|2021 OUTLOOK|| |
Q1 2021 REVENUE – SEQUENTIAL RECOVERY CONFIRMED
Q4 2020 REVENUE
|Q1 2021 REVENUE||Q1 2020 REVENUE||REPORTED GROWTH (%)||ORGANIC GROWTH (%)||PRO FORMA CONSTANT GROWTH *** (%)|
Q1 2021 vs Q4 2020 (%)
* Excluding France, Germany and North America
** Data Respons has been consolidated since March 1st, 2020* Excluding France, Germany and North America
*** Pro-forma constant = Organic + Data Respons revenue
- AKKA recorded revenues of €385.2M in Q1 2021, down -9.6% or -15.3% on a pro forma constant basis. This represents a strong improvement on the -26.6% quarter on quarter pro forma constant decrease recorded in Q4 2020, although the basis of comparison being was still challenging this quarter. The sequential revenue growth since Q3 2020 that reflects the gradual improvement in the business continued this quarter, with revenues up 2.9% compared to Q4 2020. As expected, North America recorded a -6.8% decrease in sales sequentially due to the strategic repositioning initiated to drive the business towards high value-added projects.
- AKKA legacy business increased by 2.1% in Q1 2021 compared to Q4 2020, while Data Respons recorded an 8.3% increase in revenue sequentially, benefiting from a bolt-on acquisition this quarter.
- AKKA’s mobility sectors were generally stable in Q1 2021 compared to Q4 2020. The automotive sector was steady thanks to the good dynamism in France, North America and International BUs, offsetting a conversion of the order book into production which is slow to materialize in Germany BU. Aeronautics is stable overall sequentially, and the Space and Defense sectors are still growing by more than 20% compared to the same period last year. Finally, Railways is experiencing a weaker growth cycle.
- The non-mobility sectors, accounting for 30.7% of Group revenue for Q1 2021, show a sequential growth in excess of 10% compared to Q4 2020. Services, Life sciences, Energy have fuelled this growth. The intense focus on the diversification towards mid-size clients in a variety of other sectors is bearing fruits.
SEQUENTIAL IMPROVEMENT ACROSS UNITS – BUSINESS REPOSITIONING IN NORTH AMERICA
- The French BU posted revenue of €123.1m in Q1 2021, down by -19.4% compared to the same quarter in 2020. The weakness of the aeronautics sector continues to prevail while Defense, Life Sciences, and Telecom are benefiting from strong momentum. Sequentially, the growth continues with revenue increasing +6.4%, reflecting the improvement in most sectors.
- Revenue in the German BU was €83.7m in Q1 2021, down -21.6% compared to Q12020. The positive momentum that materialized in the second half of 2020 has resulted in a very strong order book, which bodes well for future production; timing is however difficult to estimate precisely. Sequentially, revenue growth was limited, as this phase of transforming projects into production resulted in a slight drop in revenues in Automotive while the other sectors recorded very good growth.
- North America recorded revenue of €61.3m, down -20.8% or -13.6% on an organic pro forma base. This BU was impacted by a marked negative exchange rate effect and by our strategic shift. The repositioning of the business towards sales of higher value-added engineering solutions and digital solutions has indeed been initiated as expected and will continue. Our engineering activities in sectors where we have historical expertise, such as the automotive industry, are growing very well.
- The International BU posted Q1 revenue of €61.5m, a decline limited to -7.9% compared to the challenging basis of comparison that was Q1 2020, or a -6.4% on a pro forma constant base. Revenues increased 5.9% sequentially, thanks to the strong momentum in Life Sciences and automotive (respectively up 15% and 12% compared to Q4 2021), among others.
- Data Respons revenue was €52.0m in Q1 2021 compared to €18.2m in Q1 2020 when Data Respons had contributed only from 1st March 2020. On a pro forma constant base, revenue decreased 4.8%, as its computer solution business is suffering from the global shortage of chips, while the growth profile of its engineering and solutions business remains strong. In addition, Data Respons acquired a small digital solutions company in the finance sector (banks, financial service providers and insurance companies) in northern Germany (90 people – 2020 revenue: €14m), reinforcing its portfolio with this bolt-on acquisition.
BUSINESS TRENDS AND OUTLOOK FOR THE REMAINDER OF 2021
- In Q1 2021, the business momentum has enabled AKKA to achieve sequential revenue growth for the third consecutive quarter1. These dynamics are expected to continue, leading to Group revenue growing organically as early as in Q2 2021 and the basis of comparison will become comparable.
- The roll-out of our Fit-2-Clear transformation plan is ongoing. AKKA confirms its full year expectations in terms of cost reductions and AKKA’s management across all BUs remains strongly focused on recovering pre-crisis profitability (operating profit (adjusted)) as swiftly as possible.