Press Release
First half 2024 ResultsFast and
successful integration of Home NetworksH1 RESULTS in line with
group’s anticipationsGUIDANCE 2024 CONFIRMED
REVENUE: €1,004 million (vs €1,038 million in H1
2023)ADJUSTED EBITDA: €23 million (vs €49 million in H1 2023)Free
Cash Flow 1: -€19 million (vs -€104 million in H1 2023) and this
FCF positive at €14 million before restructuring cash out
Lars Ilhen becomes interim CEO following the
announcement of Luis Martinez Amago retirement
Paris (France) – July 24, 2024 - Vantiva (Euronext
Paris: VANTI) is announcing its results for the first half
of 2024. These results have been approved by the Board of Directors
today. Limited review procedures on the consolidated condensed
financial statements have been carried out, and the statutory
auditors’ report will be issued once the verification of the
management report for the first half of 2024 have been
finalized.
Vantiva's results for the first half of 2024 show a
decrease compared to the previous year but are in line with the
group's anticipations. This stems mainly from weaker activity for
CH due to lower demand from the operators, orders timing issues and
duplicate operating costs structures related to Home Networks
integration before extracting full synergies.
Supply Chain Solutions (SCS) continues to
see a decline in the optical disc volumes mitigated by the growth
in new activities. Globally Q2 marks an
improvement over Q1, and this positive trend should be confirmed in
H2. In addition, the speed and the success of the integration of
Home Networks activities in Connected Home are driving synergies at
the top end of our expectations. Vantiva confirms its guidance for
the year.
- Revenues decreased by 3.4% to €1,004 million
(-2.9% at constant exchange rate) after the consolidation of Home
Networks.
- Adjusted EBITDA at €23 million vs €49 million
in H1 2023, representing 2.3% of revenues (vs 4.7% in H1 2023)
largely explained by lower volumes and duplicated cost structure
from the integration of Home Networks before the synergies are
taken out in full.
- Adjusted EBITA at -€23 million (vs €9 million
in H1 2023) after a €6 million increase in D&A.
- Net result from continuing
operations was negative at -€166 million vs -227 million
in H1 2023.
- Group net result was negative at -€167 million
vs -€229 million in H1 2023 after negative non-recurring items of
-€61 million.
- Capex stood at €26 million (vs €44 million)
after taking into account the disposal of a real estate asset in
Poland.
- Free Cash Flow,
before financial and tax, was positive at €30 million vs -€74
million in H1 2023 largely due to the change in working capital and
the payment terms alignment between Connected Home
and Home Networks.
- Free Cash Flow,
after financial and tax, was at -€19 million vs - €104 million in
H1 2023. Before restructuring, FCF was positive at €14
million.
- At the end of the semester,
Vantiva’s cash position stood at €39 million, same
level as on June 30th, 2023.
- Total net debt
(w/o capital lease) amounted to €410 million in nominal terms vs
€378 million on June 30th, 2023.
Luis Martinez-Amago, Chief Executive Officer of Vantiva,
said:
“Despite a challenging Q1, we’ve seen improvements in Q2. This
environment explains largely our financial performance, which is in
line with our expectations for the H1. What is more important is
that our swift integration of Home Networks, thanks to our team’s
competence and excellence in execution, is making us progress at a
pace twice as fast as any comparable integration. We are now ready
for fully leveraging the demand recovery for connecting devices
that should materialize by the end of the year.”
I- H1 2024 Key
Highlights & 2024 Outlook
| |
|
|
|
|
|
In € million, continuing operations |
H1 2024 |
H1 2023 |
Change at current rate |
Change at constant rate |
|
Revenues |
1,004 |
1,038 |
(3.4)% |
(2.9)% |
| Adjusted
EBITDA |
23 |
49 |
(52.3)% |
(51.1)% |
|
As a % of revenues |
2.3% |
4.7% |
(240)bps |
(235)bps |
| Adjusted
EBITA |
(23) |
9 |
nm |
nm |
|
Free Cash Flow before Financial & Tax |
30 |
(74) |
104 |
|
2024 with Home Networks
H1 2024 Key Highlights
The demand for Connected Home has been hampered
by strict capex policy from telco and cable operators still holding
too high inventories. This has been particularly true in the North
America and LATAM regions. But the consolidation of Home Networks
activities has mitigated the negative impact of this change.
Diversification businesses (retail and services) have started to
contribute to the P&L. One positive note is the start of
recovery in Q2, which showed 21% growth over last year. On
SCS side, the decrease in optical discs demand has
been in line with our anticipations and less severe than a year
ago. The “Growth activities” have continued to develop well and
offset part of the structural decline in optical disc. But the key
achievement of the first half has been the success and the speed of
the integration of the business acquired from CommScope. In less
than 6 months, we have almost completed the operational merger of
Home Networks and Vantiva’s Connected Home
operations and have exited from most of the Transitional Service
Agreements put in place in January.
Vantiva revenues totaled €1,004 million, down -3.4% (-2.9% at
constant exchange rate).Connected Home revenues
amounted to €797 million for the half, a 1.2% decrease (-0.7% at
constant exchange rate). SCS revenues were €206
million, down 10.9% (-10.6% at constant exchange rate).
Adjusted EBITDA has been negatively impacted by this volume
decline and dual cost structure, but benefited from the first
positive impacts of the combined business with Home Networks. It
was down to €23 million in the semester vs €49 million in H1 2023.
Connected Home, including Home Networks and
Diversifications, contributed €33 million (versus €56 million in
the previous year) to adjusted EBITDA while SCS
contributed €2 million (versus €7 million in H1 last year).
FCF, before financial and tax for the half was positive by €30
million, showing a €104 million improvement over last year, despite
a lower EBITDA, thanks to a favorable change in working
capital.Capex is €18 million below last year reflecting our strict
policy, the first fruits of the combined business with Home
Networks and the disposal of a real estate asset in Poland.The
working capital development which was more strictly managed by
Vantiva than Home Networks, has benefited from Vantiva’s
management.
Outlook 2024
We expect the recovery, which started in the second quarter, to
accelerate in the second part of the year.Therefore, the second
half should benefit from better volumes of demand and positive
impact from the synergies.In this context, Vantiva confirms its
guidance for the year.
- EBITDA > €140m
- FCF 2 > €0m
II- Segment Review – H1
2024 Results HighlightsConnected Home
Revenues breakdown by product
|
In € million |
H1 2024 |
H1 2023 |
Change at current rate |
Change at constant rate |
|
Revenues |
797 |
807 |
(1.2)% |
(0.7)% |
| o/w by
product |
|
|
|
|
|
Broadband |
476 |
647 |
(26.5)% |
(26.2)% |
|
Video |
287 |
160 |
79.6% |
81.0% |
|
Diversification |
34 |
|
nm |
nm |
| EBITDA
adj |
33 |
56 |
(41.2)% |
(40.2)% |
|
As a % of revenues |
4.2% |
7.0% |
|
|
Connected Home revenues contributed 79% of
Group revenues (78% in H1 23) and totaled €797 million in the
semester, down 1.2%. At constant exchange rate, the decrease would
have been -0.7% compared with H1 2023. The integration of Home
Networks and Diversification activities have almost compensated for
the negative impact of the lower demand in a context of inventory
adjustments by our customers. North America has been the most
penalized market, as well as LATAM. Eurasia and APAC regions have
resisted better, notably thanks to Video products.
Adjusted EBITDA of the division amounted to €33
million (vs €56 million in H1 23), or 4.2% of revenues (vs 7.0% in
H1 23). The drop in revenues and the dual operational cost
structure due to the acquisition (HN) are the main reasons for the
margin decline.
Supply Chain Solutions
|
In € million |
H1 2024 |
H1 2023 |
Change atcurrent rate |
Change atconstant rate |
|
Revenues |
206 |
231 |
(10.9)% |
(10.6)% |
| o/w by
activity |
|
|
|
|
| Disc |
153 |
193 |
(21.1)% |
(20.9)% |
| Growth
activities |
53 |
38 |
42.0% |
42.3% |
|
EBITDA |
2 |
7 |
(77.9)% |
(77.3)% |
|
As a % of revenues |
0.7% |
3.0% |
|
|
SCS revenues totaled €206 million in the
period, down 10.9% from H1 2023. At constant exchange rate the
decline would have been 10.6%. The volume decline of the optical
disc activity has normalized and has been partly offset by
continuing price actions. Logistics activities have continued to
develop well, but the Freight business is still suffering from
overcapacity. Vinyl records production has grown strongly as
expected. Thus, it is in line with our plan in the US, meanwhile we
have higher expectations in Europe where competition is more
fragmented.
Adjusted EBITDA of the division amounted to €2
million (vs €7m in H1 23), or 0.7% of revenues (3.0% in H1 23). The
margin decline came from the lower volumes of optical discs.
Corporate & Other
|
In € million |
H1 2024 |
H1 2023 |
Change atcurrent rate |
Change atconstant rate |
|
Revenues |
0 |
0 |
|
|
|
EBITDA |
(11) |
(14) |
nm |
nm |
|
As a % of revenues |
ns |
ns |
|
|
“Corporate & Other” have no revenue anymore and the
corporate costs explain the EBITDA negative contribution of -€11
million vs -€14 million in H1 2023. This is nonetheless delivering
a €3 million saving year-on-year.
III- Results
analysisP&L analysis
|
In € million |
H1 2024 |
H1 2023 |
Change at current rate |
Change at constant rate |
|
Revenues from continuing operations |
1,004 |
1,038 |
(3.4)% |
(2.9)% |
| Adjusted
EBITDA from continuing operations |
23 |
49 |
(52.3)% |
(51.1)% |
| As a % of
revenues |
2.3% |
4.7% |
(240)bps |
(235)bps |
|
D&A & Reserves1, w/o PPA amortization |
(46) |
(40) |
15.5% |
16.1% |
| Adjusted
EBITA from continuing operations |
(23) |
9 |
nm |
nm |
| As a % of
revenues |
(2.3%) |
0.9% |
(315)bps |
(310)bps |
|
PPA amortization |
(15) |
(13) |
(10.2)% |
(10.6)% |
|
Non-recurring items |
(61) |
(146) |
nm |
nm |
|
EBIT from continuing operations |
(98) |
(150) |
nm |
nm |
| As a % of
revenues |
(9.8)% |
(14.5)% |
na |
na |
| Net financial
income (loss) |
(58) |
(55) |
(6.9)% |
(7.6)% |
| Income tax |
(9) |
3 |
nm |
nm |
|
Gain (loss) from associates |
(1) |
(25) |
nm |
nm |
| Profit
(loss) from continuing operations |
(166) |
(227) |
nm |
nm |
|
Net gain (loss) from discontinued operations |
(1) |
(2) |
nm |
nm |
|
Net income (loss) |
(167) |
(229) |
nm |
nm |
1Risk, litigation and warranty reserves
H1 Revenues stood at €1,004 million,
representing a 3.4% decrease (-2.9% at constant exchange rate). The
decrease for Connected Home (-1.2%) resulted from
the consolidation of Home Networks business and the lower demand
from our main customers due to market conditions.
SCS revenues were down 10.9% reflecting the
structural decline of the optical disc demand, partly offset by the
growth of the other activities.
H1 Adjusted EBITDA amounted to €23 million,
down €26 million year-on-year. This stems from the decline in
volume but also largely from the dual cost structure coming with
the integration of Home Networks.
H1 Adjusted EBITA of -€23 million represented a
€32 million year-on-year decrease, explained by lower EBITDA and
higher depreciation and amortization.
PPA amortization was slightly up at -€15
million versus -€13 in H1 2023.
Non-recurring items amounted to -€61 million
versus -€146 million a year ago which was largely impacted by the
impairment of SCS goodwill.
EBIT from continuing operations was a -€98
million loss compared to -€150 million.
The financial result totaled -€58 million in
the first half, compared to -€55 million in H1 2023.
Income tax is a negative of €9 million, versus
a positive of €3 million.
Result from associates is negative of -€1
million versus -€25 million last year (depreciation of our stake in
TCS from the first of January to the deconsolidation date).
Net loss from continued operations amounted to
-€166 million compared to -€227 million in H1 2023.
Result of discontinued operations showed a
small loss of €1 million.
Group net result therefore is a loss of -€167
million in the half, compared to a loss of -€229 million in H1
2023.
FCF and debt analysis
|
In € million |
H1 2024 |
H1 2023 |
Change at current rate |
Change at constant rate |
| Adjusted
EBITDA from continuing operations |
23 |
49 |
(52.3)% |
(51.1)% |
| Capex |
(26) |
(44) |
(40.7)% |
(40.4)% |
| Non-recurring
items (cash impact) |
(58) |
(26) |
nm |
nm |
|
Change in working capital and other assets and liabilities |
91 |
(54) |
nm |
nm |
|
Free Cash Flow from continuing operations before
Tax & Financial |
30 |
(74) |
104 |
105 |
|
|
|
|
|
|
|
|
30/06/2024 |
31/12/2023 |
|
Nominal Gross Debt (including IFRS 16 Lease debt)* |
516 |
544 |
|
Cash and Cash Equivalent |
(39) |
(133) |
| Net
financial debt at nominal value (non IFRS) |
477 |
411 |
|
IFRS adjustments** |
4 |
(4) |
|
Net financial debt (IFRS) |
481 |
407 |
*
Nominal Gross Debt
considers PIK interest at nominal value and excludes exit fees
accruals** IFRS
adjustments consider PIK at IFRS value and exit fees and deduct
original discount fees (OID)
Capex decreased by 40.7% thanks to strict
control of spending, first fruits of the merger and the disposal of
a real estate asset in Poland.
Free Cash Flow3 went from -€74
million to €30 million. This significant improvement despite the
lower EBITDA (-€26 million) came from lower capex (€18 million) and
positive change in working capital (€144 million) explained by
better payment terms with some suppliers, following the
acquisition.
The cash position at the end of June 2024 was
€39 million not including the Wells Fargo Credit Line of €66
million.
Appendix
Debt details
In € million
|
Line |
Characteristics |
Nominal |
IFRS amount |
Nominal Rate |
IFRS Rate |
|
Barclays |
Cash: Euribor 3M + 2.50% & PIK |
258 |
258 |
10.2% |
13.5% |
|
Angelo Gordon |
Cash: Euribor 3M + 4.00% & PIK |
131 |
131 |
13.2% |
17.8% |
|
Barclays AG short term loans |
PIK: E+ 10% |
11 |
11 |
13.7% |
21.3% |
|
Wells Fargo |
WF Prime +2.0% |
31 |
31 |
10.3% |
10.3% |
|
Operating Lease |
|
67 |
67 |
15.8% |
15.8% |
|
Capital Lease |
|
2 |
2 |
11.2% |
11.2% |
|
Other |
|
16 |
20 |
NA |
NA |
|
Total Debt |
|
516 |
520 |
11.4% |
14.3% |
|
Cash & Cash Equivalents |
|
39 |
39 |
|
|
|
Net Debt |
|
477 |
481 |
|
|
IFRS 16 impact
|
|
|
|
|
|
Actual H1 24 (incl IFRS 16) |
|
|
|
Actual H1 24(excl. IFRS16) |
|
|
|
IFRS16 impact |
|
|
|
|
In € million |
|
|
Actual |
|
|
|
Actual |
|
|
|
Actual |
|
|
|
|
|
|
Current rate |
|
|
|
Current rate |
|
|
|
Current rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES |
|
|
1,004 |
|
|
|
1,004 |
|
|
|
+0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA ADJ |
|
|
23 |
|
|
|
7 |
|
|
|
+16 |
|
|
|
|
In % of sales |
|
|
2.3% |
|
|
|
0.7% |
|
|
|
1.6% |
|
|
|
|
EBITA |
|
|
(23) |
|
|
|
(27) |
|
|
|
+4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow |
|
|
(36) |
|
|
|
(52) |
|
|
|
+16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF before Financial & Tax |
|
|
30 |
|
|
|
11 |
|
|
|
+19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FCF after Financial & Tax |
|
|
(19) |
|
|
|
(33) |
|
|
|
+14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of adjusted
operating indicators
In addition to published results, and with the aim of providing
a more comparable view of the evolution of its operating
performance in H1 2024 compared to last year, Vantiva is presenting
a set of adjusted indicators which exclude the following items as
per the statement of operations of the group’s consolidated
financial statements:
- net restructuring costs;
- net impairment charges;
- other income and expenses (other
non-current items).
|
In € million |
H1 2024 |
H1 2023 |
Change1 |
|
EBIT from continuing operations |
(98) |
(150) |
52 |
| Restructuring
charges, net |
(69) |
(8) |
(61) |
| Net impairment
gain (losses) on non-current operating assets |
(4) |
(135) |
131 |
| Other income
(expense) |
12 |
(4) |
16 |
| PPA
amortization |
(15) |
(13) |
(1) |
|
Adjusted EBITA from continuing operations |
(23) |
9 |
(32) |
| Depreciation and
amortization (“D&A”) |
(46) |
(40) |
(6) |
|
Adjusted EBITDA from continuing operations |
23 |
49 |
(26) |
|
1 Variation at current rates |
|
|
|
The caption “Adjusted EBITDA” corresponds to the profit
(loss) from continuing operations before tax and net financial
income (expense), net of other income (expense), depreciation and
amortization (including impact of provision for risks, litigation
and warranties).
The caption “Adjusted EBITA” corresponds to the profit
(loss) from continuing operations before tax and net financial
income (expense), net of other income (expense) and amortization of
purchase accounting items.
Vantiva Announces Resignation of CEO Mr.
Luis Martinez Amago
After 9 years of dedicated service and exemplary
leadership, Mr. Martinez Amago has decided to retire and therefore
step down from his position as Chief Executive Officer and director
of Vantiva, effective August 15, 2024.
The Board of Directors warmly thanks Mr.
Martinez Amago for his leadership and significant contributions to
Vantiva.
The Board is pleased to announce that Mr. Lars
Ihlen, currently Chief Financial Officer of Vantiva, has agreed to
step in as interim CEO while remaining Chief Financial Officer of
Vantiva, until the Board’s Governance & Social Responsibility
Committee and Remuneration & Talent Committee finalize the
appointment of Vantiva’s next Chief Executive Officer.
Mr. Ihlen brings extensive experience and a deep
understanding of Vantiva’s operations, having served as Chief
Financial Officer of Connected Home for the past 11 years, after
having served in various financial management positions at Alcatel
Lucent in Norway, France and China for 10 years.
A smooth transition plan is in place and Mr.
Martinez Amago will continue to work closely with Mr. Ihlen
over the coming weeks to ensure continuity and stability of
Vantiva’s business operations and the realization of the synergy
plan.
Mr. Brian Shearer, Chairman of the Board: “We
thank Luis Martinez Amago for his leadership and significant
contributions to Vantiva and wish him all the best in his future
endeavors. We are confident in Lars Ihlen’s ability to lead the
group during this transition period.”
Mr. Luis Martinez Amago, Chief Executive
Officer: “It has been a tremendous honor to lead Vantiva over the
past years. I am incredibly proud of what we have achieved together
and grateful for the dedication and hard work of Vantiva’s talented
team. I am confident that Vantiva will continue to thrive and
succeed in the years to come.”
###
Warning: Forward Looking Statements
This press release contains certain statements that constitute
"forward-looking statements", including but not limited to
statements that are predictions of or indicate future events,
trends, plans or objectives, based on certain assumptions or which
do not directly relate to historical or current facts. Such
forward-looking statements are based on management's current
expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially
from the future results expressed, forecasted, or implied by such
forward-looking statements. For a more complete list and
description of such risks and uncertainties, refer to Vantiva’s
filings with the French Autorité des marchés financiers (AMF). The
Universal Registration Document (Document d’enregistrement
universel) for fiscal year 2023 was filed with the Autorité des
marchés financiers on April 30, 2024, under no. D.24-0375.
###
About Vantiva
Pushing the Edge
Vantiva shares are admitted to trading on the regulated market
of Euronext Paris (VANTI).
Vantiva, formerly known as Technicolor, is headquartered in
Paris, France. It is an independent company which is a global
technology leader in designing, developing and supplying innovative
products and solutions that connect consumers around the world to
the content and services they love – whether at home, at work or in
other smart spaces. Vantiva has also earned a solid reputation for
optimizing supply chain performance by leveraging its decades-long
expertise in high-precision manufacturing, logistics, fulfillment
and distribution. With operations throughout the Americas, Asia
Pacific and EMEA, Vantiva is recognized as a strategic partner by
leading firms across various vertical industries, including network
service providers, software companies and video game creators for
over 25 years. The group’s relationships with the film and
entertainment industry goes back over 100 years by providing
end-to-end solutions for its clients.
Following the acquisition of CommScope’s Home Networks in
January 2024, Vantiva continues its 130-year legacy as a global
leader in the connected home market.
Vantiva is committed to the highest standards of corporate
social responsibility and sustainability across all aspects of
their operations.
For more information, please visit vantiva.com and follow
Vantiva on LinkedIn and X (Twitter).
Contacts
Vantiva Investor
Relations Image
7 for Vantiva –
Corporateinvestor.relations@vantiva.com vantiva.press@image7.fr
1 After financial charges, tax and excluding Home networks
integration costs.2 After interest and tax and excluding
restructuring and integration costs for HN.3 Before
interest and tax and excluding Home Networks integration costs.
- 2024-07-24 PR H1 2024 V12-CLEAN
Vantiva (EU:VANTI)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Vantiva (EU:VANTI)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
