B&C Speakers S.p.A.
The Board of Directors approves the Interim Report on Operations at 30 September 2017- Consolidated revenues of Euro 29.65 million (+3.9% compared with Euro 28.53 million for the corresponding period in 2016)
- Consolidated EBITDA of Euro 7.20 million (+0.5% compared with Euro 7.16 million for the corresponding period in 2016)
- Group net profit equal to Euro 4.62 million (+14.75% compared with Euro 4.21 million for the corresponding period of 2016)
- Group net financial position of Euro 1 million (a positive Euro 7 million at year-end 2016)
- The Parent Company's order book was Euro 8.2 million at the end of third quarter period (at 30 September 2016 it was Euro 8.1 million).
BagnoaRipoli(Fi),14November2017- The Board of Directors of B&C Speakers S.p.A., one of the foremost international players in the design, manufacture, distribution and marketing of professional electro-acoustic transducers (loudspeakers), approved the Interim Report on Operations of the group for the first nine months of 2017, prepared in accordance with IFRS international accounting standards.
RevenuesConsolidated revenues in the first nine months of 2017 amounted to € 29.65 million, resulting in growth of 3.9% compared to the same period of 2016 when turnover stood at € 28.53 million.
The above growth was achieved thanks to good performance in the period just before summer when manufacturing and turnover levels were excellent.
In the table below, we show the breakdown by geographical area of the turnover achieved by the Group during the period under review compared with the same period of the previous year:
Revenues per geographic area (values in Euro/thausand) | 3 Q 2017 YTD % | 3 Q 2016 YTD % | Difference | Difference % | ||
Latin America | 2,107,025 | 7.1% | 1,591,061 | 5.6% | 515,964 | 32.4% |
Europe | 13,790,217 | 46.5% | 13,381,690 | 46.9% | 408,527 | 3.1% |
Italy | 1,875,616 | 6.3% | 2,430,126 | 8.5% | (554,510) | -22.8% |
North America | 5,440,394 | 18.3% | 5,463,109 | 19.1% | (22,715) | -0.4% |
Middle East & Africa | 327,978 | 1.1% | 189,680 | 0.7% | 138,298 | 72.9% |
Asia & Pacific | 6,112,397 | 20.6% | 5,478,134 | 19.2% | 634,263 | 11.6% |
Total | 29,653,628 | 100.0% | 28,533,800 | 100.0% | 1,119,828 | 3.9% |
During this period, the Group has significantly increased its presence in the Asian market (+11.6% with sales of € 6.1 million) and has achieved excellent performance in the South American market (+32.4% with sales of € 2.1 million), and in the European market (+3.1% with sales of € 13.7 million) which remains the most important market for the Group. Results were down in the Italian market compared to the first nine months of 2016 (-22.8% with sales of € 1.3 million). The North American market was substantially stable.
Revenues per geographic area Geographic AreaEurope Asia & Pacific North America
Italy Latin America Middle East & Africa
328190
1,8762,430
2,1071,591
6,1125,478
5,4405,463
13,79013,382
3 Q 2017 YTD 3 Q 2016 YTD
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
Thousand of Euro Cost of salesThis category includes raw materials (purchasing, processing by third parties and changes in inventories), the cost of personnel directly involved in the production process, transport costs and the costs for commissions payable, customs duties and other direct costs of lesser importance.
Cost of sales during the first nine months of 2017 remained almost stable in terms of the proportion of revenues compared to the first nine months of 2016, rising from 57.97% to 58.20%.
Indirect personnelOver the first nine months of 2017 cost of indirect labour increased slightly more than turnover, increasing their proportion of revenues (5.54% in the first nine months of 2017 against 5.42% in the same period last year).
Commercial expensesThis category refers to costs for commercial consultancy, advertising and marketing, travel and subsistence and other minor charges relating to the commercial sector.
Commercial expenses showed a slight increase compared to the first nine months of the previous year. Therefore, as a proportion of revenues they slightly increased from 2.09% in the first nine months of 2016 to 2.24% in the first nine months of 2017.
Administrative and GeneralGeneral and administrative expenses increased by around € 230,000 compared to the first six months of the previous period, with a slightly increased impact on revenues which went from 9.77% in the first nine months of 2016 to 10.22% in the first nine months of 2017. The increase is principally due to the use of technical consulting aimed at improving manufacturing and operational procedures as well as investment associated with the new company division.
EBITDA and EBITDA marginAs a result of the trends illustrated above, EBITDA of the first nine months of 2017 amounted to 7.20 million euro, with an increase of 0.53% compared with the same period of 2016 (in which EBITDA amounted to 7.16 million euro).
The EBITDA margin for the first nine months of 2017 was therefore equal to 24.27% of revenues, whilst it was 25.09% during the same period in 2016.
EBIT and EBIT marginEBIT as of 30 September 2017 amounted to 6.6 million euro, an increase of 1.31% compared with the same period of 2016 (when the figure was 6.51 million euro). The EBIT margin was 22.26% of revenues (22.84% in the same period of 2016).
Group Net Result and Net Financial PositionThe Group's net profit at the end of the first three quarters of 2017 amounted to Euro
million and represents 16% of consolidated revenues (also up, by 14.8%, compared with the Euro 4.21 million of the corresponding period of 2016).
There is a reduction in the tax rate due to the reduction of the IRES rate; this improvement will be further confirmed by the results of the not yet concluded "ruling" with Italian tax authorities for Patent Box fiscal break. The conclusion of the process should take place by the end of 2017 and will also cover profits from 2016 and 2015.
The Group's financial stability remains adequate even if the Net Financial Position is lower in respect of 2016 year end, as of September 30thit is negative and amounts to Euro 1 million (at the end of 2016 it was positive by Euro 7.07 millions). The decrease is mainly due to the dividend, amounted at 10.9 million Euro, paid in May and to the taxes paid for 1.39 million Euro.
The Group's reclassified Income Statement for the first nine months of 2017 is shown in the table below
Significant events during the first nine months of 2017Economic trends - Group B&C Speakers
(€ thousands)
9 months
2017
9 months
Incidence
2016
Incidence
Revenues
29,654
100.00% 28,534
100.0%
Cost of sales
(17,260)
-58.20% (16,542)
-58.0%
Gross margin
12,394
41.80% 11,992
42.0%
Other revenues
143
0.48% 98
0.3%
Cost of indirect labour
(1,644)
-5.54% (1,546)
-5.4%
Commercial expenses
(664)
-2.24% (598)
-2.1%
General and administrative expenses
(3,032)
-10.22% (2,786)
-9.8%
Ebitda
7,198
24.27% 7,160
25.1%
Depreciation of tangible assets
(576)
-1.94% (568)
-2.0%
Amortization of intangible assets
(21)
-0.07% (19)
-0.1%
Writedowns
0
0.00% (57)
-0.2%
Earning before interest and taxes (Ebit)
6,601
22.26% 6,516
22.8%
Financial costs
(351)
-1.18% (204)
-0.7%
Financial income
464
1.56% 333
1.2%
Earning before taxes (Ebt)
6,714
22.64% 6,645
23.3%
Income taxes
(1,991)
-6.71% (2,289)
-8.0%
Profit for the year
4,723
15.93% 4,356
15.3%
Minority interest
0
0.00% 0
0.0%
Group Net Result
4,723
15.93% 4,356
15.3%
Other comprehensive result
(100)
-0.34% (147)
-0.5%
Total Comprehensive result
4,623
15.59% 4,209
14.8%
During the first nine months of 2017, the following significant events occurred:
The collection of new orders was again satisfactory. The order book on the date when the present report was prepared amounted to Euro 8.1 million andthetotalcollectionduringthefirstninemonthsoftheyearwasgreaterthanthesameperiodof2016by3%.
The Shareholders' Meeting held on the 26 April 2017 defined the issue of an ordinary dividend of Euro 0.40 per ordinary share in circulation at the ex- coupon date. In addition to the ordinary dividend, and in order to reward shareholders of the Company during the tenth year since listing, the Shareholders' Meeting defined the distribution of an extraordinary dividend of Euro 0.6 for each ordinary share in circulation at the coupon detachment date. The total value of the dividend issued was therefore Euro 10.9 million.
Significant events occurring after 30 September 2017After the end of the third quarter of 2017 and up to the date of preparation of the Consolidated Interim Report, our attention was drawn to the following significant events:
On 02 October 2017, the Parent Company signed a binding agreement to buy
B&C Speakers S.p.A. published this content on 14 November 2017 and is solely responsible for the information contained herein.
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