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FINANCIAL SITUATION
28
LISI 2015 FINANCIAL REPORT
products should, however, allow the division to continue its
organic growth dynamic.
For the financial year 2016, LISI AUTOMOTIVE has set itself
the objective of continuing the progress recorded over the last
three years, in particular that provided by the implementation
of the LEAP (LISI Excellence Achievement Program) plan, and
to continue to sustainably improve its operational profitability.
The division should be able to build on the reorganization
efforts undertaken since 2012. After four years of intensive
efforts, the performance of the "Threaded Fasteners France"
sites should now recover and profit fully from the industrial
gains.
The investment plan will be less ambitious in 2016, which
should generate a surplus of free cash flow.
2.4
/
LISI MEDICAL
■■
Market rather dynamic
■■
New improvement to the operating margin
■■
Return to a positive Free Cash Flow, despite continuing
significant investments
Market
Over the last two financial years, the world orthopedics market
has returned to growth in line with the long-term trend (+4%
to +5% per year). LISI MEDICAL considers that the contractual
manufacturing segment, in which it operates from its three
production sites, has increased faster, allowing it to consolidate
inventories and orders in the sector.
However, implant prices are still a concern for final users with
a continuous increase in quality demands.
LISI MEDICAL's customers respond to market constraints
by consolidating their portfolio of activities with innovative
approaches.
Highlights
■■
Good level of orders and activity with existing customers and
new customers in orthopedics (€3.0 M)
■■
Tangible improvement of the management indicators for all
sites
Sales revenue amounted to €74.8 million, an increase of +5.2%,
of which part is due to the dollar effect (+2.0%) with a good level
of activity over the last quarter at €18.6 million. Production
was pushed to €75.3 million (+7.0%) with the aim of increasing
inventories of products under contract and improving the
service level to customers.
Activity
In millions of euros
2015
2014
Changes
Sales revenue
74.8
71.1
+5.2%
Current operating profit (EBIT)
4.1
3.5
+16.8%
Operating cash flow
5.3
3.5
+51.0%
Net CAPEX
(4.0)
(4.6)
-12.2%
Free cash flow
1
1.7
(1.0)
+€2.7M
Registered employees at period end
573
538
+6.5%
Average full time equivalent headcount
2
623
597
+4.4%
1 Free cash flow: operating cash flow minus net industrial CAPEX and changes in working capital requirements.
2 Including temporary employees
Commercially, order taking is at a reasonable level, before the
ramp-up of generic products and projects under development.
Supported by the volume effect which allows better coverage
of fixed costs, the operating margin improved again to reach
5.5% (4.9% in 2014). All sites progressed, in particular in the
USA where sales revenue increased by 41% in euros. Quality,
productivity and consumption indicators are managed, despite
the dollar effect on the price of raw materials, jolts in demand
and the increased flexibility demanded by major customers.