The MND Group (FR0011584549, MND) designs and builds efficient solutions to develop mountain areas and facilitate transport in tourist and urban areas. The Group is listed on the Paris Euronext regulated market, compartment C.
Sainte Hélène du Lac (Savoie, France), 12 May 2016 (after market close)
Strong organic growth with revenues up 11.1%
Full-year return to operating profitability confirmed
Boosted by a surge in sales activity during the fourth quarter, the MND Group posted 2015/2016 full-year revenues of €67.3 million, up 11.1% at constant exchange rates and consolidation scope. This sales performance was primarily driven by strong growth in Asia and the US in accordance with the strategy implemented by the Group, which now generates 20% of its revenues outside Europe.
These results are in line with management targets and allow MND to confirm its return to profitability on current operations for the 2015/2016 financial year.
Consolidated 12-month revenues (unaudited data) – 1 April 2015 to 31 March 2016
|€m – IFRS||31/03/2016
|Safety & Leisure division||24.2||20.8||+16.3%||+15.9%|
|Snowmaking & Ski Lift division||43.1||40.7||+6.1%||+9.7%|
* At constant closing exchange rates and consolidation perimeter
Strong sales growth across all businesses
Despite poor snow conditions at the start of the winter season in Europe, as in the previous year, MND achieved a satisfactory performance thanks to its unique business model. The Group's strategy of geographical and segment diversification made a large contribution to this success. The year was particularly marked by sales growth in Asia and the development of the high-adrenaline leisure business in mountain resorts.
The Safety & Leisure division posted organic sales growth of 15.9% for the year, driven by strong growth in the high-adrenaline leisure facilities, up nearly 70%, and booming sales in avalanche prevention solutions. During the fourth quarter, MND delivered a major avalanche prevention order in Chile. In the high-adrenaline leisure segment, the Group sold a number of innovative projects during the 2015/2016 financial year, including the ”Canopée des cimes” viewing platform at Val Cenis in the French Alps. The last Mountain Planet mountain equipment trade show in Grenoble gave MND the opportunity to launch its new innovative FunCoaster range of four-season alpine coasters.
The Snowmaking & Ski Lift division posted organic growth of 9.7% and reported growth of 6.1%, the difference being mainly attributable to the disposal of MND Eastern Europe, whose revenues fell from €1.5 million in 2014/2015 to €0.1 million in 2015/2016. Asia continued to make a strong contribution to the division's growth, especially in China where MND opened a distribution subsidiary in December 2015. MND has already achieved a number of major commercial successes in the country, such as the supply of 120 snow-making machines to the Olympic resort of Wanlong and the installation of a chairlift in one of the future Olympic training locations.
With revenues growing steadily, the Group is able to confirm its target of returning to profitability on current operations in 2015/2016.
With regard to the following year, the Group is already reaping the benefits of a committed sales drive, in particular due to two recent groundbreaking contracts for the renovation of the Montmartre funicular in Paris and the installation of the first detachable chairlift at La Plagne, a resort operated by a subsidiary of Compagnie des Alpes.
In addition to these commercial developments, MND continued its strategy of strengthening its balance sheet during 2015/2016. Furthermore, last month MND's bank partners demonstrated their renewed trust in the Group by confirming the annual and seasonal short-term credit lines required for the coming year. This assistance will help to fund growth as well as allowing the Group to plan purchasing and production in anticipation of its peak business period.
Group CEO Xavier Gallot-Lavallée made the following comments: “Our healthy sales momentum and return to operating profitability enable us to start the 2016/2017 financial year on an optimistic note. MND is committed to strengthening its goal of developing high-performance, innovative solutions across all of its businesses whilst pursuing its policy of improving profitability and strengthening the balance sheet. MND has a number of key strengths: a comprehensive product offering, internationally reputed brands, innovative solutions, a global footprint, cutting edge production technology and a motivated workforce focused on driving the Group's successful development and achieving customer and partner satisfaction.”
MND Group – Roland Didier – Tel +33 (0)4 79 65 08 90
ABOUT MND GROUP
The MND Group has been based at Sainte Hélène du Lac (Savoie), in the very heart of the French Alps, since 2004. MND is one of the few market players to have a global range of products and services dedicated to the development, equipping and protection of ski resorts, leisure areas and other mountain infrastructure. Buoyed by its industrial expertise in the mountain cable transport market and by innovative technology protected by worldwide patents, the MND Group has strong growth potential in the urban cable public transport field, where it offers an unobtrusive alternative mode of urban transport. With five manufacturing plants in Europe, eight distribution subsidiaries and 30 distributors worldwide, the MND Group has 330 employees and almost 3,000 customers in 49 countries.
Find all the information you need on www.mnd-bourse.com
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