Cabasse Reports €2.2 Million Turnover in 1st Quarter of 2023 with 12% Drop in Sales, Confirms 2023 Objectives with Double-Digit Growth and Gross Margin Improvement.

Turnover of 1^is quarter 2023: €2.2 million

• -12% drop in sales on 1^is quarter of 2023, in line with expectations

• Beginning of the financial year hampered by difficulties in supplying key components leading to delays in the new product range Classic Connected in the process of being absorbed on the 1^is semester 2023

2023 objectives confirmed

• Double-digit growth in activity and further improvement in the gross margin rate

• Launch of two major new products in 2^nd half of 2023 in order to extend the range Luxury Wireless Home Audio

• First sales resulting from major agreements concluded with two major luxury houses

Plouzané, May 9, 2023 – 6 p.m. – Cabasse (Euronext Growth® Paris – FR001400DIY6 – ALCAB)a French luxury high-fidelity audio company, publishes its turnover for the 1^is quarter 2023 (unaudited) for the period from 1^is January to March 31, 2023.

Au 1^is quarter of 2023, Cabasse’s consolidated sales amounted to €2.2 million, down -12% compared to the 1^is quarter 2022.

In the wake of the end of 2022, the start of the financial year was, as expected, disrupted by supply difficulties for certain key electronic components (amplifiers and digital-analog converters), particularly affecting the launches of new products from the range Classic Connected : the RIALTO loudspeakers and the ABYSS connected amplifier.

It should be noted that export sales totaled 56% of Cabasse sales in 1^is quarter of 2023 (compared to 46% for the full year 2022 and 38% in 2021).

Order intake from specialist mass retailers began to pick up at the end of 1^is quarter, but their inventories remain at an all-time low.

ENTHUSIASTIC WELCOME TO RIALTO SPEAKERS AND ABYSS AMPLIFIER AT AXPONA 2023 CHICAGO SHOW

In mid-April 2023, Cabasse’s sales teams and its American distributor were present for the 2023 edition of the AXPONA show (Audio Expo North America), the largest annual gathering of audio manufacturers, resellers and distributors in North America. North, to Chicago.

During this trade show, Cabasse presented the new products Luxury Audio wireless from the new “Classic Connected” collection, the RIALTO speakers and the ABYSS connected amplifier. They have received an enthusiastic welcome from the high-end audio community as well as from the North American specialized press, like the reference site for audiophiles in North America, The Absolute Sound, which classifies this new range. Classic connected Among the five hottest new products at the 2023 show:

“New version of the “Classic Connected” Cabasse, very small, produce experience of sound very musically tune, dynamic, engaging… impressive in demos, power of sound. Rialto Best sound for the money and abyss, one of the 5 most significant new products.”

Thomas Martin & Robert Harley, The Absolute Sound

“The new speaker from Cabasse’s “Classique Connecté” range, very compact, produces a very musical, dynamic, engaging sound experience… and impressive in terms of sound power. The RIALTO has the best sound/investment ratio, The ABYSS is one of the 5 most significant new products. »

The RIALTO are the brand’s first connected active speakers in a classic bookshelf format. RIALTO is composed of two active speakers connected wirelessly, in a compact bookshelf format

ABYSS is a high-resolution connected amplifier, which makes it possible to magnify the sound of all passive speakers, and in particular the brand’s high-end floorstanding and bookshelf speakers.

These two new features incorporate the best acoustic innovation technologies of Cabasse products (CRCS: automatic room calibration, DFE: dynamic fidelity improvement, DEAP: digital improvement of acoustic performance).

CONFIRMATION OF 2023 TARGETS: DOUBLE-DIGIT SALES GROWTH AND GROSS MARGIN IMPROVEMENT

Cabasse confirms that it is aiming for a double-digit increase in sales over the whole of the 2023 financial year, a rate of increase in line with the company’s medium-term ambition. The financial year will be marked by an acceleration of growth in the 2^nd half, with in particular the launch of two major new products at the end of the year which will extend the widest range of the Luxury Wireless Home Audio. At the same time, the 2^nd half of 2023 will also be marked by the first sales resulting from the major agreements concluded in 2022 with two major luxury houses.

Beyond this growth in activity, Cabasse also confirms that it is aiming for a further increase in the gross margin rate (reminder: 40.0% in 2022) under the effect of (i) the continued growth of THE PEARL COLLECTION range and the luxury and high-end positioning of the latest novelties, (ii) difficulties in supplying key components which were gradually reduced on the 1^is semester 2023 and (iii) transport costs now normalized.

AGENDA FINANCE 2023

These dates are given as an indication, they are likely to be modified if necessary. The publications will take place after the closing of the Euronext markets.

ABOUT CABASSE
Created by Georges Cabasse in 1950, Cabasse is a French specialist in acoustics which designs and markets
high-fidelity audio solutions (connected and passive speakers, amplifiers, etc.) for music enthusiasts. Equipped with the famous coaxial speakers, these luxury audio solutions allow sound reproduction and
unequaled music.
The culmination of more than 70 years of innovation and acoustic engineering, Cabasse has launched THE PEARL range since 2018, the most comprehensive collection of high-resolution connected active speakers on the global audio market. Luxury Home Audio. With the success of this range, Cabasse has now entered a phase of strong growth, with sales rising from €6.3 million in 2019 to €10.1 million in 2022, i.e. average annual growth in activity by +17% over the last three years.
Cabasse is 42.27% owned by VEOM Group (Euronext Growth – FR0013530102 – ALCG), a leading European group in the world of Smart Home (intelligent home), pioneer of multi-room and streaming technologies.
Cabasse shares are listed on Euronext Growth® in Paris under the ISIN code FR001400DIY6 and the mnemonic code ALCAB. The ISIN code FR001400DJD8 is a secondary ISIN code created to identify the beneficiaries of BSAs_LOYALTY at the end of the 12-month holding period from the date of settlement delivery of the new shares relating to the capital increase (i.e. December 5, 2022).
More information on Cabasse.com.