PRESS RELEASE
Board of Directors approves results as of September 30 2017
COFIDE GROUP: REVENUES AT € 2,056.6 MLN (+5.6%), EBITDA AT € 215.5 MLN (+12.6%) NET RESULT BEFORE GEDI EXTRAORDINARY TAX CHARGE: € 23.8 MLN (€ 24.2 MLN AT 30/9/2016) Financial highlights for 9M 2017(in millions of €)
9M 2016 | 9M 2017 | Δ% | |
Revenues | 1,946.7 | 2,056.6 | +5.6% |
EBITDA | 191.4 | 215.5 | +12.6% |
Net result Net financial debt | 24.2 31/12 166.9 | -14.9 30/9 162.8 |
Milan, October 27 2017 - The Board of Directors of COFIDE-Gruppo De Benedetti S.p.A., which met today in Milan under the chairmanship of Rodolfo De Benedetti, has approved the Interim Financial Report as of September 30 2017.
COFIDE is the controlling shareholder of CIR-Compagnie Industriali Riunite S.p.A., the company at the head of an industrial group active mainly in the media sector (GEDI Gruppo Editoriale), in automotive components (Sogefi) and healthcare (KOS). The COFIDE group also has financial investments in Jargonnant, the private equity fund specializing in real estate assets in Germany and Eastern Europe, and in Three Hills Decalia, the investment fund that supports the growth of small and medium European enterprises.
Consolidated results and results of the parent company
The revenues of the COFIDE group in the first nine months of 2017 totalled € 2,056.6 million, up by 5.6% from € 1,946.7 million in the same period of 2016. The increase reflects the performance of the revenues of the CIR group, driven by the positive evolution of all the subsidiaries.
EBITDA came to € 215.5 million (10.5% of revenues), up by 12.6% from € 191.4 million (9.8% of revenues) in the first nine months of 2016. The figure benefited from the higher EBITDA of the CIR group.In the first nine months of 2017 the COFIDE group reported a negative net result of € 14.9 million compared to net income of € 24.2 million in the same period of the previous year. The result consisted of the loss of the parent company COFIDE S.p.A. of € 0.6 million (versus earnings of € 3.8 million in the first nine months of 2016, because of lower gains from trading securities) and the negative contribution of € 14.3 million by the subsidiary CIR (compared to a positive contribution of € 20.4 million in 2016). CIR reported a consolidated loss of € 26 million resulting from the significant extraordinary tax charge incurred by its subsidiary GEDI for the settlement of a dispute pending in the Court of Cassation for events going back to 1991. Excluding the effects of this charge, the net result of the COFIDE group in the first nine months of 2017 would have been € 23.8 million.
The consolidated net debt of the COFIDE group totalled € 162.8 million at September 30 2017 compared to €
166.9 million at December 31 2016 and € 192.5 million at June 30 2017.
The net financial debt of COFIDE S.p.A. came to € 30.8 million at September 30 2017 (€ 23.3 million at December 31 2016). The increase was mainly due to the buyback of own shares for € 9.6 million offset by the receipt of dividends, net of those paid out, of € 3.9 million.
Total consolidated equity stood at € 1,443.4 million at September 30 2017, down from € 1,506.9 million atDecember 31 2016.
The consolidated equity of the group amounted to € 506.5 million at September 30 2017 versus € 563.4 million at December 31 2016. The change was essentially due to the loss for the period, to the dilution resulting from the merger of the ITEDI Group into GEDI, the distribution of dividends and the buyback of own shares.
The value of the investment in the Jargonnant fund was € 4.3 million at September 30 2017, down from € 6.3 million at the end of 2016 after distributions and capital repayments. The COFIDE group also has an investment in the Three Hills Decalia fund, specializing in small and medium enterprises in Europe: the value of the investment at September 30 2017 was € 7.3 million, up from € 5.6 million at the end of 2016.
At September 30 2017 the COFIDE group had 15,596 employees (14,329 at December 31 2016).
Outlook for 2017
Excluding the tax charge incurred by GEDI, for the whole year the COFIDE group expects to confirm the positive results obtained in the first nine months, unless there are any extraordinary events that cannot yet be foreseen.
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For further information on the results of the subsidiary CIR, see the press release issued by the company earlier today (goo.gl/Uhf5Mc).
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The executive responsible for the preparation of the company's financial statements, Giuseppe Gianoglio, hereby declares, in compliance with the terms of paragraph 2 Article 154 bis of the Finance Consolidation Act (TUF), that the figures contained in this press release correspond to the results documented in the company's accounts and general ledger.
Contacts:
CIR Group Communication Department
Mariella Speciale Tel.: +39 02 722701
ail: infostampa@cirgroup.it www.cofide.it
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Alternative performance indicators
Below the meaning and content are given of the "alternative performance indicators", not envisaged by IFRS accounting standards but used in this press release to provide a better evaluation of the economic and financial performance of the COFIDE group.
EBITDA (gross operating margin): an indicator of operating performance calculated by adding "amortization, depreciation and write- downs" to the EBIT figure (earnings before financial items and taxes);
Consolidated net financial debt: an indicator of the financial structure of the group; it is the algebraic sum of financial receivables, securities, available-for-sale financial assets and cash and cash equivalents in current assets, of bonds and other borrowings in non- current liabilities, and of bank overdrafts, bonds and other borrowings in current liabilities.
Attached are key figures from the consolidated statement of financial position and income statement.
It should be noted that these statements have not been subject to audit by the firm of auditors.
Consolidated Statement of Financial Position(in thousands of euro) | |||
ASSETS | 30.09.2017 | 30.06.2017 | 31.12.2016 |
NON-CURRENT ASSETS | 2,172,751 | 2,187,981 | 2,070,459 |
INTANGIBLE ASSETS | 1,129,246 | 1,108,989 | 988,003 |
TANGIBLE ASSETS | 672,957 | 682,224 | 671,159 |
INVESTMENT PROPERTY | 19,624 | 19,767 | 20,144 |
INVESTMENTS IN COMPANIES CONSOLIDATED AT EQUITY | 124,962 | 125,041 | 129,987 |
OTHER EQUITY INVESTMENTS | 6,526 | 6,547 | 5,323 |
OTHER RECEIVABLES | 58,821 | 78,465 | 79,099 |
SECURITIES | 75,154 | 78,569 | 85,009 |
DEFERRED TAXES | 85,461 | 88,379 | 91,735 |
CURRENT ASSETS | 1,387,419 | 1,376,325 | 1,349,077 |
INVENTORIES | 144,331 | 145,052 | 137,406 |
CONTRACTED WORK IN PROGRESS | 40,311 | 43,034 | 40,947 |
TRADE RECEIVABLES | 435,666 | 462,697 | 414,246 |
OTHER RECEIVABLES | 111,351 | 108,587 | 92,863 |
FINANCIAL RECEIVABLES | 11,892 | 19,211 | 30,183 |
SECURITIES | 61,300 | 64,834 | 66,157 |
AVAILABLE-FOR-SALE FINANCIAL ASSETS | 232,573 | 232,571 | 234,012 |
CASH AND CASH EQUIVALENTS | 349,995 | 300,339 | 333,263 |
ASSETS HELD FOR DISPOSAL | 25,747 | 3,418 | 3,418 |
TOTAL ASSETS | 3,585,917 | 3,567,724 | 3,422,954 |
LIABILITIES AND EQUITY | 30.06.2017 | 31.12.2016 | |
EQUITY | 1,443,434 | 1,579,196 | 1,506,896 |
ISSUED CAPITAL | 359,605 | 359,605 | 359,605 |
less OWN SHARES | (8,082) | (6,170) | -- |
SHARE CAPITAL | 351,523 | 353,435 | 359,605 |
RESERVES | 72,222 | 73,227 | 95,041 |
RETAINED EARNINGS (LOSSES) | 97,759 | 97,759 | 87,519 |
NET INCOME (LOSS) FOR THE YEAR | (14,948) | 14,629 | 21,249 |
EQUITY OF THE GROUP | 506,556 | 539,050 | 563,414 |
MINORITY SHAREHOLDERS' EQUITY | 936,878 | 1,040,146 | 943,482 |
NON-CURRENT LIABILITIES | 1,060,045 | 1,029,660 | 975,300 |
BONDS | 265,837 | 266,201 | 283,742 |
OTHER BORROWINGS | 397,493 | 345,013 | 311,815 |
OTHER PAYABLES | 15,441 | 15,391 | 15,175 |
DEFERRED TAXES | 179,715 | 180,744 | 149,833 |
PERSONNEL PROVISIONS | 140,498 | 140,186 | 131,058 |
PROVISIONS FOR RISKS AND LOSSES | 61,061 | 82,125 | 83,677 |
CURRENT LIABILITIES | 1,077,475 | 958,868 | 940,758 |
BANK OVERDRAFTS | 16,078 | 18,273 | 12,771 |
BONDS | 20,258 | 19,979 | 20,980 |
OTHER BORROWINGS | 118,862 | 159,980 | 201,179 |
TRADE PAYABLES | 439,168 | 455,579 | 433,354 |
OTHER PAYABLES | 404,138 | 215,694 | 199,697 |
PROVISIONS FOR RISKS AND LOSSES | 78,971 | 89,363 | 72,777 |
LIABILITIES HELD FOR DISPOSAL | 4,963 | -- | -- |
TOTAL LIABILITIES AND EQUITY | 3,585,917 | 3,567,724 | 3,422,954 |
(in thousands of euro) | ||||
1/1-30/9 | 1/1-30/9 | 3rd Quarter | 3rd Quarter | |
2017 | 2016 | 2017 | 2016 | |
SALES REVENUES | 2,056,543 | 1,946,673 | 664,183 | 627,527 |
CHANGE IN INVENTORIES | 72 | 5,910 | (2,415) | 4,585 |
COSTS FOR THE PURCHASE OF GOODS | (782,554) | (740,820) | (245,852) | (242,774) |
COSTS FOR SERVICES | (488,902) | (452,980) | (162,421) | (144,992) |
PERSONNEL COSTS | (538,189) | (529,560) | (175,372) | (165,573) |
OTHER OPERATING INCOME | 20,635 | 17,760 | 7,478 | 5,780 |
OTHER OPERATING COSTS | (52,138) | (55,596) | (17,677) | (17,406) |
AMORTIZATION, DEPRECIATION & WRITEDOWNS | (94,671) | (87,337) | (29,485) | (28,561) |
INCOME BEFORE FINANCIAL ITEMS | ||||
AND TAXES (EBIT) | 120,796 | 104,050 | 38,439 | 38,586 |
FINANCIAL INCOME | 7,677 | 9,375 | 2,424 | 3,440 |
FINANCIAL EXPENSE | (40,268) | (44,142) | (13,611) | (13,124) |
DIVIDENDS | 61 | 11,949 | 21 | 3,996 |
GAINS FROM TRADING SECURITIES | 19,051 | 13,240 | 9,947 | 3,187 |
LOSSES FROM TRADING SECURITIES | (33) | (563) | -- | (25) |
ADJUSTMENT TO THE VALUE OF INVESTMENTS | ||||
CONSOLIDATED AT EQUITY | (743) | 2,890 | (79) | 704 |
ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS | 320 | 3,466 | (996) | 2,033 |
INCOME BEFORE TAXES | 106,861 | 100,265 | 36,145 | 38,797 |
INCOME TAXES | (189,315) | (35,675) | (164,592) | (18,473) |
RESULT AFTER TAXES FROM OPERATING ACTIVITY | (82,454) | 64,590 | (128,447) | 20,324 |
NET INCOME/(LOSS) FROM OPERATIONS HELD | ||||
FOR DISPOSAL | 1,161 | 1,000 | 161 | -- |
NET INCOME FOR THE PERIOD INCLUDING | ||||
MINORITY INTERESTS | (81,293) | 65,590 | (128,286) | 20,324 |
- (NET INCOME) LOSS OF MINORITY | ||||
SHAREHOLDERS | 66,345 | (41,407) | 98,709 | (13,684) |
- NET INCOME (LOSS) OF THE GROUP | (14,948) | 24,183 | (29,577) | 6,640 |
COFIDE – Gruppo De Benedetti S.p.A. published this content on 27 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 October 2017 16:17:11 UTC.
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