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SES-imagotag, 9-month sales: EUR 129M (-6%)




  • Q3 sales at €33.8M, down as expected due to the G1/G2 line industrial transition

  • Excellent order intake level (€37M, +33%) in line with momentum from H1, and boosted by the launch of the new “G2-Fusion” line

  • Significant contracts in the United States for a total of over €10M (post-closing)

  • First stores set up in China, Japan, and South Korea.



Sales in €M
 
France
 
International
 
Total


H1 2016
 
32.6
 
53.3
 
85.9


H1 2017
 
37.7
 
57.8
 
95.4


% Change
 
+ 15.6%
 
+ 8.4 %
 
+1 1.1 %


Q3 2016
 
11.5
 
39.9
 
51.4


Q3 2017
 
18.6
 
15.2
 
33.8


% Change
 
+ 61.4 %
 
-61.9 %
 
-34.2%


9 months 2016
 
44.1
 
93.2
 
137.3


9 months 2017
 
56.3
 
73.0
 
129.2


% Change
 
+27.5%
 
-21.7 %
 
-5.9%


Q3 activity


Excellent momentum in France. Sales in France are at €18.6M for a +61% increase compared to Q3 2016. The penetration rate for digital price tags in food and specialty mass retail continues to climb in France, and their adoption is catching on in many new market segments. Among the many successful roll-outs of 2017, Franprix continued to be particularly active during Q3, as was SES-imagotag's project to modernize its large installed base.


Internationally, the Q3 sales figure stands at €15.2M, a decrease compared to Q3 2016 (€39.9M) as previously announced, due to the early transition of the e-paper lines G1 and “G2-Fusion”, despite the excellent order intake level recorded for H1. As a reminder SES-imagotag made the decision in H1 to accelerate the development of the new product line that combines all the technological benefits of recent acquisitions (PDi and Findbox) and thus boost its competitive advantage. The “G2-Fusion” project comes alongside an industrial improvement plan and greatly increased cost competitiveness. This new line entered production at the end of Q3, as planned. Deliveries will thus be limited in H2, since portion of Q2 and Q3 orders have consequently been transferred to this new, ultra-innovative and competitive line.


The G1 to “G2-Fusion” transition has had less of an impact on the French market because it is less focused on e-paper technology than the international markets.


Continued strong momentum in order intake and first major contracts in the United States


In Q3, the Group recorded order intake for a total value of €37M, representing +33% growth, in line with the strong momentum already recorded in H1. The quarter was very busy in terms of international expansion. In Asia, SES-imagotag set up its first stores in China, Taiwan, Japan, and South Korea, thanks to partnerships signed during H1 with important regional actors. In Australia, a promising partnership has just been signed with Hussmann, the leader in refrigeration for supermarkets (and a subsidiary of the Panasonic group). In the United States, several major contracts have been signed for a total of over €10M. They do not figure in the Q3 accounts because they came post-closing.
SES-imagotag is gradually solidifying its reputation and image as an innovative leader on this market that is now showing many signs of accelerated adoption of digital price tags for the near future.


Activity as at the end of September (9 months)


Over the first 9 months of the year, SES-imagotag recorded sales of €129.2M, or a -6% change compared with the same period in 2016 (€137.3M). In France, sales stand at €56.3M for growth of +28%, while international sales stand at €73M, which is lower than sales over the same period in 2016 (€93.2M). This is attributable to decreased deliveries in Q3 and an adverse baseline effect coming from the spike in the Media-Saturn roll-out of 2016.


Order intake over these 9 months shows strong +36% growth compared with 2016, and stands at a value of €141M: this comes close to matching the order intake recorded over the entire year of 2016. This excellent performance is explained by a number of new contracts, all of which have profited from the pre-launch boost of the new “G2-Fusion” line.


New emerging segments


The solutions developed for industry and logistics are gradually finding market acceptance with cumulative sales currently at over €1M. It is anticipated that this new segment should accelerate further thanks to recently-signed specific international partnerships. Just one example of this is the fashion industry, where the new “Fashion-Tag” line has led to several pilot projects with brands in this high-potential segment.


Outlook


As previously announced, activity in H2 will be slowed by the “G2-Fusion” project's industrialization schedule. Nevertheless, the competitive advantages expected from this new “G2-Fusion” line should accentuate current strong order-intake momentum and translate into a strong push forward starting in 2018, in line with the Leapfrog plan trajectory.


This accelerated product plan fits perfectly with the priority the Group places on innovation and increasing its market share around the world.


The final stretch in preparing the BOE deal


Following the Share Purchase Agreement signed last July 19, SES-imagotag is working in close collaboration with BOE Technology Group to finalize the terms of the deal and, in particular, to obtain all regulatory authorizations to close the deal by the end of the year.


Message from the Chairman and CEO, Thierry Gadou


“As of the end of September, SES-imagotag took as many orders as it did in the whole of 2016, clearly confirming its status as a world leader. Our efforts to expand internationally outside Europe have been very intense this year and are starting to bear fruit with successes in the United States, and outstanding partnerships and first stores set up in the largest Asian markets. This activity and investment are essential, because the digital solutions market for physical commerce will be a global market.


Beyond these successes, the watchword for 2017 continues to be innovation. Our new “G2-Fusion” line, currently in pre-launch, is already showing promising success, even more so than G1 did when it entered the market in 2014. This solution brings together the most advanced IOT and software technologies to meet increasingly urgent needs in business transformation: agility, precision, data, automation, connectivity, and collaboration. With the combination of expertise and technologies from SES, imagotag, PDi and Findbox, we can bring our clients the digital platform that will let them adapt their brick-and-mortar points of sale to the omnichannel world of tomorrow and collaborate more efficiently with their suppliers. The needs and the market are enormous, just like our passion and ambition.”


About SES-imagotag


For 25 years, SES-imagotag has been the trusted partner of retailers for digital technology in stores. SES-imagotag, the worldwide leader in smart digital labels and pricing automation, develops a comprehensive IoT and digital platform that delivers a complete set of services to retailers. The SES-imagotag solution enables retailers to connect and digitize their physical stores; automate low-value-added processes; improve operational efficiency; inform and serve customers; ensure information integrity to continuously optimize on-hand inventory; prevent stock-outs and waste and create an omnichannel service platform that builds loyalty and meets evolving consumer expectations. 


SES-imagotag is listed in compartment B of the Euronext™ Paris


Ticker: SESL – ISIN code: FR0010282822 – Reuters: SESL.PA – Bloomberg: SESL


www.ses-imagotag.com


Contact


NewCap – Investor Relations & Financial Communications


Marc Willaume / Tristan Roquet Montégon: Tel: +33 (0)1 44 71 00 13 / [email protected]





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News releases under ongoing reporting obligations:

- News release on accounts, results

Full and original press release in PDF:


https://www.actusnews.com/documents_communiques/ACTUS-0-50965-ses-imagotag_pr_9_month_2017.pdf


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Source: Actusnews

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