Q3 revenue 2020/2021
The SII engineering consulting group has released its revenue for the third quarter of fiscal 2020-
Management board chairman Eric Matteucci commented that: "The third quarter of fiscal year 2020-2021 is on the path of a return to organic growth. The improvement seen during the second quarter of the fiscal year has intensified over the last three months thanks to the mobilization, determination and voluntarism of all our teams. The health and economic environment calls for caution, but the fourth quarter could post organic growth. Our sectoral and geographic diversification combined with the collective energy deployed should help achieve this ambition."
* excluding the effect of exchange rate (2019-2020 exchange rates applied to 2020-2021 revenue)
The SII group, a specialist in the engineering industry, posted an improvement in the third quarter compared to the previous two. After a first quarter down 9.3%, followed by a second drop of 6.2%, the third quarter had a more limited drop to -2.4% at current rates and -0.5% at constant rates, close to equilibrium. The recovery in activity recorded is all the more significant since the period from October to December 2020 was marked by new lockdowns in several countries. Overall, in the first nine months of the fiscal year, revenue came to €470.6m, down 4.0% at constant rates (-5.8% at current rates).
Gradual recovery in activity in France and continued international growth
SII group revenue in France was €223.73m in the first nine months. After two first quarters of double-digit decline (-21,0% in Q1 and -13,2% in Q2), the third quarter confirms the gradual recovery in activity (-6.4% in Q3). Since the beginning of the health crisis, the SII group has been able to preserve its performance in the most resilient sectors such as telecommunications, energy and banking. While the aerospace sector has seen a moderate recovery, the defense sector - which has slowed in the first quarter - has since been growing steadily. Since the beginning of the health crisis, the sector diversification of the SII group has been a resilience asset.
Internationally, growth in the first nine months stood at +6.0% at constant rates (+2.4% at current rates) compared to the same period of the previous fiscal year. Revenue reached €246.87m, of which €85.86m generated in the third quarter, an increase of 1.8% compared to the third quarter of the previous fiscal year (+5.7% at constant rates). The SII group is resilient thanks to its geographical diversification. While some countries are exposed to sectors (Germany, Spain, the Netherlands, Czech Republic) and continue to face difficulties, others are holding up well. Over the quarter, five countries achieved international performance with double-digit growth (at constant exchange rates): Poland (+19.0%), Chile (+31.6%), Colombia (+14.9%), the United Kingdom (+15.8%) and Morocco (+15.4%).
The gradual recovery in activity in the second and third quarters is a positive signal for the end of fiscal year 2020-2021, subject to health developments and possible further lockdowns. The mobilization of all teams to continue and win new projects, in an unchanged environment, could allow the SII Group to return to organic growth at constant rates in the fourth quarter of the fiscal year.
Attachment: Revenue by quarter
* excluding the impact of exchange-rate fluctuations (previous year’s rates applied to current year’s revenue)
Improvement in international operating margin
10% organic growth expected in 2021-2022
Return to growth in France in Q4: +3.0%
International growth: +8.2%
amidst the health crisis
Gross income from operations: €12.0m
Net income after minority interests: €7.2m