THE NAVIGATOR COMPANY 1
Highlights: First 9 months of 2016 (vs. 9 Months 2015)
Positive operating performance, with growing sales volumes for paper (up 2%), pulp (up 9%) and tissue (up 27%), counteracting negative trends in pulp and paper prices
Turnover hit by drop in power sales due to application of new tariffs and consequent switch to self-consumption as previously announced (cutting € 51.2 million from turnover)
Group again records record paper sales in volume and value, at 1,156 thousand tons and € 890 million
EBITDA up 2.6% to € 301.5 million, and EBITDA/Sales margin improves to 26.1%
Growth in Free Cash Flow, which stood at € 101.1 million at the end of September
Restructured debt permits significant improvement in financial results
Net debt evolves as expected with Net Debt/EBITDA ratio kept within comfortable levels
Pellets Mill starts up in US, moving to continuous operation
Highlights 3rd Quarter 2016 (vs. Q2 2016 )Sales total € 376.8 million (down 4.4%), reflecting slowdown in paper business
Quarterly EBITDA of € 106.2 million (up 4.4%)
Free Cash Flow improves in the quarter, with growth in working capital
Groups cuts net debt by € 70 million and improves Net Debt / Ebitda ratio to 1.8
New measures in M2 cost reduction programme
3rd Sustainability Forum devoted to Forestry Certification
Navigator Group co-chairs Forest Solutions Group, global WBCSD platform for strategic collaboration to promote sustainable forestry management
Navigator Brand: top preference of European consumers, leading the Brand Equity Index, and regarded as the office paper brand offering the most value to users.
in million euros | 9M 2016 | 9M 2015 | % Change (5) 9M 16/ 9M 15 |
Total sales | 1 155.4 | 1 204.3 | -4.1% |
EBITDA (1) | 301.5 | 294.0 | 2.6% |
Operating profits | 178.0 | 207.7 | - 14.3% |
Financial results | - 16.6 | - 44.9 | - 63.0% |
Net earnings | 134.3 | 141.9 | -5.4% |
Cash flow | 257.8 | 228.2 | 29.6 |
Free Cash Flow (2) | 101.1 | 18.4 | 82.7 |
Capex (6) | 100.6 | 154.1 | - 53.5 |
Net debt (3) | 723.4 | 587.1 | 136.3 |
EBITDA / Sales (%) | 26.1% | 24.4% | 1.7 pp |
ROS | 11.6% | 11.8% | - 0.2 pp |
ROE | 15.1% | 13.9% | 1.2 pp |
ROCE | 12.7% | 15.4% | - 2.7 pp |
Equity ratio | 47.6% | 51.5% | - 3.9 pp |
Net Debt / EBITDA (4 ) | 1.82 | 1.53 | 1.2 |
in million euros | Q3 2016 | Q2 2016 | % Change (5) Q3 16/Q2 16 |
Total sales | 376.8 | 394.0 | -4.4% |
EBITDA (1) | 106.2 | 101.8 | 4.4% |
Operating profits | 70.1 | 51.5 | 36.1% |
Financial results | - 3.2 | - 10.7 | - 70.6% |
Net earnings | 48.8 | 40.7 | 19.8% |
Cash flow | 84.9 | 91.0 | 0.9 |
Free Cash Flow (2) | 69.7 | 13.3 | 56.5 |
Capex | 25.3 | 26.3 | - 0.9 |
Net debt (3) | 723.4 | 793.2 | - 69.7 |
EBITDA / Sales (%) | 28.2% | 25.8% | 2.4 pp |
ROS | 13.0% | 10.3% | 2.6 pp |
ROE | 17.1% | 13.7% | 3.4 pp |
ROCE | 14.8% | 10.8% | 4.0 pp |
Equity ratio | 47.6% | 46.2% | 1.4 pp |
Net Debt / EBITDA (4 ) | 1.82 | 1.98 | 0.9 |
Operating profits + depreciation + provisions
Var. Net debt + dividends + purchase of own shares
Interest-bearing net debt - liquid assets
EBITDA corresponding to last 12 months
Variation in figures not rounded up/down
2015 investment figures include € 41 million for purchase of AMS
The Navigator Company recorded turnover of € 1,155.4 million, as compared to € 1,204.3 million in the first nine months of 2015. The drop in the overall value of sales was due essentially to a reduction in power sales, after review of the tariff paid by the national grid for electricity from the natural gas co-generation plant in Figueira da Foz. In paper business, the Group again achieved strong sales, with UWF at a new record of 1,155.5 thousand tons. Good performance was also recorded in volumes of pulp and tissue.
Despite a significant reduction in capacity in the European paper industry, which permitted an improvement in the capacity utilization rate of 1pp, conditions in the UWF market gradually worsened over the course of 2016, with a reduction in apparent consumption estimated at around 4% while total imports into to the European market climbed by over 25%. Paper imports from Asia increased significantly, in particular in office papers, triggering an overall downwards adjustment in prices. In this difficult environment, Navigator achieved UWF sales of 1,155.5 thousand tons, up by 2.2% in relation to the first nine months of 2015, setting a new record in terms of volume. The Group increased its European sales at the same time as achieving significant growth in sales to international markets. The European A4 copy-B price index performed well (up 1.4%), and Navigator's average price for Europe was in line with the previous year. However, the Group's average price for all markets was down on the previous year due essentially to a less favorable mix in formats. In value, paper sales totalled € 890 million, a new record for the period.
Conditions in the BEKP pulp market remained tough throughout the first nine months of 2016 and benchmark prices for hardwood pulp (PIX - BHKP) were down at the end of September by 15% in euros and 18% in USD. Navigator nonetheless recorded strong operating performance: the volume of pulp placed on the market stood at around 201 thousand tons, up by around 9%, thanks to the capacity expansion at the Cacia mill, which has resulted in increased availability of pulp for the market. The slump in the pulp market was also reflected in the Group's average sale price, and total sales declined in value by 3%.
The Navigator Company published this content on 27 October 2016 and is solely responsible for the information contained herein.
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