Regulated information
Brussels, 31 August 2017 - 07:00 CET
FIRST HALF-YEAR 2017 RESULTS- Combinedasales growth of +5.9%, despite negative currency effects (-1.0%)
- Combined REBITDA of EUR 50.1 million (-8.6%)
- Result of the period (share of the Group): from EUR 15.5 million to EUR 14.3 million
- Combined net financial debt: EUR 151.4 million
Olivier Chapelle (CEO): "Sales growth has accelerated to +6.2% in the second quarter, leading to a solid +5.9% top line growth over the first half.
During the first half of 2017, the Group has faced very challenging raw material supply conditions: several forces majeures at suppliers, unprecedented raw material price increases and MDI supply shortages have constituted very serious headwinds for the business. This was complemented by the further weakening of the Pound Sterling and the overall appreciation of the Euro.
In these conditions, we are satisfied with the resilience of our REBITDA and the reactivity of the commercial teams who have taken swift re-pricing measures. Volume growth, pricing actions and cost efficiencies have indeed almost fully compensated the above-mentioned negative raw materials and currency impacts. We remain focused on our growth agenda, and are on track with the continuous improvement of our operational efficiency.
The consequences of the fire incident in our Automotive Interiors factory in Most (Czech Republic) are in the process of being gradually solved. Reconstruction of the Most facility is ongoing and the plant will be fully operational again by mid-October 2017, hence the supply situation will be entirely normalised by then.
OUTLOOK
The Group reiterates its guidance for the full year 2017: Recticel expects continued growth of its full year 2017 combined sales and an increase of its full year 2017 REBITDA.
All comparisons are made with the comparable period of 2016, unless mentioned otherwise. The figures mentioned have been subject to an auditor's review.
a For the definition of other used terminology, see glossary at the end of this press release.
KEY FIGURES
CONSOLIDATED DATA
- Sales: from EUR 534.5 million to EUR 566.0 million (+5.9%), including currency effects (-1.4%)
- EBITDA: from EUR 41.0 million to EUR 35.4 million (-13.6%)
- EBIT: from EUR 24.6 million to EUR 20.6 million (-16.4%)
- Result of the period (share of the Group): from EUR 15.5 million to EUR 14.3 million (-7.7%)
-
Net financial debt1: EUR 117.5 million per 30 June 2017 (30 June 2016: EUR 109.5 million; 31 December 2016: EUR 108.4 million)
in million EUR
1H2016
(a)
1H2017
(b)
(b)/(a)-1
Sales
534,5
566,0
5,9%
Gross profit
108,8
91,0
-16,4%
as % of sales
20,4%
16,1%
EBITDA
41,0
35,4
-13,6%
as % of sales
7,7%
6,3%
EBIT
24,6
20,6
-16,4%
as % of sales
4,6%
3,6%
Result of the period (share of the Group)
15,5
14,3
-7,7%
Result of the period (share of the Group) -
base (per share, in EUR)
0,29
0,27
-8,6%
31 Dec 16 30 Jun 17
Total Equity 251,2
Net financial debt 1108,4
Gearing ratio 43,1%
257,1
117,5
45,7%
2,3%
8,4%
1 Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 70.8 million per 30 June 2017 versus EUR 65.4 million per 30 June 2016 and EUR 51.7 million per 31 December 2016.
COMBINED DATA
- Sales: from EUR 686.0 million to EUR 726.8 million (+5.9%), including currency effects (-1.0%)
- REBITDA: from EUR 54.8 million to EUR 50.1 million (-8.6%)
- EBIT: from EUR 27.6 million to EUR 22.2 million (-19.6%)
- Result of the period (share of the Group): from EUR 15.5 million to EUR 14.3 million (-7.7%)
- Net financial debt1: EUR 151.4 million per 30 June 2017 (30 June 2016: EUR 132.9 million; 31 December 2016: EUR 126.0 million)
in million EUR
1H2016
(a)
1H2017
(b)
(b)/(a)-1
Sales
686,0
726,8
5,9%
Gross profit
133,4
100,2
-24,9%
as % of sales
19,4%
13,8%
REBITDA
54,8
50,1
-8,6%
as % of sales
8,0%
6,9%
EBITDA
47,9
41,0
-14,3%
as % of sales
7,0%
5,6%
REBIT
35,6
31,3
-11,9%
as % of sales
5,2%
4,3%
EBIT
27,6
22,2
-19,6%
as % of sales
4,0%
3,1%
31 Dec 16 30 Jun 17
Total Equity 251,2
Net financial debt 1126,0
Gearing ratio 50,1%
257,1
151,4
58,9%
2,3%
20,2%
1 Excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs: EUR 70.8 million per 30 June 2017 versus EUR 71.4 million per 30 June 2016 and EUR 52.2 million per 31 December 2016.
COMMENTS ON THE GROUP RESULTS
Detailed comments on sales and results of the different segments are given in chapter 5 on the basis of the combined figures (joint ventures integrated following the proportionate consolidation method).
There were no changes in the scope of consolidation in 1H2017.
Combined Sales: from EUR 686.0 million toEUR 726.8 million.On a half-year basis, combined sales increased by +5.9%, including a negative currency impact of EUR -7.5 million (-1.0%). All segments reported higher sales, except Bedding which contracted by -6.6%. The overall increase is due to (i) strong volume growth in Automotive and smaller volume growth in Insulation (impacted by MDI shortage during the 2ndquarter), (ii) increased average sales prices following the steep increase of raw material costs (i.e. isocyanates) and (iii) the start-up of scheduled new programs in Automotive Interiors.
After a healthy +5.7% growth in 1Q2017 (including a negative currency effect of -1.2%; mainly GBP), growth further accelerated during the second quarter to +6.2% (including a negative currency effect of -0.8%). The growth pattern of the individual business segments observed during 1Q2017 was extended in 2Q2017, mainly in Automotive (+21.7%) and Insulation (+8.4%).
Breakdown of the combined sales by segment
Combined gross profit: from EUR 133.4 million toEUR 100.2 million. Gross margin decreased from 19.4% to 13.8%.in million EUR
1Q2016 2Q2016 1H2016 1Q2017 2Q2017 1H2017
1Q
2Q
1H
Flexible Foams Bedding Insulation Automotive Eliminations
156,1
79,0
55,5
73,9
( 18,9)
154,2
69,1
62,7
73,0
( 18,4)
310,3
148,1
118,1
146,9
( 37,3)
160,6
75,0
61,3
84,6
( 16,3)
157,0
63,3
67,9
88,8
( 15,4)
317,5
138,3
129,2
173,5
( 31,7)
2,9%
-5,0%
10,5%
14,5%
-14,0%
1,8%
-8,4%
8,4%
21,7%
-16,0%
2,3%
-6,6%
9,4%
18,1%
-15,0%
TOTAL COMBINED SALES
345,5
340,5
686,0
365,3
361,5
726,8
5,7%
6,2%
5,9%
Adjustment for joint ventures by application of IFRS 11
( 75,9)
( 75,6)
( 151,5)
( 83,4)
( 77,4)
( 160,8)
9,9%
2,3%
6,1%
TOTAL CONSOLIDATED SALES
269,6
264,9
534,5
281,9
284,1
566,0
4,6%
7,3%
5,9%
The lower gross profit is to a large extent explained by (i) additional costs (EUR -17.0 million)
due to alternative production solutions and operational inefficiencies linked to the fire incident in Automotive Interiors in Most (Czech Republic), and (ii) the temporary impact linked to the lead-time necessary to pass through the raw material price increases to the customers.
Recticel SA published this content on 31 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 August 2017 08:02:07 UTC.
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