Earnings Release • Nov 14, 2018
Earnings Release
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| Informazione Regolamentata n. 0481-52-2018 |
Data/Ora Ricezione 14 Novembre 2018 17:41:53 |
MTA - Star | |
|---|---|---|---|
| Societa' | : | El.En. | |
| Identificativo Informazione Regolamentata |
: | 110756 | |
| Nome utilizzatore | : | ELENN01 - Romagnoli | |
| Tipologia | : | REGEM; 3.1; 2.2 | |
| Data/Ora Ricezione | : | 14 Novembre 2018 17:41:53 | |
| Data/Ora Inizio Diffusione presunta |
: | 14 Novembre 2018 17:41:55 | |
| Oggetto | : | report as of September 30th 2018 | The Bod of El.En. approves the financial |
| Testo del comunicato |
Vedi allegato.
2.2 3.1 REGEM
Press release
Revenues: 243,4 million of euro (+11,5%) EBITDA: 24,0 million of euro (-9,5%), 9,9% on revenues EBIT: 20,0 million of euro (-9,7%), 8,2% on revenues Pre-tax income: 19,9 million of euro (+4,2%) +10% 2018 Sales guidance confirmed
Florence, November 14, 2018 – The Board of Directors of El.En. S.p.A., leader on the laser market and listed on the STAR segment of the Italian Stock Exchange, approved today the financial report as of September 30th, 2018 which registered record consolidated revenues for 243,4 million of euro, up 11,5% on the 218,4 million of euro of the corresponding period of 2017 and an EBIT equal to 20,0 million of euro, down 9,7% from the 22,2 million of euro of 2017. In the quarter revenues were 82,8 million of euro, up 9,6% on the 75,5 million of euro of the same period of 2017.
The first nine months of the year showed an excellent revenues growth, while income from operations was affected by a delay compared to expectations, mainly due to a change in the mix of products sold and a weaker international macroeconomic situation than in the recent past. Both main sectors, medical and industrial, registered double-digit revenue growth rates. The medical sector recorded revenues of 138.8 million of euros in the nine months compared to 124 million euros in the same period of 2017 (approximately +12%) and on the same period industrial sector recorded revenues of 104,6 million of euros compared to 94.4 million euros in 2017 (+ 10.8%).
Together with the strong revenue growth, however, in the period under review decline in sales margins was reported, which, jointly with the increase in sales and marketing expenses needed to support sales activities, and of research and development expenses, needed to support future growth, led to a reduction in EBIT.
Revenue growth was achieved in all the geographical areas in which the Group is active. International markets continue to account for over 81% of the Group's consolidated turnover, highlighting its global positioning. In the nine months the fastest growth was recorded in Europe with an exceptional + 31.5% compared to the first 9 months of 2017. Both Italy and the Rest of the World recorded an increase of just over 7% compared to the first 9 months of the 2017.
The Group's pre-tax result showed a 4,2% increase compared to 2017. EBIT marked a -9,7%. EBIT margin on sales improved in the third quarter compared to the other quarters of the year and reached 8,2% on a year to date basis at the end of September.
Also in recent months several new products have been released to the market, as always at the distinctive sign of El.En.'s group the growth strategy. The launch of the new Mediostar, our semiconductor laser for hair removal developed by Asclepion and counting the largest number of installed units, a new model including the innovative set of MonolithTM handpieces, took place within the Esthelogue customers convention dedicated to the Italian professional beauty market. In these days ASA Laser, the company active in the physiotherapy market for the group, is presenting at the Medica fair in Düsseldorf the new MiS - MLS® High Peak Pulse system, equipped with an increasingly effective technology that enables the delivery to body tissues, in absolute safety, more intense and penetrating energy packages aimed to relieve pain.
Moreover, it's worth mentioning the success of the launch of the revolutionary Onda CoolwavesTM system for body shaping, which met sales expectations and collected several international awards such as the Aesthetic Award by Medical Insight Inc. editorial group, as the best new technology of 2018, the 6th Anti-Aging Beauty Trophy 2018-2019 in Montecarlo, as the best non-invasive technology for body treatments, the prestigious Perfect Body Equipment Award by one of Asia's leading beauty magazines, Sisters BeautyPro.
Quanta System's sales in urological surgery continued to register solid growth, increasing market shares in lithotripsy (destruction and pulverization of stones) benefiting in the quarter, of several sales to an important international player in the sector, to which Quanta supplies in OEM configuration a 100w Holmium:YAG system.
We finally highlight the closure of the issue ignited by the American FDA drawing attention to the appropriateness of certain gynecological treatments performed with laser and radio-frequency systems, unexpectedly involving our Monna Lisa Touch system in denigration by media actually targeting less qualified energy based systems and less professional commercial practices than those for which El.En. and its partner Cynosure, today a division of Hologic Inc., a world leader in the women's health segment, have a clear leadership. The media effects have led to a reduction in sales, in the quarter and, unfortunately, looking forward in the year, but the effectiveness and safety of the treatments practicable with our technologies are not questioned anymore.
Gabriele Clementi, El.En.'s President said: "The group continues to pursue growth by focusing on the development of specific niche applications, within our two macro reference markets, and consistently investing in Research and Development as the base for innovation in products and applications."
Gross Margin in the nine months was equal to 96.306 thousand euros, up 6% compared to the 90.899 thousand euros as of September 30th, 2017, mainly as effect of the increase in turnover. The Margin on sales decreased from 41,6% to 39,6% mainly driven by a less favorable sales mix in the medical sector.
EBITDA in the nine months was positive for 24.036 thousand euros, down from the 26.548 thousand euros, as of September 30th, 2017. The decrease in EBITDA, with its margin on sales down from 12,2% to 9,9%, is the effect of the decrease in sales margin and the increase in operating expenses, rising in preparation and support for the further growth, expected both in the medical and in the industrial sectors.
EBIT for the nine months showed a positive balance of about 20,0 million of euro compared to 22,2 million euro of 30 September 2017, with a 9.7% decrease. Margin on sales was 8,2%, down from 10,1% of the previous year.
Pre-tax income in the nine months was positive for 19,9 million of euro up on the 19,1 million of euro as of September 30th, 2017 and with an 8,2% margin on sales.
The Group's net financial position decreases by approximately 30 million euros over the nine months and is positive by approximately 54,8 million euros compared with 84,5 million euros as of December 31st, 2017.
During the period, dividends were paid by the Group for 8,4 million. Investments in fixed assets amounted to 16 million euros, out of which 6,6 million euros in the quarter, mostly part of a vast investment plan for around 28 million euros in the years 2018-2019 aimed to the expansion of production capacity. In the 9 months approximately 12,5 million euros were invested for the purchase, construction and set up of new production plants in Calenzano, Torre Annunziata, Samarate, Jena, Vicenza and Wenzhou.
The increase in working capital, in particular inventories, aimed at supporting the rapid growth of the Group, contributed significantly to the cash absorption registered in the period.
Following the results registered in the first nine months of 2018, annual revenue growth in excess of over 10% is confirmed. Previously released EBIT growth guidance was 10% on 2017's result, it is now revised indicating in the achievement of 2017's EBIT the achievable target for the current year.
* * * * * * *
The manager in charge of preparing the corporate accounting records, Enrico Romagnoli, declares, pursuant to paragraph 2, article 154-bis of the Consolidated Finance Law, that the accounting disclosures provided in this document correspond to the accounting records, books and entries.
As required by Consob, the Quarterly report as of September 30th, 2018 will be available for the public at our premises in Calenzano, at Borsa Italiana SpA, on our website www.elengroup.com from November 14, 2018 in section "Investor Relations / Documenti Finanziari / Relazioni e Bilanci / 2018" and on authorized storage website .
On Thursday, November 15th, 2018 at 15:00 CET (14:00 GMT) (9:00 EST), EL.EN. Spa will hold a conference call with the financial community, to discuss the financial results of the Group. You can dial the following numbers: from Italy +39 02 8058811, from UK +44 121 2818003, from USA +1 718 7058794. Before the conference call, you can download the presentation slides from the Investor Relations page of the El.En. website: http://www.elengroup.com/it/investorrelations/presentazioni
________________________________________________________________________________
El.En., an Italian company, is the parent of a high-.tech industrial group operating in the optoelectronics sector. Based on proprietary technology and multidisciplinary know-how, the El.En Group manufactures laser sources (gas, semiconductor, solid-state and liquid) and innovative laser systems for medical and industrial applications. The El.En. Group is the laser market leader in Italy and among the top operators in Europe. It designs, manufactures and sells worldwide: - Medical laser equipment used in dermatology, cosmetics, physiotherapy, dentistry and gynecology;
- Industrial laser systems for applications ranging from cutting, marking and welding metals, wood, plastic and glass to decorating leather and textiles and restoring/conserving artwork;
- Laser systems for scientific research
EL.EN has been listed on the Star (MTA) of Borsa Italiana. Its market floatation is approximately 41% and its market capitalization amounts to Euro 326 million.
Cod. ISIN: IT0005188336 Code: ELN Listed on MTA Mkt cap.: 326 million of euro Cod. Reuters: ELN.MI Cod. Bloomberg: ELN IM
For further information:
El.En S.p.A. Investor Relator Enrico ROMAGNOLI - [email protected] Tel. +39 055 8826807
Financial Communication, IR and Press Office Bianca FERSINI MASTELLONI - [email protected] Paolo SANTAGOSTINO - [email protected] Silvia MARONGIU - [email protected] Tel. +39 06-69923324
| Income statement - quarterly | 30/09/2018 | Inc % | 30/09/2017 | Inc % | Var. % |
|---|---|---|---|---|---|
| Revenues | 82.800 | 100,0% | 75.535 | 100,0% | 9,62% |
| Change in inventory of finished goods and WIP | 5.086 | 6,1% | 3.120 | 4,1% | 62,99% |
| Other revenues and income | 1.411 | 1,7% | 888 | 1,2% | 58,86% |
| Value of production | 89.297 | 107,8% | 79.544 | 105,3% | 12,26% |
| Purchase of raw materials | 53.530 | 64,6% | 42.472 | 56,2% | 26,04% |
| Change in inventory of raw material | (1.564) | -1,9% | 427 | 0,6% | |
| Other direct services | 5.726 | 6,9% | 5.255 | 7,0% | 8,97% |
| Gross margin | 31.605 | 38,2% | 31.390 | 41,6% | 0,69% |
| Other operating services and charges | 9.175 | 11,1% | 7.910 | 10,5% | 16,00% |
| Added value | 22.430 | 27,1% | 23.480 | 31,1% | -4,47% |
| Staff cost | 13.743 | 16,6% | 12.402 | 16,4% | 10,82% |
| EBITDA | 8.687 | 10,5% | 11.078 | 14,7% | -21,59% |
| Depreciation, amortization and other accruals | 1.411 | 1,7% | 2.052 | 2,7% | -31,26% |
| EBIT | 7.276 | 8,8% | 9.026 | 11,9% | -19,39% |
| Net financial income (charges) | 48 | 0,1% | (837) | -1,1% | |
| Share of profit of associated companies | (506) | -0,6% | 38 | 0,1% | |
| Other non-operating income (charges) | 0 | 0,0% | (0) | 0,0% | |
| Income (loss) before taxes | 6.818 | 8,2% | 8.227 | 10,9% | -17,13% |
| Income Statement | 30/09/2018 | Inc % | 30/09/2017 | Inc % | Var. % |
|---|---|---|---|---|---|
| Revenues | 243.437 | 100,0% | 218.412 | 100,0% | 11,46% |
| Change in inventory of finished goods and WIP | 15.497 | 6,4% | 8.329 | 3,8% | 86,07% |
| Other revenues and income | 2.950 | 1,2% | 2.549 | 1,2% | 15,72% |
| Value of production | 261.884 | 107,6% | 229.290 | 105,0% | 14,22% |
| Purchase of raw materials | 160.576 | 66,0% | 122.238 | 56,0% | 31,36% |
| Change in inventory of raw material | (13.238) | -5,4% | 191 | 0,1% | |
| Other direct services | 18.240 | 7,5% | 15.963 | 7,3% | 14,27% |
| Gross margin | 96.306 | 39,6% | 90.899 | 41,6% | 5,95% |
| Other operating services and charges | 30.418 | 12,5% | 25.887 | 11,9% | 17,50% |
| Added value | 65.888 | 27,1% | 65.012 | 29,8% | 1,35% |
| Staff cost | 41.852 | 17,2% | 38.464 | 17,6% | 8,81% |
| EBITDA | 24.036 | 9,9% | 26.548 | 12,2% | -9,46% |
| Depreciation, amortization and other accruals | 4.029 | 1,7% | 4.387 | 2,0% | -8,17% |
| EBIT | 20.007 | 8,2% | 22.160 | 10,1% | -9,72% |
| Net financial income (charges) | 522 | 0,2% | (3.041) | -1,4% | |
| Share of profit of associated companies | (615) | -0,3% | (11) | 0,0% | 5481,63% |
| Other non-operating income (charges) | (6) | 0,0% | 0 | 0,0% | |
| Income (loss) before taxes | 19.908 | 8,2% | 19.108 | 8,7% | 4,19% |
The El.En. Group uses some alternative performance indicators that are not identified as IFRS accounting measures, in order to better assess the Group's performance. Therefore criteria of determination applied by the group may not be homogeneous with that adopted by other groups and the value obtained may not be comparable.
These alternative performance indicators, determined in accordance with the Guidelines on Alternative Performance Indicators issued by ESMA / 2015/1415 and adopted by CONSOB with communication no. 92543 of December 3, 2015, refer only to the performance of the accounting period covered by this release and the periods to be compared.
The Group uses the following alternative performance indicators to evaluate the financial performance:
The Group uses as alternative performance indicators to evaluate their ability to cope with financial obligations:
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