05/06/2023

5 June 2023
5 June 2023, Comments Comments Off on Leisure vehicles make record contribution to Trigano’s €173.5m half year operating profit
Leisure vehicles make record contribution to Trigano's €173.5m half year operating profit

Trigano’s consolidated current operating profit for the first half of 2023 reached €173.4M, representing 10.8% of sales, thanks to a record contribution from the leisure vehicle business of €173.5M, representing 11.4% of sales.

In a context still impacted by difficulties in the supply of wheelbases for motorhomes, Trigano succeeded in mastering the evolution of its production costs and overheads, while pursuing its policy of gradual adjustment of its sales prices. The leisure vehicle production business performed particularly well, while the accessories distribution business, affected by network destocking, was slightly down.

The activity of the leisure vehicle distribution companies acquired in 2022, being marked by strong seasonality, their contribution to the half-year results is marginal with a dilutive effect on profitability rates.

The current operating income of the leisure equipment division was impacted by the under-activity
of the Trailers division, which prevent the optimisation of the consumption of production resources and
weighed on manufacturing costs and productivity. Taking into account a financial result of -€8.7M, affected by the transfer of two sale points imposed as part of the acquisition process of three distribution groups in 2022, a corporate tax expense of €44.1M and a positive contribution of equity affiliates (€1.2M), net consolidated profit reached €121.7M (€141.3M in H1 2021/2022) and represents €6.30 per share.

Investments (excluding external growth, but including IFRS 16) amounted €49.5M (€39.0M in 2021/2022).
This especially includes the activation of the rental contract for a warehouse to manage accessories sales
growth in the Netherlands (€16.6M) as well as various programmes to improve productivity and working
conditions.

Given the high level of its order books and the noticeable improvement in motorhomes chassis receipts
observed for several weeks, Trigano should record a good increase in its sales and profitability in the second half year.

Driven by the quality of its fundamentals (favourable demographic change in the customer base; aspirations for more freedom, proximity to nature and conviviality; desire to keep control on budget and sanitary environment), the motorhome still benefits from a keen interest in Europe. Attendance at trade fairs and points of sale is strong in most countries, but market volume could be impacted in medium term by adverse economic or geopolitical phenomena. In this context, and in order to develop its market share gains, Trigano will present new vehicles ranges to its networks from June onwards. These should appeal to budget conscious customers looking for an attractive equipment/price ratio.

Backed by a solid financial position and positive net cash, Trigano has the means to pursue its growth at a
sustained pace. The structural investments initiated in the distribution of leisure vehicles and the production of mobile homes will make the company even more robust and competitive in the long term