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Cision Canada
17 hours ago
- Business
- Cision Canada
Foraco International reports Q2 2025
LUNEL, France, July 31, 2025 /CNW/ - Foraco International SA (TSX: FAR) ("Foraco" or the "Company"), a leading global provider of drilling services, announces its financial results for the second quarter and first half of 2025. All figures are reported in US dollars unless otherwise noted. Q2 2025 Highlights: Revenue: US$69.1 million, compared to US$77.9 million in Q2 2024. At constant exchange rates, revenue decreased by US$5.8 million (-7.4%). Revenue breakdown: Asia Pacific: Achieved another record quarter with revenue of US$24.7 million, up 11% YoY, driven by the ongoing commissioning of proprietary rigs and strong operational performance. EMEA: Revenue rose to US$7.8 million, a 47% increase, supported by the start of significant new contracts for the region. North America: Despite noticeable early wins in the US, revenue decreased by 21% to US$25.3 million, due to program discontinuations and delays in starting new contracts. South America: Revenue fell to US$11.3 million (from US$18.2 million in Q2 2024), as Chile and Argentina entered the mobilization and learning curve phases of new long-term contracts, and Brazil faced client-driven mobilization delays. Profitability metrics: Gross Margin: US$14.1 million (20.5% of revenue), compared to US$17.9 million (23.0%) in Q2 2024. Excluding one-off costs of US$1.0 million related to specific reorganization measures, gross margin stood at US$15.1 million (21.9%). EBITDA: US$14.0 million (20.3% of revenue) or US$15.0 million (21.7% of revenue) excluding one-off costs, compared to US$16.4 million (21.0%) in Q2 2024. Net Profit: US$6.0 million (9% of revenue), compared to US$7.8 million (10%). Free Cash Flow: Negative US$7.1 million, mainly due to working capital requirements and Capex to support new contracts. Net Debt: US$76.5 million, including IFRS 16 but US$69.5 million at constant FX, compared to US$78.7 million as of June 30, 2024. Tim Bremner, CEO of Foraco, reflected on the quarter, stating, "In Q2 2025, we continued to focus on aligning our portfolio with high-potential regions and segments, driven by our investment in proprietary rigs and high-value contracts. While some regions face program discontinuations and delays in starting new contracts, we are seeing positive developments, with Asia Pacific achieving another robust quarter, the award of a significant long-term contract in Chile, and early wins, including four new contracts in the US to be executed in the second half of the year. We relocated more than 10 rigs across distant continents - including Europe, Chile, Canada, and the US - and continued to implement our tailored Capex program to support the execution of newly secured contracts." Fabien Sevestre, CFO of Foraco, shared insights into the financial performance, stating, "During this quarter, despite lower activity in America, we managed to maintain solid profitability supported by cost discipline and the resilient performance of our operations. Excluding the one-off costs of US$1.0 million related to a reorganization in South America, our EBITDA margin would have reached 21.7% compared to 21% in Q2 2024. The exit from Kazakhstan generated an accounting net gain of US$0.3 million. Working capital requirements, although still negative, improved significantly during the quarter, partially offsetting the impact of capital expenditures needed for new deployments. Net debt stands at US$76.5 million, as we remain committed to a disciplined capital allocation strategy, focusing on proprietary rigs and fleet modernization to sustain future growth." Income Statement (1) This line item includes amortization and depreciation expenses related to operations Highlights – Q2 2025 Revenue Total revenue in Q2 2025 was US$69.1 million, compared to US$77.9 million in Q2 2024. At constant exchange rates, revenue decreased by US$5.8 million. Asia Pacific and EMEA delivered growth, with revenue increasing by US$5.7 million at constant exchange rates, while North and South America declined by US$11.0 million mainly due to the discontinuation of certain client programs and delays in starting new contracts. Mining activity was the most impacted by the factors mentioned above, partially offset by a US$3.0 million increase in Water activity. Profitability Gross margin for Q2 2025, including depreciation within cost of sales, was US$14.1 million (20.5% of revenue), compared to US$17.9 million (23.0% of revenue) in Q2 2024. The decrease was mainly driven by the phasing and ramp-up of new contracts which are typically associated with lower margins, and by one-off costs (US$1.0 million) related to a reorganization in South America. During the quarter, EBITDA amounted to US$14.0 million (or 20.3% of revenue) compared to US$16.4 million (or 21.0% of revenue) in the previous year. Net profit for the quarter amounted to US$6.0 million (9% of the revenue) compared to US$7.8 million (10% of revenue) in Q2 2024. Highlights – H1 2025 Revenue For the six-month period ending June 30, 2025 (H1 2025), the revenue amounted to US$124 million compared to US$155 million in H1 2024. Profitability In H1 2025, the gross margin, inclusive of depreciation within cost of sales, was US$21.9 million (or 18% of revenue), compared to US$34.7 million (or 22% of revenue) in H1 2024. During H1, EBITDA amounted to US$21.0 million (or 17.0% of revenue), compared to US$34 million (or 21.9% of revenue) for the same period last year. Free Cash Flow for the period was negative at US$7.1 million, primarily due to working capital needs and capital expenditures required to support the mobilization of new contracts. Net debt As of June 30, 2025, net debt, including the impact of IFRS 16, was US$76.5 million, US$69.5 million at constant exchange rates compared to US$78.7 million as of June 30, 2024. Financial results Revenue (In thousands of US$) - (unaudited) Q2 2025 % change Q2 2024 H1 2025 % change H1 2024 Reporting segment Mining 57,479 -17 % 69,316 101,217 -27 % 138,363 Water 11,584 35 % 8,568 22,856 38 % 16,610 Total revenue 69,063 -11 % 77,884 124,073 -20 % 154,973 Geographic region Asia-Pacific 24,637 11 % 22,190 45,030 22 % 36,861 North America 25,273 -21 % 32,129 43,372 -27 % 59,151 South America 11,325 -38 % 18,255 21,443 -51 % 43,830 Europe, Middle East and Africa 7,828 47 % 5,310 14,228 -6 % 15,130 Total revenue 69,063 -11 % 77,884 124,073 -20 % 154,973 Q2 2025 Revenue in Q2 2025 was US$69.1 million, compared to US$77.9 million in Q2 2024. At constant exchange rates, revenue decreased by US$5.8 million. Activity in North America declined by 21% to US$25.3 million in Q2 2025, compared to US$32.1 million in Q2 2024. This decrease was primarily driven by the discontinuation of certain client programs and delays in starting new contracts. Asia Pacific delivered growth with revenue reaching US$24.7 million, up 11% compared to Q2 2024. This strong performance reflects the ongoing success of operations and the continued commissioning of new proprietary rigs. Revenue in South America was US$11.3 million, compared to US$18.2 million in Q2 2024. In Chile and Argentina, the Company started new long-term contracts during the quarter, which are currently in the mobilization and learning curve phases, impacting both revenue and margins. In Brazil, operations were affected by disruptions in the mobilization process caused by client-driven delays. In the EMEA region, revenue was US$7.8 million in Q2 2025, compared to US$5.3 million in Q2 2024. Revenue in Africa and Europe grew by 47%, supported by the start of contracts that are significant for the region. Overall, rig utilization rate in Q2 2025 was 35% compared to 40% in Q2 2024. H1 2025 H1 2025 revenue totaled US$124.1 million, down from US$155 million in H1 2024. In Asia Pacific, the Company's first-largest revenue contributor, H1 2025 revenue amounted to US$45.0 million, marking the best first half ever with a 22% increase compared to H1 2024. This growth is primarily attributable to successful operations and the commissioning of new proprietary rigs. North America, the Company's second revenue contributor region, declined by 27%, The decrease was primarily due to the discontinuation of certain client programs and delays in starting new contracts. Revenue in South America totaled US$21.4 million in H1 2025, down 51% from US$43.8 million in H1 2024. In Chile and Argentina, the Company started new long-term contracts during the period, which are currently in the mobilization and learning curve phases, impacting both revenue and margins. In Brazil, the Company was impacted by disruption in the mobilization process due to client-driven delays. In the EMEA region, revenue slightly decreased by US$0.9 million compared to H1 2024. Excluding the exit from CIS and certain West African countries, the revenue increased by US$4.1 million (41%). Gross profit Q2 2025 The Q2 2025 gross margin, including depreciation within cost of sales, was US$14.1 million (20.5% of revenue), or US$15.1 million (21.9% of revenue) when excluding one-off costs, compared to US$17.9 million (23.0% of revenue) in Q2 2024. The decline in the mining segment's gross margin was primarily due to the phasing and ramp-up of new contracts, which are typically associated with lower initial margins. In contrast, gross profit in the water segment was supported by the deployment of new proprietary rigs on long-term contracts. H1 2025 The H1 2025 gross margin including depreciation within cost of sales was US$21.9 million (or 17.6% of revenue) compared to US$34.7million (or 22.4% of revenue) in H1 2024. Q2 2025 SG&A expenses were reduced by 19% versus the prior-year quarter. As a percentage of revenue, SG&A improved to 6.8% from 7.4% in Q2 2024. H1 2025 SG&A decreased 21% compared to last year. As a percentage of revenue, SG&A remained stable at approximately 7.8% of revenue. Operating result Q2 2025 The operating profit was US$9.7 million compared to US$12.1 million in the same quarter last year. Foraco sold its 50% stake in its Kazakh subsidiary, Eastern Drilling Company LLP, generating a net gain of US$289 thousand, which was recorded under "Other Operating Income" in the Company's consolidated financial statements for Q2 2025. H1 2025 The H1 2025 operating profit was US$12.6 million compared to US$24.7 million in H1 2024. Financial position The following table provides a summary of the Company's cash flows for H1 2025 and H1 2024: In H1 2025, the cash generated from operations before working capital requirements amounted to US$21.0 million compared to US$33.9 million in H1 2024. During the same period, working capital requirements were US$7.9 million, a decrease compared to the same period last year, primarily driven by tightened control on working capital management and the reduction in activity. During the period, Capex totaled US$9.8 million in cash compared to US$10.0 million in H1 2024. Capex primarily relates to new rigs, and the acquisition of ancillary equipment and rods to support new contracts. Strategy The Company's strategy is to assist its customers in exploring or managing their deposits throughout the entire cycle, with a special focus on the life of mine activity. The Company intends to continue developing and growing its services across the world with a focus on stable jurisdictions, high tech drilling services, optimal commodities mix including battery metals and gold - with a significant presence in water related drilling services - and a gradual implementation of remote-controlled rigs and other advanced digital applications. The Company expects to execute its strategy primarily through organic growth and targeted acquisitions. The Company addressed the environmental, social and governance (ESG) requirements, and implemented a pragmatic and measurable approach to ESG with quantitative KPIs to maximize improvement and efficiencies. Currency exchange rates. The exchange rates for the periods under review are provided in the Management's Discussion and Analysis of Q2 2025. Non-IFRS measures EBITDA represents Net income before interest expense, income taxes, depreciation, amortization and non-cash share based compensation expenses. EBITDA is a non-IFRS quantitative measure used to assist in the assessment of the Company's ability to generate cash from its operations. The Company believes that the presentation of EBITDA is useful to investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the drilling industry. EBITDA is not defined in IFRS and should not be considered to be an alternative to Profit for the period or Operating profit or any other financial metric required by such accounting principles. Net debt corresponds to the current and non-current portions of borrowings and the consideration of payables related to acquisitions, net of cash and cash equivalents. The Company's lease obligations are included in the net debt calculation. Reconciliation of the EBITDA is as follows: Conference call and webcast On July 31, 2025, Company Management will conduct a conference call at 10:00 am Eastern Time to review the financial results. The call will be hosted by Tim Bremner, CEO, and Fabien Sevestre, CFO. You can join the call by dialing 1-888-836-8184 or 1-289-819-1350. You will be put on hold until the conference call begins. A live audio webcast of the Conference Call will also be available An archived replay of the webcast will be available for 90 days. About Foraco International SA Foraco International SA (TSX: FAR) is a leading global mineral drilling services company that provides a comprehensive and reliable service offering in mining and water projects. Supported by its founding values of integrity, innovation and involvement, Foraco has grown into the third largest global drilling enterprise with a presence in 16 countries across five continents. For more information about Foraco, visit "Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release." Caution concerning forward-looking statements This document may contain "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws. These statements and information include estimates, forecasts, information and statements as to Management's expectations with respect to, among other things, the future financial or operating performance of the Company and capital and operating expenditures. Often, but not always, forward-looking statements and information can be identified by the use of words such as "may", "will", "should", "plans", "expects", "intends", "anticipates", "believes", "budget", and "scheduled" or the negative thereof or variations thereon or similar terminology. Forward-looking statements and information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Readers are cautioned that any such forward-looking statements and information are not guarantees and there can be no assurance that such statements and information will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" in the Company's Annual Information Form dated March 2, 2025, which is filed with Canadian regulators on SEDAR ( The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information whether as a result of new information, future events or otherwise. All written and oral forward-looking statements and information attributable to Foraco or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements.
Fashion United
19 hours ago
- Business
- Fashion United
Geox Spa H1 revenue down 4.7 percent
Geox Spa, listed on the Euronext Milan market managed by Borsa Italiana, has approved its consolidated results as of 30 June 2025. The first half of the 2025 financial year recorded a drop in turnover of approximately 15 million euros (-4.7 percent) compared to the first half of the previous financial year. Excluding the impact of the closure of the branches in China and the US, the drop is equal to 6.1 million euros (-1.9 percent), according to a press release. Gross margin remained stable in percentage terms on revenue (51.2 percent), thus resulting in a reduction in absolute terms of approximately 7.7 million euros. Geox H1 results impacted by weak consumer sentiment The company recently appointed a new chief executive officer: Francesco Di Giovanni, who has replaced Enrico Mistron. The new appointment is part of a process to accelerate the company's transformation. "The first half of the 2025 financial year continues to be influenced by complex general market conditions. Macroeconomic indicators confirm a still weak consumer dynamic, conditioned by a climate of low confidence and a consequent significant contraction in demand. Despite the context, we remain fully focused on executing the initiatives set out in our industrial plan, maintaining a rigorous approach focused on the most profitable markets, process optimisation and cost containment," specified Geox management. They added that during the first half, "the first part of the 30 million euro capital increase was successfully completed as defined by the financial manoeuvre, with full subscription by our shareholders. This result strongly motivates us and confirms the relaunch path undertaken." EBITDA (excluding the adjusted IFRS 16 impact) totalled 8.6 million euros compared to 4 million euros in the first half of 2024. The adjusted operating income was positive and amounted to 0.6 million euros compared to negative 5.5 million euros in the first half of 2024. The adjusted net result was negative 3.1 million euros compared to negative 15.4 million euros in the first half of 2024. Review of Geox results across core markets Revenue generated in Italy represented 29.6 percent of the group's revenue (27.8 percent in the first half of 2024) and amounted to 90.5 million euros, an increase of 1.6 percent compared to 89.0 million euros in the first six months of 2024. Revenue generated in Europe, equal to 47.4 percent of the group's revenue (45.7 percent in the first half of 2024), amounted to 144.7 million euros, compared to 146.4 million euros in the first half of 2024, a slight decrease (1.1 percent), mainly due to the negative performance in the DACH area and the Iberian Peninsula. Revenue from other countries totalled 70.1 million euros, down 17.5 percent (17.8 percent at constant exchange rates) compared to the first half of 2024, due to negative performance in both the multi-brand and direct channels. This decrease is mainly attributable to the different geographical scope, which in the first half included revenue generated in the US and China for a total amount of approximately nine million euros. Footwear represented 91.9 percent of consolidated revenue, standing at 280.7 million euros, with a decrease of 3.8 percent (4.0 percent at constant exchange rates) compared to the first half of 2024. Revenue from apparel sales totalled 8.1 percent of consolidated revenue, standing at 24.6 million euros, down 13.6 percent at current exchange rates (14.0 percent at constant exchange rates) compared to 2024. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
Fashion Network
3 days ago
- Business
- Fashion Network
French Connection's parent accounts show turnover down but profits up
French Connection 's ultimate parent — MIP Holdings Ltd — has filed its accounts for the year to the end of June 2024 and they show turnover falling but profits rising. The company said that turnover was £108 million, down from £120.6 million in the previous year. It sales were primarily driven by wholesale customers operating department stores, multi-brand fashion stores and e-commerce sites in the UK and Europe plus North America. Wholesale is hugely important to the business despite operating its own stores and webstore. It didn't give an explanation for the turnover fall, although the period did cover a time when inflation was high and the cost-of-living crisis was denting fashion sales for businesses across the UK. Gross profit at the company actually rose to £38.2 million from £37.1 million with the percentage up to 35.4% from 30.8%. The company saw other operating income of £7.4 million (up from £5.3 million) relating to royalty income from licensed products such as furniture, fragrances, shoes and eyewear. It also saw finance expense of £5.4 million (down from £5.5 million), which comprised £4.4 million of external net loan interest and financing costs and £1 million of IFRS16 rent-related interest. Underlying operating profit increased to £10.5 million from £8.9 million and adjusted profit before tax was up to £5.1 million from £3.4 million. The fashion retailer was acquired for around £29 million in 2021 by MIP, which had been set up the year before solely for the purpose of buying it. The stock exchange-listed business had endured years of losses and contraction that was made worse during the pandemic. The buyer group comprised UK-based apparel industry entrepreneurs Apinder Singh Ghura and Amarjit Singh Grewal, as well as holding company KJR Brothers Ltd. It has since returned to expansion mode, opening both full-price and outlet stores, as well as signing a deal with Next for homewares and adding the Very platform to its list of stockists shortly after the financial year in question ended.
Fashion Network
3 days ago
- Business
- Fashion Network
French Connection's parent accounts show turnover down but profits up
French Connection 's ultimate parent — MIP Holdings Ltd — has filed its accounts for the year to the end of June 2024 and they show turnover falling but profits rising. The company said that turnover was £108 million, down from £120.6 million in the previous year. It sales were primarily driven by wholesale customers operating department stores, multi-brand fashion stores and e-commerce sites in the UK and Europe plus North America. Wholesale is hugely important to the business despite operating its own stores and webstore. It didn't give an explanation for the turnover fall, although the period did cover a time when inflation was high and the cost-of-living crisis was denting fashion sales for businesses across the UK. Gross profit at the company actually rose to £38.2 million from £37.1 million with the percentage up to 35.4% from 30.8%. The company saw other operating income of £7.4 million (up from £5.3 million) relating to royalty income from licensed products such as furniture, fragrances, shoes and eyewear. It also saw finance expense of £5.4 million (down from £5.5 million), which comprised £4.4 million of external net loan interest and financing costs and £1 million of IFRS16 rent-related interest. Underlying operating profit increased to £10.5 million from £8.9 million and adjusted profit before tax was up to £5.1 million from £3.4 million. The fashion retailer was acquired for around £29 million in 2021 by MIP, which had been set up the year before solely for the purpose of buying it. The stock exchange-listed business had endured years of losses and contraction that was made worse during the pandemic. The buyer group comprised UK-based apparel industry entrepreneurs Apinder Singh Ghura and Amarjit Singh Grewal, as well as holding company KJR Brothers Ltd. It has since returned to expansion mode, opening both full-price and outlet stores, as well as signing a deal with Next for homewares and adding the Very platform to its list of stockists shortly after the financial year in question ended.
Fashion Network
3 days ago
- Business
- Fashion Network
French Connection's parent accounts show turnover down but profits up
French Connection 's ultimate parent — MIP Holdings Ltd — has filed its accounts for the year to the end of June 2024 and they show turnover falling but profits rising. The company said that turnover was £108 million, down from £120.6 million in the previous year. It sales were primarily driven by wholesale customers operating department stores, multi-brand fashion stores and e-commerce sites in the UK and Europe plus North America. Wholesale is hugely important to the business despite operating its own stores and webstore. It didn't give an explanation for the turnover fall, although the period did cover a time when inflation was high and the cost-of-living crisis was denting fashion sales for businesses across the UK. Gross profit at the company actually rose to £38.2 million from £37.1 million with the percentage up to 35.4% from 30.8%. The company saw other operating income of £7.4 million (up from £5.3 million) relating to royalty income from licensed products such as furniture, fragrances, shoes and eyewear. It also saw finance expense of £5.4 million (down from £5.5 million), which comprised £4.4 million of external net loan interest and financing costs and £1 million of IFRS16 rent-related interest. Underlying operating profit increased to £10.5 million from £8.9 million and adjusted profit before tax was up to £5.1 million from £3.4 million. The fashion retailer was acquired for around £29 million in 2021 by MIP, which had been set up the year before solely for the purpose of buying it. The stock exchange-listed business had endured years of losses and contraction that was made worse during the pandemic. The buyer group comprised UK-based apparel industry entrepreneurs Apinder Singh Ghura and Amarjit Singh Grewal, as well as holding company KJR Brothers Ltd. It has since returned to expansion mode, opening both full-price and outlet stores, as well as signing a deal with Next for homewares and adding the Very platform to its list of stockists shortly after the financial year in question ended.
