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Half-year revenues at €9.6 million, up 11% vs. H1 2020
Strong improvement of the gross margin rate to 43% vs. 4% in H1 2020
Operating loss reduced by 74% to -1.7 M€ vs. -6.5 M€ in H1 2020
Strengthening of technological leadership with new functionalities brought to the new generation of robots thanks to OS version 4.12
Key partnerships established, in particular with Körber Supply Chain, a leading intralogistics integrator, in order to offer BALYO robots to companies around the world
IVRY-SUR-SEINE, France, September 27, 2021--(BUSINESS WIRE)--Regulatory News:
BALYO (FR0013258399, Ticker: BALYO, eligible for PEA-PME savings schemes), a technological leader in the design and development of innovative robotic solutions for material handling trucks, today announces its results for the first half of fiscal 2021, as approved by the Board of Directors on September 24, 2021
Pascal Rialland, CEO of BALYO, comments: "The first half of the year was characterized by significant operational and commercial progress for BALYO, in particular the signing of the partnership with Körber, which demonstrates the interest of leading logistics companies in our high value-added robotic solutions. The latest generation of BALYO robots now benefit from extended technological functionalities and the increasing number of integrators using them make us confident that our sales momentum will accelerate in the coming quarters. Finally, we have achieved a good financial performance during the past six months, since the operating loss has been significantly reduced thanks to the improvement of the gross margin and the good control of operating costs."
First half 2021 activity: several developments and partnerships
BALYO recorded revenues of €9.6M in the first half of 2021, up +11% compared to the first half of 2020. In the second quarter of 2021, the Group recorded revenues of €5.3M, up +8% compared to Q2 2020. After taking into account new orders for €5.2 million in Q2 2021, the backlog as of June 30, 2021 was €8.8 million, compared to €8.7 million as of March 31, 2021.
In order to strengthen its technological leadership and the added value of the robots for its customers, BALYO has concluded several key partnerships during the past six months with FM Logistic, Körber Supply Chain or Ouster. These agreements are aimed respectively at highlighting BALYO's innovative solutions through a leading fulfilment center for mobile robotics in France and Europe, offering its autonomous handling equipment to companies worldwide, migrating to the use of 3D lidars to enhance the existing abilities of its robots and, finally, making the first deliveries of its new generation of reach truck robots.
Finally, the latest high value-added features of the BALYO OS version 4.12 will equip installed robots starting in Q4 2021 to further improve robot performance and simplify robot installation or use.
Cost of sales
Gross margin rate
Research and development
Sales and marketing
Share-based payment expense
Financial results for the first half of 2021
The strong improvement in gross margin, which benefits from a favorable effect related to the recognition of warranty costs for €1.1m in H1 2020 (€0.5m in respect of warranty calls accepted in respect of prior years and €0.6m in respect of a warranty provision for future periods), is mainly explained by the success of the business strategy implemented in recent semesters, whose effects could be observed as early as H2 2020. BALYO is thus enjoying the benefits of the actions implemented to optimize the installation, training and quality control processes. In particular, the switch to the sale of robotic kits has greatly supported this improvement dynamic.
After a significant decrease in operating expenses in 2020, the focus continued in H1 2021 with a decrease in Research and Development expenses (-16%), Sales and Marketing expenses (-15%) and General and Administrative expenses (-15%). Overall, operating expenses decreased by 15% compared to H1 2020. This change is mainly explained by the decrease in payroll in line with the reduction in headcount over the period (168 employees at end-June 2020 to 145 at end-June 2021).
After taking these items into account, the operating loss for the period was -1.7 M€ compared to -6.5 M€ in H1 2020.
At June 30, 2021, the financial result amounted to a loss of 0.02 M€ compared to a loss of -0.2 M€ at June 30, 2020. This change is explained by the exchange rate results during the periods (positive at June 30, 2021, negative at June 30, 2020).
Overall, net income for the first half of 2021 was -1.7 M€, compared to -6.7 M€ in H1 2020.
As of June 30, 2021, the Company had cash and cash equivalents of €6.4 million compared to €8.7 million as of June 30, 2020.
Strategy and outlook
During the second half of 2021, BALYO's sales momentum should continue to benefit from the strengthening of its operational drivers, the reinforcement of the sales department with the recent appointment of Mark Stevenson as Chief Sales Officer, commercial partnerships with integrators, greater commercial autonomy for historical OEMs, direct sales, as well as the ramp-up of technological developments, particularly the OS, in favor of the latest generation of BALYO robots.
Finally, BALYO maintains its order commitment target from LINDE Material Handling at €13.6 million for 2021.
Next BALYO financial release: Q3 2021 sales, October 28, 2021 after market close.
BALYO has made available to the public and filed with the Autorité des marchés financiers its half-year financial report as of June 30, 2021.
The half-year financial report is available on BALYO's website at www.balyo.com.
Humans around the World deserve enriching, creative jobs. At BALYO, we believe that pallet movements in DC and manufacturing sites should be left to fully autonomous robots. To execute this ambition, BALYO transforms standard forklifts into intelligent robots thanks to its breakthrough Driven by Balyo™ technology. Our leading geo guidance navigation system enables robots to locate their position and navigate autonomously inside buildings - without the need for any additional infrastructure. To accelerate the material handling market conversion to autonomy, BALYO has entered into two global partnerships with KION (Linde Material Handling's parent company) and Hyster-Yale Group. A full range of globally available robots has been developed for virtually all traditional warehousing applications; Tractor, Pallet, Stackers, Reach and VNA-robots. BALYO and its subsidiaries in Boston and Singapore serve clients in the Americas, Europe and Asia-Pacific. The company has been listed on EURONEXT since 2017 and its sales revenue reached €21.7 million in 2020. For more information, visit https://www.balyo.com/.
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