S1 2013-2014 Sales: Back to Growth

Avanquest is announcing sales of €54.3M for the first half of the 2013-2014 financial year, up by 6.7% at a constant exchange rate (2.8% in gross data).

This return to organic growth is based on the success of all online activities which increased by 21% over the half-year, largely offsetting the decline in historical retail activities (-17% in gross data and -11% in pro forma data).

In €M

Q2
2013-2014

Q2
2013-2014

Change

2nd Half
2013-2014

2nd Half
2012-2013

Change

% of total
in 2013-14

Online

18.3

14.7

+24 %

28.9

23.9

+21 %

53.2%

Offline

9.0

10.6

-15 %

15.7

19.0

-17 %

28.9%

BtoB

5.2

5.4

-3 %

9.7

9.9

-2 %

17.9%

Total

32.5

30.7

+6 %

 

54.3

52.8

+3 %

100.0%

The second quarter, which benefited from the traditional favorable seasonal sales at the end of the year, show a rise of 9% at a constant exchange rate from the same period of the previous year; the downward trend of the American and English currencies took that growth to 6% in gross data. Sales for the second quarter of 2013-2014 were €32.5M, of which €12.9M came in December, a record for Avanquest which had never reached that level of sales in a single month.

These figures show the relevance of the strategic refocusing begin by Pierre Cesarini, the Group’s Chief Executive Officer, on personalized digital design and connected devices. For example, FreePrints, Avanquest new mobile app that lets users print their photos free of charge from their smartphones, was launched in August 2013 in the United States: over the half-year, more than three million photos were delivered. Since then it has become available in France and Great Britain, meeting with the same success, with nearly 1.5 million prints made in those countries. It will soon be available in Germany, giving the Group a stand-out factor in the unique mobile-to-print sector.  {Generally speaking, web-to-print services are experiencing remarkable success, especially in the United States (+100% in December and +82% in pro-forma data for the half-year).

In €M

1st Half
2013-2014*

1st Half
2012-2013*

Change

% of total in 2013-14

Personalized Digital Design<

18.5

15.6

+18%

34%

Connected Devices

13.0

13.5

-4%

24%

Other

22.7

23.5

-3%

42%

Total

54.3

52.8

+3%

100%

(*estimated data)

Alongside personalized digital design, future plans for connected devices – the Group’s other strategic focus – will enable Avanquest to get back to a dynamic centering on its distribution channels by associating easy-to-use software with intelligent hardware.

This advance in sales for the half-year is accompanied by a similar strong advance in current operating income (+0.7M or +6%, unaudited figures).

A half-year that clearly demonstrates the value of the strategy announced in December 2013

The three-year action plan introduced by Pierre Cesarini, Group CEO, focuses on two strategic approaches: personalized digital creativity and connected devices. This first half-year confirms how important web-to-print and mobile-to-print services have become for the Group’s sales. “Since I came on board last May, I have sought to refocus Avanquest on a strategy favoring organic development for our high-potential activities. Once this growth has settled in for the long haul, we will be able to get back to permanent profitability. Sales for this first half of 2013-2014 is a sign that we are on the right path to enter a new cycle in our history,” according to Peter Cesarini.

Avanquest - Press release - S1 2013-2014 SalesPDF