Latécoère (LAT) H2 2023 earnings summary

Executive summary

• 2023 saw strong revenue growth (+32.9% to €622.3m), driven by higher production rates and full-year contributions from 2022 acquisitions, despite persistent supply chain and inflationary pressures.

• Recurring EBITDA deteriorated to -€18.6m (down €12.9m vs. 2022), mainly due to cost overruns from supply chain constraints and inflation not fully passed to customers.

• Net cash flow was positive at €11.2m, supported by a €124.4m capital increase and €183m debt reduction, offsetting operational cash outflows.

• The group completed a major financial restructuring, including debt waivers, maturity extensions, and a recapitalization, improving liquidity and reducing net debt to €125.2m.

Financial highlights

• Revenue: €622.3m in 2023 (+32.9% vs. 2022); organic growth +17.5%.

• Recurring EBITDA: -€18.6m (vs. -€5.7m in 2022 restated).

• Net income: €6.2m (vs. -€129.7m in 2022), reflecting the impact of debt waivers.

• Net debt: €125.2m at year-end 2023 (down from €297.1m in 2022).

• Cash and cash equivalents: €85.1m at year-end 2023.

Outlook and guidance

• 2024 guidance anticipates further revenue growth, significant reduction in EBITDA losses, and improved operational free cash flow, despite ongoing restructuring costs and working capital needs.

• Management expects supply chain and inflationary challenges to persist but foresees operational and commercial initiatives driving performance.