BLANQUEFORT, France--(BUSINESS WIRE)--Regulatory News:
Groupe Berkem (Paris:ALKEM), a leading player in bio-based chemicals (ISIN code: FR00140069V2, Ticker: ALKEM), announces its consolidated results for the year ended December 31, 2021, as approved by its Board of Directors on April 15, 2022. The audit procedures on the annual accounts have been conducted and the auditors' report is being issued. Groupe Berkem also reports its 2022 first-quarter revenue and provided an update on its recent business trends and outlook.
Olivier Fahy, Chairman and Chief Executive Officer of Groupe Berkem stated: “2021 was a game-changing year for Groupe Berkem. We completed our IPO in early December, capping off a solid year from a business and financial perspective. Along with our financial performance, we have demonstrated in recent months the effectiveness of our strategy of meeting the growing demand among industries for natural products. We now sell 100% bio-based resins for the paints market, delivering a performance equivalent to conventional products at a competitive cost. Staying true to our corporate purpose and in line with the commitments we gave ahead of our IPO, we are well-placed to achieve a healthy pace of profitable growth over the next few years. Accordingly, we are reiterating our financial targets for 2024.”
Anthony Labrugnas, Chief Financial Officer of Groupe Berkem, added: “Our performance during 2021 reflects Groupe Berkem’s ability to raise our profitability while pursuing ambitious organic growth. We maintained the same positive momentum in the first few months of 2022, despite pressure on our supply chain in the current market environment. The investments we made in recent years, especially in our Lixol subsidiary, have also started to pay off. Lastly, we strengthened our financial strength with our successful IPO, helping to optimize our balance sheet.”
2021 FULL-YEAR RESULTS
2021 income statement
| In thousands of euros | 2021 | 2020 | % change |
Revenue |
46,066 |
40,574 |
14% |
Sales of goods |
27 |
- |
|
Production sold (goods) |
42,715 |
38,985 |
|
Production sold (services) |
3,325 |
1,589 |
|
Capitalized production |
1,725 |
1,383 |
|
Production in Inventory |
529 |
-196 |
|
Operating subsidies |
722 |
1,050 |
|
Reversal of impairment and provisions |
611 |
96 |
|
Other income |
6 |
144 |
|
Other operating income |
1,050 |
- |
|
Operating revenue |
50,709 |
43,050 |
18% |
Purchases consumed |
-19,770 |
-15,536 |
|
Staff costs |
-11,470 |
-10,287 |
|
External charges |
-8,935 |
-8,254 |
|
Change in inventories |
363 |
-176 |
|
Other operating expense |
-301 |
-430 |
|
Taxes other than on income |
-788 |
-897 |
|
Depreciation and amortization |
-4,247 |
-2,972 |
|
Operating income/(loss) |
5,560 |
4,851 |
15% |
Net financial income/(expense) |
-2,766 |
-150 |
|
Income from consolidated companies |
2,794 |
4,701 |
-41% |
Non-recurring income and expense |
-1,297 |
-2,107 |
|
Income tax expense |
-770 |
-1,146 |
|
Amortization of goodwill |
- |
-15 |
|
Consolidated net income |
727 |
1,462 |
-50% |
Non-controlling interest |
193 |
21 |
|
Net income attributable to owners of the parent |
534 |
1,441 |
-63% |
Notes:
The 2021 consolidated income statement is an unaudited pro forma 12-month income statement, with the audited consolidated financial statements covering the period from March 8, 2021 (date of the takeover of BERKEM DEVELOPPEMENT) to December 31, 2021.
The 2020 income statement is derived from the audited combined financial statements and corresponds to the sum of the parent company financial statements of BERKEM GROUP and the consolidated financial statements of BERKEM DEVELOPPEMENT, BERKEM, ADKALIS, LIXOL, and EUROLYO.
Strong growth of 14% in revenue to €46.1 million and EBITDA margin of 20% in 2021
Groupe Berkem’s 2021 revenue totaled €46.1 million in 2021, up close to 14%1 from €40.6 million in 2020.
The plant extraction division contributed 31.5% (vs. 35% in 2020) of 2021 revenue, or €14.5 million. The formulation division contributed 68.5% (vs. 65% in 2020) of 2021 revenue, or €31.6 million. The formulation division’s revenue recorded a strong increase of 20% in 2021. The key factors behind this rise were an acceleration in demand for bio-based solutions in the construction sector (up 33%) and also in the pest control market (up 21%).
In 2021, purchases consumed, mainly comprising raw materials purchases, amounted to €19.8 million. Staff costs rose to €11.5 million, up 11% compared to 2020, following the recruitments to support the acceleration in the Group’s growth.
Groupe Berkem continues its drive to invest in R&D and regulatory affairs in order to sustain its level of innovation and support its applications for marketing approval. 6% of revenue was invested in R&D in 2021.
EBITDA2 totaled €9.2 million, up from €7.7 million in 2020 and representing an EBITDA margin of 20%, ahead of the 19% posted in 2020.
Operating income came to €5.6 million in 2021, up from €4.8 million in 2020 (+15%).
Net financial expense came to €2.8 million in 2021, with consolidated net income at €2.8 million before tax and non-recurring items. Non-recurring income and expenses, corresponding in part to internal costs related to Groupe Berkem’s IPO, came to €1.3 million during the year. Income tax expense totaled €0.8 million in 2021.
Lastly, net income attributable to owners of the parent came to €0.5 million in 2021.
Net cash position of €15.4 million at December 31, 2021
In December 2021, the Company completed a €43.9 million capital increase. Since the initial offering was oversubscribed, the Company exercised the extension clause in full. In addition, the total size of the Offering was increased to €52.2 million following the partial exercise of the overallotment option. The total number of Groupe Berkem shares sold in connection with the IPO came to 5,615,191, of which 4,719,222 were new ordinary shares and 895,969 were existing shares.
In line with the IPO guidance, Groupe Berkem devoted a portion of the proceeds raised from the capital increase to strengthening its balance sheet by redeeming some of the convertible bonds in shares. Consequently, net debt at December 31, 2021 was €4.4 million, compared with €39.2 million in 2020.
At December 31, 2021, Groupe Berkem held a net cash position of €15.4 million.
2022 FIRST-QUARTER REVENUE
Groupe Berkem’s 2022 first-quarter revenue totaled €13.8 million, up 14% from the €12.1 million recorded in the first quarter of 2021.
The plant extraction division contributed 32.6% of this revenue, or €4.5 million, up 35.5% from €3.3 million in the first quarter of 2021. The formulation division generated 67.4% of revenue. Its contribution totaled €9.3 million, up 6.3% versus €8.8 million in the same period of the previous year.
UPDATE ON BUSINESS TRENDS
Management
In January 2022, Groupe Berkem appointed Éric Moussu as Chief Commercial Officer to strengthen its management team. The solid expertise he has gained over his 30-year career in the chemicals sector will be a major asset for achieving the Group’s future ambitions.
Business trends
Tensions on raw materials did not have a significant impact on the 2021 financial year. In the first quarter of 2022, there was no impact on revenues but on the margin level of certain activities in the formulation division. Groupe Berkem has implemented the necessary measures to offset these increases.
In March 2022, Groupe Berkem launched a range of 100% bio-based resins for the construction paints market. The new offering was designed using bio-based, renewable raw materials, capable of replacing petrochemical-based raw materials. One of the game-changing, innovative features of this resin is that it uses a 100% bio-based solvent. This groundbreaking innovation delivers the same performance as a conventional product: hardness over time, good drying performance, toughness, and resistance to aging, etc.
International and Regulatory Affairs
Groupe Berkem generated 28% of its revenue in export markets during 2021 (versus 28.5% of its revenue in 2020). At March 31, 2022, it held 118 marketing approvals, with a further 71 applications under review.
OUTLOOK
Ambitious financial targets for 2024 reiterated
The Group is reiterating its 2024 target revenue of at least €65 million, which may be increased to at least €85 million should it make acquisitions. By the same target date, the Group’s target is to raise the EBITDA margin to around 25%.
Publication of the 2021 annual report
The 2021 annual report will be available on the Company’s website and filed with the AMF on April 29, 2022.
Next financial report:
First-half 2022 revenue: July 21, 2022 (after the market close)
ABOUT GROUPE BERKEM
Founded in 1993 by Olivier Fahy, Chairman and Chief Executive Officer, Groupe Berkem is a leading force in the bio-based chemicals market. Its mission is to advance the environmental transition of companies producing the chemicals used in everyday lives (cosmetics, food and beverages, construction, public hygiene, etc.). By harnessing its expertise in both plant extraction and innovative formulations, Groupe Berkem has developed bio-based boosters—unique high-quality bio-based solutions augmenting the performance of synthetic molecules. Groupe Berkem achieved a revenue of €46 million and an EBITDA margin close to 20% in 2021. The Group has almost 170 employees working at its head office (Blanquefort, Gironde) and three production facilities in Gardonne (Dordogne), La Teste-de-Buch (Gironde), and Chartres (Eure-et-Loir).
Groupe Berkem has been listed on Euronext Growth Paris since December 2021 (ISIN: FR00140069V2 – ALKEM)
APPENDIX
Consolidated balance sheet3
In thousands of euros
| Dec. 31, 2021 |
|
|
|
Gross |
Depr., amort.,
|
Net |
|
|
|||
Intangible assets |
56,920 |
- 1,895 |
55,026 |
o/w goodwill |
29,693 |
- |
29,693 |
Property, plant and equipment |
35,487 |
- 22,015 |
13,472 |
Financial assets |
226 |
- |
226 |
Investments in associates |
- |
|
- |
Total non-current assets |
92,632 |
- 23,910 |
68,723 |
|
|||
Inventories and work in progress |
7,505 |
- 251 |
7,254 |
Trade and other receivables |
3,331 |
- 345 |
2,986 |
Other receivables and accruals |
8,406 |
- |
8,406 |
Marketable securities |
70 |
- 1 |
69 |
Cash and equivalents |
15,533 |
15,533 |
|
|
|
|
|
Total assets |
127,477 |
- 24,506 |
102,971 |
|
|||
|
|||
Share capital |
39,791 |
||
Share premiums |
29,801 |
||
Reserves |
1,883 |
||
Currency translation differences |
- |
||
Income for the year |
141 |
||
Total equity |
|
|
71,617 |
|
|||
Non-controlling interest |
- |
||
Provisions |
1,334 |
||
Borrowings and financial liabilities |
19,997 |
||
Trade and other payables |
5,951 |
||
Other liabilities and accruals |
4,073 |
||
|
|
|
|
Total equity and liabilities |
|
|
102,971 |
Cash flow statement
In thousands of euros
2021.12 |
|
Total net income from consolidated companies |
158 |
Depreciation, amortization and provisions |
4,226 |
Change in deferred tax |
-11 |
Capital gains/(losses) on disposals |
- 164 |
Cash flow from operations |
4,209 |
Change in inventories |
-1,056 |
Change in trade receivables |
3,488 |
Change in financial and other current liabilities |
-1,905 |
Change in working capital requirement |
527 |
Net cash generated by operating activities |
4,735 |
Purchases of non-current assets |
-3,213 |
Disposals of non-current assets |
168 |
Impact of changes in the scope of consolidation: |
-1,461 |
Net cash generated/(used by) investing activities |
-4,506 |
Capital increases/(reductions) |
39,353 |
New borrowings |
225 |
Repayments of borrowings |
-24,413 |
Net cash generated by financing activities |
15,165 |
Change in cash |
15,395 |
Cash at beginning of year |
0 |
Cash at end of year |
15,395 |
1 Organic growth only, no changes in the reporting entity during the year
2 Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reflects the sources of funds generated by the Group’s operations, including other operating revenue and other operating expense, but excluding depreciation, amortization and the impact of the Group’s financing policy.
3 The audited consolidated balance sheet as of December 31, 2021 includes the consolidated results for the period from March 8, 2021 to December 31, 2021
