Cabasse Announces 2023 Half-Year Financial Results and Perspectives

2023-09-25 16:05:02
Turnover down to €4.0 million in line with expectations Gross margin of 40%, similar to the entire 2022 financial yearEBITDA of -€0.8 million as of June 30, 2023 and operating cash flow of – €1.0 million stabilized

Perspectives 2023

Degraded economic environment, marked by a slowdown in sales
in the retail and careful inventory management by distributorsAbandonment of the annual growth objective over the entire financial yearSignificant improvement in the gross margin rate in the 2nd half,
and more widely in 2023

Plouzané, September 25, 2023 – 6:00 p.m. – Cabasse (Euronext Growth® Paris – FR001400DIY6 – ALCAB)a French luxury high-fidelity audio company, publishes its 2023 half-year accounts, approved by the Board of Directors on September 25, 2023.

Consolidated data in €K (unaudited)
French standards1st semester 2022
(6 months)1st semester 2023
(6 months) Fiscal year 2022
(12 months)Turnover4,7214 012 10 105Gross margin2,0211 594 4 036Gross margin rate (%)42,8%39,7% 40,0%EBITDA1-38-768 -200EBITDA margin rate (%)n.a.n.a. n.a.Operating income-483-1 239 -1 114Financial result-68-173 -205Exceptional result-61-15 -159Corporate tax-99-144 -196Net income-514-1 283 -1 282

1 EBITDA is defined by operating profit, excluding allocations to depreciation of fixed assets and including the research tax credit (CIR).

HALF-YEAR TURNOVER OF €4.0 MILLION

At the end of the first half of its 2023 financial year, Cabasse recorded a consolidated turnover of €4.0 million, down -15% in line with expectations, penalized by (i) difficulties in supplying key electronic components at the start of the financial year and (ii) a slowdown in sales in the retail under the effect of less dynamic consumption in Europe and Asia and careful management of stocks in stores.

GROSS MARGIN RATE OF 39.7% IN THE 1ST HALF OF 2023

In the first half of 2023, Cabasse achieved a gross margin of €1.6 million.

The gross margin rate stood at 39.7% over the period, compared to 42.8% a year earlier, due to the persistence at the start of the year of additional costs linked to difficulties in sourcing components.

The gross margin rate is nevertheless stable compared to the level of the entire 2022 financial year (40.0%).

EBITDA OF -€0.8 MILLION AT THE END OF JUNE 2023

At mid-year, EBITDA stood at -€0.8 million, compared to -€0.1 million a year earlier.

This decline is linked for ~€0.4 million to the change in the gross margin and for ~€0.3 million to the increase in operating expenses, with the increase in general and administrative expenses linked to the stock market listing of Cabasse since the end of 2022, and with the ramp-up of the manufacturing workshops in Brest (France) in order to support the production of high-end speakers, including the product produced for a large luxury house.

Depreciation allocations for fixed assets stood at €0.3 million, down slightly compared to the first half of 2022, marking the start of the reduction in allocations following a peak in depreciation in 2022, relating to the development costs of the The entire THE PEARL range started 5 years ago.

Operating profit stood at -€1.2 million in the first half of 2023, compared to -€0.5 million a year earlier.

After financial income, mainly composed of interest charges on bank and bond debt, and exceptional income, the net income amounted to -€1.3 million in the first half of 2023, compared to -€0.5 million.

BALANCE SITUATION AS OF JUNE 30, 2023

At the end of the first six months of its financial year, Cabasse consumed -€2.9 million in cash, including:

-1.0 M€ operating cash flow (vs. -€1.1 million in the first half of 2022), with a stabilized working capital requirement (-€57 thousand variation in working capital in the first half of 2023 compared to -€893 thousand in the first half of 2022) which benefited from ‘deposits on orders;-0.5 M€ of investment flows (vs. -€0.3 million in the first half of 2022), with an increase in investment expenditure over the half-year dedicated to the development of new products, including that as part of the agreement with a major luxury house;-€1.4 million in financing flows (vs. +€0.2 million in the first half of 2022), made up of the reimbursement of the parent company’s current account (VEOM Group) and the company’s financial reduction.

As of June 30, 2023, shareholders’ equity[1] of Cabasse amounted to €2.2 million and available cash to €1.0 million.

Financial debts stood at €4.3 million at the end of June 2023 (compared to €4.6 million at the end of 2022).

At mid-year, the net financial debt thus amounted to €3.3 million, compared to €0.6 million as of December 31, 2022.

Consolidated data in €K (audited) – French standards 31/12
202230/06
2023 Consolidated data in €K (audited) – French standards 31/12
202230/06
2023Actif immobilisé3 0713 616 Equity[2]3 4802 241Current assets5,6755 611 Financial debts4,5714 293dont stocks3 1803 378 dont PGE2 6802 641of which trade receivables628495 Parent company current account1,194Availability3,9471 003 Other liabilities3,4483 705Total Actif12 69310 239 Total Liabilities12,69310 239

CONFIRMED IMPROVEMENT IN GROSS MARGIN IN 2023

Cabasse is currently suffering from a marked slowdown in sales in the retailtaking into account a degraded economic environment and prudent inventory management by distributors.

In this adverse context, Cabasse has decided to postpone the launch of the two major new products to the first half of 2024 aimed at expanding the range Luxury Wireless Audioinitially planned for the 4th quarter of 2023.

The 2nd half will, however, be marked by the ramp-up of deliveries, which started in the 3rd quarter of 2023, as part of the agreement with a large luxury house.

Ultimately, the objective of annual growth in turnover over the entire 2023 financial year cannot be achieved, given the current slowdown in sales in the retail.

Cabasse, however, reiterates its objective of a significant improvement in its gross margin rate in the 2nd half, and more broadly over the entire 2023 financial year (reminder: 40.0% in 2022), driven by the products in the range Luxury Wireless Audiodeliveries for a large luxury house and supply costs now normalized in the 2nd half.

FINANCE AGENDA 2023

PublicationDateTurnover for the 3rd quarter of 2023Monday October 30, 2023Annual turnover 2023Monday February 5, 20242023 annual resultsMonday April 22, 2024

These dates are given for information purposes only, they may be modified if necessary. Publications will take place following the close of Euronext markets.

ABOUT CABASSE
Created by Georges Cabasse in 1950, Cabasse is a French acoustics specialist who designs and markets
high-fidelity audio solutions (connected and passive speakers, amplifiers, etc.) intended for music enthusiasts. Equipped with the famous coaxial speakers, these luxury audio solutions allow sound reproduction and
unrivaled music.
The culmination of more than 70 years of innovation and acoustic engineering, Cabasse launched the THE PEARL range in 2018, a true collection of the most complete high-resolution active connected speakers on the global music market. Luxury Home Audio. With the success of this range, Cabasse has now entered a phase of strong growth, with a turnover increasing from €6.3 million in 2019 to €10.1 million in 2022, i.e. average annual growth of activity of +17% over the last three financial years.
Cabasse is 42.27% owned by VEOM Group (Euronext Growth – FR0013530102 – ALCG), a leading European group in the world of Smart Home, pioneer of multi-room and streaming technologies.
Cabasse shares are listed on Euronext Growth® in Paris under the ISIN code FR001400DIY6 and the ticker code ALCAB. The ISIN code FR001400DJD8 is a secondary ISIN code created to identify the beneficiaries of BSAFIDÉLITÉ
at the end of the 12-month holding period from the date of settlement and delivery of the new shares relating to the capital increase (i.e. December 5, 2022).
More information on Cabasse.com. CABASSE
Alain Molinié
Chairman and CEO
[email protected]
Investor relations
Mathieu All
Such. : + 33 (0)1 53 67 36 92
[email protected]
Relations presse
Amaury Dugast
Such. : + 33 (0)1 53 67 36 74
[email protected]

[1] Equity corresponds to equity to which is added the amount of convertible bonds (quasi-equity) for €2,512 thousand as of December 31, 2022 and €2,562 thousand as of June 30, 2023.

[2] Equity corresponds to equity to which is added the amount of convertible bonds (quasi-equity) for €2,512 thousand as of December 31, 2022 and €2,562 thousand as of June 30, 2023.

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