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By Fashion Network
After a slowdown in 2023, Lectra, the French specialist in fashion industry solutions, has returned to growth in the first half of 2024. The period saw a 9% increase in revenue, reaching €262.3 million.
During this time, EBITDA also grew by 20%, amounting to €42.2 million, which improved the EBITDA margin by 1.4 points to 16.1%. Net income reached €11.1 million, influenced by the amortization of intangible assets from Launchmetrics, a French data analytics firm acquired at the end of 2023, and increased financial expenses.
"Licenses for perpetual software, equipment, accompanying software, and one-time services, amounting to €38.7 million, remained stable compared to the second quarter," the French company reported. "The annual value of new software subscriptions stood at €3 million, a 6% increase compared to the second quarter."
After achieving a 15% revenue increase in the second quarter alone, Lectra is maintaining its targets set at the beginning of the year. The company aims to generate revenue between €480 and €530 million for the current fiscal year, representing an increase of 2% to 12% over the previous year, with €42 to €46 million generated by Launchmetrics. The company still aims to reach €600 million by 2025.
However, the group noted that while "the substantial improvement in the fundamentals of the group's business model in 2023" will have a positive impact on 2024 results, "persistent macroeconomic and geopolitical uncertainties could continue to impact the investment decisions of its clients.
"This caution reflects the lessons learned from a challenging business climate in 2023, during which Lectra's revenue contracted by 6% to €477.6 million. The gross margin was recorded at €333.2 million, down by 1%.
This article was published by Fashion Network July 29, 2024. Lectra is a member of SPESA.
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