• PARROT: 2024 FIRST-HALF EARNINGS

    Source: Nasdaq GlobeNewswire / 02 Aug 2024 01:00:00   America/Chicago

            PRESS RELEASE
            August 2, 2024 - 8:00am CET

    2024 FIRST-HALF EARNINGS

    Close to stable revenues and strict cost control enabling
    a significant reduction in operating losses

    Net cash at end-June of €19.6m, aligned with the Group’s ambitions for development

    Commercial rollout moving forward for the new Defense & Security microdrone

    The Parrot group, a European leader for professional microdrones, recorded €30.6m of consolidated revenues for the first half of 2024, down 3%. A number of key steps were successfully taken, including the launch of the new microdrone for the Defense and Security market and the first sales recorded at the end of the first half of the year. Alongside this, operating expenditure was reduced by 18% and cash consumption was limited to €8.5m for the first half of 2024.

    While the interest in secure and autonomous microdrones is highlighted by the preponderance of new technologies in the current conflicts, Parrot continues to be mobilized to ensure the success of its new microdrone, a key driver for 2024.

    Revenues for professional microdrones came to €15.1m in the first half of 2024, compared with €15.5m for the same period in 2023. The new microdrone, finalized during the second quarter, contributed €0.8m, with the first orders delivered at the end of June. Sales of the latest generations of microdrones (excluding accessories) show growth of 8%, masked by the contraction (-€1.1m) in sales of the older generations of drones.

    Photogrammetry revenues totaled €15.5m for the first half of 2024, compared with €16.1m (-4%) for the same period in 2023. The 7% growth in the most recent solutions, which now represent more than 50% of sales, did not fully offset the contraction seen for the older generations of solutions over the period. Innovative solutions, combining software and complementary photogrammetry equipment in particular, were launched during the second quarter of 2024.

    REVENUES
    €m and % of revenues    		H1 2024
    6 months    		H1 2023
    6 months    		Change
    AProfessional microdrones15.149%15.549%-3%
     Legacy products (1)0.31%1.41%-81%
    CPhotogrammetry15.551%16.151%-4%
    DParrot SA0.41%0.31%-
    EIntragroup eliminations-0.4-1%-0.3-1%-
     PARROT GROUP TOTAL30.6100%31.6100%-3%

    (1) Former drone ranges and consumer products

    2024 first-half earnings

    The consolidated financial statements for the first half ended June 30, 2024 have been subject to a limited review by the statutory auditors and were approved by the Board of Directors on July 31, 2024. The half-year financial report is being published on https://www.parrot.com/uk/corporate/reports.

    CONSOLIDATED INCOME STATEMENT
    (IFRS, €m)    		June 30, 2024
    (6 months)    		June 30, 2023
    (6 months)    		ChangeDec 31, 2023
    (12 months)
    Revenues30.631.6-3%65.0
       Microdrones15.115.5-2%33.2
       Photogrammetry15.516.1-4%31.8
    Cost of sales-5.3-7.4-29%-18.0
    Gross margin25.324.1+5%47.0
    % of revenues82.7%76.5% 72.3%
    Research and development costs-21.4-26.1-18%-45.5
    % of revenues-70.0%-82.8% -70.0%
    Sales and marketing costs-5.3-7.0-25%-12.3
    % of revenues-17.2%-22.1% -18.9%
    Administrative costs and overheads-5.9-7.1-16%-11.7
    % of revenues-19.4%-22.5% -18.1%
    Production and quality costs-2.4-2.5-5%-4.7
    % of revenues-7.8%-8.0% -7.3%
    Income from ordinary operations-9.7-18.5-48%-27.3
    % of revenues-31.7%-58.8% -42.0%
    Other operating income and expenses-0.2-3.2-94%-2.8
    EBIT-9.9-21.8-55%-30.0
    % of revenues-32.3%-68.9% -46.2%
    Income from cash and cash equivalents0.00.0-0.0
    Gross finance costs-0.4-0.1--0.3
    Net finance costs-0.4-0.1--0.3
    Other financial income and expenses0.4-0.8--2.0
    Financial income and expenses0.0-0.9--2.3
    Share in income from associates-0.1-0.3-68%-0.5
    Tax-0.20.0--0.1
    Net income-10.1-22.9-56%-33.0
    Net income (Group share)-10.1-22.5-55%-32.4
    % of revenues-32.9%-71.4% -50.0%
    Non-controlling interests-0.1-0.4-81%-0.5

    The Parrot group generated €30.6m of consolidated revenues during the first half of 2024, down 3% (idem at constant exchange rates), and a gross margin of €25.3m, giving a margin rate of 82.7%. Specifically, it benefited from a favorable product mix, linked to the growing focus on the next-generation microdrones and solutions, as well as a reversal of provisions for €0.6m.

    Following the strategic plan rolled out mid-2023 to get the Group on track for profitability, it reduced its operating expenditure by -€7.5m (-18%) between the first half of 2024 and the first half of 2023. At end-June 2024, the Group’s workforce - permanent and fixed-term contracts - represented 416 people, compared with 404 at December 31, 2023 and 572 at June 30, 2023. 44% of the workforce is dedicated to microdrones, with 48% covering photogrammetry and 7% head office support teams. The Group has continued to limit the involvement of external contractors (17 versus 16 at December 31, 2023).

    For the first half of 2024, R&D came to €21.4m (-18%) and continued working to respond to the challenges involved with the new generations of products, launched during the second quarter of 2024. 61% of the Group’s workforce, based exclusively in Europe, are focused on innovation.

    Sales and marketing costs for the first half of 2024 totaled €5.3m (-25%), benefiting from the streamlining of the product portfolio and the ongoing field marketing initiatives, such as the Tech Days.

    Administrative costs and overheads came to €5.9m (-16%) for the first half of 2024, thanks to the combined efforts of all of the Group’s business units, largely offsetting the increase in head office rent.

    Production and quality costs totaled €2.4m (-5%) for the first half of 2024, factoring in the efficiency and effectiveness of the new industrial organization rolled out in South Korea and the ramp-up of production for the new microdrone.

    Income from ordinary operations came to -€9.7m for the first half of 2024, compared with -€18.5m for the first half of 2023. -€6.9m (vs. -€11.3m in H1 2023) are attributable to the microdrone business, with -€1.2m (vs. -€5.6m in H1 2023) for the photogrammetry business. The other expenses (-€1.6m) are attributable to Parrot SA.

    First-half other operating income and expenses are not significant at €0.2m. They do not include the €150K fine relating to the end of the 2018 AMF investigation, as announced on July 23, 2024.

    As there is no financial debt, the financial expenses recorded are not significant. The share in income from associates for -€0.1m and the tax for -€0.2m take net income (Group share) for the first half of 2024 to -€10.1m, compared with -€22.5m at June 30, 2023.

    Change in the cash position

    The Group had €19.6m of net cash at June 30, 2024, compared with €28.1m at end-December 2023. First-half cash consumption came to €8.5m, compared with €23.7m for the first half of 2023. It reflects the reduction in losses and the positive change in working capital requirements for €2.4m, primarily resulting from the lower level of inventory (-€2.7m). In this context, cash flow from operating activities totaled €5.9m at June 30, 2024 (versus €25.6m at June 30,2023). Investing activities came to -€1.1m, linked to the industrialization of the new microdrone in South Korea. Financing activities, for -€1.4m, correspond primarily to the repayment of lease liabilities with the application of IFRS 16.

    Outlook

    While the interest in secure and autonomous microdrones is highlighted by the preponderance of new technologies in the current conflicts, Parrot is working to meet the technological and operational challenges faced to ensure the success of its new microdrone, which is driving trends in 2024.

    In the photogrammetry sector, the expansion of the addressable market, capitalizing in particular on complementary equipment, is a key area for growth, as in 2023.

    With the effective implementation of its strategic plan in 2023, combined with its rigorous management of operations and investments, the Group has financial resources in place enabling it to continue moving forward with its ambitions for development.

    Next financial dates

    2024 third-quarter revenues: Friday November 15, 2024

    ABOUT THE PARROT GROUP

    Parrot is Europe's leading commercial microUAV group. With a strong international presence, the Group designs, develops and markets a complementary range of micro-UAV equipment and image analysis software (photogrammetry) dedicated to companies, large groups and government organizations. Its offer is mainly centered on three vertical markets: (i) Defense and Security, (ii) Inspection, 3D mapping and Geomatics, (iii) and Precision agriculture.

    Its ANAFI range of microUAVs, recognized for their performance, robustness and ease of use, features an open source architecture and meets the highest cybersecurity standards. Its Pix4D photogrammetry software suite for mobile and drone mapping is based on advanced technical expertise and offers solutions tailored to the specificities of the verticals it addresses.

    The Parrot Group, founded in 1994 by Henri Seydoux its Chairman, CEO and main shareholders, designs and develops its products in Europe, and is headquartered in Paris. Today, it has close to 500 employees worldwide and carries out the vast majority of its sales internationally. Parrot has been listed on Euronext Paris since 2006 (FR0004038263 - PARRO). For more information: www.parrot.com, www.pix4d.com

    CONTACTS

    Investors, analysts, financial media
    Marie Calleux - T.: +33 1 48 03 60 60
    parrot@calyptus.net    		Tech & corporate media
    Chris Roberts - T.: +33 1 48 03 60 60
    pr@parrot.com

    APPENDICES

    Quarterly revenues

    REVENUES
    €m and % of revenues    		Q1 2024
    3 months    		Q2 2024
    3 months    		Q1 2023
    3 months    		Q2 2023
    3 months
    AProfessional microdrones9.359%5.739%9.457%6.040%
     Legacy products(1)0.10%0.20%0.53%0.96%
    CPhotogrammetry6.441%9.161%7.243%8.960%
    DParrot SA0.21%0.21%0.21%0.11%
    EIntragroup eliminations-0.2-1%-0.2-1%-0.2-1%-0.1-1%
     PARROT GROUP TOTAL15.8100%14.8100%16.7100%14.9100%

    (1) Former drone ranges and consumer products.

    Segment reporting for the first half of 2024

    IFRS (€’000 and % of revenues)MicrodronesPhotogrammetryOther(1)Total
    Revenues15,05815,535030,593
    Income from ordinary operations-6,902-1,232-1,568-9,702

    (1) Parrot S.A. and ancillary or non-strategic activities.

    IFRS consolidated balance sheet

    ASSETS (IFRS, €m)Jun 30,
    2024    		Dec 31, 2023Jun 30,
    2023
    Non-current assets21.020.617.8
    Other intangible assets0.10.10.1
    Property, plant and equipment2.21.71.9
    Right of use8.68.28.6
    Investments in associates3.13.53.8
    Financial assets6.66.63.1
    Deferred tax assets0.50.50.4
    Other non-current assets0.00.00.0
    Current assets56.566.685.5
    Inventories16.819.422.3
    Trade receivables8.15.75.6
    Tax receivables5.97.46.4
    Other receivables6.16.16.4
    Cash and cash equivalents19.628.144.8
    Total assets77.587.2103.4


    SHAREHOLDERS’ EQUITY AND LIABILITIES (IFRS, €m)Jun 30, 2024Dec 31, 2023Jun 30, 2023
    Shareholders’ equity46.055.261.3
    Share capital4.74.74.6
    Additional paid-in capital331.6331.6331.7
    Reserves excluding earnings for the period-290.0-258.4-262.0
    Earnings for the period - Group share-10.1-32.5-22.5
    Exchange gains or losses9.49.38.9
    Equity attributable to Parrot SA shareholders45.654.760.7
    Non-controlling interests0.40.50.6
    Non-current liabilities11.211.611.4
    Non-current financial liabilities0.00.0-
    Non-current lease liabilities6.46.46.6
    Provisions for pensions and other employee benefits2.62.31.8
    Deferred tax liabilities0.00.00.0
    Other non-current provisions0.00.10.0
    Other non-current liabilities2.32.63.0
    Current liabilities20.320.530.6
    Current financial liabilities0.0--
    Current lease liabilities2.41.92.2
    Current provisions0.93.09.1
    Trade payables5.55.37.3
    Current tax liabilities0.20.10.1
    Other current liabilities11.410.211.9
    Total shareholders’ equity and liabilities77.587.2103.4

    Consolidated cash-flow statement

    IFRS, €mJun 30, 2024Dec 31, 2023Jun 30, 2023
    OPERATING CASH FLOW   
    Earnings for the period-10.1-33.0-22.9
    Share in income from associates0.10.5-0.3
    Depreciation and amortization0.14.48.9
    Capital gains and losses on disposals0.7-3.3-3.3
    Tax expense0.20.10.0
    Cost of share-based payments0.61.31.1
    Other non-cash items- -
    Net finance costs0.40.30.1
    Cash flow from operations before net finance costs and tax-8.1-29.7-15.9
    Change in working capital requirements2.4-11.0-9.6
    Tax paid-0.20.0-0.1
    Cash flow from operating activities (A)-5.9-40.7-25.7
    INVESTING CASH FLOW   
    Acquisition of property, plant and equipment and intangible assets-1.0-0.8-0.4
    Acquisition of financial assets-0.1-0.2-0.1
    Disposal of property, plant and equipment and intangible assets0.00.0 
    Disposal of subsidiaries, net of cash divested---
    Disposal of financial assets0.15.55.6
    Cash flow from investment activities (B)-1.14.55.1
    FINANCING CASH FLOW   
    Equity contributions--1.6-1.6
    Net finance costs-0.1-0.3-0.1
    Repayment of short-term financial debt (net)-1.3-2.5-1.4
    Cash flow from financing activities (C)-1.4-4.4-3.1
    NET CHANGE IN CASH (D = A+B+C)-8.4-40.6-23.5
    Impact of change in exchange rates-0.10.2-0.2
    CASH AND CASH EQUIVALENTS AT START OF PERIOD28.168.568.5
    CASH AND CASH EQUIVALENTS AT END OF PERIOD19.628.144.8

    Attachment


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