EXEL INDUSTRIES :Activity 2nd quarter 2016-2017 Good outlook for beet harvesters and garden watering equipment

PRESS RELEASE                                                                                                             April 20, 2017

*Constant scope = 2015-2016 current scope excluding ET Works acquired in January 2016

The revenue for the second quarter of fiscal year 2016-2017 (January to March 2017) is slightly up due to the "Garden Watering" and "Industrial Spraying" activities.
Over the first half-year, the activity of the EXEL Industries Group, which has suffered from the farming crisis, was driven by "garden watering" equipment and "beet harvesters" business, an improvement that should become more marked for both sectors at the 2^nd semester.

• Agricultural Spraying

For "Agricultural Spraying", identical revenue to last year in reality conceals a significant slump in the French market and a slight reduction in Europe; at the same time sales have grown in Australia, in USA and in the CIS. The project to merge HARDI Evrard and MATROT Equipement was presented to the press, to French customers and distributors, and is ongoing.

• Beet Harvesters

During the first half-year, this activity has shown slight growth compared with last year. The outlook for sales is very favorable in Europe for the second quarter. After the increase of the sugar beets surface in Europe by 20%, sales forecast are very favorable for the second semester. 

• Spraying and Garden Watering

The launch of new products including the expandable hose "superhoZe", and the implementation of contracts of Europeans distributors, have already had a positive effect on revenue in the second quarter, despite the drop in sterling against the euro.

• Industrial Spraying

The increase in sales in industrial spraying stems from improved sales in our distribution channels together with the signing of a contract in the automotive industry in Europe and the Middle East.

• Outlook and Strategy

Mr. Guerric Ballu, CEO of the EXEL Industries Group, comments:
"In France, the crisis in agricultural spraying is still very much with us, with no prospect of recovery before the end of our fiscal year.
Substantial orders have been placed for beet harvesters in Europe with deliveries scheduled before the end of September 2017. The very favorable weather conditions at the beginning of spring leads us to expect increased activity in garden watering. With industrial spraying, we won the Nissan contract in Sunderland UK and PSA in Vigo Spain.
SAMES KREMLIN, the new company merged on February 1, 2017, was well received by the distribution network and the market, as were the company's strategy and coherent range.

In February 2017, all our brands at the recent SIMA Fair exhibited innovations that received a very warm reception from French and foreign farmers. Moreover, BERTHOUD won the prize for best machine of the year."