Serge Ferrari, the market leader in flexible fabrics for tension architecture, has published its results for the first half of 2022 and posted an 18% increase in sales. This increase in results in the context of high cost inflation allows the company to confirm its sales target for 2022 at €335 million.
“The Group achieved a strong performance in the first half of the year in an economic environment characterized by volatility in commodity and energy prices, as well as the health of Asia which punished the business. The teams have remained responsive while relying on the privileged relationships with our customers and partners. The Group can renew its revised revenue target for the financial year 2022 at 335 million euros and will continue to improve the organization of its activities in a difficult environment”, emphasizes Sébastien Baril, President of the Group’s Management Board.
Strong activity in its strategic markets
In the 1st half of 2022, the Group generated revenues of €170 million, up +18% in current scope and exchange rates and +15.9% in constant scope and exchange rates, despite higher comparisons (amount of sales achieved in the first half of 2021). This growth was driven by continued strong demand in the Group’s core markets, particularly:
– A still strong residential sector which benefited in particular from Sun Protection and the strength of home appliances which boosted sales in the Furniture and Marine category,
– Restoration of events and the hospitality market in Classic Designs.
Although supply problems and pressure on production equipment penalized the Group’s output in the second quarter of 2022, the Group was able to take advantage of these growth factors due to the strength of its position in its strategic markets.
Positive supply response to inflation
In this context of high inflation on its inputs, the Group posted an 11% increase in REBIT compared to the first half of 2021 to €16.1 million. Serge Ferrari mitigated the impact of the increase in raw materials by partially passing on the increase in its costs to its selling prices and continuing to aggressively manage its costs.
Operating income therefore reached €15.9m compared to €14m in H1 2021. Net Income Group Share, which also benefited from reduced debt costs and favorable exchange rate effects, improved to €10.3m compared to € 8.7m a year. H1 2021, an increase of 17%.
Stable financial situation and outlook for 2022
In the first half of 2022, the Group generated a cash flow of €27.8 million compared to €24.4 million in the first half of the previous financial year.
The company confirms that it aims to achieve a total revenue of 335 million Euros in 2022. The group remains cautious regarding the availability and price trends of energy sources in the coming months. The company remains confident in its ability to continue its growth in a volatile and restrictive environment, due to the distribution of its activities in more than 80 countries worldwide and the strength of its 4 strategic markets.