L’French aeronautical equipment manufacturer Latécoèrein full recapitalization, doubled its net loss in the first half of 2023 despite strong growth in its turnover.
The French group based in Toulouse and supplier of aerostructures (doors and fuselage parts) and electrical wiring to customers like Airbus and Boeingwiped a net loss of 58.2 million euros between January and June, compared to a loss of 27.3 million over the first six months of 2022. While its turnover is in sharp increase, driven by the increase in aircraft manufacturers’ production rates: it jumped by 42.9%, to 303.8 million euros.
Indebted to the tune of 370.3 million euros as of June 30, Latécoère validated a recapitalization agreement providing for the cancellation of 183 million euros of loans guaranteed by the State (PGE) and a capital increase of “at least 100 million euros“, scheduled for the end of November.
Thierry Mootz, president and CEO of Latécoère, summarizes the half-yearly report: “The first half of 2023 has been a demanding period for Latecoere. A number of successes have been recorded,
the rapid integration of newly acquired activities having produced solid positive results in
terms of cash flow and EBITDA and the signing of a binding recapitalization agreement with our
shareholders and our lenders which will be finalized in the fourth quarter of 2023. Although revenues
are increasing, we operate in a difficult environment. Significant headwinds come from
poor performance of some of our suppliers, higher inflation on costs
energy, raw materials and labor, which impacted performance
financial situation of the group in the first half of 2023. We expect the situation to improve
in the second half and we are taking the necessary measures to improve our situation
operational and financial.”