Soitec: Lower annual financial results and 5-year outlook

  •   02/07/2021 - 07h32
  •   DEHOUI Lionel

Just recently, the news mentioned the giant blackout that the news sites directly or indirectly linked to the company Fastly had. Ferrari was also in the news with the appointment of a new boss for one of its divisions. However, it is Soitec that surprises with the publication of its financial results and objectives. Here is the point.

Soitec: Lower annual financial results and 5-year outlook

Financial results for the year 2020-2021

The Soitec Group achieved consolidated sales of 583.8 million euros for its 2020/21 financial year. This is a level that comes out 2.3% lower than the consolidated turnover of the previous financial year 2019/20. Soitec's wafer sales were spread across a specific diameter range (between 150/200 and 300 mm).

The company's business generated a current operating profit of €90.0 million in the twelve months of the financial year 2020/21. It consequently stood at 15.4% of sales compared to a level of 19.7% recorded in the entire 2019/20 fiscal year. It should be noted that the previous financial year ended with a net current operating profit of €117.7 million.

 

Ebitda and consolidated net income

Soitec's activities during the financial year 2020/21 generated an estimated Ebitda of 179.0 million Euros. This compares to 185.4 million Euros at the end of the previous financial year.

185.4 million. Logically, this performance indicator was down on the previous year. Consolidated net profit fell by 34% at the end of the 2020-2021 financial year. It came out at €72.7 million compared to €109.7 million achieved over the twelve months of the 2019-2020 financial year.

 

Soitec's short-term objective (for 2021-2022)

Soitec's annual sales target is approximately $950 million for the fiscal year 2021-2022. 800 million based on a euro-dollar exchange rate of 1.2. It therefore expects a 40% improvement on a like-for-like basis. It had previously anticipated a turnover of 900 million dollars over this period.

In fact, Soitec's business has been driven by the deployment of next-generation mobile phones (5G) and significant advances in vehicle electrification. The growing use of cloud computing and embedded artificial intelligence also drove the business. This explains the increase in targets, with organic growth expected to be around 40%.

Note: Soitec will thus resume the strong growth it began five years ago following its refocusing on Electrification. The Group plans to invest more than 250 million Euros during the current financial year to increase its production capacity.

 

Objectives for 2026

First and foremost, Soitec closed the financial year 2020-2021 (end of March 2021) with a cash position of 644.4 million Euros, an increase of 453.4 million Euros. Moreover, it intends to increase the size of its addressable markets by 2.5 times by fiscal 2025-2026.

The semiconductor materials specialist expects to triple its sales ( to around $2 billion) over the next five years. It anticipates an Ebitda margin of 35% in Electronics.