(News Bulletin 247) – The French group which designs, develops and markets drones is plunging on the Paris Stock Exchange after announcing on Wednesday morning that it is counting on a drop in its 2023 turnover.

Parrot shares plummeted on the Paris Stock Exchange on Wednesday morning. One hour after the markets opened, around 10:00 a.m., it fell by 15.6% to 2.67 euros after having plunged by more than 20% in the first exchanges.

The company is sanctioned after having warned about its annual sales given a rate of order intake “difficult to predict”. The company cites the economic situation and administrative delays hampering the group’s visibility on its turnover at the end of 2023.

In particular, the company expects a delay in orders or significant deliveries of microdrone equipment over the first half of 2024. However, calls for tenders from military and government institutions are increasing but orders are slow to materialize. Parrot mentions “a slow administrative pattern”, which will weigh on its activity in 2023.

At the end of June, Parrot still hoped that orders could be confirmed and delivered for the 2023 financial year, thus generating growth in its turnover compared to 2022.

2023 turnover expected to decline

As a result, the company reported an initial sales estimate for the current year. Parrot estimates that it will be able to achieve at least 60 million euros in consolidated turnover in 2023, compared to 71.9 million euros in 2022, a drop of around 16%, taking into account the two main activities of the group (photogrammetry and microdrone solutions).

In March, Parrot said it expected continued growth in 2023, without giving many more details.

During the second quarter, Parrot also indicates that it has taken measures to reduce its cash consumption. The company plans to reduce its workforce by around 20% during the second half of 2023, with a view to achieving full-year savings of around €13 million.

The company would also like to point out that the consolidated turnover for the third quarter of 2022 at 21.6 million euros represented 30% of the overall turnover for 2022 and included significant deliveries to defense and security institutions. .

Since the start of the year, Parrot shares have fallen 26% and are 93% below their record reached in 2015 at more than 35 euros, coinciding with the group’s historic peak in activity.