BELYSSE GROUP NV PRESS RELEASE
Waregem, 3 March 2023, 7:00 a.m. CET
Regulated information
Belysse Group nv FY 2022 and Q4 2022 Results
On 4 April 2022, Belysse Group nv announced the completion of the sale of its Rugs, Residential polypropylene (PP) and Non-Woven businesses (the Discontinued Operations), together with the Balta brand, to Victoria PLC (the Transaction or the Divestment).
Following the completion of the Transaction the management structure was changed to one management team for the United States and another separate management team for Europe, with significantly less central functions. Both management teams have the following main functions: production, procurement, HR, product development, supply chain and finance. The economic characteristics, the growth trends, supply chain evolutions and key value drivers differ significantly in Europe and US. In Europe, the two plants, Tielt and Zele, are operationally managed together under the same leadership, for resource allocation, capital expenditure, supply chain and manufacturing to produce carpet tiles and broadlooms for our European Commercial and Residential businesses (including exports to the rest of the world). Based on this analysis, our reporting followed the management of the company and is now Europe and United States (US) versus Commercial and Residential previously.
Group Highlights Continuing Operations
- FY 2022 consolidated Revenue of €337.4m (+21.9% YoY)
- Organic growth was +14.8%, while FX contributed +7.1%
- Revenue growth by division: United States (US) +32.8%, Europe +11.6%
- FY 2022 consolidated EBITDA of €35.5m (-17.6% YoY) with an Adjusted EBITDA margin of 10.5% (15.6% FY 2021)
- US EBITDA increased to €33,2m (+28.6% YoY)
- Europe EBITDA was €2.3m (vs €17.2m in 2021)
- Q4 2022 consolidated Revenue of €82.1m (+6.9% YoY), with an Adjusted EBITDA of €7.6m (-35.5% YoY) and an Adjusted EBITDA margin of 9.3% (15.4% in Q4 2022).
- FYE 2022 Net Debt was €148.3m (including €32.4m of IFRS 16 impact) an improvement of €17.3m compared to last quarter due to strong cash generation in Q4. Leverage1 remained flat compared to Q3 2022 at 4.0x.
- Total available liquidity amounted to €77.5m at FYE 2022, comprising cash and headroom under the revolving credit facilities.
1 As defined in the SSN facility agreements, excluding IFRS16 impact but including sale and leasebacks
BELYSSE GROUP NV / Franklin Rooseveltlaan 172-174 8790 Waregem | 01 |
Business Unit Highlights
UNITED STATES
- Strong increase in both revenue (+32,8%) and EBITDA (+28,6%) YoY to €177.8m and €33.2m respectively thanks to successful growth in various end markets and adequate commercial action to absorb cost inflation.
- Strong cashflow from operations despite a temporary increase in working capital due to change of our main yarn supplier, by up-stocking yarn inventory for the transition.
- Increase of manufacturing capacity with a new Colorpoint machine.
- Jay Brown, formerly manufacturing director, has been promoted to President in June 2022 succeeding the retiring Jim Harley.
EUROPE
- Strong increase in revenue (+11,5%) YoY but a steep drop in EBITDA to €2.3m due to permanent pressure from high cost inflation, which could not be fully passed on, combined with lower market demand in Residential in the second semester.
- Launch of first full cradle-to-cradle Gold Certified® collection Artcore (all products, in both backing types are Gold Certified). In addition 6 new collections with recycled polyamide and polyester yarns were launched (Elna, Liv, Tove, Katherine, Bliss and Feliz).
- James Neuling joined Belysse as MD Europe in October 2022, combined with several other management changes following the sale of the Rugs and Residential PP business.
BELYSSE GROUP NV / Franklin Rooseveltlaan 172-174 8790 Waregem | 02 |
Cyrille Ragoucy, CEO and Chairman of the Board of Belysse Group nv said,
"2022 was an eventful year with the creation of the Belysse Group after the sale of Balta's traditional Rugs, Residential polypropylene (PP) and Non-Woven businesses. The new Group is now focused on developing its Commercial businesses in both the United States and Europe under the main brands Bentley and modulyss, as well as its premium European Residential polyamide (Residential PA) business (ITC). In a stabilized economic environment, the Belysse Group will be able to generate a stronger cash flow with a reduced risk profile. Being more focused and less complex will enable more investment in sustainability and growth through innovation, manufacturing optimization and more agile digital solutions.
The divestment and ensuing split of our European operations brought operational challenges during the year, in particular in supply chain, finance and IT, which were successfully addressed.
Europe also faced unprecedented cost inflation in materials, energy, transportation and payroll cost. Multiple price increases had to be implemented in response, although with a time lag. Demand started slowing down after summer in our European Residential business. The team is focussed on reversing the resulting margin pressure by adequate commercial actions as well as optimization and globalization of procurement and supply chain.
In our US Division, Bentley Mills delivered an excellent performance recovering to almost pre-Covid levels by seeing a more benign market and penetrating additional end markets. We were also able to pass on inflation thanks to our strong market position leading to significant sales and EBITDA growth.
2022 was also the first year of our new transformation plan, called BEYOND. It focuses on sustainability through innovative products and production, lean strategies in production and procurement, and agility through digital initiatives.
I would like to thank all the Belysse team members for their dedication, their enthusiasm and their professionalism in making Belysse a success story."
BELYSSE GROUP NV / Franklin Rooseveltlaan 172-174 8790 Waregem | 03 |
Full Year 2022 Revenue and Adjusted EBITDA per segment
Continuing Operations
FY | FY | o/w | o/w | ||
(€ million, unless otherwise mentioned) | 2022 | 2021 | % Change | growth | FX |
Europe | 159.6 | 143.0 | 11.6% | ||
US | 177.8 | 133.8 | 32.8% | ||
Consolidated Revenue | 337.4 | 276.8 | 21.9% | 14.8% | 7.1% |
Europe | 2.3 | 17.2 | (86.9)% | ||
US | 33.2 | 25.8 | 28.6% | ||
Consolidated Adjusted EBITDA | 35.5 | 43.1 | (17.6)% | (26.2)% | 8.6% |
Europe | 1.4% | 12.1% | |||
US | 18.7% | 19.3% | |||
Consolidated Adjusted EBITDA Margin | 10.5% | 15.6% | |||
Q4 2022 Revenue and Adjusted EBITDA per segment
Continuing Operations
Q4 | Q4 | o/w | o/w | ||
(€ million, unless otherwise mentioned) | 2022 | 2021 | % Change | growth | FX |
Europe | 36.3 | 38.9 | (6.7)% | ||
US | 45.7 | 37.8 | 20.9% | ||
Consolidated Revenue | 82.1 | 76.8 | 6.9% | 0.4% | 6.5% |
Europe | 0.1 | 4.0 | (96.8)% | ||
US | 7.5 | 7.9 | (4.4)% | ||
Consolidated Adjusted EBITDA | 7.6 | 11.8 | (35.5)% | (42.8)% | 7.3% |
Europe | 0.4% | 10.2% | |||
US | 16.4% | 20.8% | |||
Consolidated Adjusted EBITDA Margin | 9.3% | 15.4% | |||
BELYSSE GROUP NV / Franklin Rooseveltlaan 172-174 8790 Waregem | 04 |
Financial Review Continuing Operations by Division
UNITED STATES
Full year Revenue for 2022 increased by 32.8% to €177.8m (€133.8m 2021). Sales volumes went up by 7% with higher price levels as well as favorable FX translation which also contributed to the significant growth.
Full year Adjusted EBITDA for 2022 of €33.2m was up 28.6% (€25.8m 2021) with an Adjusted EBITDA margin of 18.7% (19.3% in 2021) reflecting the volume growth while offsetting increased input costs with swift implementation of price increases in combination with BEYOND initiatives.
Fourth quarter Revenue for 2022 of €45.7m increased from €37.8m in 2021 or +20.9%. Adjusted EBITDA margin for Q4 2022 reduced to 16.4% from 20.8% in Q4 2021 mainly due to temporarily higher priced stock being used in production, which had been purchased more expensively during the transition to new yarn suppliers.
EUROPE
Full year Revenue for 2022 increased by 11.6% to €159.6m (€143.0m 2021). The revenue increase is mainly driven by the several price increases that were implemented and the trading of some PP products to end-customers in specific markets2.
Full year Adjusted EBITDA was €2.3m (€17.2m 2021) with an Adjusted EBITDA margin of 1.4%. This low performance was largely driven by the very high input and transformation costs with timing delays in passing on this cost inflation to the customers, and by lower volumes, especially in the Residential business line in the second half of 2022.
Fourth quarter Revenue for 2022 was €36.3m, which represents a YOY decrease of -6.7% (Q4 2021 Revenue of €38.9m) driven by lower volumes due to a general demand decrease in Residential. Adjusted EBITDA in Q4 2022 was €0.1m, down from €4.0m in Q4 2022.
2 These were not recorded in the division's prior year's comparator
BELYSSE GROUP NV / Franklin Rooseveltlaan 172-174 8790 Waregem | 05 |
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Balta Group NV published this content on 03 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 March 2023 10:08:11 UTC.
