Sabaf

Annual / Quarterly Financial Statement • Feb 14, 2017

Informazione Regolamentata n. 0226-20-2017		Data/Ora Ricezione 14 Febbraio 2017 12:18:05	MTA - Star
Societa'	:	SABAF
Identificativo Informazione Regolamentata	:	85079
Nome utilizzatore	:	SABAFN03 - Beschi
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	14 Febbraio 2017 12:18:05
Data/Ora Inizio Diffusione presunta	:	14 Febbraio 2017 12:33:06
Oggetto	:	Fourth-quarter 2016 results approved
Testo del comunicato

Vedi allegato.

Press release Ospitaletto (BS), 14 February 2017

SABAF: FOURTH-QUARTER 2016 RESULTS APPROVED

• In the fourth quarter, revenue was € 32.9 million (-1.5%); EBITDA was € 6.4 million (+13.4%); EBIT was € 3.2 million (+22.5%); net profit was € 2.7 million (+117%)
• Revenue for FY 2016 was € 131 million (-5.1%); EBITDA was € 25.4 million (-3.1%); EBIT was € 12.5 million (-11.1%); net profit was € 9 million (+0.1%)

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The Board of Directors of Sabaf S.p.A. met today in Ospitaletto to approve the Interim Management Statement as at 31 December 2016.

Consolidated results for Q4 2016

In Q4 2016, the Sabaf Group booked sales revenue of € 32.9 million, a decrease of 1.5% compared with the figure of € 33.4 million registered in Q4 2015. Taking into consideration the same scope of consolidation (i.e. excluding the contribution of A.R.C.), sales in the fourth quarter decreased by 4.8% compared with the same period last year. In the period, the sharpest decline was recorded in the Italian market, while the other markets in Europe registered positive growth rates. As in the rest of the year, also in the fourth quarter, the Middle East and North Africa suffered a strong decline, South America reached levels similar to 2015, while North America and Asia confirmed the expansion phase.

The improvement in production efficiency, already pointed out in the first nine months, affected even more strongly the profits of the fourth quarter: EBITDA amounted to € 6.4 million, equal to 19.5% of sales, up 13.4% on € 5.7 million (16.9% of sales) in Q4 2015. EBIT was € 3.2 million, equivalent to 9.6% of sales, and 22.5% higher than € 2.6 million of the same quarter in 2015 (7.7% of sales). Profit before taxes was € 3.3 million, up by 65.1% compared with € 2 million in Q4 2015. The net profit for the period was € 2.7 million, up 117% compared with the figure of € 1.3 million in Q4 2015. Tax benefits of € 0.4 million were booked during the period, deriving from the investments made in Turkey in 2016.

Consolidated results for 2016

Revenues for 2016 came in at € 131 million, down 5.1% compared with € 138 million in 2015. Taking into consideration the same scope of consolidation, the drop in revenues was 6.7%. Despite the drop in sales volumes, the Group managed to maintain satisfactory income-related performances and to achieve a % EBITDA better than 2015: in detail, EBITDA 2016 was € 25.4 million (equal to 19.4% of sales, down 3.1% compared with the previous year, when they were 19% of sales) and EBIT stood at € 12.5 million (equal to 9.6% of sales, with a decline of 11.1% compared with € 14.1 million in 2015, corresponding to 10.2% of sales). Net profit of 2016, equal to € 9 million, was mainly unchanged compared with the previous financial year.

Investments and financial position

Quarter investments totalled € 2.4 million, bringing total investments for the year to € 11.8 million (€ 12.1 million in 2015).

At 31 December 2016, net financial debt was € 23.5 million, compared with € 29.6 million at 30 September 2016 and € 25.9 million at 31 December 2015. The significant improvement in the net financial position in the last quarter was mainly attributable to the reduction in working capital.

Outlook

2017 got off to a positive start and sales in the first quarter are expected to increase with a double-digit growth compared with 2016, which was marked by a very weak start.

Although there are uncertainties on some of the main markets in which Sabaf operates, for the whole of 2017, the Group expects to be able to reach sales of around € 140 million and increasing operating margins compared with 2016.

If the economic situation were to change significantly, actual figures might diverge from forecasts.

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Today at 3 p.m. CET there will be a conference call to illustrate the results of the fourth quarter of 2016 to financial analysts and institutional investors (please call the number +02 805 88 11 a few minutes before it begins).

The Interim Management Statement for Q4 2016, which has not been independently audited, is available in the Investor Relations section of the website www.sabaf.it.

The Financial Reporting Officer, Gianluca Beschi, declares that, pursuant to paragraph 2, Article 154-bis of Consolidated Finance Act, the accounting information contained in this press release corresponds to the Company's records, books and accounting entries.

Attachments include the statement of financial position, income statement, net financial position and cash flow statement.

For further information:

Investor Relations	Press Office
Gianluca Beschi	Power Emprise - tel. +39 02 438114200
Tel: +39 030 6843236	Cosimo Pastore - +39 335 213305
gianluca.beschi@sabaf.it	cosimopastore@poweremprise.com
www.sabaf.it	Jenny Giuliani - +39 349 2408123
	jennygiuliani@poweremprise.com
	Erminia Cannistrà - +39 340 8684279
	erminiacannistra@poweremprise.com
	Arnaldo Ragozzino - + 39 335 6978581
	aragozzino@twistergroup.it

Founded in the early fifties, SABAF has grown consistently over the years to become the key manufacturer in Italy – and one of the leading producers in the world – of components for kitchens and domestic gas cooking appliances.

There are four main lines of production: valves, thermostats and burners for gas cooking appliances and hinges for ovens, washing machines and dishwashers.

Technological expertise, manufacturing flexibility, and the ability to offer a vast range of components – tailor-made to meet the requirements of individual manufacturers of cookers and built-in hobs and ovens and in line with the specific characteristics of its core markets – are Sabaf's key strengths in a sector featuring major specialisation, constantly evolving demand and an ever-increasing orientation towards products assuring total reliability and safety.

The Sabaf Group has more than 800 employees. It operates through its parent company SABAF S.p.A. and the subsidiaries Sabaf do Brasil, Sabaf Turkey and Sabaf China, active in the production of domestic burners, A.R.C., which produces burners for professional cooking, and Faringosi Hinges, leader in the production of oven hinges.

Consolidated statement of financial position

	31/12/2016	30/09/2016	31/12/2015
(€/000) ASSETS
NON-CURRENT ASSETS Tangible assets (property, plant, and
equipment)	73,064	74,023	73,037
Real estate investment	6,270	6,380	6,712
Intangible assets	9,284	9,348	7,525
Equity investments	306	311	204
Non-current receivables	262	536	432
Deferred tax assets	4,781	4,793	4,887
Total non-current assets	93,967	95,391	92,797
CURRENT ASSETS
Inventories	31,484	32,706	31,009
Trade receivables	36,842	39,448	40,425
Tax receivables	3,163	2,350	2,489
Other current receivables	1,419	1,332	1,447
Current financial assets	0	53	69
Cash and cash equivalents	12,143	6,724	3,991
Total current assets	85,051	82,613	79,430
ASSETS HELD FOR SALE	0	0	0
TOTAL ASSETS	179,018	178,004	172,227
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital	11,533	11,533	11,533
Retained earnings, other reserves	90,471	91,847	90,509
Net profit for the period	9,009	6,297	8,998
Total equity interest of the Parent Company	111,013	109,677	111,040
Minority interests	1,296	1,242	0
Total shareholders' equity	112,309	110,919	111,040
NON-CURRENT LIABILITIES
Loans	18,892	7,980	6,388
Other financial liabilities	1,762	1,762	0
Post-employment benefit and retirement reserves	3,086	3,077	2,914
Provisions for risks and charges	434	331	395
Deferred tax liabilities	764	736	772
Total non-current liabilities	24,938	13,886	10,469
CURRENT LIABILITIES
Loans	14,612	26,465	23,480
Other financial liabilities	335	107	31
Trade payables	18,977	17,316	19,450
Tax payables	1,190	1,772	1,219
Other payables	6,657	7,539	6,538
Total current liabilities	41,771	53,199	50,718
LIABILITIES HELD FOR SALE	0	0	0
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	179,018	178,004	172,227

Consolidated Income Statement

	Q4 2016		Q4 2015		12M 2016		12M 2015
(€/000)
INCOME STATEMENT COMPONENTS
OPERATING REVENUE AND
INCOME
Revenue	32,919	100.0%	33,434	100.0%	130,978	100.0%	138,003	100.0%
Other income	863	2.6%	906	2.7%	2,819	2.2%	3,758	2.7%
Total operating revenue and		102.6%		102.7%		102.2%		102.7%
income	33,782		34,340		133,797		141,761
OPERATING COSTS
Materials	(10,950)	-33.3%	(13,057)	-39.1%	(47,346)	-36.1%	(54,366)	-39.4%
Change in inventories	(1,392)	-4.2%	(1,057)	-3.2%	(754)	-0.6%	1,025	0.7%
Services	(6,872)	-20.9%	(6,871)	-20.6%	(27,983)	-21.4%	(29,759)	-21.6%
Payroll costs	(7,927)	-24.1%	(7,911)	-23.7%	(32,112)	-24.5%	(32,526)	-23.6%
Other operating costs	(419)	-1.3%	(77)	-0.2%	(1,078)	-0.8%	(1,193)	-0.9%
Costs for capitalised in-house work	196	0.6%	292	0.9%	841	0.6%	1,230	0.9%
Total operating costs	(27,364)	-83.1%	(28,681)	-85.8%	(108,432)		-82.8% (115,589)	-83.8%
DEPRECIATION & AMORTISATION, CAPITAL GAINS/LOSSES, AND WRITE DOWNS/WRITE-BACKS OF NON CURRENT ASSETS (EBITDA)	6,418	19.5%	5,659	16.9%	25,365	19.4%	26,172	19.0%
Depreciation & amortisation	(3,257)	-9.9%	(3,124)	-9.3%	(12,853)	-9.8%	(12,185)	-8.8%
Capital gains/(losses) on disposals of non-current assets	0	0.0%	45	0.1%	18	0.0%	104	0.1%
Write-downs/write-backs of non		0.0%		0.0%		0.0%		0.0%
current assets	0		0		0		0
EBIT	3,161	9.6%	2,580	7.7%	12,530	9.6%	14,091	10.2%
Financial income	52	0.2%	23	0.1%	101	0.1%	67	0.0%
Financial expenses	(176)	-0.5%	(134)	-0.4%	(620)	-0.5%	(596)	-0.4%
Exchange rate gains and losses	231	0.7%	(489)	-1.5%	435	0.3%	(89)	-0.1%
Profits and losses from equity
investments	0	0.0%	0	0.0%	0	0.0%	0	0.0%
PROFIT BEFORE TAXES	3,268	9.9%	1,980	5.9%	12,446	9.5%	13,473	9.8%
Income tax	(501)	-1.5%	(729)	-2.2%	(3,350)	-2.6%	(4,475)	-3.2%
Minority interests	(55)	-0.2%	0	0.0%	(87)	-0.1%	0	0.0%
NET PROFIT FOR THE PERIOD	2,712	8.2%	1,251	3.7%	9,009	6.9%	8,998	6.5%

Consolidated statement of cash flows

(€/000)	Q4 2016	Q4 2015	12M 2016	12M 2015
Cash and cash equivalents at beginning of
period	6,724	5,686	3,991	3,675
Net profit/(loss) for the period Adjustments for:	2,712	1,251	9,009	8,998
- Depreciation and amortisation for the period	3,257	3,124	12,853	12,185
- Realised gains/losses	0	(45)	(18)	(104)
- Financial income and expenses	124	111	519	529
- Income tax	501	729	3,350	4,475
Payment of post-employment benefit reserve	(109)	(37)	(184)	(129)
Change in risk provisions	103	(115)	39	(210)
Change in trade receivables	2,606	(1,895)	5,107	107
Change in inventories	1,222	902	416	(170)
Change in trade payables	1,661	(114)	(1,286)	(58)
Change in net working capital	5,489	(1,107)	4,237	(121)
Change in other receivables and payables, deferred tax	49	(304)	1,363	(72)
Payment of taxes	(2,451)	(2,154)	(4,762)	(5,931)
Payment of financial expenses	(162)	(154)	(576)	(556)
Collection of financial income	52	23	101	67
Cash flow from operations	9,565	1,322	25,931	19,131
Net investments	(2,388)	(2,476)	(11,762)	(12,079)
Repayment of loans	(15,788)	(4,252)	(33,141)	(19,480)
New loans	15,075	2,819	37,321	19,488
Short-term financial assets	69	(69)	69	(69)
Purchase/sale of treasury shares	(405)	(543)	(1,676)	(718)
Payment of dividends	0	0	(5,467)	(4,613)
Cash flow from financing activities	(1,049)	(2,045)	(2,894)	(5,392)
ARC acquisition	0	0	(2,614)	0
Foreign exchange differences	(709)	1,504	(509)	(1,344)
Net financial flows for the period	5,419	(1,695)	8,152	316
Cash and cash equivalents at end of period	12,143	3,991	12,143	3,991
Current financial debt	14,947	23,511	14,947	23,511
Non-current financial debt	20,654	6,388	20,654	6,388
Net financial debt	23,458	25,908	23,458	25,908

Consolidated net financial position

	(€/000)	31/12/2016	30/09/2016	31/12/2015
A.	Cash	12	19	11
B.	Positive balances of unrestricted bank accounts	8,376	5,042	3,822
C.	Other cash equivalents	3,755	1,663	158
D.	Liquidity (A+B+C)	12,143	6,724	3,991
E.	Current bank payables	7,811	22,119	19,697
F.	Current portion of non-current debt	6,801	4,346	3,783
G.	Other current financial payables	335	107	31
H.	Current financial debt (E+F+G)	14,947	26,572	23,511
I.	Net current financial debt (H-D)	2,804	19,848	19,520
J.	Non-current bank payables	17,281	6,332	4,632
K.	Other non-current financial payables	3,373	3,410	1,756
L.	Non-current financial debt (J+K)	20,654	9,742	6,388
M.	Net financial debt (L+I)	23,458	29,590	25,908