par GUILLEMOT (EPA:GUI)
GUILLEMOT CORPORATION: 2024 CONSOLIDATED INTERIM RESULTS
Carentoir, September 26, 2024
2024 CONSOLIDATED INTERIM RESULTS
Key items from the Guillemot Corporation Group’s financial statements to June 30, 2024 are as follows:
First half 2024 (€m) January 1 – June 30, 2024 | June 30, 2024 | June 30, 2023 |
Turnover | 56.0 | 48.1 |
Net income from ordinary activities | 3.6 | -3.9 |
Net operating income | 3.6 | -3.9 |
Net financial income* | -0.3 | -0.1 |
Corporate income tax | -0.8 | 1.1 |
Consolidated net income | 2.5 | -2.9 |
Earnings per share | €0.17 | -€0.19 |
* Net financial income includes the cost of net financial debt as well as other financial expenses and income.
Business activity and results
In the first half of 2024, the Group’s turnover grew 16% to €56 million in a relatively calm market.
Net operating income in the six months ended June 30, 2024 came in at €3.6 million, compared with a €3.9 million net operating loss for the same period in 2023. This performance was helped by an improvement in the accounting gross profit margin, which came out at 56%, close to its 2022 level, compared with 45% in the first half of 2023. Total costs (total operating expenses excluding purchases and changes in inventories) increased by 8%, with turnover up 16%.
The net financial expense of €0.3 million included a €1.2 million unrealized loss linked to the decline in the valuation of the portfolio of Ubisoft Entertainment S.A. shares. Consolidated net income came in at €2.5 million.
Key balance sheet items
(€m) | June 30, 2024 | December 31, 2023 |
Shareholders’ equity | 102.7 | 101.8 |
Inventories | 44.3 | 45.7 |
Net debt (excluding investment securities)* | -19.6 | -16.7 |
Current financial assets (investment securities portion) | 9.1 | 10.3 |
* Investment securities are not taken into account when calculating net debt.
Shareholders’ equity stood at €102.7 million at June 30, 2024. The Group’s net debt was negative at -€19.6 million excluding investment securities, the fair value of which was €9.1 million at June 30, 2024. At September 24, 2024, the value of the portfolio stood at €5.3 million following the recent fall in the price of Ubisoft Entertainment shares.
The value of net inventories stood at €44.3 million at June 30, 2024, down 3% from December 31, 2023, in anticipation of requirements in the run-up to the end of the year. Working capital decreased by €2.6 million over the first half of the year.
Net capitalized research and development costs increased by €0.6 million over the six months to June 30, 2024, to end the period at €11.1 million in net value.
Thrustmaster news
On September 19, 2024, Thrustmaster entered into a strategic sales agreement with JD.com, China’s leading ecommerce operator and one of the brand’s main Chinese distribution channels. This three-year strategic deal, signed at JD’s headquarters in Beijing, will considerably boost Thrustmaster’s influence and leadership in China and ensure that the brand’s high-quality next-generation racing wheels, gamepads and joysticks will be more widely available to Chinese consumers.
➢ Racing: Thrustmaster is working towards launching new racing products that will expand the brand’s presence in brick-and-mortar stores in the United States and Europe. On August 22, 2024, Thrustmaster unveiled its new upgradeable pedal set, Raceline Pedals LTE (Long Term Evolution). Equipped with two metal pedals with a sandblasted finish, this fully adjustable pedal set is powered by H.E.A.R.T. magnetic technology for exceptional precision and maximum durability over time. The EVO RACING 32R LEATHER racing wheel continues to be stocked by more and more retailers internationally.
Thrustmaster will also be launching its brand-new Direct Drive racing wheel, which will be a gateway to “discovering the next generation of sim racing technology”. The racing wheel received a very enthusiastic response from journalists and customers who were given the opportunity to blind test it at Gamescom in August, and experience its subtle yet accurate rendering of game effects.
➢ Flight sim: Microsoft Flight Simulator 2024, due to be released on November 19, should drive increased sales for Thrustmaster, enabling the brand to consolidate its position as the number one maker of flight sim accessories thanks to the partnership that will be put in place around this new product. Meanwhile, the launch of AVA F/A-18 Super Hornet Flightstick in the third quarter will further strengthen the range’s ecosystem.
Hercules news
The DJing range continues to be stocked by more and more retailers and has garnered positive feedback in the trade press and on social media. A video posted by two young French YouTubers, Mathis and Gauthier, on September 17 described the Hercules Stream 100 mass-market audio controller and Hercules Stream 200 XLR, more geared towards professional streamers and gamers, as “revolutionary” and “very well made”. Hercules is also working on new bundles that will add turnkey solutions for all streamers, whether beginners or advanced users, to the Hercules Stream range.
Outlook
The Group is set to launch a number of major new products in the fourth quarter of 2024, and will be leveraging both the new 2024 version of the game Microsoft Flight Simulator and its partnerships to increase its market share.
The Group maintains its forecast of sales growth and a net operating profit for fiscal 2024.
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 statement of net income to June 30, 2024
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
Other operating income Other operating expenses Net operating income
Income from cash and cash equivalents Cost of gross financial debt Cost of net financial debt Other financial income Other financial expenses Corporate income tax Net income before minority interests O/w net income from discontinued operations
Attributable to minority interests Net income attributable to equity holders of the parent Basic earnings per share Diluted earnings per share | 56,007 -23,995 -551 -10,966 -9,113 -335 -3,498 -993 79 -3,003 3,632
0 0 3,632 447 -62 385 441 -1,185 -834 2,439 0 0 2,439 0.17 0.16 | 48,111 -19,996 -6,256 -10,960 -8,360 -299 -2,978 -901 146 -2,359 -3,852
0 0 -3,852 319 -53 266 0 -380 1,050 -2,916 0 0 -2,916 -0.19 -0.19 |
(€k) Jun 30, 2024
Jun 30, 2023
Consolidated balance sheet at June 30, 2024
(€k) Jun 30, 2024 Dec 31, 2023
Goodwill on acquisitions Intangible assets | 0 23,787 | 0 23,739 |
Property, plant and equipment | 11,084 | 8,592 |
Financial assets | 509 | 593 |
Tax assets | 335 | 543 |
Deferred tax assets | 4,494 | 4,634 |
Non-current assets | 40,209 | 38,101 |
Inventories | 44,333 | 45,725 |
Trade receivables | 26,731 | 36,057 |
Other receivables | 3,426 | 3,620 |
Financial assets | 9,073 | 10,258 |
Current tax assets | 1,037 | 4,215 |
Cash and cash equivalents | 28,430 | 25,728 |
Current assets | 113,030 | 125,603 |
Total assets | 153,239 | 163,704 |
LIABILITIES AND EQUITY (€k) | Jun 30, 2024 | Dec 31, 2023 |
Capital (1) | 11,617 | 11,617 |
Premiums (1) | 8,076 | 8,076 |
Reserves and consolidated income (2) | 82,812 | 81,881 |
Currency translation adjustments | 229 | 210 |
Group shareholders’ equity | 102,734 | 101,784 |
Minority interests | 0 | 0 |
Consolidated shareholders’ equity | 102,734 | 101,784 |
Employee benefit liabilities | 1,909 | 1,709 |
Borrowings | 4,622 | 4,821 |
Other liabilities | 0 | 0 |
Deferred tax liabilities | 15 | 15 |
Non-current liabilities | 6,546 | 6,545 |
Trade payables | 21,890 | 25,442 |
Short-term borrowings | 4,206 | 4,251 |
Taxes payable | 889 | 815 |
Other liabilities | 16,935 | 24,832 |
Provisions | 39 | 35 |
Current liabilities | 43,959 | 55,375 |
Total liabilities and equity 153,239 163,704
(1) Of the consolidating parent.
(2) Of which net income for the period of €2,439k.
Consolidated statement of cash flows to June 30, 2024
(€k) Jun 30, 2024 Jun 30, 2023
Cash flows from operating activities Net income from consolidated companies | 2,439 | -2,916 |
+ Additions to amortization, depreciation and provisions (except on current assets) | 3,740 | 3,195 |
- Reversals of amortization, depreciation and provisions | -177 | -1,399 |
-/+ Unrealized gains and losses arising from changes in fair value | 1,185 | 235 |
+/- Expenses and income arising from stock options | 110 | 265 |
-/+ Capital gains and losses on disposals | 0 | 66 |
Change in deferred taxes | 141 | -1,135 |
Operating cash flow after cost of net financial debt | 7,438 | -1,689 |
Cost of net financial debt | -385 | -266 |
Operating cash flow before cost of net financial debt | 7,053 | -1,955 |
Inventories | 1,392 | 7,020 |
Trade receivables | 9,326 | 9,216 |
Trade payables | -3,552 | -9,953 |
Other | -4,527 | -7,341 |
Change in working capital | 2,639 | -1,058 |
Net cash flows from operating activities | 10,077 | -2,747 |
Cash flows from investing activities Acquisitions of intangible assets | -2,084 |
-2,738 |
Acquisitions of property, plant and equipment | -1,817 | -817 |
Disposals of property, plant and equipment and intangible assets | 1 | 0 |
Acquisitions of non-current financial assets | -24 | -122 |
Disposals of non-current financial assets | 108 | 173 |
Net cash from acquisitions and disposals of subsidiaries | 0 | 0 |
Net cash flows from investing activities | -3,816 | -3,504 |
Cash flows from financing activities Increases in capital and cash injections | 0 | 0 |
Buybacks of treasury shares | -1,567 | 0 |
Dividends paid | 0 | -3,761 |
Borrowings | 0 | 0 |
Repayment of borrowings | -1,667 | -3,148 |
Impact of IFRS 16 adoption | -334 | 436 |
Other cash flows from financing activities | -12 | -108 |
Total cash flows from financing activities | -3,580 | -6,581 |
Impact of foreign currency translation adjustments | 21 | 51 |
Change in cash 2,702 -12,781
Net cash at the beginning of the period 25,728 35,225
Net cash at the end of the period 28,430 22,444