ANNUAL RESULTS 2024-25 FOR THE LEXIBOOK GROUP: ANNUAL REVENUE AT €74.0M (+26.3%). EBIT AND NET INCOME UP, AT €8.1M AND €7.4M RESPECTIVELY, THANKS TO AN EXCEPTIONAL COMBINATION OF POSITIVE FACTORS. UNCERTAIN OUTLOOK FOR THE 2025-26 FISCAL YE

Core Viewpoint - Lexibook reported strong annual financial results for the fiscal year ending March 31, 2025, with significant growth in revenue, operating income, and net income, driven by successful product launches and digital sales, but faces uncertainties for the upcoming fiscal year due to potential increases in U.S. customs duties and other external factors [3][20][21]. Financial Performance - Net sales reached €74.0 million, a 26.3% increase from €58.6 million in the previous year [2][3]. - Gross margin improved to €44.6 million, up 27.0% from €35.1 million, with a gross margin rate of 60.2% compared to 59.9% [2][8]. - Operating income rose to €8.1 million, a 36.1% increase from €6.0 million, while EBITDA increased by 30.3% to €9.7 million [2][10][13]. - Net income for the year was €7.4 million, up 47.7% from €5.0 million [2][16]. Strategic Developments - The Group experienced six consecutive years of growth, attributed to successful strategic choices, high-potential new products, and strong digital sales [5][6]. - The "Stitch effect" contributed €17 million in revenue, highlighting the impact of licensed products on overall sales [5][6]. - A significant digital advertising campaign generated over one billion impressions, enhancing brand awareness [11]. Market Dynamics - France accounted for 34% of total revenue, while international sales outside Europe increased from 10% to 13% [6]. - The Group's digital sales are growing rapidly, supported by a large-scale global marketing campaign [7]. Financial Position - The net cash position improved to €7.1 million from €2.0 million, primarily due to cash generation and repayment of non-current liabilities [18]. - Equity reached a historic high of €24.4 million, reflecting the Group's strengthened financial position [3][4]. Outlook and Challenges - The outlook for the 2025-26 fiscal year is uncertain due to potential increases in U.S. customs duties, which could significantly impact growth and margins [20][21]. - The Group anticipates a strong start to the fiscal year, driven by the release of the Stitch movie, but acknowledges risks related to trade relations and competition [19][21].