2019 Half-year results
In spite of the slowdown in the commercial space market as well as a high basis of comparison in the Transport and Defence & Security segments, sales remained stable at constant scope and currency. The commercial momentum remained solid, with the booking of 7 large orders with a unit value of more than 鈧100 million. Operating margin grew organically, led by a very good performance in the Defence & Security segment. The results achieved by Gemalto, consolidated since 1 April 2019, were in line with our expectations.
This positive momentum allows us to confirm our 2019 financial objectives.
All Group teams remain focused on the implementation of the second phase of Ambition 10, our strategic plan, and on Gemalto鈥檚 integration.鈥
Patrice Caine, Chairman & Chief Executive Officer
- Order intake: 鈧7.0 billion, up 10% (-1% on an organic basis1 )
- Sales: 鈧8.2 billion, up 9.9% (-0.5% on an organic basis)
- EBIT : 鈧820 million, up 8% (+4% on an organic basis)
- Adjusted net income, Group share2: 鈧574 million, up 7%
- Consolidated net income, Group share: 鈧557 million, up 22%
- Free operating cash flow2: -鈧332 million
- All 2019 financial objectives confirmed, with organic sales growth at the lower end of the previous guidance (3% to 4%)
Key figures
| In 鈧 millions except earnings per share (in 鈧) |
H1 2019 |
H1 20184 |
Total change | Organic change |
|---|---|---|---|---|
| Order intake | 6,995 | 6,331 | +10% | -1% |
| Order book at end of period | 31,701 | 30,987 | +2% | |
| Sales | 8,190 | 7,452 | +9.9% | -0.5% |
| EBIT5 | 820 | 762 | +8% | +4% |
| in % of sales | 10.0% | 10.2% | -0.2 pts | +0.4 pts |
| Adjusted net income, Group share5 | 574 | 539 | +7% | |
| Adjusted net income, Group share, per share5 |
2.70 | 2.54 | +6% | |
| Consolidated net income, Group share | 557 | 457 | +22% | |
| Free operating cash flow5 | -332 | -272 | -60 | |
| Net cash (debt) at end of period | -4,397 | -1,6736 | -6,071 |
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Notes
1 In this press release, 鈥渙rganic鈥 means at constant scope and currency.
2 Non-GAAP financial indicators, see definitions in the appendices.
3 The limited review of the financial statements has been completed and the statutory auditors鈥 report has been issued following the meeting of the Board of Directors
4 Since 1 January 2019, the Group has been applying IFRS 16 鈥淟eases鈥. Since the Group chose to use the modified retrospective method, the 2018 figures in this press release have not been restated. The impact of this standard on the H1 2019 financial statements is outlined in Note 1.2 of the consolidated financial statements.
In addition, in the framework of the Gemalto acquisition, a new 鈥淒igital Identity & Security鈥 operating segment was created. It includes Gemalto鈥檚 businesses (consolidated since 1 April 2019) and a number of digital businesses formerly assigned to the 鈥淒efence & Security鈥 operating segment. Segment data for 2018 was restated to take account of this change in organisation.
5 Non-GAAP financial indicators, see definitions in the appendices.