REGULATED PRESS RELEASE

from GUILLEMOT (EPA:GUI)

GUILLEMOT CORPORATION: 2024 CONSOLIDATED INTERIM RESULTS

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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

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