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Activity
In millions of euros
2017
2016
Changes
Sales revenue
137.0
119.1
+ 15.1%
Current operating profit (EBIT)
9.8
9.3
+ 5.7%
Operating cash flow
14.0
11.8
+ 19.2%
Net CAPEX
- 10.6
- 5.6
+ 89.3%
Free Cash Flow
1
6.7
3.7
€+3.0 million
Registered employees at period end
909
915
- 0.7%
Average full time equivalent headcount
2
985
868
+ 13.5%
1
Free Cash Flow: operating cash flowminus net capital expenditure and changes in working capital requirements.
2
Including temporary workers.
Sales revenue amounted to €137.0 million, an increase of +15.1%. It
benefited from the full-year effect of the integration of LISI MEDICAL
Remmele (incremental sales revenue of €22.8 million over the period).
At constant scope and exchange rates, sales decreased by 2.3%with the
second half-year clearly showing a decrease (-8.6%) compared with the
first(+7.1%).LISIMEDICALRemmelehadtocopewithatemporarydelay in
theramping-upofsomeof itsproducts informinimally invasivesurgeries
and also saw two significant products reassigned to other production
processes.
Results
Underthesecircumstances,theoperatingmarginis7.1%,closetothe7.8%
achieved in 2016. The division’s historical sites confirm the operational
progress observed over the last few months, whereas LISI MEDICAL
Remmele’s US sites were penalized by a very unfavorable volume effect
in the second half of the year, as well as an increase in medical coverage
expenses.
At €10.6 million, investments nearly doubled compared to 2016, in order
to accelerate the acquisition of equipment for the development and
production of new products. In addition, the production capacity of the
LISI MEDICALRemmele unit has been increased. CAPEXwas financed by
a very good level of operating cash flow (+€14.0million).
The levelsof inventoriesexpressedasanumberofdaysofsalesrevenues
experienced a further drop to reach the historically low level of 61 days.
Consequently,FreeCashFlowimprovedonceagainoverthefinancialyear
to €6.7 million, or 4.9%of sales revenue.
OUTLOOK
Thedivisionreinforceditsfundamentalsanditspositioningasbenchmark
supplierwith itsmajorglobalcustomers.The integrationofLISIMEDICAL
Remmele clearly positions the division as a major player capable of
providing global solutions to themain contractors in the orthopedics and
minimally invasive surgery markets.
The pursuit of continuous improvement efforts, investments in
differentiating technologies and the industrialization of new products
should help to consolidate the good trends seen over the past four years.
The adjustment of LISI MEDICAL Remmele’s production costs before the
ramp-up of newprojectswill also be amajor focus of attention in the first
part of 2018.
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LISI 2017 FINANCIAL REPORT
FINANCIAL SITUATION
2