Pfleiderer Group presents results for 2017

  • The consolidated net revenue generated by Pfleiderer Group in 2017 was EUR1 006million,4.8% higher than in 2016.
  • The Group's EBITDA increased by9.3% to EUR120million. The EBITDA margin was11.9%.
  • Pfleiderer Group consistently implements the Strategy's objectives - during the year, the value of implemented investment projects in 2017 amounted to EUR76.3million.
  • Thanks to the refinancing of debt, the Group will significantly reduce its financial costs.
  • The Group works on new products and innovations, last year new textures, decors were introduced and there were conducted pre-launch presentations of PrimeBoard and Duropal HPL Compact Exterior. Pfleiderer Group received many prizes for the products, including German Design Award 2017, Red Dot Award: Product Design 2017, German Brand Award.

11.04.2018, Wrocław. Pfleiderer Group ended 2017 with robust financial performance. The consolidated revenue of the Group increased by 4.8 % compared to the previous year (8.3 % without first 19 days of 2016 for Core West Segment), and the EBITDA result by 9.3 % (10.4 % without first 19 days of 2016 for Core West Segment). The key events of the past year are primarily the presentation of the Strategy until 2021, the implementation of the investment plan, refinancing of the debt, as well as changes in the Management Board and a successful share buy-back program.

'Last year was a very busy time for Pfleiderer Group. We have thoroughly analysed the Group's operation, which results in Pfleiderer Group Strategy until 2021 presented in September. The implementation of the objectives set out in it will allow us to maintain a leading position in our competitive and dynamically changing industry. We achieved successes, among others, optimising processes in the Group, which translated, for example, into increased operational efficiency, better use of production capacity, optimisation of production costs and minimisation of downtime. We develop our customer centric approach by constant improvement of customer service and new products development.' - Tom K. Schäbinger, President of the Management Board of Pfleiderer Group S.A.

Throughout 2017, the gross margin amounted to 23 %, remaining at a stable level y/y due to the implementation of the new pricing policy despite significant increase in raw material prices. The Group's EBITDA amounted to EUR 120 million and increased by 9.3 % y/y. The EBITDA margin was at a similar level as in 2016 and amounted to 11.9 %.

Smart capital expenditures support the Group's strategy

In 2017, the Group's capital expenditures totalled EUR 76.3 million. As part of the implementation of strategic projects Pfleiderer Group realised or commenced realisation of investments, such as 4-Pack Investment Programme in Grajewo, a production line for worktops and the Dynasteam project in Wieruszów, a grinding line in Neumarkt, a varnishing line in Leutkirch. Silekol - part of the Group - was also strongly developed in 2017.

The implemented and planned investment projects will support our growth in consolidated sales revenue to the level of EUR 1.2 billion and an EBITDA margin growth of at least 16 % for the year ended on 31st December 2021.

Pfleiderer Group investments help to deliver innovative and new products and decrease environmental footprint. Investments are connected with company strategy to strengthen position in the wood-based panel industry in Europe. Pfleiderer has a leading position with development in decors, textures, other innovative products, which are in line with the latest fashion trends as well as with the customer needs. Every year the Group receives many prizes for its products like German Design Award 2017, German Brand Award 2017 and others.

Debt refinancing will reduce the cost of servicing it

In the first half of 2017, the Management Board of Pfleiderer Group successfully refinanced the debt of 2014. New conditions of its service will help to significantly reduce financial costs. On 1st August, unsubordinated covered bonds were bought back. The estimated savings resulting from lower debt servicing costs as of 2018 will amount to approx. EUR 6.5 million annually compared to 2016-2017.

The company consistently increases value for Shareholders

In order to share the generated profits with the Shareholders on 21st June, 2017, the Ordinary General Meeting of Shareholders adopted a resolution regarding the distribution of a dividend to shareholders from the net profit for 2016 in the amount of PLN 71.2 million, or PLN 1.1 per share. The dividend covered all shares of the Company. Payments for shareholders were made in July last year.

Share buy-back programme implemented as assumed

In connection with the implementation of the buy-back programme approved in June 2017 by the General Shareholders' Meeting of the Company, at the end of September, the Management Board of Pfleiderer Group specified detailed terms and conditions for the acquisition of own shares. Implementing the programme, on October 12th, 2017 and on February 7th and 27th, 2018, the Pfleiderer Group S.A. bought back, in three tranches, a total of 5,396,933 treasury shares, corresponding to ca. 8.34 % of the total number of votes in the company.

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Pfleiderer Group SA published this content on 11 April 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 April 2018 08:40:01 UTC