Melexis Q2 2018 results - Solid growth
Intermediate declaration by the Board of Directors
Ieper, Belgium - 1 August 2018, 07.00 am CET
Sales for the second quarter of 2018 were 141.8M EUR, an increase of 10% compared to the same quarter of the previous year and an increase of 2% compared to the previous quarter.
The EUR/USD exchange rate evolution had a negative impact of 4% compared to the same quarter of last year and a positive impact of 1% compared to the previous quarter.
The gross result was 65.8M EUR or 46.4% of sales, an increase of 11% compared to the same quarter of last year and an increase of 4% compared to the previous quarter.
R&D expenses were 13.5% of sales, G&A was at 5.3% of sales and Selling was at 2.7% of sales.
The operating result was 35.4M EUR or 25.0% of sales, an increase of 7% compared to the same quarter of last year and an increase of 3% compared to the previous quarter.
The net result was 28.1M EUR or 0.70 EUR per share, a decrease of 9% compared to 30.8M EUR or 0.76 EUR per share in the second quarter of 2017 and a decrease of 2% compared to the previous quarter.
Sales for the first half year of 2018 were 281.1M EUR, an increase of 12% compared to the first half year of 2017.
The EUR/USD exchange rate evolution had a negative impact of 6% compared to the first half year of 2017.
Gross result was 128.9M EUR, an increase of 11% compared to the same period last year.
The operating result was 69.7 million EUR, compared to 64.6M EUR in the same half year of 2017, an increase of 8%.
Net income was 56.9M EUR or 1.41 EUR per share, an increase of 1% compared to 56.2M EUR or 1.39 EUR per share in the first half year of 2017.
The Board of Directors decided to pay out an interim dividend of 1.30 EUR gross per share. The Melexis shares will start trading ex coupon on 23 October 2018 (opening of the market). The record date is 24 October 2018 (closing of the market) and the dividend will be payable as from 25 October 2018.Outlook
Melexis expects sales in the third quarter of 2018 to be around the level of 148M EUR. For the full year 2018, Melexis expects sales growth to be between 13% and 14%, a gross profit margin around 45% and an operating margin around 25%, all taking into account a EUR/USD exchange rate of 1.17 for the remainder of the year.Business comment – Françoise Chombar, CEO:
"I am proud to announce that Melexis second quarter and first half 2018 performance is well in line with our expectations. Excluding strong USD currency headwinds, Melexis first half year sales growth was 18%. The main growth drivers year to date were temperature sensors, embedded lighting and our magnetic sensor product family.
The temperature sensors product line experienced a growing demand from its distribution customer base. These distributors serve a variety of applications in the areas of consumer, white goods and small appliances, mainly targeted for the Asian market. A second growth pillar for the product line is its automotive thermocouple interfaces. These are used in the powertrain and address the growing need for more stringent engine and exhaust thermal management and control.
In embedded lighting, we continue to benefit from existing ambient lighting programs ramping up, as well as new programs which are being added gradually.
The Triaxis® products which form a cornerstone of our magnetic product sensor family are being used in many applications such as steering systems, gear shifters, pedals and transmissions. High demand for electric power steering and advanced powertrain systems, along with the evolution towards autonomous driving, are key drivers for further growth.
Melexis continues to enjoy a positive customer sentiment, translated in a healthy order book further driving our growth in the second half of the year.
Last month, Melexis announced the start of the construction of a new building in Sofia, Bulgaria, which will accommodate increased capacity in test facilities. Also the building expansion in Ieper, Belgium is on schedule. At the end of the year, a new R&D center in Düsseldorf, Germany, will be fully operational. These initiatives demonstrate that Melexis continues to invest both in infrastructure as well as in R&D in order to benefit from the structural growth drivers for our products.
Sales to automotive customers represented 89% of total sales in the second quarter and 90% of total sales in the first half of 2018. The portion of standard product (ASSPs) sales represented 66% of total sales in the second quarter and 65% of total sales in the first half of 2018.”
The statutory auditor PwC Bedrijfsrevisoren bcvba has confirmed that the review, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.Financial calendar
- Publication Q3 2018 Results: 24 October 2018
- Dividend pay date: October 25, 2018 (ex coupon on 23 October 2018)
- Analyst Day: 5 December 2018
- Publication FY 2018 Results: 6 February 2019
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