Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the first quarter ended 31 March 2021.
Financial highlights 1Q211
Orders of €228.9 million, an increase by 21 percent versus 4Q20 and a decline of 10 percent vs 1Q20
Orderbook at €351.5 million, up 25 percent (or €70 million) vs 4Q20 and up 3 percent (or €10 million) vs 1Q20
Sales of €171.7 million, a decline of 12 percent versus 4Q20 and 27 percent vs 1Q20
Executive summary 1Q21
Compared to 4Q20, orders grew 21 percent to 228.9 million euro, driven by strong order intake in Healthcare and Entertainment, indicating recovering economic activity, and continuing a trend of quarter-to-quarter improvement from the 2Q20 low.
Orderbook grew solidly with 70 million euro to 351.5 million euro compared to year-end 2020. Sales were down 12 percent versus 4Q20 reflecting the continued impact from covid-lockdowns on orders to sales conversions in most of the regions.
Compared to the same period last year, before lockdowns took effect in all regions, orders were down 10 percent and sales declined 27 percent. Orderbook however grew 10 million euro versus 1Q last year.
- While the Entertainment division saw a meaningful uptake in orders in the first quarter, sales for the division were down versus 4Q20.
- New build cinema opportunities globally continued to expand resulting in solid order intake growth versus 4Q20.
- In China pent-up demand for cinema entertainment drove box-office revenues over the past six months and translated into project orders and sales pick-up in the first quarter. Assuming box office revenues in Western countries start to recover this summer, we expect to see evidence of growth toward the end of the year.
- The recently signed long-term frame agreement2 with IMAX offers a strong proof of confidence in industry fundamentals and in the shift to laser projection.
- Venues and Hospitalities posted good order intake versus 4Q20 with sizeable uptakes across different regions mainly driven by demand for immersive digital art experiences by museums and fixed AV installations. Sales however were below 4Q20 as a result of seasonality effects.
- Enterprise delivered 1Q21 topline results in line with 4Q20.
- ClickShare started the year with increases in both orders and sales compared to 4Q20 driven by uptakes in the EMEA region despite lockdowns during the quarter. As lock-down measures ease and offices plan to reopen in hybrid mode, ClickShare demand is expected to continue to improve, while varying by country and region.
- ClickShare Conference now constitutes 40 percent of the ClickShare sales, and Barco continues to sign-up new channel and alliance partners and key corporate customers, testifying to its product-market fit.
- Control rooms started the year with better sales compared to the three first quarters of 2020 and an orderbook at pre-covid levels. Sales for 1Q21 were softer than 4Q20 reflecting some seasonality effects and covid-induced deployment shifts.
- The Q1 dynamics reflect resilience in end market demand, a gradual resumption of healthcare investments, and intensified demand for digital operating room solutions.
- Order intake was strong compared to 4Q20 across all regions, including major contracts with reference customers in both the Surgical and the Diagnostics segments.
- Sales were in line with 4Q20, with deployments in Europe and the Americas region still somewhat impacted by the prolonged effects of the pandemic.
Jan De Witte, CEO, Barco, said,“I’m pleased with the strong first quarter order intake and the solid orderbook as they reflect ongoing recovery, longer term growth potential in our end markets as well as our competitive strength. While over the next few quarters, our order to sales conversion will not be immune to lock-down effects and supply chain disruptions, we are set to manage through these hurdles, and to advance on our strategic objectives. As a result, we expect to see steady improvements as recoveries in our markets further materialise.”
Outlook
The following statements are forward looking, and actual results may differ materially.
While full year visibility remains limited, based on 1Q21 results, and assuming further unlocking of economies, management is confirming its 1H outlook, with topline expected to move toward the first half of 2020 and EBITDA margin expected to be in the mid-plus single digit range.
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