{"id":3440,"date":"2024-03-05T17:59:59","date_gmt":"2024-03-05T16:59:59","guid":{"rendered":"https:\/\/staging.ekinops.com\/news\/news\/2023-annual-results-ebitda-margin-of-14-4"},"modified":"2026-10-28T00:00:56","modified_gmt":"2026-10-27T22:00:56","slug":"resultats-annuels-2023-14-4-de-marge-d-ebitda","status":"publish","type":"press-releases","link":"https:\/\/www.ekinops.com\/fr\/news\/corporate\/2023-annual-results-ebitda-margin-of-14-4","title":{"rendered":"R\u00e9sultats annuels 2023 : 14,4% de marge d\u2019EBITDA"},"content":{"rendered":"\n
\"en1<\/figure>\n\n\n\n

2023 revenue of 129.1 m\u20ac, up +1%<\/h3>\n\n\n\n

In 2023, Ekinops’ consolidated revenue stood at 129.1 m\u20ac, up +1% from the previous year, and +2% at constant exchange rates.<\/p>\n\n\n\n

H2 2023 was harshly affected by deteriorated market conditions in the Access<\/strong> business line, against a backdrop of economic slowdown and a high level of equipment inventories at operators. Access solutions fell by -15% over the year (vs. +20% in 2022).<\/p>\n\n\n\n

Driven by numerous commercial successes and customer wins, the Optical Transport<\/strong> business line posted strong growth of +27% in 2023, underpinned by operators’ bandwidth needs and the success of Ekinops’ WDM solutions.<\/p>\n\n\n\n

Revenue generated by Software & Services<\/strong> rose by +12% in 2023, driven by sales of network virtualization solutions, SD-WAN solutions and services. Software & Services accounted for 17% of Group revenue
in 2023, vs. 15% a year earlier.<\/p>\n\n\n\n

International sales increased by +8%, while business in France declined by -11%. International sales accounted for 68% of total business in 2023 (vs. 64% in 2022), of which 25% in North America (+6%)
and 41% in EMEA (Europe, Middle East and Africa) (+23%).<\/p>\n\n\n\n

EBITDA margin[1]<\/sup><\/a> of 14.4% in 2023<\/h3>\n\n\n\n

In this complex economic environment, gross margin amounted to 67.3 m\u20ac in 2023, same as the previous year (67.6 m\u20ac).<\/p>\n\n\n\n

Gross margin came to 52.1%, compared with 53.0% a year earlier, reflecting the business mix evolution over the year.<\/p>\n\n\n\n

EBITDA1<\/sup> stood at 18.6 m\u20ac in 2023, down -18%. The increase in operating expenses was contained
(+7% over the year), while Ekinops maintained most of its investments (net increase of 47 employees over the year, trade shows and business travel, equipment dedicated to R&D, etc.) in order to prepare for future growth.<\/p>\n\n\n\n

EBITDA1<\/sup> margin was 14.4% in 2023, compared with a record-high level of 17.7% in the previous year.<\/p>\n\n\n\n

Adjusted EBIT margin2<\/sup> of 8.0% in 2023<\/h3>\n\n\n\n

After accounting for net depreciation, amortization and provisions (12.1 m\u20ac, including 5.3 m\u20ac
of amortization relating to post purchase price allocation technologies) and non-cash expenses relating to share-based payments (1.4 m\u20ac), current operating income came to 5.1 m\u20ac in 2023, vs. 9.3 m\u20ac a year earlier.<\/p>\n\n\n\n

Current operating margin therefore stood at 3.9% of revenue in 2023, vs. 7.2% in 2022. Excluding amortization of intangible assets identified post purchase price allocation, adjusted EBIT[2]<\/sup><\/a> came to 8.0%, compared with 12.2% a year earlier.<\/p>\n\n\n\n

Other operating expenses totaled 1.4 m\u20ac, including 1.1 m\u20ac for the project of implementing a new management system (ERP). Operating income came to 3.6 m\u20ac in 2023, vs. 8.8 m\u20ac a year earlier.<\/p>\n\n\n\n

After taking into account financial expenses of 0.3 m\u20ac and a tax income of  0.3 m\u20ac, net income amounted to 3.6 m\u20ac in 2023, vs. 12.0 m\u20ac in 2022.<\/p>\n\n\n\n

Operating cash flow of 13.5 m\u20ac in 2023, 7.8 m\u20ac in total cash generation<\/h3>\n\n\n\n

FY 2023 illustrates Ekinops’ ability to generate cash through its business.<\/p>\n\n\n\n

Operating cash flow amounted to 13.5 m\u20ac in 2023, compared with 9.4 m\u20ac the previous year. After the high mid-year level, change in working capital requirements fell in H2 due to the business slowdown
and optimal cash management.<\/p>\n\n\n\n

Cash flow from investments (non-current assets and R&D) amounted to a 8.2 m\u20ac outflow (vs. 7.4 m\u20ac a year earlier) with 4.5 m\u20ac in equipment investments and 3.6 m\u20ac for capitalized R&D. Free cash flow totaled 5.3 m\u20ac million in 2023 (vs. 2.0 m\u20ac in 2022).<\/p>\n\n\n\n

Cash flow from financing activities totaled 2.5 m\u20ac, of which 5.1 m\u20ac in new bank loans (net of repayments, including the research tax credit pre-financing), with a \u20ac7.8 million stimulus loan (Pr\u00eat Participatif de Relance – PPR<\/em>) cashed in March 2023.<\/p>\n\n\n\n

Overall, change in cash flow was +7.8 m\u20ac in 2023 (vs. -\u20ac6.0 million in 2022).<\/p>\n\n\n\n

Net cash[3]<\/sup><\/a> of 25.8 m\u20ac as of 31 December 2023<\/h3>\n\n\n\n

Cash and cash equivalents amounted to 47.2 m\u20ac at end-2023 (vs. 39.4 m\u20ac one year earlier), and financial borrowings[4]<\/sup><\/a> of 21.4 m\u20ac.<\/p>\n\n\n\n

In H2 2023, Ekinops signed a new 100 m\u20ac syndicated line of financing with its banking partners (external growth loan of up to 90 m\u20ac and 10 m\u20ac revolving credit facility) to provide the company with additional financial resources to support its development, in particular its acquisition strategy. Ekinops has not yet used this line, which includes conditions related to the Group’s non-financial performance as part of its Corporate Social Responsibility (CSR) policy.<\/p>\n\n\n\n

Net cash3<\/sup> stood at 25.8 m\u20ac at 31 December 2023 (vs. 20.5 m\u20ac a year earlier), for shareholders’ equity
of 119.4 m\u20ac (+5.8 m\u20ac compared with end-2022).<\/p>\n\n\n\n

\"en2<\/figure>\n\n\n\n

Further progress in sustainable performance in 2023<\/h3>\n\n\n\n

As part of its Corporate Social Responsibility (CSR) policy, Ekinops continued to work in 2023 on minimizing the environmental impact of its products and their manufacturing processes. A life-cycle analysis of a representative piece of Access equipment and energy performance analyses were carried out in 2023, enabling the Group to identify the impact of its products across the entire value chain. Committed to reducing its emissions for several years already, the 2023 carbon footprint reflected reduction in emissions in tons of CO2<\/sub> on revenue (tCO2<\/sub>e\/m\u20ac) of -40% vs. 2022.<\/p>\n\n\n\n

In terms of human resources policy, female representation continued to increase in 2023, with a +15% rise in the number of female employees, compared with +8% rise in the number of male employees. At end-2023, women represented 21% of the Group’s total workforce. Particular attention was paid in 2023 to employees\u2019 feedback, notably through anonymous “Pulse” surveys, to understand their expectations and to identify their needs.<\/p>\n\n\n\n

On a societal level, after becoming a member of the United Nations Global Compact in 2022, Ekinops published its first “Communication on Progress” (CoP) in 2023, testifying the progress made by Ekinops in implementing the Ten Principles and helping to reach the 17 Sustainable Development Goals. In addition, the training campaign for all Group personnel in respect of the risks of conflicts of interest and corruption continued in 2023 as part of the Group’s responsible systems and practices policy.<\/p>\n\n\n\n

Starting from January 1, 2024, Ekinops has created the position of “Corporate Sustainability Risks Manager”, to reconcile risks and sustainable development and to enable the company to better respond to ESG objectives.<\/p>\n\n\n\n

Outlook<\/h3>\n\n\n\n

Against a backdrop of economic slowdown and rising interest rates affecting investment policies and financial health of companies, the Access activity was severely impacted in H2 2023. 2024 has started in the wake of end-2023, with the market now stabilized but not yet showing any signs of recovery.<\/p>\n\n\n\n

In view of demanding comparison (H1 2023 revenue up +12% to \u20ac71.0 million), revenue in H1 2024 is likely to be down compared to last year.<\/p>\n\n\n\n

Further ahead, Ekinops expects Access equipment sales to rebound as the economy recovers, and plans to launch a major new optical transport product this summer, doubling the capacity of optical links,
and a new OTN (Optical Transport Network) product, which should contribute to the healthy momentum of the Group’s optical activity.<\/p>\n\n\n\n

In view of current visibility and a still uncertain timing for an economic recovery at this stage of the year, Ekinops does not provide financial guidance for 2024.<\/p>\n\n\n\n

In terms of acquisitions, Ekinops’ management remains mobilized to carry out one or more operations
to consolidate its R&D clout and round out its customer base, favoring non-dilutive financing.<\/p>\n\n\n\n

2024 financial calendar<\/h3>\n\n\n\n
Date<\/strong><\/td>Release<\/strong><\/td><\/tr>
April 15, 2024<\/strong><\/td>Q1 2024 revenue<\/td><\/tr>
May 23, 2024<\/strong><\/td>General Meeting<\/td><\/tr>
July 11, 2024<\/strong><\/td>Q2 2024 revenue<\/td><\/tr>
July 29, 2024<\/strong><\/td>H1 2024 results<\/td><\/tr>
October 15, 2024<\/strong><\/td>Q3 2024 revenue<\/td><\/tr>
January 13, 2025<\/strong><\/td>FY 2024 revenue<\/td><\/tr>
March 5, 2025<\/strong><\/td>2024 annual results<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

All press releases are published after Euronext Paris market close.<\/p>\n\n\n\n

\n\n\n\n

[1]<\/sup><\/a> EBITDA (Earnings before interest, taxes, depreciation and amortization) corresponds to current operating income restated for (i) amortization, depreciation and provisions, and (ii) income and expenses relating to share-based payments.<\/p>\n\n\n\n

[2]<\/sup><\/a> Adjusted EBIT corresponds to current operating income adjusted for amortization of intangible assets identified after allocation of goodwill, Technologies developed and Customer relations.<\/p>\n\n\n\n

[3]<\/sup><\/sup><\/a> Net cash = cash and cash equivalents \u2013 borrowings (excluding bank debt relating to French research tax credit (CIR) pre-financing and IFRS 16 lease liabilities)<\/p>\n\n\n\n

[4]<\/sup><\/sup><\/a> excluding bank debt relating to research tax credit pre-financing and IFRS 16 lease liabilities<\/p>\n","protected":false},"excerpt":{"rendered":"

EKINOPS (Euronext Paris – FR0011466069 – EKI), fournisseur leader de solutions de t\u00e9l\u00e9communications d\u00e9di\u00e9es aux op\u00e9rateurs de t\u00e9l\u00e9communications et aux entreprises, publie ses comptes annuels 2023 (clos au 31 d\u00e9cembre 2023), arr\u00eat\u00e9s par le Conseil d\u2019administration lors de sa r\u00e9union du 4 mars 2024. Les proc\u00e9dures d\u2019audit sur les comptes consolid\u00e9s ont \u00e9t\u00e9 effectu\u00e9es et le rapport de certification sera \u00e9mis prochainement par les commissaires aux comptes.<\/p>","protected":false},"author":2,"featured_media":3436,"template":"","press-releases-category":[86],"class_list":["post-3440","press-releases","type-press-releases","status-publish","has-post-thumbnail","hentry","press-releases-category-corporate"],"_links":{"self":[{"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/press-releases\/3440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/press-releases"}],"about":[{"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/types\/press-releases"}],"author":[{"embeddable":true,"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/users\/2"}],"version-history":[{"count":3,"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/press-releases\/3440\/revisions"}],"predecessor-version":[{"id":4910,"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/press-releases\/3440\/revisions\/4910"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/media\/3436"}],"wp:attachment":[{"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/media?parent=3440"}],"wp:term":[{"taxonomy":"press-releases-category","embeddable":true,"href":"https:\/\/www.ekinops.com\/fr\/wp-json\/wp\/v2\/press-releases-category?post=3440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}