Lectra, the French provider of digital solutions and cutting equipment, has reported a remarkable 25% increase in revenue for the fiscal year 2022, reaching €521.9 million. This growth can be attributed to the company’s recent acquisitions of Gerber, Gemini CAD Systems, Neteven, and Textile Genesis. Lectra also experienced a significant rise of 51% in EBITDA, reaching €98.4 million. Despite stable orders for perpetual software licenses, equipment, and non-recurring services at €202.5 million, non-perpetual subscriptions witnessed a substantial 34% increase, while equipment sales faced a small decline of 2%. Lectra cited the changing economic conditions as a reason for customers modifying their purchasing terms.

Lectra observed variations in its business lines across different continents. Revenue in Europe decreased by 4% to €57.2 million, while in the Asia-Pacific region, it declined by 15% to €64.2 million. Conversely, revenue in the Americas grew by 16% to €61.5 million. In terms of revenue by sector, the fashion industry remained Lectra’s primary source, generating €104.6 million, which represented a 2% decrease. However, the furniture sector experienced a sharp decline of 31% to €19.7 million. In contrast, revenue in the automotive sector surged by 36% to €56.7 million.

Looking ahead to the fiscal year 2023, Lectra anticipates a revenue increase ranging from 2% to 12%, amounting to €522 million to €576 million, primarily due to the integration of recently acquired companies. The company is also aiming for a current EBITDA ranging from €90 million (a decrease of 5%) to €113 million (an increase of 20%). By 2025, Lectra has set its sights on achieving a revenue of over €700 million and increasing the share of revenue from its software as a service (SaaS) solutions from 4% to 10%. Additionally, the company aims to raise its current EBITDA margin to over 50% of revenue.

In the upcoming three-year strategic cycle beginning in 2023, Lectra plans to consolidate its range of Industry 4.0 solutions. The company has outlined several strategic priorities, including the implementation of ethical, social, societal, and environmental best practices, leveraging synergies from the acquisition of the Gerber group, accelerating the transition of its software business to a SaaS model, transforming its customer engagement and relationship model, pursuing external acquisitions, investing 10% of revenue in research and development of new solutions, phasing out non-strategic activities accounting for less than 5% of revenue, and gradually overhauling its governance. CEO Daniel Harari is set to remain in office until at least the end of 2025.

Useful links:
Lectra Official Website
Gerber Official Website