The group’s net cash position was 85.5 million pounds at the end of December 2020


(Boursier.com) – In 2020, the group faced an unprecedented health and economic situation Parrot Finished refocusing its portfolio of drones and solutions on professional markets, restoring its overall margin and maintaining its innovation capacity, while expanding into the UAV market for defense and security.
After the Covid-19-related slowdown in sales, they were mainly concentrated in the first half (-33.3% versus.
-15.3% in the second half), the action plan was only slightly affected by the health crisis; Thanks to the mobilization of teams, projects were able to progress almost naturally and the gradual decline in sales resulting from the refocusing of the supply on new generations of professional products slowed throughout the year.

Overall, the group achieved consolidated sales of 57.3 million pounds in 2020, the decrease (-24.7%) was mainly attributed to the voluntary decline in sales of consumer products. At the end of 2020, 96% of sales were new generations of drones and solutions. In the fourth quarter of 2020, the rate of decline in consolidated sales decreased to -10.9% year-on-year, showing an increase of 15.1% compared to the third quarter of 2020. The volume of trading resulting from product news generations increased by 1% compared to the fourth quarter of 2019 Besides commercial strategy management, the effects of the health crisis (travel restriction, travel restriction) were more pronounced on equipment sales (-25.8% excluding older generations of products), while sales of software for analyzing data collected by drones kept growing ( + 3.7% excluding in-group sales); It represented 41% of the group’s sales at the end of 2020, compared to 30% at the end of 2019. These trends are part of the professional drone market, which is estimated to decrease by 12% in 2020, under the influence of health. crisis.

From a geographic point of view, 16% of consolidated group sales recorded a growth rate of 23.8%, mainly driven by the invasion of new professional clients in South America and Germany, and security contracts in Japan and Switzerland. In North America, the drop in sales (-19.4%) was partially offset by the success of the latest unmanned aircraft (Anafi Thermal, Anafi USA) intended for security forces and government agencies, in this region that is particularly concerned with cybersecurity issues. In France (10% of group sales) where containment measures were significant, the decrease in sales volumes was 42.9%, and thus does not take into account the tire contract with DGA won by Anafi USA at the start of 2021. The trends are similar in Spain and the UK, Several organizations, concerned with the security of their data, are selecting Parrot drones.

The product strategy implemented since the end of 2018, focused on professional drones and solutions that are reliable in terms of both performance and data security, has generated a convincing rebound in the gross margin rate, which is 70.2%. The increasing share of software supply and lower sales of consumer products are mainly contributing to the improvement.

In 2020, the group continued to direct its operations in two priority areas: maintaining a strong capacity for innovation, ensuring its future in the UAV market, and strictly controlling costs, while improving the impact of measures taken in 2019. Operating profit, at (35.6) ) ME compared to (27.4) ME in 2019, mainly reflecting lower sales; It takes into account measures of partial unemployment, especially in Switzerland and Germany, in relation to the economic support measures implemented by the respective governments, which have resulted in staff cost savings of 2.3 million euros over the course of the fiscal year. In this context, operating expenses for the year, at 76.2 million pounds, are stable (-0.9%) compared to 2019. They reflect:
14.2% increase in ‘R&D’ spending (40.2 million EGP) with the completion of Anafi USA launched in September 2020 for the defense and security market, the new generation of Pix4D business software with an increasing number of uses and integrations in the field of graphic design. Maps, Inspection and Security, and renewal of the eBee range of fixed-wing unmanned aircraft, which combine endurance and maneuverability, introduced in early 2021;
24.9% reduction in sales and marketing expenditures (16.3 million pounds), thanks to the simplification of the organization and the reduction of public activities, amplified by the effects of the health crisis (hypothetical absence of travel, absence events, etc.);
Hypothetical stability (+ 1.5%) of overheads (13.6 million pounds);
A decrease (-7.6%) in spending on production and manufacturing (6.1 million pounds) is mainly related to partial unemployment measures.
The change in financial income, at (2.2) ME in 2020 versus (1.1) ME in 2019, is attributable to the lower dollar. Bearing in mind the absence of taxes in 2020, the net income share of the group is (38.4) ME versus (29.5) ME in 2019.

Changes in cash and balance sheet as of December 31, 2020

The Group’s net monetary position was stable at 85.5 ME at the end of December 2020, excluding the effect of IFRS 16 (and at 77.9 ME including IFRS 16), against 125.1 ME excluding the effect of IFRS 16 ( In 116 ME (including IFRS 16) in 2019. Cash and cash equivalents plus other current financial assets amounted to 88 million pounds, a decrease of 38.6 million pounds compared to the end of the previous fiscal year, in line with expectations.

The cash consumed from operations amounts to (30.1) ME, which is mainly related to the outcome of the period and benefits from the positive change of 2.5 million pounds in working capital requirements. This can be explained in particular by a decrease of € 4.3 million in trade receivables, which reflects both the decrease in the turnover rate and the system for collecting the amounts due. Accounts payable and prepaid expenses also decreased by ME 4.3, reflecting the refocusing of the product portfolio, partially offset by a decrease in the inventory value of ME 3.1, to ME 10.2 as of December 31, 2020. Cash used in investment operations is (3.8) ME, taking into account Consideration is a 2 ME investment in a software company in the fourth quarter of 2020. The cash used in financing transactions, for (2.8) ME, mainly consists of 4 ME in leases within the framework of implementing IFRS 16.

The Micasense sale, effective January 27, 2021, should result in an estimated cash flow of EGP 12.9 million in 2021, minus transaction costs, including $ 3 million in shares of AgEagle Aerial Systems Inc. (UAVS, NYSE American). The sale price also includes additional payments of $ 2.25 million and then $ 2.5 million, in March 2022 and March 2023, respectively, in accordance with the usual guarantees granted under the agreement.

Horizons 2021

Professional drones undoubtedly represent the birth of a new industry that will deeply celebrate the 21st century, like the automotive, telecommunications or aviation of its era. If the growth potential of professional activities appears to be great over the coming years, then the rate of market growth is closely related to the development of the legislative context and the capabilities (financial, technical and operational) of professionals to integrate these technologies. Parrot intends to continue to serve the development of this new high-tech industry by relying on a suite of high-performance solutions dedicated to 3D mapping, geomatics and inspection, defense and security, and precision agriculture, adapting them to a growing number of uses primarily related to high-resolution data collection and analysis. .

As the European leader in the drone market, while maintaining technological and capital supremacy, Parrot Group intends to continue to focus on the advancement of its projects, in particular the completion of new professional products, and to pursue a commercial strategy targeting professionals, companies, large accounts, governments and strict cost control. . The group will continue to rely on the highest standards of security and transparency to gain market share.

The strategy the group has followed since 2018, taking into account the sharp decline in its turnover, and reliance on the technological pathway to create value in the professional markets, has enabled the overall margin recovery. Scope impacts associated with the evolution of the product portfolio should continue to diminish in 2021.

The group has been vigilant about the impact health measures and tensions can have on the ingredient market, and secured the vast majority of its purchases in 2021. Parrot will continue to benefit from its innovation capacity, product quality and constant interest in them. Managing its operations and effectively allocating its resources. In terms of the 2021 business plan, in particular product launches, production plans and order book, a return to growth could materialize in the second half of 2021, driven in particular by the acceleration of deliveries in the defense and security realm.

Upcoming financial meetings

First-quarter revenue 2021: Friday May 21, 2021 ahead of the market.
Combined Plenary Meeting: Wed Jun 16, 2021 at 8:30 a.m.
Results for the first half of 2021: Friday, July 30, 2021 after the market closes.


© 2021, Boursier.com


See also  United States: "snake on board" in Newark

Leave a Reply

Your email address will not be published.