Despite a slowdown in business in the second half of the year, MGI Digital Technology, listed on the NYSE Alternext Paris stock exchange, has reported a nearly 3% increase in sales to 47.9 million euros for fiscal year 2023.
The Fresnes-based group, which operates three production sites (in Descartes (Indre-et-Loire), Limoges (Haute-Vienne) and Villingendorf (Germany), concentrates 95% of its total international business, which accounts for 45.8 million euros in sales, up more than 4% on the previous year.
The alliance between the group founded and chaired by Edmond Abergel and Konica Minolta currently accounts for 82.5% of total business generated through its global network (rising to 75% by 2022).
First-half sales up 10% on the previous year
Sales rose by 10% in the first half. The slowdown in the second half of the year "is in line with the market trends identified in recent months" mGI points out, namely tighter access to credit, longer decision-making cycles due to the general economic context, and a wait-and-see attitude in the run-up to the Drupa 2024 international trade show, to be held in Germany from May 28 to June 7.
"Despite this context, the Group managed to maintain growth in sales for the year as a whole.
The end of the year benefited from the launch of the mGI JetVarnish 3D Web 400 finishing press dedicated to the label market. Six units have been sold and invoiced since its launch at Labelexpo in Brussels in September.
In addition, two sales of Alphajet, the integrated production line that combines digital printing and finishing of B1 and B2 sheets, were concluded in the second half of the year, "confirming the market potential of the Industrial Printing 4.0 platform dedicated to packaging" .
And several other customers are showing strong interest in purchasing the Alphajet and JetVarnish 3D Web 400, which should turn into orders over the next few months.
"The favorable evolution of the product mix, driven by sales of equipment that makes a strong contribution to profitability, combined with the pursuit of strict management discipline, allow us to anticipate solid earnings growth", emphasizes MGI.
Over the full 2023 financial year, gross margin should increase by more than 10% and operating income by more than 15%, to approach 10 million euros.
MGI should also post a net margin in excess of 16% of sales.
2024, heading for Drupa and the " promising prospects"
For 2024, the Group is confident that the Drupa trade show will drive sales momentum, "historic growth engine .
At this major event for the graphic arts industry, MGI, alongside Konica Minolta, will present its new generation of equipment in an area of over 3,000 m 2 and over 200 employees will be present at the event.
In addition to the show, MGI will continue to rely on the "promising prospects in the buoyant label market" thanks to its digital solutions.
The outlook for the Alphajet also remains favorable "with an expected surge in order intake as soon as market conditions return to more favorable levels" .
And in the printed electronics sector, "the progress made in recent months with the presentation of first equipment alongside partner Altix opens the way to new opportunities and access to a new market to conquer on an international scale".
All these levers should enable the Group to gradually return to a sustained growth trajectory, while maintaining a high level of profitability and controlled cash consumption, concludes MGI.
