Melexis sells 13% more

FIR-Interior

With offices in Ypres and Tessenderlo, Belgian company Melexis, which mainly develops chips for the car industry, is growing rapidly. This past quarter, the company’s turnover increased by 13%, while operating profit jumped to 9%.

Our cars are increasingly becoming computers on wheels, full of chips and high-tech equipment. The Belgian Melexis, which operates many functions with its chips, is benefiting from this development. Their chips enable our cars to operate the auto-stop function, guide pumps, switch on air conditioning and LED lights, measure heat, etc., among others.

Some 89% of turnover is automotive

The sale to automotive customers represents 89% of their total turnover.

Sales for the third quarter of 2016 were €114.5 million, an increase of 13% compared to the same quarter of the previous year and an increase of 2% compared to the previous quarter. The operating result was €29.7 million, an increase of 9% compared to the same quarter of last year and an increase of 7% compared to the previous quarter.

Outperforming market growth

“In the third quarter of 2016, Melexis continued its growth path with a year over year double-digit sales increase, outperforming market growth”, says Françoise Chombar, CEO of Melexis. “We’re happy to see continued growth in a number of Melexis core ASSP product lines such as position sensors, fan drivers and LIN (Local Interconnect Network). Geographically, EMEA was the main growth driver compared to the previous quarter.”

Based on the current order book, Melexis expects full-year sales growth around the level of 13-14%, a gross profit margin around 45% and an operating margin around 25%.

Demand for greener and safer cars

Investors regard the company as an interesting investment with high dividends. “The novelties of Melexis meet the worldwide demand for greener and safer cars, which are also a pleasure to drive”, Anne-Catherine Delaye, manager of Richelieu Equities Belgium, told Trends. According to Marco Miserez, manager at Candriam Investors Group, the Melexis market is growing every year by 6 to 8%. “As well, the group is performing better than the market thanks to its good strategy and the quality and reputation of its products.”