Financial Half-Year Report 24 | 25
Contents
LEM Group
- Interim consolidated statement of financial position
- Interim consolidated income statement
- Interim consolidated statement of comprehensive income
- Interim consolidated statement of changes in equity
- Interim consolidated cash flow statement
- Notes to the interim consolidated financial statements
Interim consolidated statement of financial position
Assets
In CHF thousands | Notes | 30.9.2024 | 31.3.2024 | |||
Current assets | ||||||
Cash and cash equivalents | 18,628 | 23,710 | ||||
Accounts receivable | 73,560 | 76,125 | ||||
Inventories | 62,494 | 56,361 | ||||
Income tax receivable | 12 | 12,813 | 10,457 | |||
Other current assets | 8,701 | 5,099 | ||||
Total current assets | 176,195 | 171,751 | ||||
Non-current assets | ||||||
Property, plant and equipment | 87,076 | 85,085 | ||||
Right-of-use assets | 32,327 | 25,897 | ||||
Intangible assets | 9,606 | 9,026 | ||||
Deferred tax assets | 12 | 49,502 | 49,536 | |||
Other non-current assets | 8 | 1,743 | 3,029 | |||
Total non-current assets | 180,254 | 172,574 | ||||
Total assets | 356,449 | 344,325 |
Liabilities and equity
In CHF thousands | Notes | 30.9.2024 | 31.3.2024 | ||||
Current liabilities | |||||||
Accounts payable | 21,109 | 28,352 | |||||
Accrued expenses | 31,990 | 31,952 | |||||
Lease liabilities | 3,531 | 2,796 | |||||
Income tax payable | 12 | 4,046 | 5,229 | ||||
Current provisions | 6 | 808 | 856 | ||||
Interest-bearing loans and borrowings | 61,321 | 57,275 | |||||
Other current liabilities | 1,606 | 2,392 | |||||
Total current liabilities | 124,411 | 128,852 | |||||
Non-current liabilities | |||||||
Non-current lease liabilities | 31,663 | 26,035 | |||||
Non-current provisions | 6 | 1,008 | 303 | ||||
Deferred tax liabilities | 12 | 2,292 | 2,347 | ||||
Interest-bearing loans and borrowings | 7 | 70,367 | 9,550 | ||||
Other non-current liabilities | 563 | 561 | |||||
Total non-current liabilities | 105,892 | 38,796 | |||||
Total liabilities | 230,303 | 167,648 | |||||
Equity | |||||||
Share capital | 570 | 570 | |||||
Treasury shares | (1,507) | (1,988) | |||||
Reserves | (2,878) | (1,176) | |||||
Retained earnings | 129,962 | 179,272 | |||||
Total equity | 9 | 126,147 | 176,677 | ||||
Total liabilities and equity | 356,449 | 344,325 | |||||
LEM Financial Half-Year Report24 | 25 | Page 3 |
Interim consolidated income statement
April to September | |||||||
In CHF thousands | Notes | 2024/25 | 2023/24 | ||||
Sales | 156,550 | 223,341 | |||||
Cost of goods sold | (87,516) | (118,665) | |||||
Gross profit | 69,033 | 104,675 | |||||
Sales expenses | (14,428) | (14,836) | |||||
Administration expenses | (21,957) | (20,260) | |||||
Research & development expenses | (18,483) | (17,958) | |||||
Other income | 16 | 42 | |||||
Operating profit | 10 | 14,181 | 51,664 | ||||
Financial expenses | (1,978) | (1,478) | |||||
Financial income | 131 | 213 | |||||
Foreign currency exchange effect | (2,296) | (1,885) | |||||
Profit before tax | 10,038 | 48,514 | |||||
Income taxes | 12 | (1,460) | (5,119) | ||||
Net profit | 8,578 | 43,395 | |||||
Earnings per share, in CHF | |||||||
Basic earnings per share | 7.53 | 38.09 | |||||
Diluted earnings per share | 7.51 | 38.02 |
The accompanying notes are an integral part of the interim consolidated financial statements.
LEM Financial Half-Year Report24 | 25 Page 4
Interim consolidated statement of comprehensive income
April to September | |||||||
In CHF thousands | Notes | 2024/25 | 2023/24 | ||||
Net profit for the period recognized in the income statement | 8,578 | 43,395 |
Other comprehensive income to be reclassified to profit and loss in subsequent periods
Currency translation difference
Income tax
Total other comprehensive income to be reclassified to profit and loss in subsequent periods
Other comprehensive income not to be reclassified to profit and loss in subsequent periods
(1,221)(5,027)
150469
(1,071)(4,558)
Recognised surplus on defined benefit plans | 8 | (1,257) | ||||
Deferred tax on other comprehensive income | 177 | |||||
Net gain/(loss) on equity instruments at fair value through other comprehensive income | (5) | |||||
Total other comprehensive income not to be reclassified to profit and loss in | (1,080) | (5) | ||||
subsequent periods | ||||||
Other comprehensive income /(loss) for the period, net of tax | (2,151) | (4,563) | ||||
Total comprehensive income for the period | 6,427 | 38,832 |
LEM Financial Half-Year Report24 | 25 Page 5
Interim consolidated statement of changes in equity
Attributable to shareholders
Notes | Share | Treasury | Capital | Translation | Retained | Total | ||||||||
In CHF thousands | capital | shares | reserve | reserve | earnings | equity | ||||||||
1 April 2023 | 570 | (1,069) | 13,011 | (10,062) | 171,185 | 173,633 | ||||||||
Net profit for the period | 43,395 | 43,395 | ||||||||||||
Other comprehensive income/(loss) | (5,027) | 464 | (4,563) | |||||||||||
Total comprehensive income | (5,027) | 43,859 | 38,834 | |||||||||||
Share-based payments | 11 | 455 | 455 | |||||||||||
Dividends paid | 9 | (59,252) | (59,252) | |||||||||||
Movement in treasury shares | 9 | (1,050) | 1,050 | (951) | (951) | |||||||||
30 September 2023 | 570 | (2,118) | 14,061 | (15,090) | 155,296 | 152,719 | ||||||||
1 April 2024 | 570 | (1,988) | 13,931 | (15,107) | 179,272 | 176,677 | ||||||||
Net profit for the period | 8,578 | 8,578 | ||||||||||||
Other comprehensive income/(loss) | (1,221) | (930) | (2,151) | |||||||||||
Total comprehensive income | (1,221) | 7,648 | 6,427 | |||||||||||
Share-based payments | 11 | (261) | (261) | |||||||||||
Dividends paid | 9 | (56,936) | (56,936) | |||||||||||
Movement in treasury shares | 9 | 481 | (481) | 239 | 239 | |||||||||
30 September 2024 | 570 | (1,507) | 13,450 | (16,328) | 129,962 | 126,147 |
LEM Financial Half-Year Report24 | 25 Page 6
Interim consolidated cash flow statement
April to September | |||||||
In CHF thousands | Notes | 2024/25 | 2023/24 | ||||
Cash flow from operating activities | |||||||
Profit before tax | 10,038 | 48,514 | |||||
Adjustment for non-cash items | 12,077 | 9,750 | |||||
Interest received/paid and taxes paid | (6,763) | (5,375) | |||||
Cash flow before changes in net working capital | 15,352 | 52,889 | |||||
Cash flow from changes in net working capital | (18,028) | (15,623) | |||||
Cash flow from operating activities | (2,675) | 37,266 | |||||
Cash flow from investing activities | |||||||
Investment in fixed assets | (10,028) | (14,557) | |||||
Investment in intangible assets | (166) | (2,247) | |||||
Increase (-) in other non-current assets | (1,901) | (77) | |||||
Decrease (+) in other non-current assets | 3,175 | 37 | |||||
Cash flow from investing activities | (8,920) | (16,844) | |||||
Cash flow from financing activities | |||||||
Treasury shares acquired (-) | 9 | (3,639) | (4,569) | ||||
Treasury shares divested (+) | 9 | 4,120 | 3,618 | ||||
Payment of lease liabilities | (1,770) | (2,057) | |||||
Dividends paid to the shareholders of LEM HOLDING SA | 9 | (56,936) | (59,252) | ||||
Increase (+) in financial liabilities | 7 | 92,000 | 84,910 | ||||
Decrease (-) in financial liabilities | 7 | (26,800) | (39,050) | ||||
Cash flow from financing activities | 6,976 | (16,400) | |||||
Change in cash and cash equivalents | (4,620) | 4,023 | |||||
Cash and cash equivalents at the beginning of the period | 23,710 | 21,775 | |||||
Exchange effect on cash and cash equivalents | (462) | (1,118) | |||||
Cash and cash equivalents at the end of the period | 18,628 | 24,680 |
LEM Financial Half-Year Report24 | 25 Page 7
Notes to the interim consolidated financial statements
1. General information
LEM Group (the Group) is a leading company in the field of electrical measurement. LEM engineers best-in-class solutions for energy and mobility, ensuring that its customers' systems are optimized, reliable, and safe.
The parent company of LEM Group is LEM HOLDING SA (the Company), which is a limited company incorporated in Switzerland.
2. Significant accounting principles
These unaudited consolidated financial statements for the six months ended on 30 September 2024 have been prepared in accordance with International Accounting Standard (IAS) 34 "Interim Financial Reporting". They do not include all the information and disclosures presented in the annual consolidated financial statements and should therefore be read in conjunction with those for the year ended 31 March 2024.
The accounting and valuation policies are consistent with those applied in preparing the annual consolidated financial statements for the year 2023/24.
The preparation of the interim consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and related disclosures at the date of the interim financial statements. These estimates are based on management's best knowledge of current events and actions that the Group may undertake in the future. However, actual results could differ from those estimates.
The financial information is presented in thousands of CHF. The totals are calculated with the original unit amounts, which could lead to rounding differences. These differences in thousands of units are not changed to keep the accuracy of the original data.
Amendments in IFRS, effective as of January 2024, did not have a material impact on the interim consolidated financial statements. The Group has not early adopted any standard or amendment that has been issued but is not yet effective.
3. Exchange rates
The exchange rates for the most significant currencies are as follows:
Income statement | Income statement | Balance sheet as | Balance sheet as | |||||
of 2024/25 | of 2023/24 | at 30.9.2024 | at 31.3.2024 | |||||
Currency | Average rate in CHF | Average rate in CHF | Half-year rate in CHF | Year-end rate in CHF | ||||
BGN | 0.492 | 0.496 | 0.481 | 0.497 | ||||
CNY | 0.123 | 0.125 | 0.120 | 0.125 | ||||
DKK | 0.129 | 0.130 | 0.126 | 0.130 | ||||
EUR | 0.962 | 0.970 | 0.942 | 0.972 | ||||
GBP | 1.133 | 1.122 | 1.129 | 1.137 | ||||
JPY | 0.0058 | 0.0063 | 0.0059 | 0.0060 | ||||
MYR | 0.193 | 0.195 | 0.205 | 0.191 | ||||
RUB | 0.010 | 0.010 | 0.009 | 0.010 | ||||
USD | 0.885 | 0.891 | 0.844 | 0.901 |
LEM Financial Half-Year Report24 | 25 Page 8
Notes to the interim consolidated financial statements
4. Segment information
For management purposes, LEM Group is organized into two reportable segments as follows:
- The Asia region, which includes China, Japan, South Korea, India, and South-East Asia.
- The Europe/Americas region, which includes Europe, the Middle East, Africa, the NAFTA countries, and Latin America.
Although the reportable segments provide similar electronics components called transducers for applications in different customer sectors, each region is managed separately in order to better align it with the location of the Group's customers and distribution partners and the unique market dynamics of each geographic region.
The Group evaluates the performance of its reportable segments based on net sales and operating profit. Net sales for geographic segments are based on the location of customers. Operating profit for each segment includes net sales to third parties, related cost of sales, and operating expenses directly attributable to the segment.
The operating profit for each segment excludes centralized headquarter support functions as well as certain research and development costs managed outside of the reportable segments.
The segment information is presented net of intersegment transactions.
The Group does not include intercompany transfers between segments for management reporting purposes. The reporting segments are presented in a manner consistent with the internal reporting.
Business segment information
Asia | Europe/Americas | Total | |||||||||
In CHF thousands | 2024/25 | 2023/24 | 2024/25 | 2023/24 | 2024/25 | 2023/24 | |||||
Sales | 85,584 | 112,463 | 70,966 | 110,878 | 156,550 | 223,341 | |||||
Operating profit | 22,541 | 38,877 | 23,763 | 43,964 | 46,304 | 82,841 | |||||
Other operating costs* | (32,123) | (31,177) | |||||||||
Group operating profit | 14,181 | 51,664 |
*Those costs are managed outside of the reporting segments and are linked to centralized headquarter support functions as well as certain research and development costs.
LEM Financial Half-Year Report24 | 25 Page 9
Notes to the interim consolidated financial statements
5. | Revenue information | ||||
Regional information | |||||
In CHF thousands | 2024/25 | 2023/24 | |||
Sales | |||||
China | 60,233 | 68,228 | |||
Japan | 7,906 | 14,199 | |||
South Korea | 6,932 | 16,703 | |||
Rest of Asia | 10,513 | 13,333 | |||
Total for the Asia region | 85,584 | 112,463 | |||
Germany | 16,584 | 29,256 | |||
Italy | 5,771 | 7,221 | |||
Rest of EMEA | 30,995 | 49,439 | |||
USA | 16,039 | 23,057 | |||
Rest of Americas | 1,576 | 1,905 | |||
Total for the Europe/Americas region | 70,966 | 110,878 | |||
LEM Group | 156,550 | 223,341 | |||
6. | Current and non-current provisions |
Warranty and customer claims
Provisions for warranty and customer claims have been estimated based on experience and the risk assessment of management. The warranty provision is expected to be used over the next five years.
Litigation and indirect taxes
Despite the care that LEM applies in the separation process with personnel, such separation may result in legal conflicts. The Group reviews all legal claims and takes appropriate actions to support its position, and management estimates the reasonable risk to be provided for.
Furthermore, the Company operates in multiple jurisdictions with complex legal and tax regulatory environments. Indirect tax provisions include disputes and uncertainties on non-income taxes (mainly VAT and sales taxes). They cover numerous separate cases whose detailed disclosure could be detrimental to the Group's interests. The Group does not believe that any of these cases will have a material adverse impact on its financial position.
LEM Financial Half-Year Report24 | 25 Page 10