Earnings Release • Apr 14, 2015
Earnings Release
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World leader for aluminium anodising
Brussels, April 14th, 2015 (7 am) – COIL, the world leader for aluminium anodising, is releasing its full-year earnings for 2014.
2014 was marked by sustained growth in COIL's sales in a buoyant aluminium market. Full-year revenues climbed to €22,920,000, up 8.5% from 2013.
In Europe, the increase in sales reflects the good performance on industrial markets globally, supported by the diversification of the product mix and the expansion of the end client base. The outsourcing business with the main rolling mills came in higher than 2013, but was partially affected by a temporary shortage of quality metal in early and late 2014.
Sales outside of Europe are picking up, particularly in China, driven by a construction market upturn, as well as in other Asian markets, where COIL's development is encouraging following the distribution agreements set up.
COIL has ramped up its initiatives to launch new product ranges capitalising on anodised aluminium's unique strengths: lightness, full recyclability, outstanding metallic finish, anti-UV resistance and exceptional lifespan. This strategy to enhance the range of solutions offered is making it possible to serve new end markets, with encouragingly successful results in 2014 for composite panels and semi-reflective surfaces.
COIL has also finalised the process to finance its investment in the sixth production line in Germany. Nevertheless, there have been temporary delays with arranging the bank financing facilities and investment subsidies. This sixth line, focused on architectural anodising, with a capacity of 15,000 tonnes, is now scheduled to be operational from the fourth quarter of 2016.
The results for 2014 confirm the turnaround in profitability, following a year affected by non-recurring costs. Revenue growth and effective cost management have contributed to a significant increase in operational profitability.
EBITDA came to €4,823,000 (representing 21.0% of revenues), compared with €540,000 in 2013. Operating income is up €4.4 million to €2,885,000 (representing 12.6% of revenues), compared with a €1,498,000 loss in 2013, which notably included an exceptional provision relating to a long-term bonus plan for the company's management team.
With net financial expenses down 16.8% to €641,000 and €801,000 in deferred tax income, net income represents €3,092,000, giving a net margin ratio of 13.5%.
| €'000 | 2014 | 2013 | Change |
|---|---|---|---|
| Revenues | 22,920 | 21,114 | +8.6% |
| EBITDA | 4,823 | 540 | +€4.3M |
| % of revenues | 21.0% | 2.6% | |
| Operating income | 2,885 | (1,498) | +€4.4M |
| % of revenues | 12.6% | (7.1%) | |
| Pre-tax income | 2,244 | (2,230) | +€4.5M |
| Net income | 3,092 | (2,276) | +€5.4M |
| % of revenues | 13.5% | (10.8%) |
COIL's sound balance sheet means that it is able to look ahead with confidence concerning its plans to expand new production capacities. After factoring in earnings for the year, shareholders' equity is up 23% to €16,534,000. Despite the increase in net financial debt (+10% to €7,228,000), notably reflecting investments in the sixth production line, the ratio of net financial debt to equity improved to 0.44, compared with 0.49 at December 31st, 2013.
Faced with growing demand for anodised aluminium, COIL is positive about 2015. The 25% increase in prices on the European market since January 1st and the continued diversification of its product mix will drive further improvements in performance levels.
To increase its cash generation, COIL aims to consolidate its operational efficiency. The Board of Directors therefore decided in March 2015 to invest €2.2 million in productivity and quality improvements for its second line in Belgium. Alongside this, planning ahead for the sixth line being set up in Germany, COIL intends to develop its sales and marketing teams, focusing in particular on Eastern European markets.
With stronger market positions and the world's best range of anodised aluminium solutions, COIL has outstanding fundamentals in place for further strengthening its business model and value creation on a lasting basis.
NEXT DATE: general meeting on June 3rd, 2015
| COIL is the world's largest architectural and industrial anodiser. Anodising is an electrochemical process - |
Alternext ISIN: BE0160342011 - ALCOI Reuters: ALCOI.PA Bloomberg: ALCOI:FP |
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|---|---|---|
| electrolysis - that develops a natural and protective exterior layer on aluminium that can be coloured, providing exceptional corrosion protection and/or |
www.coil.be | |
| increased functionality for the metal. | COIL Tim Hutton |
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| the metal. | Anodising preserves all the natural and ecological properties of aluminium - it retains its high strength-to-weight ratio, non-magnetic properties and exceptional corrosion resistance without any impact on the total and repeated recyclability of |
Chief Executive Officer [email protected] Tel: +32 (0)11 88 01 88 |
| industrial and automotive applications. | Anodised aluminium is used across a wide range of architectural, designer, | CALYPTUS Cyril Combe [email protected] Tel: +33 (0)1 53 65 68 68 |
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