Chargeurs : Q1 2023 Revenue
Message :
and gradual business recovery for Advanced Materials
The new growth drivers confirm their strength and commercial acceleration
Q1 2023 revenue came out at €169.7 million, reflecting slight organic growth compared with Q4 2022, despite the particularly wait-and-see and deteriorated global environment, and fell 16.6% short of the Q1 2022 performance, which was a record comparison basis
Success of the Group's new growth drivers:
Chargeurs PCC Fashion Technologies, driven by fashion and luxury, maintained business at a very high level
Chargeurs Museum Studio saw a 50% increase in its business and confirmed its commercial dynamics
Revenue offsetting between businesses and between geographies, and leadership premium confirmed compared with Q4 2022, Chargeurs took advantage of its diversified model and its ultra-premium positioning: indeed, the rebound in business in Europe offset the temporary wait- and-see mood in North America and Asia
Strength and sequential rebound within the Technologies division
After a decline in volumes in 2022, Chargeurs Advanced Materials reported 21% growth in sales volumes compared with Q4 2022 and maintained its pricing power, with its leadership premium, enabling it to rebound faster than its market
◆ Chargeurs PCC Fashion Technologies confirms its profitable commercial dynamics
Promising commercial acceleration and ambition in the Luxury division
Very strong growth and clear visibility at Chargeurs Museum Studio
Greater commercial selectivity and greater contribution from services to major fashion brands for Chargeurs Luxury Fibers which reported a pick-up in revenue compared with Q4 2022, with the basis of comparison from the first quarter of 2022 being atypical owing to the post-Covid recovery environment
Confirmed ambitions for a structuring acquisition
Encouraging trends and dynamics, confirming the dominant scenario already announced of accelerated profitable growth for all contributing drivers during the second half of 2023. Financial Communications // +33 (0)1 47 04 13 40 // comfin@chargeurs.com
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Paris, May 24, 2023
Michaël Fribourg, Chairman and Chief Executive Officer of Chargeurs Group, declared: "Once again Chargeurs confirmed its strength and its ability to bounce back by resisting economic volatility in a less profitable, wait-and-see environment and by steadily pursuing its accelerated transformation in its ultra- premium business niches. The activation of its different growth drivers, driven by the global commercial commitment of its teams, which deserve to be congratulated, enabled Chargeurs to express its leadership premium in its four global champions. The sectoral and geographical decorrelation of operating segments allows for slight organic growth in activity in the first quarter of 2023 at the level of the fourth quarter of 2022, despite the energy crisis, inflation and the impact on consumption of the unprecedented acceleration in interest rate increases. The new growth drivers confirm the good news: Chargeurs PCC Fashion Technologies, driven by the Luxury segment and digital consumption, maintained revenue and profitability at very high levels despite the prevailing wait-and-see mood in Asia. Chargeurs Museum Studio, as anticipated, is experiencing a true commercial take-off this year, rewarding the transformations and synergies prepared in previous years. With regard to historical growth drivers, Chargeurs Advanced Materials confirmed its sequential rebound in revenue and volumes, the return to a normal level of activity is expected in the second half of the year, with a scenario of higher volumes and a more favorable product mix. Once more, Chargeurs activities were able to adapt from the top to the ups and downs of the global economy, demonstrating their industrial, logistics and commercial flexibility; pressure on energy and inflation no longer had a significant impact on the Group's business models since the end of Q1 2023. Driven by its long-termentrepreneurial culture and its strengthened, talented teams, Chargeurs is developing four global champions with unprecedented flexibility in this first half which is mechanically less buoyant in terms of profitability but rich in environmental and digital transformation initiatives, differentiating in the short, medium and long term. While remaining vigilant in light of the economic backdrop, Chargeurs reaffirms its confidence in 2023, leveraging the continued geographic expansion of all its businesses, its operational excellence, its entrepreneurial model, its powerful portfolio and balance sheet strength. In line with its strategy and its ambitions, the Group confirms its desire to carry out a structuring acquisition in its Luxury division, while targeting revenue of more than one billion euro for 2025 at constant scope". Financial Communications // +33 (0)1 47 04 13 40 // comfin@chargeurs.com
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Slight growth in revenue in First quarter 2023 compared with Fourth quarter 2022
For the first quarter of 2023, the Group reported revenue of €169.7 million, down 16.6% compared with Q1 2022 but reflecting organic growth of 0.6% compared with Q4 2022. Chargeurs Advanced Materials reported growth compared with Q4 2022, despite the energy crisis and the erratic economic backdrop, which continue to weigh on the business. Group activity benefited from the performance of the PCC Fashion Technologies business line, where revenue remained stable despite a record comparison base, and from the very strong dynamism of Museum Studio which reported a 50.9% surge in sales with very promising prospects, as reflected in the size of the order book. The new growth drivers confirm their expansion and the conquest of new international markets
€m
Technologies Division:
Revenue at Chargeurs Advanced Materials was up 8.6% in Q1 2023 compared with Q4 2022. The
26.3% decline compared with Q1 2022 can be mainly attributed to an unfavorable comparison basis: indeed, the start of last year was marked by massive rebuilding of inventories post-Covid after 2021. After three consecutive quarters of declining volumes in 2022 compared to a record 2021, CAM benefited from a turnaround of 21% in volumes sold in the first quarter of 2023. Although caution remains the watchword, we can consider that the low point in activity is behind us. CAM continues to strengthen its positions in very promising markets, notably in India in the stainless steel market and in Australia, which partially offset the wait-and-see mood in the Chinese market. While recovery prospects in China have not yet been confirmed, the Group's leadership in premium films means it is ideally positioned to take advantage of the imminent recovery. Furthermore, in Europe, Chargeurs Advanced Materials benefited from its solid customer base, the recognized excellence of its products and its commercial speed of reaction to chalk up a robust performance in an industrial environment which remains complex. Financial Communications // +33 (0)1 47 04 13 40 // comfin@chargeurs.com
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Paris, May 24, 2023
In all markets, the business line aims to leverage its commercial strength, the quality of its products and its innovation capacity to offer new sustainable protection solutions. In this way, it is reinforcing its position as an essential player to assist industry towards industrial and logistics processes that are more respectful of the environment. The new Oxygen range, with an innovative vegetable base enables huge reductions in CO2 emissions, chalked up very significant commercial successes with major industrial groups, enabling them to meet the requirements of decarbonized industry. For all of these reasons, the Group maintains its scenario of a gradual rebound in business at CAM during the second half of 2023. Chargeurs PCC Fashion Technologies maintained its first quarter revenue at the same level as the previous year, despite the still-uncertain macroeconomic environment. This performance is all the more remarkable considering that while Europe, thanks to the luxury sector, and South America, generated strong growth, Asia, despite a slight recovery in China and interesting trends in neighboring countries - notably India and Sri Lanka - has not yet fully returned to its pre-Covid level. The activity was supported by its pricing power, which enabled integration of the increase in input prices, and by a volume effect driven by the diversification of products offered and the resulting market share gains with new customers. Furthermore, the activity is continuing to pursue its strategic positioning as one of the players in the sustainable transformation of the textile industry. Its brand-new wool interlining solution NATIVATM as well as its new Zero-Water dyeing solution, in a context where water consumption is more than ever an industrial challenge, have received numerous expressions of interest. The performance of Chargeurs PCC Fashion Technologies also leverages its innovative Fusion range to continue its expansion, notably with the signature of a new partnership with German underwear brand Triumph. Chargeurs Healthcare Solutions, which did not generate meaningful sales in the first quarter of 2023, is now integrated within Chargeurs PCC Fashion Technologies, owing to the normalization of the health situation. Luxury Division:
The Chargeurs Museum Studio activity continues to enjoy very strong trends, with growth of more than 50% in revenue to reach €24.0 million, confirming its trajectory toward its objective of €120 million for all of 2023. Quarter after quarter, CMS affirms its status as a major contributor to Group growth. The structuring of a single center of excellence for all of the cultural services for institutions, museums, foundations and brands makes CMS a unique global player. This differentiating positioning at each stage of the value chain of the museum universe enables the business to win new projects and consolidate its order book, providing significant visibility on business which should see a sharp acceleration in the second half. Thanks to its recognized expertise in cultural engineering, CMS is positioned as the reference global cultural brand and continues its international deployment, with
Financial Communications // +33 (0)1 47 04 13 40 // comfin@chargeurs.com
4
Paris, May 24, 2023
promising discussions in India and Central Asia which could ideally complement its footprint in Europe and North America. In this way, the business continues to win emblematic projects, like the Marine Corp Museum in North Carolina (United States) or the Lost Shtetl in Lithuania. Another major success: the luxury Maison Fendi chose Skira to publish the brand's saga in an exclusive XXL edition. Chargeurs Luxury Fibers steeped up its commercial repositioning, addressing fashion and luxury brands directly. In the first quarter, revenue generated by the activity was down owing to a high comparison basis from Q1 2022, at €21.7 million. Business was impacted by the continued effects of Covid in China and by extreme weather conditions in New Zealand which disrupted production. Apart from these economic considerations, CLF continued to pursue its differentiation strategy with the NATIVATM brand to make wool a premium, traceable and sustainable product. Other developments, such as the NATIVA REGEN regenerative agriculture program, contribute to long-term collaborations with brands. Initial successes in 2022 will be followed in 2023 by further commercial confirmations with major fashion and luxury players, keen to demonstrate their environmental achievements, notably in reducing their carbon footprint. In this way, CLF is positioned as the global leader for eco-fibers and will extend its lead in the coming months with the development of new very promising NATIVATM labels for cashmere and cotton. Chargeurs Personal Goods reported revenue of €2.0 million. During the first quarter of 2023, the new division contributed to the Group's commercial dynamism. The Cambridge Satchel Company, renamed Cambridge Satchel, continued its strong commercial revitalization which notably targets developing the brand in Asia by the end of 2023. This presence will enable Cambridge Satchel to extend its global reach, and this will also be fueled by several partnerships recently concluded with Hollywood movie studios. The brand also intends to leverage the dynamics of its digital sales channels, with the opening of a TikTok boutique. Fournival Altesse reported another quarter of growth over the first three months of 2023, with sound prospects for the rest of the year. Boosted by its move upmarket, confirmed by its recent referencing by La Samaritaine, the luxury hairbrush brand plans to take full advantage of strong growth in the Haircare market. The historical Swaine brand continues its commercial development offensive, with the pre-opening of a flagship store on London's New Bond Street, which offers the brand a new showcase and promising prospects. The launch of new ranges, including an exclusive women's range, should also enable Swaine, which is not yet consolidated in 2023, to take advantage of new luxury trends. Financial Communications // +33 (0)1 47 04 13 40 // comfin@chargeurs.com
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CHARGEURS : Q1 2023 Revenue

Knight Property Group has secured a new tenant for its prime retail offering at 67 George Street, in the heart of Edinburgh city centre. The Cambridge Satchel Company is relocating from an existing store on George Street and has agreed a ten-year lease on the 1,436 sq ft retail unit, which is arrang

Cambridge Satchel Company moves into new Edinburgh George Street location

Image: Cambridge Satchel Company, Facebook

British bag maker The Cambridge Satchel Company has appointed Carine de Koenigswarter as its new chief executive and chair.
It comes after the company, also known just as Satchel, was bought by French textile firm Chargeurs in August for an undisclosed sum.
Chargeurs took a stake of at least 75 percent in Satchel, while founder Julie Deane ceased “to be a person with significant control (PSC)”, according to filings at Companies House.
De Koenigswarter, who is the CEO and chair of The Swaine Group, which is also owned by Chargeurs, will take over the top job from Deane.
“It’s an honour to take the baton from Julie Deane and move The Cambridge Satchel Company forward to its next stage,” De Koenigswarter said in a statement.
She continued: “The success of the brand is proof that British craftsmanship, style and authenticity have a strong impact worldwide.
“Great Britain is known for its elegance and understated luxury. We at Swaine are committed to make Britishness the ultimate destination of true luxury and the addition of The Cambridge Satchel Company brings this vision one step closer.”
Top changes at Satchel
Alongside Deane’s exit, Satchel directors Giuseppe Zocco, Willem Herman Haitink, and Faris Ayoub all stepped down in August, while Chargeurs executive Yann Delmas was appointed as a director.
Chargeurs said at the time that Satchel has “strong potential for premiumization and international expansion” thanks to its Made in Britain offering coupled with “the visibility of its brand and the excellence of its digital expertise”.
The Cambridge Satchel Company is a designer, manufacturer and distributor of premium leather bags and satchels founded in 2008 by Deane and her mother Freda Thomas with an investment of just 600 pounds.
In 2013, it opened its first store in London’s Short Gardens, which it later relocated to James Street, before opening further stores across the UK.
Today, the brand is stocked in more than 150 countries and employs over 60 people.
It has also previously linked with a number of other iconic brands including Vivienne Westwood, Comme des Garçons, and Farrow & Ball.
Last year, Satchel opened a new 1,054 square foot London flagship on Carnaby Street.

Cambridge Satchel Company names new CEO following acquisition

09/15/2022 | 10:26am EDT
Message :
SIGNIFICANT NEWS
With its recent acquisitions of Swaine in 2021, the Cambridge Satchel Company in 2022, the development of the Chargeurs Museum Studio division and its luxury wool, Chargeurs looks like a luxury player in the making. FACT
Chargeurs acquired the British luxury brand Swaine in 2021. In July 2022, Chargeurs acquired an 80% stake in Skira, a renowned publisher of classical and modern art and design books. In August 2022, Chargeurs acquired the Cambridge Satchel Company, a company producing luxury leather goods at affordable prices. ANALYSIS
Chargeurs rechristened its business units. The new Chargeurs Luxury moniker encapsulates 3 business lines: Luxury fibers (ex Wool), Chargeurs Museum Studio and Chargeurs Personal Care to which are now added a raft of recently acquired personal luxury brands. A differentiated offer of museum services
Through its numerous acquisitions in recent years, Chargeurs aims to become the leading player in museum services through CMS (Chargeurs Musuem Studio). Chargeurs seeks to intervene at every level of the museum’s decision-making chain, from project management, design and building to audiovisual content production and even the publication of art books. To this end, the group recently acquired Skira, a renowned publisher of classic and modern art and design books. Over the years, Chargeurs has developed a unique offering replacing the former offerings of multiple segmented players to define a seamless museum visitor experience. The goal is to reinvigorate museums, increase their audiences and drive revenue growth. During its analyst day on September 8th, Chargeurs made a show of what its CMS  unit can deliver with the National Army Museum: it redesigned the customer experience and turned an old and dull museum into an attractive one. Short term, despite an integrated and differentiated  offering, the business’ earnings dynamic is still constrained by the phasing of major contracts. This should not last since the group’s order book is made up of major projects won in H2 2021 and 2022 which will deliver most of their profit at the end of the contract, i.e. from H2 2022, then 2024 and 2025. A new kind of luxury
Through its Luxury Fibers division, and more specifically through its Nativa label, Chargeurs has been capitalizing on luxury trends, including the positive implications of stricter ESG practices. The Nativa label is a label that allows for the traceability of premium wool, and offers quality wool that guarantees responsible practices and regenerative agriculture. Today, although not yet a high-margin business, the label is growing and Chargeurs has offered its solutions to several brands including Stella McCartney which uses Nativa in its story-telling to its customers. Chargeurs is looking to increase the label’s visibility; the company expects that the traceability and sustainability services will help transform a low-margin business into a double-digit margin business. That will not happen overnight as the group must be able to sell its wool at a premium in order to cover the extra costs. In short, the group intends to transform CLF’s model from pure trading to a value-added model through Nativa’s services including regenerative agriculture that helps luxury brands to reduce their emissions. The development of the Swaine brand
Finally, the development of Chargeurs’ luxury goods division will be propped up by the company’s two recent acquisitions, Swaine brand, acquired in 2021, and the Cambridge Satchel, acquired in August 2022. Swaine is a leading British luxury goods company that has been active in leather goods, umbrellas and millinery for over 270 years. Again, Chargeurs is undertaking a remarkable job of updating the brand’s positioning from one focused on the image of English Gentlemen to one that is also youth-oriented and aimed at women. The group has already changed the location of the store in Mayfair and will soon open a flagship store in New Bond Street, the logo, the digital strategy and intends to achieve synergies with the Cambridge Satchel Company. Inevitable questions will center around how quickly and at what risk to the brand Chargeurs will be able to increase revenue and profit significantly by changing the brand’s positioning. In short, by rejigging its business definition and buying into adjacent industries, Chargeurs is taking a punt in the luxury realms. If confirmed and successful, it will inevitably change its profile from a BtoB support services type business to one possibly more oriented towards consumers. The next few quarters will help tell how deep this move might be. Copyright 2022, Alphavalue

Chargeurs : The up-and-coming luxury player

09/12/2022 | 06:34am EDT
Message :
EARNINGS/SALES RELEASES
Chargeurs has once again demonstrated its adaptability and flexibility in an uncertain and challenging environment. Although less heady than H1 21, the group showed its resilience with solid operating results marked by revenue and profitability growth compared to pre-pandemic levels across all businesses. While H2 and FY 2022 will certainly be less impressive than in FY 21, Chargeurs displays an encouraging long-term outlook despite record inflation, the war in Ukraine and recessions in key geographies. FACT
Chargeurs posted total sales of 398.7m over H1, up +7.1% yoy and 22.3% vs the pre-pandemic H1 19 level. Like-for-like growth stood at 15.6% vs the pre-pandemic H1 19, driven by non-health-related activities and the Technologies divisions. Chargeurs EBITDA amounts to 37m (9.3% margin), while the recurring operating profit came in at 25m (6.4% margin). Cash generation was below the pre-pandemic level at 0.3m (against 58m in H1 21 and 0.5m in H1 19), increasing net debt to 135.8m against 89m in H1 21. The decided interim dividend is much lower than last year’s dividend of 0.48 at 0.22. Despite the lower results than H1 21 and the ongoing challenging environment, the FY22 outlook is still promising based on: 1) the groups ability to pass on price increases to customers, and 2) its strong order-book. Source: Company report
ANALYSIS
First, as a quick reminder, the group has restructured its activities around three strategic business areas: Technologies, Luxury Goods and Diversification. The Technologies division now includes Chargeurs Advanced Materials (formerly Chargeurs Protective Films) and the Chargeurs PCC Fashion Technologies business lines. Chargeurs Luxury includes Chargeurs Luxury Fibers, Chargeurs Museum Studio and Chargeurs Personal Care as well as the Swaine and The Cambridge Satchel Company brands. This new division is somewhat work in progress as the group adds assets and the health side is experiencing wild swings in business. Diversification comprises the group’s varied minority interests. Chargeurs consolidated revenues totalled 398.7m, up by 7.1% versus the 372.4m level in H1 21. However, the group’s profitability declined with EBITDA at 37m compared to 46.3m in H1 21 and an EBITDA margin down 310bp. Resilient performance of the Technologies division
In H1, Chargeurs Technologies’ revenue amounted to 301.8m against 238.8m in 2021, corresponding to 21.9% lfl growth. This growth is driven by both Chargeurs Advanced Materials and Chargeurs PCC Technologies. Chargeurs Advanced Materials reported a 9.3% increase in sales, mostly price-driven, and a relatively stable EBITDA margin of 11%. This performance reflects the group’s agility and pricing power in the inflationary environment. Chargeurs PCC Fashion Technologies reported a 52.3% lfl increase in revenue and an 80bp rise in the EBITDA margin to 10.2% in H1 driven by the rebound in the fashion market on the one hand and a gain in market share on the other. A declining profitability driven by the Luxury division
The Luxury division experienced a 33.1% drop in revenues yoy, from 133.6m to 96.9m. This decrease in revenues is driven by the decline in the personal care activity which recorded -91.3% lfl growth compared to the 2021 level, a performance that can be explained by the improvement of the health situation in Europe. The other activities of the Luxury Division saw an increase in revenues. Chargeurs Luxury Fibers posted organic growth of 35.5% yoy in H1 from 39.4m to 54.4m. This growth was mainly due to a volume effect. The division is also expanding the Nativa label, a label that guarantees the traceability of wool and the use of regenerative agriculture. However, despite the increase in revenues, the profitability of the business remains low and amounts to an EBITDA of 1.1m or an EBITDA margin of 2%. Lastly, Chargeurs Museum Studio recorded a 30% increase in revenues on average, from 22.9m to 36.3m. In this activity, as well, profitability has not kept pace with revenue growth and the EBITDA margin was down from 16.6% to 8.9%. A luxury pole undergoing restructuring
Chargeurs is in the process of restructuring its luxury division. The personal care activity is deepening its business from its former focus on mask production. The 2020 COVID revenues will not be recovered any time soon. Through its museum activity, Chargeurs aims to become a leading player in all fields of museum services and has been widening its expertise through acquisitions. In July 2022, Chargeurs acquired an 80% stake in Skira, a renowned publisher of classical and modern art and design books. Lastly, Chargeurs intends to become a luxury player with its latest acquisition in August 2022, the Cambridge Satchel Company, a company producing luxury leather goods at affordable prices. Management sees operational leverage through the manufacturing capacity of Cambridge Satchel to be used by other brands. Deteriorating liquidity position
Overall, the group’s recurring operating result reached 25.4m, corresponding to a 6.4% margin, a decrease of 25% in absolute terms and -270bp in margin. This is primarily due to the health business at a standstill. The decrease in operating performance and the increase in working capital requirements (+17.8m) led to a decrease in cash flow during the first half of the year with cash flows from operations at 0.3m compared to 58m in H1 21. The level of debt has therefore increased with net debt at 135.8m compared to 80.6m in H1 21 bringing the leverage ratio to 2.1x. Nevertheless, it is worth mentioning that the group’s cash position remains strong at 313.5m and the group has recently obtained new bilateral lines of credit of 105m. Long story short, a less promising start to the year than 2021’s, but still encouraging given the toughening context. Management remains confident in its ability to keep up profitability and to face the challenging environment in FY 2022 given 1) its full order books, 2) its pricing power, 3) its geographical diversification, and 4) its leadership position in niche markets. We remain positive on the stock and believe that the current valuation leaves plenty of potential for upside. IMPACT
Our view on the stock remains positive, we will slightly adjust downwards our estimates for the rest of the year. Copyright 2022, Alphavalue

Chargeurs : H1 22: an encouraging start to FY 2022 demonstrating the group's resilience

Eurostop provides stock control software and EPOS systems for fashion, footwear, jewellery, apparel, and lifestyle retailers. The company is based in London, England.

Eurostop

Eurostop , a leading supplier to the fashion , footwear and lifestyle sectors has been selected by the Cambridge Satchel Company to supply EPOS , stock management and head office solutions for its growing retail arm .

Cambridge Satchel Company selects Eurostop to support growing retail operations - Eurostop

Vivienne Westwood offers latest designer collections of menswear, womenswear, unisex, bridal and accessories including online shopping. It is based in London, England.

Vivienne Westwood

The Cambridge Satchel Company

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Acquired

Corporate Majority

The Cambridge Satchel Company provides leather products for both men and women. It offers satchels, messengers, briefcases, backpacks, work bags, and accessories. The company was founded in 2008 and is based in Cambridge, U.K. In August 2022, The Cambridge Satchel Company was acquired by Chargeurs. The terms of the transaction were not disclosed.

Name	Work History	Title	Status
Julie Deane		Founder, Chief Executive Officer	Current
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Name	Julie Deane	Subscribe to see more
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Name	Willem Haitink
Firm
Work History	Experienced CEO and NED with a demonstrated history with leading branded sports/lifestyle and technology businesses. Advisor to private equity including deal origination, due diligence and portfolio management. Hands-on investor with a portfolio of fast growing companies.
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