Jacquet Metals : 2022 Half-year financial report


First half 2022 results

07.09.2022 – 6.00 PM

Sales: €1,480m (+58% vs H1 2021)

EBITDA: €209m (14.1% of sales)

Net income (Group share): €126m

In H1 2022, the Group benefited from a favorable environment mainly marked by the increase in raw materials prices.

Volumes distributed also rose in the H1 (+1.9% compared to H1 2021). Demand, which was well oriented at the beginning of the year, showed a decline from Q2 onwards.

Likewise, after 18 months of increase, raw material prices began to decrease, leading to a decrease in purchase prices, a trend that is expected to continue in Q4. However this decrease should be mitigated by the increase in steel production costs, heavily impacted by energy costs.

The inventory valuation as of June 30, 2022 takes this evolution into account, with the recording of an impairment representing 19.8% of the gross value of inventory compared to 17.1% as of December 31, 2021.

Sales increased by +58% to €1,480 million and the gross margin by +63% to €404 million, representing 27.3% of sales, compared to 26.4% a year earlier.

In this context, EBITDA amounted to €209 million in H1 2022 (14.1% of sales versus 8.6% in H1 2021) and Net income (Group share) amounted to €126 million, compared to €43 million a year earlier.

Operating working capital also increased and represented 28% of sales as of June 30, 2022 compared to 26% at 2021 year-end.

During the period, the Group generated operating cash flow of €52 million and strengthened its financing structure with a shareholders’ equity of €622 million and a net debt to equity ratio (gearing) of 27% (35% at 2021 year-end).

Capital expenditure (excluding external growth) amounted to €13 million in H1 2022.

In early May, the Group acquired the Canadian company Fidelity PAC Metals (annual sales: €33 million) specializing in master distribution of stainless steel long products and operating 3 logistics centers in Toronto, Montreal and Vancouver. Fidelity PAC Metals will strengthen the JACQUET division’s positioning in North America, the largest market of the division, now representing one third of its sales.

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