Parrot: 2022 Full: YEAR EARNINGS
16/03/2023 07:00
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PRESS RELEASE
March 16, 2023, 8:00am CET
2022 FULL-YEAR EARNINGS
64% growth like-for-like and at constant exchange rates((1))
€68.5m of net cash at end-2022
Growth to continue in 2023
The Parrot group, a European leader for professional civil drones, recorded
€71.9m of consolidated revenues in 2022, up 32% (+24% at constant exchange
rates).
Parrot has continued to capitalize on the strategy rolled out at the end of
2018 focused on its hardware and software offering on the market for
professional microdrones. Sales of microdrones, primarily the ANAFI for
security (ANAFI USA) and inspection (ANAFI Ai), are up 88% to represent 55% of
the group’s revenues. The 11 Pix4D software solutions focused on image
analysis (photogrammetry) for mapping, inspection, security and precision
farming represent 45% of revenues and are up 25%. Based on the “New Scope”
monitored since the start of 2022((1)), the group’s revenues came to
€70.7m, with year-on-year growth of +75% (+64% at constant exchange rates).
2022 business
In 2022, Parrot met the challenges linked to the general environment
(electronic and industrial components shortage, inflation, health context) to
respond to the growing interest in its technologies. In line with the change
in the group’s positioning and the monitoring of its performance, the group
now has two operating segments: the microdrones business and the
photogrammetry business (details appended).
REVENUES (€m and % of revenues) FY 2022 12 months FY 2021 12 months Change
A Microdrones 39.2 55% 20.9 38% +88%
B Of which, consumer products ((2)) 1.3 2% 6.2 11% -79%
C Photogrammetry 32.7 45% 26.2 48% +25%
D Parrot SA 0.7 1% 0.3 1% +174%
E Intragroup eliminations (0.7) (1)% -0.8 -2% -7%
F SenseFly (activity divested in October 2021) - - 7.7 14% -100%
CONSOLIDATED PARROT GROUP TOTAL 71.9 100% 54.3 100% + 32 %
NEW SCOPE TOTAL ((1)) (=A-B+C+D+E) 70. 6 98% 40.4 74% +75%
(1) “New Scope Total” is a performance indicator reflecting the impact of
the strategy rolled out since end-2018. It corresponds to the Parrot group’s
consolidated revenues after deducting revenues from consumer products (see 2)
and revenues from the subsidiaries divested (Micasense in January 2021, with
no revenues in 2021, and SenseFly SA and SenseFly Inc in October 2021).
(2) Consumer products: in 2022, remaining accessories (batteries, spare parts)
for consumer drones (all ranges), whose sales were finalized in 2021.
Microdrones business
With revenues of €39.2m, the microdrones business recorded annual growth of
+88% (+82% at constant exchange rates). Parrot has responded to the growing
demand for its microdrones by securing its purchases and production capacity.
The ANAFI USA, focused on the security and defense markets, has been acquired
by various institutions in NATO countries (including the United States, the
United Kingdom, France, Northern Europe and Japan). With its easy deployment,
robust design, reliability and high level of cybersecurity, it is the leading
microdrone for reconnaissance and surveillance missions. It accounts for the
majority of the microdrone sales. The geopolitical context has highlighted the
strategic nature of microdrones, and this certainly represents an accelerating
factor(1).
The ANAFI Ai, designed for inspection and mapping professionals, was rolled
out commercially from the first quarter of 2022, supported by a gradual
promotion strategy and the deployment of professional client services around
the world. Its performance features, including its image precision (48 MP
sensor), its 4G connectivity, its capabilities for automating missions (Ai)
and its protection of user data, are proving very popular. Thanks in
particular to its extensive ecosystem of software partners, the ANAFI Ai
covers a growing number of use cases for the inspection of strategic
infrastructures (telecoms, energy, engineering works), architecture and
construction.
Photogrammetry business
With revenues of €32.7m, the photogrammetry business recorded annual growth
of 25% (+15% at constant exchange rates). Photogrammetry is a technique based
on the robust modeling of the geometry of images and their acquisition to
recreate an exact 3D copy of the reality, which is used as a basis for
calculations, analysis and monitoring by many professionals. The offering is
made up of eight business software solutions and three applications from the
Pix4D brand, combined with optional equipment (sensors, GPS) supplied by third
parties. The solutions have been adopted by 55,000 users to date.
The flagship products in the geomatics and mapping sectors (PIX4Dmapper,
PIX4Dmatic and PIX4Dsurvey) are still the main contributors. Recognized as
market-leading solutions, they enable surveyors and drone service providers to
handle increasingly large-scale projects. The use of the business solutions
(Pix4Dreact, Pix4Dfields) launched at the end of 2019 is gradually ramping up.
The Cloud solutions deployed in businesses and major groups from the
architecture, engineering and construction (AEC) or telecommunications sectors
are meeting the needs for digital twins and building information modeling
(BIM), which are becoming the standard for work in these industries. The
photogrammetry footprint is also expanding thanks to the diversification of
compatible equipment (fixed cameras, mobile phones).
2022 earnings
The consolidated and annual financial statements for the year ended December
31, 2022 were approved by the Board of Directors on March 15, 2023. The audit
procedures have been carried out by the statutory auditors and the reports
will be issued once the necessary procedures have been completed. The
Universal Registration Document will then be published on:
https://www.parrot.com/uk/corporate/reports.
An adjustment for an error has been applied to the 2021 consolidated accounts
relating to a difference in the accounting treatment between the Swiss Code of
Obligations and IFRS that concerned the recognition of Pix4D SA’s employee
benefit plans. In accordance with IAS 19, the commitment relating to this plan
was recognized at January 1, 2021 against equity. Non-current liabilities
(provisions for pensions and other employee benefits) for 2021 increased by
€1.7m. This adjustment did not impact 2021 revenues and is notably reflected
in a reduction in 2021 income from ordinary operations by €0.8m and 2021 net
income by €0.6m. This adjustment will be detailed in a dedicated note in the
notes to the 2022 consolidated financial statements. All references to the
results for 2021 in this press release are based on the adjusted figures.
CONSOLIDATED INCOME STATEMENT (IFRS, €m) Dec 31, 2022 Dec 31, 2021 (adjusted) Change
Revenues 71.9 54.3 +32%
Cost of sales -16.0 -15.2 +5%
Gross margin 56.0 39.1 +43%
% of revenues 77.8% 72.0%
Research and development costs -43.6 -40.7 +7%
% of revenues -60.6% -75.0%
Sales and marketing costs -11.1 -14.1 -21%
% of revenues -15.4% -26.0%
Administrative costs and overheads -14.7 -13.7 +8%
% of revenues -20.5% -25.3% -
Production and quality costs -5.5 -5.4 -1%
% of revenues -7.6% -10.0% -
Income from ordinary operations -19.0 -34.9 +46%
% of revenues -26.4% -64.4% -
Other operating income and expenses -0.9 30.4 -103%
EBIT -19.9 -4.5 -
% of revenues -27.6% -8.3%
Income from cash and cash equivalents 0.0 0.0 -
Gross finance costs -0.5 -0.2 -
Net finance costs -0.5 -0.2 -
Other financial income and expenses 2.1 1.8 -
Financial income and expenses 1.6 1.5 +7%
Share in income from associates -1.0 0.4 -
Tax -0.4 0.0 -
Net income -19.7 -2.5 -
Net income (group share) -19.5 -2.5 -
% of revenues -27.1% -4.6% -
Non-controlling interests -0.2 0.0 -
In 2022, based on €71.9m of revenues and €16.0m for the cost of sales, the
Parrot group recorded a gross margin of €56.0m, representing 77.8% of its
revenues. The group’s two operating segments contributed to this on a
virtually equivalent value basis. The effective management of component
purchases for professional microdrones, despite the shortage, made it possible
to preserve the level of the group’s margin.
Building on the success of its strategy, the Parrot group continued to
allocate major resources to further strengthening its position as a European
leader, with operating expenditure of €75.0m, up from €74.0m in 2021
(including €9.1m allocated to the companies that were sold in October 2021).
At end-2022, the group had 542 employees (permanent and fixed-term contracts),
split between the microdrones sector and the photogrammetry sector (versus 440
at December 31, 2021). The group also employs 44 external contractors (52 at
December 31, 2021).
R&D spending totaled €43.6m, compared with €40.7m in 2021. In 2022, 53%
was allocated to microdrones, with 47% for photogrammetry. In these still
young markets for professional drones, innovation continues to be at the heart
of the group’s development strategy and 60% of the workforce is focused on
this. The objective is to offer customers a strong level of automation for
data capture and analysis. This involves continuously improving the capacity
to process high volumes of information, combined with the development of
artificial intelligence in equipment. With this roadmap, the integration of
drone technologies is being simplified, while ensuring the quality and
relevance of the data acquired, particularly in terms of recurrence. This
commitment is also reflected in the continued development of the partners
ecosystem. In 2022, this was made up of more than 30 suppliers of solutions,
players from the drone industry in Europe and the United States, which are
perfectly integrated into the group’s products.
Sales and marketing costs came to €11.1m, compared with €14.1m in 2021.
They have continued to benefit from the elimination of the resources
previously allocated to the companies divested in 2021 (-€2.2m) and the
realignment around professional activities. They are focused on growing the
group’s international footprint, present in 12 countries. Professional
client support is being set up with local partners offering specific business
expertise. The equipment and solutions are being promoted through
demonstrations of various use cases presented during Tech Days, industry
conferences or webinars for instance.
Administrative costs and overheads represent €14.7m, compared with €13.7m
in 2021. The reduction made possible by the divestments (-€1.8m) was offset
by the strengthening of support functions, particularly for photogrammetry,
and the spending rolled out by the parent company. They also aim to
demonstrate the better level of transparency, personal data protection and
cybersecurity (organization of bug bounties, hacking competitions and
independent audits).
Production and quality spending totaled €5.5m, compared with €5.4m in
2021. The outsourced production process continues to be effectively under
control despite managing complex manufacturing and assembly logistics to
ensure alignment with the highest standards of quality and security.
Thanks to its sales growth, combined with the proactive and effectively
managed allocation of resources, the group reduced its annual current
operating losses to €(19.0)m, compared with €(34.9)m at end-2021. Other
operating income and expenses totaled €(0.9)m, with €(19.9)m of EBIT in
2022, while the 2021 figure benefited from €29.9m of non-recurring income
recorded in connection with the subsidiaries divested in January and October
2021.
Change in the cash position
The group had €68.5m of net cash at end-December 2022. Cash, cash
equivalents and other current financial assets came to €68.5m, down €14.4m
compared with the previous year’s closing position.
Cash flow from operating activities totaled €20.1m, reflecting the resources
allocated to operations, as well as the increase in working capital
requirements. This is linked to an increase in inventory in response to the
continued supply chain disruption.
Cash flow from investment activities totaled €8.9m, linked primarily to the
collection of outstanding receivables following the divestment of Micasense
and SenseFly, as well as the payments for the interests sold in the companies
Planck Aerosystems ($3.2m) and Chouette (€0.6m), less €1.9m of investments
in IT infrastructure and equipment.
Cash flow from financing activities came to €4.2m, including €3.3m for the
repayment of lease liabilities with the application of IFRS 16.
A presentation of the balance sheet and cash flow statement is appended.
Outlook
The Parrot group is deploying on professional markets that are expanding
rapidly, from microdrones to photogrammetry, on which it has solid
technological capabilities and offers robust responses to the geopolitical and
industrial challenges seen today. However, the technological disruption and
the deep changes in operational practices are making it difficult to assess
and forecast rates of growth. To consolidate its positioning, Parrot is moving
forward with a demanding technological roadmap, focused primarily on
automation, cybersecurity and respect for user data. The expression of its
assets is reflected in its sales and marketing strategy.
For the microdrones serving the defense and security markets, the geopolitical
situation highlights the need for equipment ensuring high levels of both
performance and security in a context of increased sovereignty. The ANAFI USA
is now a world front-runner in this area. However, the cycles for sales to
government institutions are long and the multi-year contracts cover different
scales. With this type of contract, the frequency and volumes of renewals of
orders are subject to adjudication by the contracting authorities. At a time
when many countries have announced significant growth in their military
budgets, Parrot is mobilizing to continue expanding its client portfolio.
For industrial sectors, in which microdrones and photogrammetry are combined,
the disruption and changes in operational practices have gradually taken shape
over several years, particularly for telecoms, energy and construction, as
well as more generally the inspection sector. The improvements in terms of
productivity, traceability and security (people, infrastructure and data), and
the reduced carbon footprint (vs. aeronautical or satellite imaging) that they
make possible are at the heart of the needs of businesses and major groups
today. The capacity for investment of these clients and prospects continues to
be guided mainly by the general environment.
In terms of photogrammetry solutions, the ramping up of the various markets
will also involve the diversification of dedicated equipment. Mobile phones,
tablets and cameras, which are widely adopted by users, require the marketing
of specific equipment that must enable these technologies to be used on a
larger scale. The group intends to incorporate them into its range of
solutions with a view to further extending its user base.
In this context, following a first quarter of 2023 marked by a consolidation
of sales trends, Parrot is taking action to continue moving forward with its
growth. This is the group’s core focus to gradually financially balance its
operations, and it will be able to adapt its cash consumption if necessary to
the pace of its growth.
Next financial dates
2023 first-quarter business: Thursday May 11, 2023
Parrot’s general shareholders’ meeting: Wednesday June 14, 2023
2023 first-half business and earnings: Friday July 28, 2023
ABOUT THE PARROT GROUP
Parrot is Europe's leading commercial UAV group. With a strong international
presence, the Group designs, develops and markets a complementary range of
micro-UAV equipment and image analysis software (photogrammetry) dedicated to
companies, large groups and government organizations. Its offer is mainly
centered on three vertical markets: (i) Inspection, 3D mapping and Geomatics,
(ii) Defense and Security, and Precision agriculture.
Its ANAFI range of micro UAVs, recognized for their performance, robustness
and ease of use, features an open source architecture and meets the highest
safety standards. Its Pix4D photogrammetry software suite for mobile and drone
mapping is based on advanced technical expertise and offers solutions tailored
to the specificities of the verticals it addresses.
The Parrot Group, founded in 1994 by Henri Seydoux its Chairman, CEO and main
shareholders, designs and develops its products in Europe, and is
headquartered in Paris. Today, it has over 500 employees worldwide and carries
out the vast majority of its sales internationally. Parrot has been listed on
Euronext Paris since 2006 (FR0004038263 - PARRO). For more information:
www.parrot.com, www.pix4d.com
CONTACTS
Investors, analysts, financial media Marie Calleux - T. : +33 1 48 03 60 60 parrot@calyptus.net Tech & corporate media Jean Miflin - T. : +33 1 48 03 60 60 jean.miflin@parrot.com
APPENDICES
The consolidated and annual financial statements for the year ended December
31, 2022 were approved by the Board of Directors on March 15, 2023. The audit
procedures have been carried out by the statutory auditors and the reports
will be issued once the necessary procedures have been completed. The
Universal Registration Document will then be published on:
https://www.parrot.com/uk/corporate/reports.
An adjustment for an error has been applied to the 2021 consolidated accounts
relating to a difference in the accounting treatment between the Swiss Code of
Obligations and IFRS that concerned the recognition of Pix4D SA’s employee
benefit plans. In accordance with IAS 19, the commitment relating to this plan
was recognized at January 1, 2021 against equity. Non-current liabilities
(provisions for pensions and other employee benefits) for 2021 increased by
€1.7m. This adjustment did not impact 2021 revenues and is notably reflected
in a reduction in 2021 income from ordinary operations by €0.8m and 2021 net
income by €0.6m. This adjustment will be detailed in a dedicated note in the
notes to the 2022 consolidated financial statements. All references to the
results for 2021 in this press release are based on the adjusted figures.
Fourth-quarter revenues
REVENUES (€m and % of revenues) Q4 2022 3 months Q4 2021 3 months Change
A Parrot Drones 10.0 51% 6.8 44% +47%
B Of which, consumer products ((2)) 0.0 0% (0.2) (1)% ns
C Pix4D 9.5 49% 8.7 56% +9%
D Parrot SA 0.2 1% 0.1 0% -
E Intragroup eliminations (0.2) (1)% (0.1) (1)% -
F SenseFly (activity divested in October 2021) - -% 0.1 1% -
CONSOLIDATED PARROT GROUP TOTAL 19.5 100% 15.5 100% +25%
NEW SCOPE TOTAL ((1)) (=A-B+C+D+E) 19.5 100% 15.7 101% +24%
(1) “New scope total” is a performance indicator reflecting the impact of
the strategy rolled out since end-2018. It corresponds to the Parrot group’s
consolidated revenues after deducting revenues from consumer products (see 2)
and revenues from the subsidiaries divested (Micasense in January 2021, with
no revenues in 2021, and SenseFly SA and SenseFly Inc in October 2021).
(2) Consumer products: remaining accessories (batteries, spare parts) for
consumer drones (all ranges), whose sales were finalized in 2021.
Segment reporting
The group has adapted the monitoring of its performance following the sale of
several subsidiaries in 2021 and the repositioning of Parrot around the
professional drones business. The segment reporting reflects the view of the
chief operating decision-maker (“CODM”) (Chairman-CEO) and is based on the
group’s internal reporting. The internal reporting elements are prepared in
accordance with the accounting principles applied by the group. It now has two
operating segments: the microdrones business and the photogrammetry business.
To make it possible to reconcile the elements presented with the consolidated
accounts, the parent company Parrot S.A. is incorporated into the review. The
performance for each segment is analyzed by the CODM based on the revenues and
income from ordinary operations recorded. The assets and liabilities are not
specifically presented to the CODM. Only the group’s cash position is
regularly monitored.
€m and % of revenues Microdrones Photogrammetry Other ((1)) Total
Revenues 39.2 32.7 0.1 71.9
Income from ordinary operations (10.6) (4.0) (4.3) (19.0)
Consolidated balance sheet
ASSETS (IFRS, €m) Dec 31, 2022 Dec 31, 2021 (adjusted) Change
Non-current assets 18.2 27.7 -34%
Other intangible assets 0.2 0.3 -34%
Property, plant and equipment 2.1 1.8 18%
Right of use 9.9 8.7 14%
Investments in associates 2.5 5.6 -55%
Financial assets 3.0 6.5 -53%
Non-current lease receivables 0.0 0.1 -100%
Deferred tax assets 0.4 0.8 -54%
Other non-current assets 0.0 4.0 -100%
Current assets 102.5 117.3 -13%
Inventories 14.9 4.9 203%
Trade receivables 6.4 5.2 24%
Tax receivables 5.9 6.9 -14%
Other receivables 6.6 16.9 -61%
Current lease receivables 0.1 0.5 -78%
Cash and cash equivalents 68.5 82.8 -17%
Assets held for sale 2.5 -
Total assets 123.2 145.0 -15%
SHAREHOLDERS’ EQUITY AND LIABILITIES (IFRS, €m) Dec 31, 2022 Dec 31, 2021 (adjusted) Change
Shareholders’ equity 84.0 98.8 -15%
Share capital 4.6 4.6 1%
Additional paid-in capital 331.7 331.7 0%
Reserves excluding earnings for the period -242.6 -242.8 0%
Earnings for the period - Group share -19.5 -2.5 679%
Exchange gains or losses 8.9 7.4 20%
Equity attributable to Parrot SA shareholders 83.1 98.4 -16%
Non-controlling interests 1.0 0.4 121%
Non-current liabilities 12.5 12.2 3%
Non-current financial liabilities 0.0 0.0 -
Non-current lease liabilities 7.6 6.7 12%
Provisions for pensions and other employee benefits 1.9 2.8 -34%
Deferred tax liabilities 0.0 0.2 -100%
Other non-current provisions 0.1 0.4 -69%
Other non-current liabilities 3.0 1.9 52%
Current liabilities 26.7 34.0 -21%
Current financial liabilities - 0.8 -
Current lease liabilities 2.6 2.7 -4%
Current provisions 2.2 1.2 87%
Trade payables 9.2 9.9 -7%
Current tax liabilities 0.1 0.1 31%
Other current liabilities 12.6 19.4 -35%
Liabilities held for sale - - -
Total shareholders’ equity and liabilities 123.2 145.0 -15%
Consolidated cash-flow statement
IFRS, €m Dec 31, 2022 Dec 31, 2021 (adjusted) Change
OPERATING CASH FLOW
Earnings for the period -19.7 -2.5 682%
Share in income from associates 1.0 -0.4 -360%
Depreciation and amortization 4.8 3.1 55%
Capital gains and losses on disposals 0.6 -32.9 -102%
Tax expense 0.4 0.0 -1046%
Cost of share-based payments 1.3 1.3 -4%
Other non-cash items 3.1 - -
Net finance costs 0.5 0.2 108%
Cash flow from operations before net finance costs and tax -8.0 -31.2 -74%
Change in working capital requirements -12.0 6.2 -292%
Tax paid -0.1 -0.3 -63%
Cash flow from operating activities (A) -20.1 -25.3 -21%
INVESTING CASH FLOW
Acquisition of property, plant and equipment and intangible assets -1.9 -1.6 20%
Acquisition of financial assets -0.1 -2.7 -97%
Disposal of subsidiaries, net of cash divested 5.8 24.0 -76%
Disposal of investments in associates 1.8 - -
Disposal of financial assets 3.3 3.2 1%
Cash flow from investment activities (B) 8.9 23.0 -61%
FINANCING CASH FLOW
Equity contributions -1.3 0.0 -
Net finance costs -0.5 -0.2 108%
Repayment of short-term financial debt (net) -3.3 -3.9 -15%
Repayment of other financing 0.9 - -
Cash flow from financing activities (C) -4.2 -4.1 3%
NET CHANGE IN CASH POSITION (D = A+B+C) -15.4 -6.4 140%
Impact of change in exchange rates 1.1 1.3 -17%
CASH AND CASH EQUIVALENTS AT YEAR-START 82.8 88.0 -6%
CASH AND CASH EQUIVALENTS AT YEAR-END 68.5 82.8 -17%
***
(1) The deliveries identified and linked directly to the war in Ukraine
represented €1.6m of revenues in 2022.
Attachment
* PARROT_CP_Resultats-Annuels-2022_20230316_EN_DEF
(https://ml-eu.globenewswire.com/Resource/Download/15b21b74-f33e-4f83-81db-1d0a0cf8278e)