

Net income before minority interests

964

20,352

O/w net income from discontinued operations

0

0

Attributable to minority interests

0

0

Net income attributable to equity holders of the parent

964

20,352

image                            (€k)                                                                                    Dec. 31, 2023    Dec. 31, 2022

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                            Basic earnings per share                                                                    €0.06                 €1.35

                            Diluted earnings per share                                                                 €0.06                 €1.34

Consolidated balance sheet at December 31, 2023

 

               ASSETS                                                                                                                                             

(€k)

Dec. 31, 2023

Dec. 31, 2022

Goodwill on acquisitions

0

0

Intangible assets

23,739

23,276

Property, plant and equipment

8,592

8,184

Financial assets

593

668

Tax assets

543

495

Deferred tax assets

4,634

4,267

Non-current assets

38,101

36,890

Inventories

45,725

57,203

Trade receivables

36,057

34,743

Other receivables

3,620

4,079

Financial assets

10,258

11,723

Current tax assets

4,215

318

Cash and cash equivalents

25,728

35,245

Current assets

125,603

143,311

Total assets

163,704

180,201

LIABILITIES AND EQUITY

(€k)

Dec. 31, 2023           Dec.

31, 2022

Capital (1)

11,617

11,771

Premiums (1)

8,076

10,551

Reserves and consolidated income (2)

81,881

81,645

Currency translation adjustments

210

438

Group shareholders’ equity

101,784

104,405

Minority interests

0

0

Consolidated shareholders’ equity

101,784

104,405

Employee benefit liabilities

1,709

1,586

Borrowings

4,821

8,345

Other liabilities

0

0

Deferred tax liabilities

15

14

Non-current liabilities

6,545

9,945

Trade payables

25,442

38,887

Short-term borrowings

4,251

5,636

Taxes payable

815

2,437

Other liabilities

24,832

18,734

Provisions

35

157

Current liabilities

55,375

65,851

Total liabilities and equity

163,704

180,201

(1)  Of the consolidating parent company

(2)  Of which net income for the period: €964k

Consolidated statement of cash flows at December 31, 2023

              (€k)                                                                                                        Dec. 31, 2023      Dec. 31, 2022

Cash flows from operating activities

Net income from consolidated companies

964

20,352

+ Additions to amortization, depreciation and provisions (except on current assets)

6,788

5,803

- Reversals of amortization, depreciation and provisions

-1,947

-117

-/+ Unrealized gains and losses arising from changes in fair value

1,465

7,395

+/- Expenses and income arising from stock options

511

550

-/+ Capital gains and losses on disposals

73

1

Change in deferred taxes

-366

1,057

Operating cash flow after cost of net financial debt

7,488

35,041

Cost of net financial debt

-535

-35

Operating cash flow before cost of net financial debt

6,953

35,006

Currency translation adjustment on gross cash flow from operations

0

-295

Inventories

11,478

-16,278

Trade receivables

-1,313

25,129

Trade payables

-13,444

818

Other

1,338

-11,612

Change in working capital requirements

-1,942

-1,943

Net cash flows from operating activities

5,546

32,803

Cash flows from investing activities

Acquisitions of intangible assets

-4,690

-4,974

Acquisitions of property, plant and equipment

-1,905

-2,961

Disposals of property, plant and equipment and intangible assets

7

19

Acquisitions of non-current financial assets

-128

-205

Disposals of non-current financial assets

202

13

Net cash from acquisitions and disposals of subsidiaries

0

0

Net cash flows from investing activities

-6,514

-8,108

Cash flows from financing activities

Increases in capital and cash injections

0

0

Buybacks of treasury shares

0

-2,629

Dividends paid

-3,761

-3,813

Borrowings

0

10,098

Repayment of shareholders’ current accounts

0

0

Repayment of borrowings

-4,795

-4,578

Impact of IFRS 16 adoption 

431

-631

Other cash flows from financing activities

-138

57

Total cash flows from financing activities

-8,263

-1,496

Impact of foreign currency translation adjustments

-266

20

Change in cash

-9,497

23,219

Net cash at the beginning of the period

35,225

12,006

Net cash at the end of the period

25,728

35,225

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