Melexis Q2 2022 results – Second quarter sales of 208.4 million EUR

Press release - Regulated Information

Intermediate declaration by the Board of Directors
Ieper, Belgium – July 27th, 2022, 07.00 hrs CET

Sales for the second quarter of 2022 were 208.4 million EUR, an increase of 31% compared to the same quarter of the previous year and an increase of 13% compared to the previous quarter. The EUR/USD exchange rate evolution had a positive impact of 5% on sales compared to the same quarter of last year and a positive impact of 2% on sales compared to the previous quarter. The gross result was 93.6 million EUR or 44.9% of sales, an increase of 40% compared to the same quarter of last year and an increase of 13% compared to the previous quarter. R&D expenses were 10.6% of sales, G&A was at 4.9% of sales and Selling was at 1.9% of sales. The operating result was 57.3 million EUR or 27.5% of sales, an increase of 57% compared to the same quarter of last year and an increase of 15% compared to the previous quarter. The net result was 47.6 million EUR or 1.18 EUR per share, an increase of 42% compared to 33.5 million EUR or 0.83 EUR per share in the second quarter of 2021 and a decrease of 2% compared to the previous quarter.

Sales for the first half year of 2022 were 392.5 million EUR, an increase of 25% compared to the first half year of 2021. The EUR/USD exchange rate evolution had a positive impact of 4% on sales compared to the first half year of 2021. The gross result was 176.8 million EUR or 45.0% of sales, an increase of 34% compared to the same period last year. R&D expenses were 10.8% of sales, G&A was at 5.0% of sales and Selling was at 1.9% of sales. The operating result was 107.1 million EUR or 27.3% of sales, an increase of 51% compared to 70.9 million EUR in the same half year of 2021. The net result was 96.2 million EUR or 2.38 EUR per share, an increase of 57% compared to 61.3 million EUR or 1.52 EUR per share in the first half year of 2021.

Dividend

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 October 18, 2022 (opening of the market). The record date is October 19, 2022 (closing of the market) and the dividend will be payable as from October 20, 2022.

Outlook

Melexis expects sales in the third quarter of 2022 in the range of 215 to 220 million EUR. For the full year 2022, Melexis expects a sales increase between 28% and 30%, with a gross profit margin of around 45% and an operating margin of around 26% at the midpoint of the sales guidance, all taking into account a EUR/USD exchange rate of 1.00 for the remainder of the year. The evolution of the EUR/USD exchange rate in 2022 has a positive impact of around 5% on the full-year sales outlook.

Business comment – Marc Biron, CEO:

“Sales for the second quarter of 2022 came out at 208.4 million EUR, once again the result of the conversion of a strong order intake into sales, despite the ongoing supply chain challenges. Ever-increasing electrification and the growing number of comfort and safety applications have led to a significant acceleration of analog IC demand in the automotive industry.

On the supply side, the automotive semiconductor industry in general and Melexis in particular rely a lot on wafer processing nodes of >40nm for the ICs used in mixed signal sensor and driver applications, whereas the vast majority of the global industry investments in 2021 and 2022 focused on the processing nodes of <40nm. The latter serve mainly digital processors used for, among other applications, ADAS and infotainment. As a result, Melexis and the automotive supply chain are still impacted by the limited waferfab capacity.

In the short term, customer demand and order intake are robust. From a geopolitical and macroeconomic perspective, the mid-term remains uncertain. However, Melexis will continue to benefit from secular automotive trends such as electrification and increased comfort and safety applications. Long-term agreements with both our customers and our suppliers will improve transparency and visibility in the supply chain in the coming years.

In the first half of 2022, the outperforming product lines were current sensors, latches and switches and drivers, all in support of the electrification trend. Our magnetic position sensors keep going strong as well. Likewise, we have been observing continued traction for our temperature sensors.

Sales to automotive customers represented 90% of total sales in the second quarter as well as in the first half of 2022. The portion of standard product (ASSPs) sales represented 74% of total sales, both in the second quarter and the first half of 2022.”

The statutory auditor PwC bedrijfsrevisoren has confirmed that the review, which is substantially complete, has not to date revealed any material misstatement in the draft interim 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

• Dividend pay date: October 20, 2022 (ex coupon on October 18, 2022)
• Publication Q3 Results 2022: October 26, 2022 (at 7 hrs CET)
• Publication FY 2022 Results: February 1, 2023 (at 7 hrs CET)

For more information:
Investor Relations
Phone: +32 13 67 07 79
Email: investor@melexis.com

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