Barco NV
XBRU:BAR
| US |
|
Johnson & Johnson
NYSE:JNJ
|
Pharmaceuticals
|
| US |
|
Estee Lauder Companies Inc
NYSE:EL
|
Consumer products
|
| US |
|
Exxon Mobil Corp
NYSE:XOM
|
Energy
|
| US |
|
Church & Dwight Co Inc
NYSE:CHD
|
Consumer products
|
| US |
|
Pfizer Inc
NYSE:PFE
|
Pharmaceuticals
|
| US |
|
American Express Co
NYSE:AXP
|
Financial Services
|
| US |
|
Nike Inc
NYSE:NKE
|
Textiles, Apparel & Luxury Goods
|
| US |
|
Visa Inc
NYSE:V
|
Technology
|
| CN |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
Retail
|
| US |
|
3M Co
NYSE:MMM
|
Industrial Conglomerates
|
| US |
|
JPMorgan Chase & Co
NYSE:JPM
|
Banking
|
| US |
|
Coca-Cola Co
NYSE:KO
|
Beverages
|
| US |
|
Target Corp
NYSE:TGT
|
Retail
|
| US |
|
Walt Disney Co
NYSE:DIS
|
Media
|
| US |
|
Mueller Industries Inc
NYSE:MLI
|
Machinery
|
| US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
Technology
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
10.2
17.14
|
| Price Target |
|
We'll email you a reminder when the closing price reaches EUR.
Choose the stock you wish to monitor with a price alert.
|
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
|
Estee Lauder Companies Inc
NYSE:EL
|
US |
|
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
|
Church & Dwight Co Inc
NYSE:CHD
|
US |
|
|
Pfizer Inc
NYSE:PFE
|
US |
|
|
American Express Co
NYSE:AXP
|
US |
|
|
Nike Inc
NYSE:NKE
|
US |
|
|
Visa Inc
NYSE:V
|
US |
|
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
|
3M Co
NYSE:MMM
|
US |
|
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
|
Coca-Cola Co
NYSE:KO
|
US |
|
|
Target Corp
NYSE:TGT
|
US |
|
|
Walt Disney Co
NYSE:DIS
|
US |
|
|
Mueller Industries Inc
NYSE:MLI
|
US |
|
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
This alert will be permanently deleted.
Barco NV
You don't have any saved screeners yet
Good morning, ladies and gentlemen. I am [ Belen Franco ]. I'm Director of Investor Relations at Barco, and we welcome you this morning at our conference call on the results of the full year 2022. Together with me on stage today are Charles Beauduin, CEO of Barco; and Ann Desender, CFO of Barco. Charles and Ann will walk you through the full year results update under the heading 32% top line growth with significant profitability improvement, positioning Barco well for long-term profitable growth. Charles and Ann will provide extra color on the results and we'll take you through the earnings presentation, which is available on our investor portal since early this morning. [Operator Instructions] We will start with the executive summary and the floor is your Ann.
Good morning to you all. Happy to share with you the results on 2022 as well as the outlook for '23. Starting on the summary, '22 has been a year of strong profitable growth landing or starting on the top line, an increase of sales of 32%. Orders landed at the same amount of sales. You might remember that orders picked up and after the call, it's quite well. But there was some timing effect or lagging effect into the sales to order conversion. Happy that we worked through this challenges on supply chain that we, over the course of the year and in the second semester, we could normalize our lead times and get to more ordinal delivery turns. And with that, our book-to-bill had we done call it order to sell land at. Order book ended at a high -- record high end position for the years and more on that later. Our EBITDA margin of operational results increased to 13.7% in the second semester and landed on a full year to 12%. This has been the result of both improved gross profit margins and operating leverage on the top line growth. And you will see later on that this is really across the 3 divisions. Net earnings landed at EUR 75 million, and this is a nice result we will be able or the Board has decided to propose a 10% higher dividend compared to last year -- with respect to the outlook '23, we are reconfirming our long-term profitable growth and EBITDA outlook.
Moving over to the key highlights of the year. And the figures, you will see that if you see the comparison compared to '21, These are all very nice green figures, which is an better except for one free cash flow, which came out lower than year before. Orders and sales landed at that same figure, EUR 1.058 billion. If we look to the order book, landed close to EUR 500 million, which is compared to the end of 2019, 55% higher. If you look to the sales, sales up 32%. If we exclude because there was some tailwind from the dollar, if we exclude the effect of the currencies, then our sales increased with 24% year over.
Again, you will see later on that double-digit growth as across divisions and across regions. EBITDA margin landed at 12%, thanks to and starting with the improvement on the gross profit margin. Gross profit margins improved 3.3%, which is the effect of a better product mix, but moreover, the consistent and persistent actions which have been done in calculating through higher costs and to sales prices. And over the year and in the second semester, avoiding the higher broker fees, which we had. And this all actually, as we work through our challenges and results primarily through redesigns of our or actually through the supply constraints. Free cash flow landed at 13%. The lower amount compared to 1 year ago is fully linked to higher in also in part to higher trade receivables, but that's on fully linked to the ramp-up, of course, over the course of the year and the peak sales, which we did in the fourth quarter. Net income landing at EUR 75 million 7% of sales. This sales top line of giving a little bit more color here, whereby we in the graph show the increase the sales compared to last year according to the 3 divisions and then to the right, the overview of the regional breakdown of the sales growth.
So looking to the 3 divisions, yes, all noted very nice figures and uptakes and then rounded starting with Entertainment, 29%, 31% for Healthcare and Enterprise 36%. If we look to the regions, then both EMEA and Americas even at constant currencies and that with more than 30% of growth year-over-year. And with that are back at the level of 2019. If we look to APAC also a double-digit growth, 10% higher sales compared to the year -- not yet. And this despite, I would say, the lockdowns or the impacts with the digital lockdowns in China continue to have. APAC is not yet at the level but that will then be a matter of time or short time end. Like always, in this call, we are sharing our EBITDA bridge from the year before to '22 here. It is a little bit of a school book example, the graph or the visual, which I'm able to share with you in the sense, how do you get to profitable growth? It's more better margins while containing OpEx. Of course, as you can see to the bigger block, the extra volume has been the main lever of the profitability uptake, 24% and growth year-over-year at constant currencies. Gross profit margins improved and this in all of the 3 divisions.
And then we further invested both in road map, commercialization footprint, people, systems that is contained and in that sense, keeping this operating leverage well under do mind that, in particular, in the second semester, the inflation and in particular, in the U.S. and EMEA did have also a considerable impact. If we look to the EBITDA margins per division, then we have Healthcare with 11.2%; Enterprise, 19%; and Entertainment, almost 7%. One remark on Entertainment reminds that they have the most challenges in the first semester relating to supply constraints. And with that, first half, second half, then there really did rebound in the second semester. So up for further improvements towards the more group average levels for the next year.
Free cash flow. Free cash flow landed at 13%. EBITDA margin, of course, the improved gross operating cash flow you just saw. But this has been, in part, offset by higher working capital. Higher trade received was all fully linked to the peak sales in the fourth quarter, so all under control and also that in balance with the average days at which we pay our suppliers. But then we have the higher inventories and which came out higher than anticipated at a certain moment. It really has to do with the supply [ change ] with the supply challenges which we had with proactive buying in order to make sure that we can deliver proactive buying in view of also price increases. We do see these higher inventories as a temporary thing and we'll get more to normalized levels over the course of '23.
With that, our net working capital lands at 14% of sales for last year, and we are guiding that more towards back 10%. Capital expenditures amounted to EUR 21 million, including besides the normal recurring investments the expansion of our China footprint. We renewed here our experience center. And there is also included the projectors which are linked to the first cinema as a service. Our balance sheet remains a very strong one and also net cash amounts to EUR 264 million.
Next to our financial KPIs. We also further work hard on our non financial KPIs, which then plant people and the communities, communities being the customers in the first place. On planet, happy to show here, we have 3 main KPIs, which is carbon emissions of our own operations and which are then the part of the revenues, which are with products which have an eco-score A or better, which we then called equal enabled revenues. Happy to see actually 2 kind of milestones, which we've reached. If we see 2022, then the carbon emissions were only half of what they were in the we call the baseline level year, 2015 when we started to measure [indiscernible]. The main trigger or lever in this is logistics and is it the model shift as we call it. So shipments more via boats instead of via air and flights.
With respect to our sales, we crossed the milestone of 50%. So 50% of our top line of our sales is with eco-labeled revenues. You might remember that in '21, we were at 30%, '22 at 50%, and we work hard to get to the 70% for the next years. As our business further grew and nicely picked up, we also did extra hirings and at the end of last year, we are in total with more than 3,200 colleagues altogether, which is a net increase of the 5%. We keep the pulse on how they are doing and how they engaged they are and to keep them also engaged via pulse surveys and also in order to listen and to on this engagement. With respect to the Net Promoter Score of our customers also listening to our customers through regular service, which we are doing our Net Promoter Score landed at 44% at year-end last year, which is a little lower than the year before, which is again linked to supply constraints, which we largely now have been able to resolve but still some work at hand and also relating to post sales service.
And with that, actually, I'm happy to give the floor to Charles who will give you a little bit more color on the divisional results, the outlook as well as ready for Q&A
So I'll try to take you through the breakdown of the divisions. First, let's look at Healthcare. We have record high sales driven mainly by resuming hospital investments, but also by product renewal and introduction of new products. So if we look at the order intake, it is well above pre-COVID levels. Sales are all-time high for this division. We have, of course, had large modality projects and we have also seen a resumption of orders in [indiscernible]. The EBITDA margin is improving year-on-year to 11.2%. The mix of products plays a role, also the volume plays a role. So we have had very good results in health care as well in the 2 business units, Diagnostic Imaging, in diagnostic and surgical, of course, Diagnostic Imaging, double-digit sales growth in all the regions and actually more and more going to high-end products -- the -- that the Healthcare systems now favor. We are also seeing large opportunities to expand the portfolio in adjacencies. So like digital pathology, the remote home reading is now very much in fashion for a number of diagnostic specialists. So we see also there that the growth is solid. Surgical and modality, we have gaining momentum. We have, of course, there, the push towards digital solutions and operating room and also the digitalization of all the infrastructure in the operating theater. Sales are driven by several large projects in Americas and China. So all in all, solid sales growth, record high, orders are very -- in Healthcare because they usually -- we have bulk orders. They are fluctuating. We have a slight decline compared to last year. But there is nothing abnormal at that is when we register the large orders that makes a difference.
If we look at the enterprise, the second division, there, of course, big trends is the back to office wave that has benefited -- where we have benefited a lot, not only from, again, using the offices, but also hybrid meetings, which has become the norm. Double-digit growth in both business units. We have a growing momentum for wireless conferencing and in hybrid meetings. EBITDA margin for the division is 19.1%. It's fueled, of course, by operating leverage on top line and also higher gross profit margin, thanks to better product mix.
If we then look in details to the 2 business units, meeting experience -- sales have resumed strongly. It has started in EMEA and then followed by the Americas and with a little bit more lag in Asia. Hybrid meetings is becoming the absolute norm. And our products are today more and more getting the norm for meeting rooms anywhere. We have installed more than 1.1 million meeting rooms. So the -- and ClickShare conference is about 60% of our volume. To have an idea of a penetration level, the estimates are between 100 million and 200 million meeting rooms in the world. So we still have a job to do. In large video words, other division business unit in this division, we have a top line growth so that we get back to levels that 2019, mainly driven by large utility and government projects in Americas, Middle East and Asia. Profitability is still lagging, and management intends to conduct a strategic review business units.
EBITDA at EUR 60 million. The -- and orders are compared to up to 7% compared to 2021 and with sales have absolutely got high of EUR 370 million. For Entertainment, strong rebound as entertainment markets have reopened, and supply chain constraints have increased. So we have a growing demand. Cinema clearly is not dead. So they have been again -- big orders placed. We have an order book that is at an all-time high. Sales have been growing throughout the year and with a very strong fourth quarter. The EBITDA margins are still below expectations at 6.9% for the full year. But second half they were already at 12.6% as supply chain constraints at least. And also, we now expect with the reopening of China to have a much larger impact than before. So if we look at the different business units, the cinema industry is rebounding very clearly in all markets, except China for 2022. We expect this year also China to join. And the demand for laser projectors is driven, of course, by the demand for quality entertainment, quality images and the low cost of ownership for the cinema companies.
In immersive experience, we have an upspoken growth in fixed installs, digital museums, projection mapping, simulation and lots of other verticals in that field. We have also had a strong rebound in events, excluding of course China. So orders are for the moment for 2022, we're at [ 457 million ]; sales, EUR 399 million for an EBITDA of $27.5 million or 6.9% of sales. So traditionally, after the breakdown of the divisions, we give you an outlook and the open for Q&A. So if we look ahead, actually, all our markets for the moment are healthy, are even driving and we see very solid trends of demand for our products and our technologies. We see that in Healthcare. We see it in Enterprise, we see that in Entertainment. In Healthcare, we see an accelerating demand to in emerging markets for -- especially in China for diagnostic imaging. We see also of adjacencies opening up. We see the continuing push for digitalization of operating theaters. So we also see a shift [indiscernible] more high-end products rather than volume products. Enterprise has been a star of the show. Hybrid video-enabled collaboration is today the norm. We have growing momentum for ClickShare, bring your own meeting proposition, bring your own device is the norm more and more in all the meetings. In [ elvics ], we still see continued investments in control and monitor. Entertainment, cinema is coming -- kicking back. So -- and it's very hungry for better image and, of course, more content and better rendering of these companies. Immersive experience segment that is strongly growing and is even now bigger than cinema. The outlook, well, we want to reconfirm our long-term profitable growth. We, of course, have to make a few assumptions when we give an outlook. So we assume that macroeconomic conditions will be relatively stable and we consider that a sales growth between 10% and 15% for 2023 versus last year is achievable. The EBITDA margin is expected to further improve and land above 14% for the full year 2023, reflecting operating leverage and higher sales as well as improved gross margin because we have easing of constraints on the supply chain, lower cost, brokering, lower cost of transport, et cetera.
With this outlook, we think we are able to confirm an increase in the dividend of 10%, so to [ EUR 44 ] per share. So that's a 10% increase over the year ago. And you can see over the graph that the Board has consistently increased the share over the last few years except onetime during COVID. So this is basically the outlook and the last results. So we now open it up to questions.
[Operator Instructions] So we can have the first question in the spotlight. We have Mark with us. Mark, your questions, please? I think Mark is not hearing it. I suggest we move to another question and we'll come back to Mark in a minute. Maybe we can interact with Mark over chat. Mark go ahead.
So I'm not sure what was wrong. Actually, a few questions. But maybe to start with the order strength in cinema, especially also in the fourth quarter, Obviously, we've seen the stories about the cinema change being sometimes difficulties at end level, not at the level before. still, you see that very strong intake. So what is -- what are you seeing behind it. Is it actually the effect of higher energy prices or maybe the fact that they need to see if cost is actually helping you a bit? What's really behind that strength of the order intake?
So Mark, very good question. Yes, energy and, let's say, lower cost because you who are much more automated and less operators play a role. But I think the demand of the movie going public more and more is to high-quality images. And we see that distinctly the demand for 4K and more is driving the demand. So it's more -- actually improving the quality of the moviegoing experience even more than actually their cost savings.
And a little bit, we have also been doing better than competition. So we are also gaining some market share in there.
And how long is that visibility for you? Is that -- how long ahead can you sort of predict these trends?
Well, the trend we indicated quite a few years ago that there would be a renewal wave because of technology change. We stay with that prediction. But of course, we actually do not want to have too long delivery times. This means that we try to have basically a sales to order ratio of about [ 1 ].
Yes. So the second question that I have is actually on ClickShare. Maybe a bit of similar on the visibility there. I think so far, you've proven that it is sort of coming out of COVID device. Is it -- you're maybe not fully yet on the 2019 level, there's still some upside to go? What are you -- how far can you look ahead? Also there looking at maybe some companies scrutinizing their CapEx budgets?
Well, I think Mark the -- we see a very strong uptake and continued uptake for the ClickShare solution. I briefly hinted in my presentation that we only get scratching the surface of the market. So we expect actually the product success to continue and to continue for quite some time.
To complement and a little bit towards your questioning. Is there a little bit proactive buying from this end? You're closely following up on the inventory, which is in the channel. And that's still well under control around 2 months. So it's not that there has been a proactive buying from their sites. We follow up sell-out data every month, and this is also confirmed there's the gradual uptake and the success which we have with [indiscernible]
We can bring up the next one. Yes, there is one from the chat.
Yes. There is a question from [ Juseps ]. He's asking for ClickShare, the year-over-year ASP evolution.
Well, the ASP evolution, actually, as was indicated on the slides, what we, of course, have seen is that there is more and more sales in ClickShare Conference which comes at about 33% higher ASP compared to the -- what we call the ClickShare Present. So it's more that gradual shift then that is also impacting positively the top line and the, I call it, and the average ASP of the ClickShare range. The ASP within ClickShare Vedanta as such has remained kind stable as well as ClickShare Conference. So within the different product offerings, the ASP has not largely evolved, it is primarily the mix of [indiscernible]
Kris, we have you on the spotlight?
First question would be on the outlook. Of course, very nice to see 10% to 15% top line growth given the all cylinders that you're firing on that's quite good. My question would be on the margin side, given that you've reached already almost actually 14% in H2, given that logically, entertainment was quite weak in H1 last year with a negative margin. you've got your health care impact on your factory, of course, which is hurting margin in the short term. But if you look at all the rest, your costs are under control. So I'm just wondering -- to what extent is there a lot of prudence in the outlook of above 14%? Or is this something which would -- we would see evolving across the year gradually when momentum would kick in and China indeed is confirmed that's from the second quarter. That's my first question.
Thank you for the question and also thank you that you already gave the answer actually. So it is like you were saying that's gradually moving over the years. indeed, opportunities to improve primarily with the unlocking of China also and in general, as we got to the second semester entertainment back towards shapes, which we like to see. But over the years and how far above the 14%, then over the year, we will see and work on and not see it [indiscernible]
It's also Kris because we are slightly prudent because we have a number of new product introductions and investments in factories that are coming online, which will bring an increase in cost. So that is the reason of a slight prudence as you remarked.
Okay. And then just a second question, perhaps regarding the strategic exercise you're doing on large video calls. Could you give some more flavor to that to what might this lead what could be some impact on that?
That is a little bit early to give -- go more in details. We have decided to start the exercise, and we will keep you posted on what the outcome is. It is clear that ambition is profitable growth. So we need to basically look at what can be done to achieve that target.
We can have the next person in the spotlight.
Everyone. Congratulations for the result. The quick question. Can you update on the competitive landscape for ClickShare, both in Europe and the U.S. because it seems to me that you're doing well due to market and market share wins, but also some of the competitor might be under trouble. So happy to know a little bit better on this. Second is given the Chinese reopening, how you see the opportunity further acceleration for immersive, any new start of cycle for renewal of the cinema business. So it will be great if you can update. And last one, M&A. I think some of the valuations are maybe still expensive, but less expensive than they used to be. How is basically the work on the M&A and the probability that we see something or not by 2023.
ClickShare.
So the competitive landscape for ClickShare is evolving in a very favorable way for Barco because the complexity of the ClickShare namely ClickShare Conference has to work together with Teams, Zoom, go to meeting, Cisco, whatever. But also so the firmware that is on your PC, but also with firmware of the camera together with the firmware of the sound bar. So there is -- and most of these systems upgrade constantly. So we need also to constantly upgrade the firmware of ClickShare. And we are able to do that in a very successful way. It is that requires actually to have a large market share to be able to do that because to give an idea, last year, teams had more than one upgrade per day. So it's -- and we see basically that this leads to a big success for ClickShare and as a rising market share for ClickShare.
I'll take the one on cinema in China and the reopening up. Yes, and confirming that we do see cinema also in China reopening up like we have seen in the other regions when then COVID is being unlocked. You can then say, it does take 1 or 2 quarters then to really see that also being translated into our figures. So in that sense, very positive on the evolution in China, convinced that they will rebound back. And we've seen before that [indiscernible] quite quickly. But do mind they need a couple of quarters to get their own operational cash flows also back into [indiscernible] and with M&A, again to you.
I think it is clear that we constantly monitor the field. But at the same time, we are very conscious that we need to create value. And so I think management is convinced to do something and the Board is also convinced that value creation is paramount.
The next question. Yes, we have 1 more from the chat.
Matthias Maenhaut is requesting to elaborate on the strategic review of large video calls. And he mentioned that at the Capital Markets Day, you were strategically still fully committed. What has triggered this change? How should we interpret -- are there changing market dynamics at the basis.
Actually, we always -- and what we are confirming is that they should get to profitable EBITDA margins, which then go up to 5%, 10% actually. And that's -- yes, there is certainly some patients to its type of but not endlessly, if I can say it like that. So that has not changed. The market conditions, as such has not changed that dramatically or changed actually to the negative versus Capital Markets Day in there. It is being confirmed that more and more, the focus goes and it's a slower moving market towards software. So in that sense, we do want to give it push type of do not solely think that we might grow ourself out problem. And so the strategic review is really being focused on profitable products and profitable markets. And with that, actually, that the flavor or the more because we answered already to the question and then as you insist, Matthias is fine. That's the more elaboration that we can give at the moment.
We have [indiscernible]
[[indiscernible] So my first question would be on the margin improvement on the Healthcare division. You mentioned you had a good product mix there, you have operating leverage. So I was just wondering like what is the margin you feel confident for the -- when this is growing and when we see the operating leverage really evolving. So what kind of margin [indiscernible]
We don't guide specific EBITDA margins per deficient, we do that on a group level. But as indicated in your question already and highlight before by Charles, we order indeed in an investment mode. So yes, we have profitable growth or growth on the top line, also weather make some gross margins, but we do invest in footprint we do invest in road map. So in that sense, and that is then a conscious choice for the mid-to-longer term, actually, profitability beyond capturing short-term [indiscernible]. But they were at an 11% for last year, which was a very nice increase compared to the year before. It's not the purpose that they go down [indiscernible]
Okay. Next question would be then on Entertainment and especially like on the projectors and the competitive landscape there. I mean in the past, we had like 3 players there, [indiscernible] now this whole industry more becoming like a [ duo pool ] and I was just wondering where -- what's the end game of this market? And how do you see your position and also your competitor that is left in there?
Well, I think the competitive landscape is a moving landscape like always. But of course, there is a large economies of scale that favor us quite considerably. Technology on lasers and on image processing and image activation like we showed at the Capital Markets Day is far advanced compared to let's say, the general market. So we think we have a very strong competitive position. We want to further promote this competitive position to [indiscernible] the industry.
To complement on Entertainment because we zooming in on cinema. Then Entertainment really have 2 strong legs now being also the image processing. So which is the fixed installed for a team parks which are also for events. So actually on both, actually, we are while growing its market immerse experience, which is going fast, immerse experience actually speaking is everywhere that they say, but it's really is. It's all about the visualization is and the different parts of the world actually. And also there, with the focus which we put on it since a couple of years now, also in commercialization really has yielded tenants further on top line figures, but also on market shares.
Next person can -- we have [ Imanago ]
I have 2 questions. So the first one is on enterprise. So your outlook looks more beat versus Logitech. I would like to understand a little bit better why that is in your opinion.
So the -- I think Logitech, the outlook that Logitech gave was slightly misunderstood by the market. It was mainly the -- when the segment enterprise covers a lot of home cameras. And this market is diminishing when people go back to the office. Also, they have a much larger market share or very, very high market share, that is under more significant competition trends. position is radically different. And so yes, we are more upbeat than Logitech.
And do you have a lot of earnings -- do you have a lot of visibility on that? Because I think you mentioned previously that, you only have something like 2 months of earnings visibility, I think, or maybe 3.
No, no. We mentioned that there is only -- I mean we use a sales system that is through distributors. So what an mentioned is that sales results are not at all that we staff the distribution -- at the moment with monitor that very carefully. The distribution has less than 2 months of stock or, let's say, of product ready to be shipped. And this is historically.
That is correct that the book and turn that picture is primarily a book and turn business. So in that sense, it's not that we have such a large order book already open for the next months. We do have on a quarterly basis. So the visibility is the clearest for the next 3 months because we do get from our channels the next quarter forecasts. So that's actually where we gain the best flexibility from that [indiscernible]
Yes, definitely. No, that's clear. And then -- no, that's clear. And then the second question I have is on working capital. So what is actually the reason that working capital was still pretty high despite the improved supply chains? Is this just a timing effect of a few quarters?
You are such a great guy. You always give the answer in the question. Thank you. Indeed, at double as, of course, yes, we have such an uptick in our top line. the outstanding receivables also increased, which is then good news for the cash flow of the quarters. The next quarter then. So in that sense, there were higher receivables with a top line increase of 32%, then you have some impact on that top line. But DSOs are at [ 54 ] so even lower a couple of days than the year before, so we're under control. Inventories were really higher because we -- yes, we took in more than we gradually -- than we normally do. to secure and to work on the lowering of those lead times towards our customers. So indeed confirm that this -- and also taking sometimes into account price increases that were announced and to be done early on there. So it is a temporary thing, correct. This being said, yes, it quite had an impact on the year-end last year. But where we indicated 14% working capital on sales last year. We want to get that back to 10% and lower for '23.
Okay. If I -- can I ask 1 final quick 1 on the guidance. So on the guidance, so the 10% to 15% sales guidance, could you give me the kind of split you expect between volumes and price? And I assume that this is based on constant FX.
It is based on constant FX. That -- expect to as a combination of price and volume. The exact figures, yes, we do not share, but that is a combination. It is a combination and.
The next question coming with [indiscernible], we have [ Treon ]
I think my second question might have just been answered. But the first question was just following up on the M&A point. And obviously, you didn't announce anything, but you did mention in the press release that one of the reasons the net cash fell was because of some minority investments. And I just wondered if you could sort of give a bit more detail on what they were, how big were they -- and might we see more of those rather than acquisitions in the future.
\
There is actually smaller stakes and also below public or transparency threshold. So in that sense, we do not disclose the names. Yes. One where we have taken a larger share in 2 [ Seneonics ], where we increased our stake towards 80%. So that's one which we can disclose. Whether there will be more -- it's not a strategy to take a lot of smaller shares and order into investments. So that's not the case.
So what's the reason for taking those stakes? What's the benefit to Barco?
It's normally linked actually to some other strategic talks, which we have or reviews, which we are doing relating to the companies, but more I cannot.
I think we can disclose that we do sometimes do investments in strategic technology developments.
Okay. Okay. Yes. Then the last question was just on price. I didn't get the question before I was in the queue. I suspect Emmanuel asked it, but just that you mentioned that sales volume was the main lever of profitability improvements. in the bridge. So I was wondering how much was price there? And should we expect more price in 2023?
Price last year will have been about 5% to 7%. And whether we expect over the course of this year more, not expecting to have price decreases. So there will be price increases to what extent, that's a little early to say.
I guess, your order book is still at some old prices. So is there some natural price that should come through from the order book.
It's correct.
1 more from the chat.
Question from [ Peter Gardao ]. CapEx was partially driven by the first cinema as a service contract. How do you expect this to impact CapEx going forward as this type of contracts become more important. Yes, it was the lowest amount till last year, expecting to grow, but it's not at this moment. if we guide and then for -- when we give the guidance at the Capital Markets Day, actually, for the CapEx for the next 3 years at EUR 150 million, actually, then we do take into account in this about -- is it then [ 5 ] to [ 10 ] impact so far, not larger than that stake because it's a little too early to tell how many customers might move over to the CapEx model remind that for most of our projected sales, this comes with an attachment of an extended maintenance contract service revenues within cinema amount to 18% of the top line. So in that sense, it's not that we force our customers to go into that model. It is a choice.
We have Marc again.
First -- so extra explanation. On the inventory, you also mentioned that partly, it's also because of you buying in inventory ahead of inflation, so taking benefit of the fact that those inventory prices will go up in the future. How significant is that? What kind of amount of inventory did you buy in ahead of price increases from your suppliers?
It could have been inflation or price increases, which are already in the past as well. So it's a combination. We don't really have it split up as the larger amount is really to have the supply.
Yes. That's mainly covered supply to be sure that we could ship product to our customers, that has been the prime concern is customers. There might be some strategic purchasing but I don't think they are material in the numbers.
Okay. Clear. And then on Healthcare, I think the margin in the second half, you mentioned in the release also that you started up the new factory that also pushed down the profitability a bit. Is that something that is just like half year and then you will start covering that factory? And then quite quickly, you can improve that margin? Or is it something that the investment will continue for a few semesters, and it takes a bit longer before you recover that profitability?
So the factory is now operational. We -- so that's the factory in China. We will also build a new factory in Italy for Healthcare. So to have an [ ANP ] side. The -- we expect, let's say, productivity gains to come through now from the China factory this year, but we will still have costs of the startup of the second factory coming through. All in all, I think the influence on the numbers for 2023 will be light to moderate.
Question from Philippe [indiscernible]. The book-to-bill and enterprise is moving below 1 in Q3 and Q4. Do you expect this trend to continue? Has the ClickShare order intake past of post-pandemic peak.
To -- on the first. Thank you for the question. And I'm thinking out Anyhow, the one, I would say, book-to-bill to 1 is more of a long-term average, which is the best one otherwise, you have customers that have to wait too long type of. So that's for sure. Did Enterprise orders now really are at peak the point ClickShare at a big -- the at sales level, they were not yet at the peak compared to '19. So there, there's room and for still improvement. And anyhow, that's also -- what also we are looking towards I will say it positively, there is so much growth in the markets. We have reconfirmed confidence really on the strongness of our proposition there, seeing this in the markets. So that's really also at ESG and Barcelona actually. So plenty of opportunity ahead, and you will see this reflected in both orders and sales
I would like to thank everyone for your interest today in Barco and in our 2022 results. And I would also like to put your attention on our annual report integrated annual report, which is also published today and will be available on our website. So many thanks to all, and have a nice day.
Thank you very much.
Thank you.
Bye. Bye.
Bye.