H1 2020
RESULTS
GROUP PROFILE IN 2019
2 BUSINESS DIVISIONS
Groupe
Crit
CRIT GROUP
2019 REVENUE : €2.5bn EBITDA : €170m
TEMPORARY STAFFING & RECRUITMENT
€2.0bn revenue(-2.2% organic growth)
(81.8% of total revenue)
Top 20 worldwide (1)
600 branches
More than 30,000 clients 263,000 temp. workers
1.4 million temp. assignments in 2019
MULTI-SERVICES
€480m revenue (+4.5%)
(18.2% of total revenue)
Airport services
No.1 in France
Exclusive licences
146 airlines
+466,000 aircraft movements
(1) Source : Staffing Industry Analysts largest global staffing firms 2019
H1 2020 results | 2 | |
H1 2020
- Major covid-19 impact
- Resilience of operating margins
- Revenue : €814m down 33.9%
- Positive Ebitda : €20m
- Ebitda margin : 2,5%
- Net profit : €(11)m
- €611m equity
- €274m net cash
Groupe
Crit
H1 2020 results | 3 | ||
COVID 19 :
Direct impact on business
Change in revenue | |||
(€m) | |||
Quarter | Semester | ||
1 232.5 | |||
-33.9% | |||
-13.2% | 814.1 | ||
582.4 | 650.0 | -52.6% | |
505.8 | |||
308.3 |
Q1 | Q2 | S1 |
2019 2020
Groupe
Crit
Revenue breakdown
by division
Multi-services
15%
Temporary staffing & recruitment
85%
A downturn in demand starting in March
H1 2020 results | 4 | ||
Temporary staffing & recruitment
COVID -19
- Major impact in France
- International more resistant
TEMPORARY STAFFING & RECRUITMENT
- Major Covid-19 impact in France
- International more resistant
Temp. Staffing & recruitment
Temporary staffing & recruitment revenue
(€m) | ||
Quarter | Semester | |
2019 | 2020 | 1 011.4 |
-31.4%
-13.6% | 693.6 |
477.8 412.8 533.5 -47.4%
280.8
Q1 | Q2 | H1 |
At constant exchange rate :
- Q1 2020 -14.1%
- Q2 2020 -47.5%
Geographical breakdown
International
28%
France
72%
H1 2020 results | 6 | ||
TEMPORARY STAFFING IN FRANCE
Major Covid-19 impact in Q-2
Temporary staffing revenue - France
(€m)
Quarter | Semester |
768.2
-34.7%
-15.7% | 501.7 |
359.2 302.8 409.0 -51.4%
199.0
Q1 | Q2 | H1 |
2019 2020
Temp. Staffing & recruitment
72%
of temporary staffing division
Second quarter :
- Low point in April
- Progressive recovery over the months
H1 2020 results | 7 | ||
TEMPORARY STAFFING IN FRANCE
- Sector particulary affected by the crisis
- Gradual recovery over the months
Temp staffing & recruitment
- Market decreasing by -30.7% in FTEs, 1st half of 2020 (baromètre Prism'emploi)
Low point between March 15 and March 30 : -70%
- CRIT : Temp. employees decreasing by -32%, 1st half of 2020
Low point in April at -67%
March 17 | May 11 | ||||||||
beginning of the lock-down | End of the lock-down | ||||||||
Jan. | Feb. | March | April | May | June | July | August | Sept. | |
Weeks | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 | 35 36 | |||||||
0% | |
-10% | |
-20% | -20% |
-30% | |
-40% | |
-50% | |
-60% | |
-70% | -67% |
H1 2020 results | 8 | ||
TEMPORARY STAFFING IN FRANCE
Impacting all sectors
Sector breakdown and change in revenue
(France)
% of rev. | Change | Incl. | Incl. | |
H1 2020 | 2020/2019 | change Q1 | change Q2 | |
Industry | 45% | -38% | -20% | -55% |
Building | 14% | -40% | -16% | -62% |
Services | 41% | -28% | -10% | -44% |
TOTAL | 100% | -34.7% | -15.7% | -51.4% |
TOTAL excl. auto | -29.6% | -9.1% | -47.3% |
Revenue breakdown by type of customer(1)
SMEs
47%
(H1 2019 : 46%)
Major accounts (1)
53%
(H1 2019 : 54%)
Temp. Staffing & recruitment
Contributing sectors | |
Automotive | |
impacted | Q2 decreasing by -80% |
Q2 decreasing by -61% | |
S1 decreasing by-65% | |
most | Building |
S1 decreasing by -40% | |
The | Metallurgy |
Q2 decreasing by -72% | |
S1 decreasing by -48% | |
Transport | |
resistant | Q2 decreasing by -32% |
S1decreasing by -19% | |
Commerce | |
most | Q2 decreasing by -34% |
S1 decreasing by -22% | |
The | Food industry |
| |
Q2 decreasing by -12% |
S1 decreasing by -6%
(1) Major accounts ≥ €1m/an | H1 2020 results | 9 | ||
CRIT : EARLY ADJUSTMENT MEASURES
Temp. Staffing & recruitment
To protect our employees and temporary workers
During the lock-down
- Setting up home working
- Online trainings
After the lock-down
- Reopening branches to the public
- Health and safety prevention campaigns among permanent and temporary employees
To ensure service continuity - digital at the heart of the relationship
Close to our clients
- Commercial proximity maintained
- Digitalization of customer relationship (crit job, crit online, crit one…)
Close to our temp. staff
- Maintaining proximity: website, apps, telephone platforms, social networks
- Digitalization of recruitment and administration to facilitate remote exchanges (crit-job, application my-crit,…)
To adapt the cost structure and secure cash consumption
Mesures implemented
- Partial activity
- Close supervision of the workforce and the network
- Enhanced focus on client risk and receivable collection
H1 2020 results 10
TEMPORARY STAFFING IN FRANCE Strong impact on all sectors
Crit : very strong resilience of Ebitda margin
Temp. Staffing & recruitment
France
Change | ||
Revenue | Ebitda margin | Ebitda margin |
Change H1 2020 | H1 2020 | vs. H1 2019 |
Crit organic | -34.7% | 4.3% | -110bps |
Excl. automotive | -29.6% | ||
Adecco (organic ATD) | -29.0% | 3.3% | -260bps |
Manpower | -31.0% | 1.9% (1) | -290bps |
Randstad (ATD) | -25.0% | 1.7% | -410bps |
Synergie (constant scope) | -28.0% | 4.2% | -200bps |
Market | -31.0% | ||
(Prism'emploi - Gross revenue) | |||
Source : companies - published numbers press releases Growth rate at constant exchange rate
(1) Operating profit margin
H1 2020 results 11
INTERNATIONAL : TEMPORARY STAFFING
More resistant
Temp. Staffing & recruitment
Temporary staffing revenue - International
(€m)
Quarter | Semester |
243.2 -21.1%
-7.3%191.8
118.6 110.0 124.5 -34.3%
81.8
Q1 | Q2 | H1 |
2019 2020
Half year revenue breakdown
by geographic area
ROW
11%
Spain
29%
United States
60%
28% of the temporary staffing division
First half revenue
at constant exchange rate
-22,4%
H1 2020 results 12
INTERNATIONAL : TEMPORARY STAFFING
- Limited decline in United States
- Significant resistance in Spain
Temp. Staffing & recruitment
H1 revenue
(€m)
Spain | United States |
156.1 -25.7% (1)
116.0
-11.8%
63.9 56.4
H1 2019 | H1 2020 | H1 2019 | H1 2020 |
(1) At constant exchange rate H1 2020 -27,5% | |||
Significant resistance in Spain | US : limited decline | ||
with positive impact of the | with rapid adaptation of fixed | ||
food industry | costs |
H1 2020 results 13
Multi-services
Airport services heavily impacted
AIRPORT SERVICES
HEAVILY IMPACTED MARKET
Airport services H1 revenue
(€m)
184.5
-48.8%
94.4
H1 2019 | H1 2020 |
(1) Movements of planes
Airport services
74%
of multi-services division
(79% in H1 2019)
Paris Aéroport (CDG-Orly) :
traffic (1) H1 2020 down
-55.9%
Q1 : -10.1%
Q2 : -82.3%
H1 2020 results 15
AIRPORT SERVICES
Action plan implemented vs. Covid-19
Airport services
H1 measures
- Implementation of partial activity (according to specific framework per country)
- Workforce adaptation depending on country legislation
- Expenses reduction
- Termination of fixed-term, recruitment, temporary staffing contracts and subcontracting
H2 measures
France
- Partial activity maintained as air transportation still eligible to government's initial partial activity benefit
- « APLD » to be implemented
- Negotiation of a « collective performance agreement »
International
- Continuous adjustment of staff according to legislation and changes in air traffic
H1 2020 results 16
Results
- Resilience of the results
- Strengthening of the financial structure in an exceptional context
ACTIVITY
Groupe
Crit
Change in half-year revenues
(€m)
change | ||||||
H1 2020/ | Organic | Forex | Perimeter | |||
H1 2019 | H1 2020 | H1 2019 | change | impact (1) | impact (2) | |
Temp. Staffing & recruitment | 1 011.4 | 693.6 | (31.4)% | (31.7)% | 0.3% | 0.0% |
Airport services | 184.5 | 94.4 | (48.8)% | (48.9)% | 0.0% | 0.0% |
Other services | 49.0 | 33.2 | (32.2)% | (32.2)% | 0.0% | (0.0)% |
Inter-segment eliminations | (12.4) | (7.1) | (42.4)% | (42.4)% | 0.0% | (0.0)% |
GROUP TOTAL | 1 232.5 | 814.1 | (33.9)% | (34.2)% | 0.3% | 0.0% |
- The foreign exchange impact are calculated by applying to the year's foreign exchange revenue, the exchange rate of the prior year.
- The perimeter impacts are calculated by restating the revenue:
- on the one hand, from the contribution of the entities acquired during the year and of the entities acquired during the previous year until the anniversary date of the acquisition,
- on the other hand, for the entities sold in the year, from the revenue contribution of the previous year for which the entities are no longer consolidated in N and for the entities sold in N-1, from the revenue contribution of the previous financial year up to the date of transfer.
H1 2020 results 18
EBITDA (1) BY BUSINESS UNIT
H1 2019 | H1 2020 | |||
€m | % of rev. | €m | % of rev. | |
Temp. Staffing | 55.9 | 5.5% | 27.2 | 3.9% |
France | 41.5 | 5.4% | 21.6 | 4.3% |
International | 14.4 | 5.9% | 5.6 | 2.9% |
Multi-services | 22.2 | 9.5% | (7.0) | (5.5)% |
Airport services | 18.1 | 9.8% | (6.1) | (6.5)% |
Other | 4.1 | 8.4% | (0.9) | (2.7)% |
GROUP TOTAL | 78.1 | 6.3% | 20.2 | 2.5% |
Groupe
Crit
(1) Current operating income before depreciation and amortisation
H1 2020 results 19
INCOME STATEMENT
€m | H1 2019 | H1 2020 | |
REVENUES | 1 232.5 | 814.1 | |
Operating expenses | (1 150.8) | (791.5) | |
Provision | (3.6) | (2.4) | |
EBITDA | 78.1 | 20.2 | |
EBITDA/REVENUE | 6.3% | 2.5% | |
Depreciation | (20,3) | (21.7) | |
CURRENT OPERATING INCOME | 57.7 | (1.5) | |
COI/REVENUE | 4.7% | (0.2)% | |
Other income and expenses | 0.8 | (0.3) | |
OPERATING INCOME | 58.6 | (1.8) | |
Income from equity affiliates | (0.3) | (1.0) | |
Financial results | (0.6) | (0.9) | |
EARNINGS BEFORE TAX | 57.7 | (3.7) | |
Income tax | (25.3) | (7.1) | |
NET INCOME | 32.4 | (10.8) | |
NET INCOME (GROUP SHARE) | 32.5 | (10.1) | |
Groupe
Crit
H1 2020 results 20
Groupe
BALANCE SHEET | Crit |
June 2020 | ||||
€m | June 2019 | Dec. 2019 | June 2020 | vs. dec. 2019 |
Goodwill | 158.7 | 159.5 | 159.4 | (0.1) |
Net fixed assets | 222.5 | 212.6 | 198.7 | (13.9) |
Working capital | 82.9 | 56.1 | (5.7) | (61.8) |
Provisions | (48.6) | (43.2) | (43.6) | (0.4) |
Tax payable and deferred tax | 3.5 | 15.7 | 27.9 | 12.2 |
CAPITAL EMPLOYED | 419.0 | 400.7 | 336.7 | (64.0) |
Shareholders' equity | 575.6 | 622.3 | 610.6 | (11.7) |
Net financial debt | (156.6) | (221.6) | (273.9) | (52.3) |
CAPITAL | 419.0 | 400.7 | 336.7 | (64.0) |
H1 2020 results 21
Groupe
WORKING CAPITAL | Crit |
June 2020 | ||||
€m | June 2019 | Dec. 2019 | June 2020 | vs. dec. 2019 |
Inventories and work in progress | 2.1 | 2.3 | 2.4 | 0.0 |
Trade receivables | 522.1 | 463.2 | 307.1 | (156.1) |
Trade payables | (44.3) | (37.7) | (30.6) | 7.1 |
Social security and tax liabilities | (395.8) | (360.4) | (292.8) | 67.6 |
Other receivables and payables | (1.3) | (11.3) | 8.2 | 19.5 |
WORKING CAPITAL | 82.9 | 56.1 | (5.7) | (61.8) |
H1 2020 results 22
NET FINANCIAL DEBT
Groupe
Crit
June 2020 | ||||
€m | June 2019 | Dec. 2019 | June 2020 | vs. dec. 2019 |
Gross financial debt | 170.1 | 140.4 | 140.4 | 0.0 |
Net cash | (120.0) | (224.9) | (337.4) | (112.5) |
NET FINANCIAL DEBT | 50.2 | (84.5) | (197.0) | (112.5) |
Competitiveness and Employment Tax Credit | (206.8) | (137.1) | (76.9) | 60.2 |
CICE | ||||
NET FINANCIAL DEBT AFTER DEDUCTION OF | (156.7) | (221.6) | (273.9) | (52.3) |
CICE | ||||
H1 2020 results 23
CASH FLOW STATEMENT
€m | H1 2019 | H1 2020 |
Net results including minority interests | 32.4 | (10.8) |
Restatement of non cash items | 18.7 | 71.4 |
Cost of financial debt | 2.1 | 1.5 |
Income tax | 25.3 | 7.1 |
CASH FLOW BEFORE NET COST OF DEBT AND INCOME | 78.5 | 69.2 |
TAX | ||
Change in working capital | (24.7) | 62.3 |
Tax paid | (14.9) | (7.4) |
CASH FLOW FROM OPERATIONS | 38.9 | 124.1 |
Cash flow from investing activities | (3.9) | (3.3) |
Cash flow from financing activities | (31.6) | (7.6) |
Change in exchange rate effect | - | (0.8) |
CHANGE IN CASH | 3.4 | 112.4 |
Groupe
Crit
H1 2020 results 24
Outlook
- Temporary staffing : a gradual recovery
- Airport services : full recovery will take time
TEMPORARY STAFFING & RECRUITMENT
Towards a gradual recovery
- Positive signs of economic recovery
- Uncertainty related to the Covid-19 evolution
Temp. Staffing & recruitment
France
Recovery in line with the market
- Temp. FTEs CRIT July / August : -26%
- Temp. FTEs CRIT September (first two weeks) : -22%
International
United States :
a gradual recovery
- Temp. FTEs CRIT July / August : -26%
Espagne :
a fast recovery
- Temp. FTEs CRIT July / August : -10%
H1 2020 results 26
AIRPORT SERVICES | |
Airlines traffic significantly impacted | Airport services |
Wordwide airlines traffic: Full recovery will take time
Traffic Paris Aéroport in CDG and Orly (in movements of planes), source ADP
> July : | -77.1% |
> August : | -53.1% |
> YTD traffic (8 months) | -56.8% |
Airport services division (France and International)
- H2 trending on 40% volume
H1 2020 results 27
SHARE CHARACTERISTICS
Shareholder structure
at 30/06/2020
Treasury shares
1.4%
Float
24.2%
Family-held
74.4%
Groupe
Crit
Share price movements (rolling 12-month)
ISIN code | FR0000036675 |
Market compartment | Euronext B |
Number of shares | 11,250,000 |
Average daily trading volume since 1 year | 2,426 |
Share price at 21/09/2019 | €52.40 |
Capitalisation | €590m |
Change since 1 january | -28.8% |
Change over 5 years | +11.02% |
Source : ABC Bourse | H1 2020 results | 28 | |
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Groupe CRIT SA published this content on 23 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 September 2020 12:44:05 UTC