Despite this, the company experienced a robust revenue growth of 16.4 per cent in the luxury division. This growth partially mitigated the temporary contraction in the Chargeurs advanced materials division, the company said in a press release.
In H1 FY23, Chargeurs reported a decline of 11.5 per cent in group revenue to €352.8 million, impacted significantly by a 23.1 per cent drop in its advanced materials division.
However, a 16.4 per cent growth in the luxury division partly cushioned this fall.
Despite a reduced operating margin of 4 per cent, net profit remained positive at €3.3 million.
The group’s operating profit stood at €14.1 million, corresponding to an operating margin of 4.0 per cent, which is down by 2.4 points compared to the previous term. However, Chargeurs maintained a positive trajectory in attributable net profit, registering €3.3 million in H1 FY23.
Looking forward, Chargeurs maintains a positive outlook for 2024, with targeted milestones including a revenue exceeding €800 million. The firm aims to achieve an EBITDA margin falling between 9 per cent and 10 per cent, while keeping the debt/EBITDA multiple under 3x. In line with this, the company expects a gradual recovery in the Chargeurs advanced materials business.
“2023 is a year of transition. Unsurprisingly, it is marked by a disrupted and unfavourable economic climate which has impacted our businesses in different ways: our new growth drivers are doing well, confirming their momentum and offsetting part of the temporary downturn in advanced materials business, which remains profitable despite sluggish volumes,” said Michael Fribourg, chief executive officer of Chargeurs Group.
Fibre2Fashion News Desk (DP)