MND Reports Sustained Annual Revenue Growth Of 15.5%
The MND Group posted 2017/2018 consolidated revenues of €88.3 million, up 15.5% compared to 2016/2017. As announced at the end of January, Q4 2017/2018 business (from 1 January to 31 March) was particularly buoyant and generated revenues of €34.6 million, up 43.1%.
For the second consecutive year, MND recorded sustained annual growth above 15%. This performance is particularly satisfying given that growth was held back by a shortfall in the contribution initially expected from the €110 million long-term Snowland (China) contract due to customer delays in obtaining the required administrative permits and credit facilities. This €12 million revenue shortfall will be made up over the remaining contract term, which should now extend until 2022 (initially 2020): the schedule is currently under discussion with the customer.
Looking further ahead, the Group is confident regarding its strategic plan and its target of hitting €150 million in revenues and a current operating margin of 8-10% by March 2020.
Strong business growth in Q4: 43.1%
The MND Group posted Q4 2017/2018 consolidated revenues of €34.6 million, up sharply by 43.1% (44.6% at constant consolidation scope and exchange rates, or like-for-like) from €24.1 million in Q4 2016/2017.
Hit by late order placements in Q3 2017/2018 aggravated by extreme weather conditions that slowed work on a number of projects and delayed deliveries, the Group had partly made up these delays by the end of the financial year.
Full-year revenues for 2017/2018 thus came to €88.3 million, up 15.5% (16.3% LFL).
The Group generated 23% of 2017/2018 revenues in France, 30% in Europe (excluding France) and 47% from other continents, including 32% in China.
The Group continues to expand into new regions, as seen by the latest contracts signed in Eastern Europe (Georgia), Asia (China and Japan) and Central Asia, thanks to its innovative solutions and global offering strategy.
Business activity by division in 2017/2018
- The Snowmaking & Ski Lifts division gave a solid performance in 2017/2018, posting sales of €65.8 million and strong growth of 29.3% (29.9% LFL). The division benefited from initial invoicing for the Snowland and Wanlong contracts in China, amounting to €11.9 million over the period.
- The Safety and Leisure division recorded more mixed results, with annual revenues of €22.5 million, down 12.0% (down 11.0% LFL), due to numerous late deliveries. The Group recently announced the first sale of its new Alpine Fun Coaster, confirming the promising launch of this new range of products in the outdoor leisure segment.
€184 million order backlog at 31 March 2018
At 31 March 2018, the Group’s order backlog totalled €184 million, representing over 2 years of business (based on 2017/2018 full-year revenues of €88.3 million). €52.4 million of revenues under these orders will be recognised in 2018/2019.
At the very end of the period, the Group landed a contract for the installation of a new generation six-seater detachable chairlift for the Avoriaz alpine resort, which will generate revenues of €4.4 million to be invoiced over the current (2018/2019) and following (2019/2020) financial years.
