Improvement in H1 2017 results in line with the strategic roadmap
Project to build a new factory dedicated to AM-X production
Change in the Supervisory Board
Improvement in operating performance
HERIGE Group reported like-for-like turnover of €282.1 million for the first half of 2017, up 3.0% at comparable scope1 on 30 June 2016 which reflects a recovering market over the second quarter.
Mirroring the dynamic increase in turnover, consolidated gross margin at comparable scope1 stood at €107.2 million, up €3.8 million on the first half of 2016. Gross margin improved 0.3 points to reach 38.0% of turnover.
At comparable scope1, current operating income increased €1.9 million to €3.2 million at 30 June 2017, resulting in a current operating margin of 1.1% compared with 0.5% one year earlier.
Group net income for the first six months of 2017 was positive at €2.0 million after a loss of €0.7 million in 2016.
Financial situation
HERIGE Group continued its internal investment programme at each of its three business divisions in the first half of 2017 (€5.8 million for the period). At 30 June 2017, equity stood at €112.5 million for a net gearing of 78% compared with 75% at 30 June 2016.
Outlook and developments
After two consecutive quarters of growth, achieving lasting profitable growth to finance its future development remains a strategic priority for HERIGE Group.
To this end, and thanks to growing market demand for its innovative windows, HERIGE has announced the construction of a new factory dedicated to AM-X production.
Located in St Sauveur-des-Landes near Fougères in Brittany, the cutting-edge future production site is expected to be commissioned mid-2019.
Total investment is estimated at around €20 million, making the factory the Group's largest internal development project to date.
Change in the Supervisory board
HERIGE's Joint Shareholders' Meeting appointed several new members to the Supervisory Board which also now includes one observer.
Catherine Filoche, General Secretary for Maisons du Monde, was appointed as a new member of the Supervisory Board to replace Philippe Audureau who did not wish to renew his term of office. This appointment is part of the Group's strong desire to bring together different and complementary experience from the business world to create a cross-disciplinary Board.
The Shareholders' Meeting also approved the creation of a new observer role, to which Philippe Audureau was appointed for a term of one year.
At the end of the first Supervisory Board meeting held after the Shareholders' Meeting, Daniel Robin was also appointed to the Board to replace Christophe Robin. The Supervisory Board will benefit immediately from his experience and expertise as an executive within the Group.
1 Excluding VM Piscines and activities in the process of being sold.
NEXT PUBLICATION: Q3 turnover on 7 November 2017 (after the stock exchange closes)
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