Strong start to the year for Lacroix Group
The French technology group announces solid growth over the first quarter of the year. The gradual improvement to activity since May 2020 has carried through to the first quarter of the new fiscal year.
For the first quarter of the year, Lacroix Group delivered revenues of EUR 127.6 million during its first quarter of 2021, up 12.5% from EUR 113.4 million during the first quarter in 2020. Revenue stemming from Electronics amounted to EUR 86.6 million, an increase of 14.1% from EUR 75.9 million during the same period last year. City delivered first quarter revenue of EUR 23.8 million, up 9.3% from EUR 21.8 million during the first quarter 2020. Revenue from the Environment business segment amounted to EUR 17.2 million, up 9.7% from the comparison period. The company states in its quarter report that while Electronics managed to compensate for the impact of the health crisis on revenue, this was done while the aeronautics sector is still heavily affected by the current situation, and high demand in the automotive industry is being hindered by the shortage of electronic components. For Lacroix, the effects of the significant shortages in electronic components on an international scale mainly took the form of extended delays in the supply chain, extra costs related to materials (which was generally passed on to customers) and subsequently higher logistic costs. As such, the current situation is a limiting factor for the growth potential of group, impacting operational effectiveness and inventory levels. However, Lacroix says that with support from its clients, the group is keeping up efforts to curb negative consequences. “The resilience we demonstrated in 2020 has allowed us to catch up and exceed pre-crisis activity levels – a strong sign that our offer is adequately aligned with the needs of the markets we address. Although we will continue to exercise caution with regard to the current pressures on supply, especially electronic components, we are quite satisfied with this first quarter, which is perfectly in line with the objectives set out in our strategic Leadership 2025 plan,” explained Vincent Bedouin, Lacroix President & Chief Executive Officer, in the quarter report. Drawing on a solid first quarter and a strong growth in all activities, the group remains confident it will meet its goals for 2021, namely to reach revenue of EUR 500 million and an EBITDA margin above 6.5%.