28 / 158
28
LISI 2016 FINANCIAL REPORT
The sales revenue amounted to €119.1 million, i.e. an increase of
+59.3%. At a constant perimeter, the sales revenue increased by +0.4%
with a more active last quarter at +2.8%.
On the commercial front, orders kept up well, driven by the very strong
dynamic of LISI MEDICAL Remmele, the build-up of generic products
(constitution of inventories) and projects being developed.
Results
Supported by the volume effect which allows better coverage of fixed
costs, and consolidation of LISI MEDICAL Remmele, the operating
margin once again improved and amounted to 7.8% (5.5% in 2015;
4.9% in 2014).
The division’s French sites confirm the operating progress observed
for several months. The American sites of LISI MEDICAL Remmele
reached performance levels complying with the group’s objectives
while the Jeropa site experienced some disruptions due to the change
in its product portfolio undertaken several months previously.
The CAPEX, still significant (€5.6 million), were above all carried by the
purchase of equipment intended for developments and the production
of new products. They are financed by a very good level of operating
cash flow (+€11.8 million). The levels of inventories expressed in days
of sales revenues experienced a further drop to reach the historically
low level of 65 days. Consequently, the
Free Cash Flow
improved once
again over the financial year to €3.7 million (+€1.7 million in 2015;
–€1.0 million in 2014) i.e. 3.1% of sales revenue.
OUTLOOK
After a lackluster start to 2016, the division reinforced its fundamentals
and its positioning as benchmark supplier with its customers.
Furthermore, the consolidation of LISI MEDICAL Remmele gave it
a greater visibility and opened new prospects for organic growth
with new markets for medical appliances other than orthopedics.
The continuation of continuous improvement actions, investments
in differentiating technologies and industrialization of new products
should make it possible to consolidate this positive trend.
Qualitative objectives for 2017 are in line with the improvement
approach underway for the last three years. The division is therefore
on the way to joining the world’s four leading specialized contractual
manufacturers to support its sector consolidation approach.
FINANCIAL SITuaTION
2