press release -
9 months 2022 Trading update
Good growth year-to-date across portfolio
9 months 2022 consolidated net sales: €6,507.8 million, up 17.9% overall and up 10.9% organically year-to-date
·Strong growth across the portfolio in Q3 2022: +20.9% of reported growth on consolidated sales of which +12.1% is organic
·Double digit organic growth for ACAMS, CPI, Constantia Flexibles and Tarkett in Q3 and over 9 months
·Sustained organic growth for Bureau Veritas (+7.3%) and for Stahl (+7.8%) over 9 months
·Positive FX impacts across the portfolio (+5.0% consolidated over 9 months)
Net asset value as of
·Restated for the €3 dividend per share paid in
·As a reminder, the valuations of Wendel’s unlisted assets are updated on a quarterly basis using end of quarter stock market multiples
Significant portfolio rotation and capital deployment over the first nine months of 2022
- Disposal of
Cromology closed onJanuary 21, 2022 , generating €896 million of proceeds to Wendel - €3041 million equity invested to acquire ACAMS on
March 10, 2022 Wendel Lab : €51 million additional commitments into funds year-to-date bringing the total to around €167 million
Strong financial structure
- LTV ratio of 6.0% as of
September 30, 2022 - Wendel’s bond debt average maturity of 6.62 years with an average weighted cost of 1.7%
- Total liquidity of €1.7 billion as of
September 30, 2022 , including €973 million of cash and €750 million available under the committed sustainability-linked credit facility (fully undrawn)
Governance:
André François-Poncet , Wendel’s current Group CEO, is in his role untilLaurent Mignon joins Wendel
“Our portfolio companies have generally been doing well under deteriorating macroeconomic circumstances, largely due to pricing and cost containment initiatives and they are actively pursuing ESG initiatives. The ACAMS carve-out is proceeding according to plan. We sold our headquarters building at a very good price and we refinanced our nearest bond and credit lines at terms that we are unlikely to see again for a long time. Wendel’s strong balance sheet will allow the Firm to continue to make acquisitions under our roadmap while remaining vigilant on prices. Short term, we continue to support our companies’ projects, including external growth and actively consider the numerous opportunities which are now emerging for the |
Nine months 2022 sales of Group companies
Nine months 2022 consolidated sales
(in millions of euros) | 9 months 2021 | 9 months 2022 | Growth | Organic Growth |
Bureau Veritas | 3,664.1 | 4,150.5 | +13.3% | +7.3% |
Constantia Flexibles | 1,168.3 | 1,537.9 | +31.6% | +23.7% |
Stahl | 624.4 | 696.4 | +11.5% | +7.8% |
63.9 | 83.5 | +30.7% | +17.7% | |
ACAMS(1) | n.a | 39.6 | n.a | n.a |
Consolidated net sales | 5,520.6 | 6,507.8 | +17.9% | +10.9% |
- ACAMS accounts have been consolidated since
March 11, 2022 . The sales include a PPA restatement for an impact of -€11.0M, excluding this restatement the sales are €50.6M.
Nine months 2022 sales of equity accounted companies
(in millions of euros) | 9 months 2021 | 9 months 2022 | Growth | Organic Growth |
Tarkett | 2,070.6 | 2,569.4 | +24.1% | +13.1% |
Q3 2022 sales of Group companies
Q3 2022 consolidated sales
(in millions of euros) | Q3 2021 | Q3 2022 | Growth | Organic Growth |
Bureau Veritas | 1,245.7 | 1,457.1 | +17.0% | +8.7% |
Constantia Flexibles | 416.2 | 552.7 | +32.8% | +25.7% |
Stahl | 204.6 | 225.5 | +10.2% | +5.3% |
27.4 | 35.3 | +28.8% | +13.0% | |
ACAMS(1) | n.a | 19.8 | n.a | n.a |
Consolidated net sales | 1,893.8 | 2,290.3 | +20.9% | +12.1% |
- ACAMS accounts have been consolidated since
March 11, 2022 . The sales include a PPA restatement for an impact of - €1.5M, excluding this restatement Q3 sales are €21.3M.
Q3 2022 sales of equity accounted companies
(in millions of euros) | Q3 2021 | Q3 2022 | Growth | Organic Growth |
Tarkett | 809.4 | 1,005.4 | +24.2% | +12.0% |
Sales of Group companies
Bureau Veritas – Strong organic revenue growth in the third quarter of 2022; 2022 Full Year outlook confirmed
(Full consolidation)
Bureau Veritas’ revenue in the third quarter of 2022 amounted to €1,457.1 million, a 17.0% increase compared with Q3 2021. Organic growth was 8.7%. This brought the 9-month organic revenue growth to 7.3%.
The 8.7% organic revenue growth was notably led by a strong performance in Buildings & Infrastructure (+11.0% in Q3), Industry (+10.6% in Q3), Marine & Offshore (+9.7%), as well as
By geography, activities in the
The scope effect was a positive 1.3%, reflecting the four bolt-on acquisitions realized since the beginning of 2022, alongside those of the prior year.
Currency fluctuations had a positive impact of 7.0%, mainly due to the strong appreciation of the USD and pegged currencies against the euro, which was partly offset by the depreciation of some emerging countries’ currencies.
2022 outlook confirmed:
Based on the year-to-date performance, the significant growth opportunities related to its sustainability
range of services and solutions, and excluding the full-year impact of the Covid-19 lockdowns in
Bureau Veritas still expects for 2022 to:
- Achieve mid-single-digit organic revenue growth;
- Improve the adjusted operating margin;
- Generate sustained strong cash flow, with a cash conversion above 90%.
For more information: https://group.bureauveritas.com
Constantia Flexibles—9 months total growth of +31.6%, with record organic growth of 23.7% mainly driven by price increases but also through volume growth and mix improvement
(Full consolidation)
Sales in the first nine months of 2022 totaled €1,537.9 million, up +23.7% on an organic basis with strong performance across both markets, Consumer and Pharma both posted above 20% organic growth. Sales are up +31.6% in total over the period, driven mostly by necessary price increases enabling to compensate for the inflationary input costs pressure. Since the start of the year, despite raw material shortages, Constantia has experienced an encouraging return to market share gains, thereby confirming the good momentum instilled by the new management team’s commercial initiatives. The market in
Year-to-date activity also benefited from the acquisition of
Constantia is carefully managing the inflationary cost environment as well as the availability of energy supply and raw materials. The Company is focusing its efforts on preserving the profitability working both on the passthrough of input costs as well as pursuing its cost control program. Constantia is also actively working on its supply base and energy supply sources in the context of a potential shortage of gas in
In
Stahl—Sales up 11.5% with organic growth of 7.8% mostly driven by price increases to offset input cost inflation
(Full consolidation)
Stahl, the world leader in coating layers and surface treatments for flexible materials, posted total sales of €696.4 million in the first nine months of 2022, representing an increase of +11.5% over the period. Organic growth stood at +7.8% while FX contributed positively (+3.7%), mostly through USD strengthening.
Activity for the period is above expectations at group level, with a strong growth in Coatings and Leather over the past nine months. Growth was largely led by price/mix effects as volumes declined, notably due to (i) slowdown in certain end markets, (ii)
Across all segments, price increases have been implemented since the beginning of the year to mitigate the strong impact of rising input costs. The company has taken and is ready to take additional measures to protect its margin where needed. Stahl’s management continues to closely monitor the inflationary environment, as well as the supply chain and potential energy disruptions.
The order book slightly decreased following the strong commercial activity in H1 2022 but remains at high levels compared to historical standards.
Stahl announced on
Stahl’s SBTi submission includes a specific commitment regarding the company’s Scope 3 upstream emissions, which Stahl aims to reduce by at least 25% over the next 10 years, compared with the base year (2021). Stahl’s Scope 3 emissions currently represent over 90% of its carbon footprint. This reduction would primarily be achieved by Stahl replacing its fossil-based raw materials with lower-carbon alternatives. The target is a major step towards the objective of limiting global warming temperature increase to 1.5 °C above pre-industrial levels by 2050, as agreed at the 2015 Paris Climate Accords.
Stahl’s extended commitment builds on the company’s existing targets to reduce its emission for Scopes 1 and 2, which were set shortly after the Paris Agreement in 2015. Stahl has since reduced its Scope 1 and 2 (direct) GHG emissions by more than 30%, thanks to operational efficiency gains and by decarbonizing its energy supply.
In
Crisis Prevention Institute—9 months revenue growth of +16.1% as compared with 2021, +17.7% organically
(Full consolidation since
- The return to “normal” business conditions has made it easier for customers, particularly for schools and hospitals, to prioritize and schedule training, allowing Certified Instructors to conduct internal training;
- The success of new program launches, including specialty topics such as Trauma, Autism, and Advanced Physical Skills, which now collectively represent more than 20% of Initial Certifications for the first nine months;
- The international expansion strategy outside of
North America , notably in English-speaking countries, with a growth rate of nearly +23%; - A continued mix shift toward digital solutions for both new CIs and renewals, which supplement required in-person training components of programs. Virtual Learner Materials continue to comprise a strong share of overall delivery, accounting for 44% of total Learner Materials sales.
During the quarter, CPI’s President
ACAMS–Strong year-to-date performance for ACAMS, with reported revenue3 up +7.8% and +17.8% pro forma for conference timing. Carve-out process on track.
(Full consolidation since
On
For the nine months ended
The pro forma revenue growth was driven by post-COVID conference recovery and greater sales of Certifications, Memberships and Training, primarily a result of sales to larger enterprise customers. Revenue growth should ease and return to more normative levels for the remainder of 2022 and into 2023.
Tarkett–Q3 turnover growth driven by solid performance in Sports and sales price increases
(Accounted for by the equity method since 07.07.2021)
The company reported its Q3 2022 sales on
Net revenue for the Group was €1,005 million, up by +24.2% compared to the third quarter of 2021. Organic growth was +12.0% including the sales price increases in the CIS region implemented at the beginning of the year5. The total effect of the sales price increases implemented across all segments is +11.9% on average compared to the third quarter of 2021.
By segment:
- As expected, the Sport segment continues to show very strong growth for the third consecutive quarter. Revenue was €343 million, up by +46.4% and including +30.5% organic growth compared to the third quarter of 2021. The market is extremely dynamic in
North America for both artificial turf and athletic tracks, two segments where Tarkett benefits from its leadership. - The
North America segment reported a revenue of €251 million, up +29.5% compared to the third quarter of 2021, reflecting solid like-for-like growth of +11.5% and a positive currency effect due to the appreciation of the dollar against the euro (+18.0%) - The EMEA segment achieved a turnover of €220 million, up +1.4% compared to the third quarter of 2021, including an unfavourable currency effect of -1.3% and +2.7% of organic growth.
- Revenue in the CIS, APAC and
Latin America segment amounted to €191 million, up +16.5% compared to the third quarter of 2021, thanks to a positive currency effect mainly due to the appreciation of the ruble (+18.0%).
End of October,
IHS Towers—IHS Towers will report its Q3 2022 consolidated sales in November.
Wendel’s net asset value: €155.2 per share as of
As per its NAV Methodology, Wendel’s unlisted assets valuations are updated on a quarterly basis using end of quarter markets multiples. Investments in funds are valued at the last valuation received from the General Partner. Listed investments are valued on the basis of the average closing price of the 20 trading days prior to the valuation date.
Net asset value was €6,885 million, or €155.2 per share, as of
Restated for the €3 dividend per share paid in
Wendel further improves its debt profile and structure
- Loan-to-value (LTV) ratio at 6.0% as of
September 30, 2022 - Total liquidity of €1.7 billion as of
September 30, 2022 , including €973 million of cash and €750 million available under the committed sustainable-linked credit facility (fully undrawn) - Syndicated Credit Facility extended to
July 2027
- Average debt maturity extended to 6.6 years and average weighted cost lowered to 1.7% following the successful placement of a €300 million 12-year bond at 1,375% interest on
January 13, 2022 , and exercise onApril 19, 2022 , of the make-whole redemption of bonds maturing inOctober 2024 - Investment grade corporate ratings: Moody’s Baa2 with stable outlook/S&P BBB with stable outlook
2022 other significant events:
On
Amendment to extend Wendel’s undrawn €750 million syndicated credit facility to 2027
Wendel signed on
Wendel sold its headquarters building
Wendel sold its headquarters building on Taitbout street.
Wendel acquires ACAMS, the world’s largest membership organization dedicated to fighting financial crime
Announced on
ACAMS is the global leader in training and certifications for anti-money laundering (“AML”) and financial crime prevention professionals. ACAMS has a large, global membership base with more than 90,000 members in 175 jurisdictions, including over 50,000 professionals who have obtained their CAMS certification-an industry-recognized AML qualification—that promotes ongoing education through participation in conferences, webinars, and other training opportunities.
The Company has approximately 275 employees primarily located in the
Sale of
After obtaining the necessary authorizations, Wendel completed on
This transaction is a milestone in Wendel’s 2021-24 roadmap, and its target to accelerate the redeployment of its capital toward growth companies.
Agenda
Investor Day 2022
2022 Full Year Results—Publication of NAV as of
Q1 2023 Trading update—Publication of NAV as of
Annual General Meeting
H1 2023 results—Publication of NAV as of
Q3 2023 Trading update—Publication of NAV as of
2023 Investor Day.
About Wendel
Wendel is one of Europe’s leading listed investment firms. The Group invests in
Wendel is listed on Eurolist by Euronext Paris.
Standard & Poor’s ratings: Long-term: BBB, stable outlook—Short-term: A-2 since
Moody’s ratings: Long-term: Baa2, stable outlook—Short-term: P-2 since
Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of “Grand Mécène de la Culture” in 2012.
For more information: wendelgroup.com
Follow us on Twitter @WendelGroup
Press contacts Analyst and investor contacts
c.anglade@wendelgroup.com o.allot@wendelgroup.com
c.decaux@wendelgroup.com l.roch@wendelgroup.com
wendel@vae-solis.com
Kekst CNC
todd.fogarty@kekstcnc.com
Appendix 1: NAV as of
(in millions of euros) | ||||||
Listed equity investments | Number of shares | Share price (1) | 4,370 | 5,559 | ||
Bureau Veritas | 160.8/160.8 m | €24.0/€28.7 | 3,860 | 4,616 | ||
63.0/63.0m | 412 | 748 | ||||
Tarkett | €12.5/€18.6 | 98 | 195 | |||
Investment in unlisted assets (2) | 2,938 | 3,732 | ||||
Other assets and liabilities of Wendel and holding companies(3) | 17 | 97 | ||||
Net cash position & financial assets (4) | 973 | 650 | ||||
Gross asset value | 8,299 | 10,038 | ||||
Wendel bond debt | -1,414 | -1,619 | ||||
Net Asset Value | 6,885 | 8,419 | ||||
Of which net debt | -441 | -969 | ||||
Number of shares | 44,370,620 | 44,747,943 | ||||
Net Asset Value per share | €155.2 | €188.1 | ||||
Wendel’s 20 days share price average | €76.1 | €102.3 | ||||
Premium (discount) on NAV | -50.9% | -45.6% | ||||
- Last 20 trading days average as of
September 30, 2022 , andDecember 31, 2021 . - Investments in non-publicly traded companies (
Cromology (as ofDecember 31, 2021 ), Stahl, Constantia Flexibles,Crisis Prevention Institute , ACAMS (as ofSeptember 30, 2022 ),Wendel Lab ). Aggregates retained for the calculation exclude the impact of IFRS 16. As per Wendel methodology, ACAMS valuation is weighted at 66.7% on acquisition multiple and 33.3% on listed peer-group multiples. - Of which 1,116,456 treasury shares as of
December 31, 2021 , and 997,494 treasury shares as ofSeptember 30, 2022 - Cash position and financial assets of Wendel & holdings. As of
September 30, 2022 , this comprises €0.7 bn of cash and cash equivalents and €0.3 bn short term financial investment.
Assets and liabilities denominated in currencies other than the euro have been converted at exchange rates prevailing on the date of the NAV calculation.
If co-investment and managements LTIP conditions are realized, subsequent dilutive effects on Wendel’s economic ownership are accounted for in NAV calculations. See page 374 of the 2021 Universal Registration Document.
1 c.
2 As of
3 Revenue is shown excluding the purchase price allocation entry related to deferred revenue
4 Revenue is shown excluding the purchase price allocation entry related to deferred revenue
5 Selling price adjustments in the CIS countries are historically intended to offset currency movements and are therefore excluded from the “organic growth” indicator. Excluding these price increases, organic growth was +9.7%.
Attachment
- Wendel_Q3_2022_EN
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