Earnings Release • Mar 16, 2018
Earnings Release
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With a net result of € 7 million, Campine recorded its best result ever.
2017 had a difficult start, related to the announcement of the EU commission fining Campine € 8.2 million for alleged purchase agreements in the used battery market. But the increasing metal prices and a good operational performance contributed to strong financial results throughout the year.
The excellent results allowed the company to pay the fine (which was recorded in the 2016 financials) from its own cash-flows. Campine also applied for appeal against the fine, for which a final decision is expected by mid 2019.
The company wants to build on these strong results: "For 2018 we have foreseen an investment budget of over € 7 million to allow capacity increases and productivity improvements" says Chairman Patrick De Groote. "It is the first step of a new business plan that will be rolled out later in the year". Campine appointed board member Willem De Vos as new CEO in August 2017, who is expected to grab new business opportunities in the circular economy.
"Our extensive knowledge in lead recycling from car batteries and metal scraps allowed us to gain expertise in extracting different other metals from post-consumer and industrial waste streams and this opens many doors for synergies in the future" says CEO De Vos, who also clarifies that "The Lead-acid battery still has a long life, because electric cars need such battery to power all systems other than the engine". De Vos's former experience is mainly in the chemicals and plastics sector and also there he sees opportunities: "We are speeding up innovation in our product portfolio for polymer fire protection solutions in a market where demand for flame retardant plastics grows yearly with double digits."
"Additionally, there are possibilities to combine our metal recycling expertise with plastics, leading to a diversified product offering, which will allow Campine to continue on a stable growth path" concludes De Vos.
In 2017, Campine achieved a € 216.50 million turnover, compared with € 170.86 million in 2016 (+27%). Higher volumes were realised in all Business Units.
The EBIT reached € 12.62 million, an increase of 29% compared to the € 9.79 million (excl. EC fine) in 2016. The net result for the year reached € 7.01 million, compared with a profit of € 4.35 million (excluding the EC fine) in 2016 (+61%).
The Board of Directors proposes that the company pays a total dividend of € 2.325 million on the basis of the 2017 result. An interim dividend of € 1.5 mio (€ 1 gross per share) was already distributed on 7 November 2017. A dividend of € 0.825 million (€ 0.55 gross per share) will be distributed on 1 June 2018.
2018 has started well in all BU's with strong demand. The metal prices markets are more volatile due to potential metal import-duties in the USA, large stock-volume changes on the LME and uncertain demand in China. Campine's investment projects in additional capacity and productivity improvements are on track to be taken into production at the end of Q3, 2018.
| Consolidated income statement for the year on 31 December 2017 | ||
|---|---|---|
| '000 EUR | Year ended | Year ended | |
|---|---|---|---|
| 31/12/2017 | 31/12/2016 | ||
| Revenue | 216,501 | 170,855 | |
| Other operating income | 3,289 | 1,988 | |
| Raw materials and consumables used | - 179,535 |
- | 138,363 |
| Employee benefits expense | - | 13,403 - |
12,230 |
| Depreciation and amortisation expense | - | 2,689 - |
2,771 |
| Changes in restoration cost | - | 520 | 555 |
| Other operating expenses | - | 11,021 - |
18,403 |
| - Other operating expenses | - | 11,021 - |
10,245 |
| - Fine European Commission | - - |
8,158 | |
| Operating result (EBIT) | 12,622 | 1,631 | |
| Operating result (EBIT) excl. EC fine (*) | 12,622 | 9,789 | |
| Hedging results | - | 1,057 - |
2,708 |
| - Closed Hedges | - | 642 - |
3,744 |
| - Change in open position | - | 415 | 1,036 |
| Finance costs | - | 678 - |
544 |
| Net Financial Result | - | 1,735 - |
3,252 |
| Result before tax (EBT) | 10,887 - |
1,621 | |
| Result before tax (EBT) excl. EC fine (*) | 10,887 | 6,537 | |
| Income tax expense | - | 3,879 - |
2,189 |
| Result for the year (EAT) | 7,008 - |
3,810 | |
| Result for the year (EAT) excl. EC fine (*) | 7,008 | 4,348 | |
| Attributable to: | |||
| Non-controlling interest | - | - | |
| Equity holders of the parent | 7,008 - |
3,810 | |
| RESULT PER SHARE (in EUR) | |||
| Number of shares | 1,500,000 | 1,500,000 | |
| Result for the year (basic & diluted) | 4.67 - |
2.54 | |
| Result for the year (basic & diluted) excl. EC fine (*) | 4.67 | 2.90 |
*Fine imposed by the European Commission. To ensure comparability with last year, the figures of 2016 are provided both inclusive and exclusive the fine imposed by the European Commission.
| Year ended | Year ended | |
|---|---|---|
| '000 EUR | 31/12/2017 | 31/12/2016 |
| Result for the year | 7,008 | - 3,810 |
| Other comprehensive income: | ||
| Comprehensive income to be reclassified to the profit or loss | ||
| statement in the future | - | - |
| Comprehensive income not to be reclassified to the profit or loss | ||
| statement in the future (*) | - 113 |
- 199 |
| (*) actuarial results of retirement benefit obligations | ||
| Total result for the year | 6,895 | - 4,009 |
| Attributable to: | ||
| Non-controlling interest | - | - |
| Equity holders of the parent | 6,895 | - 4,009 |
Our auditor, Deloitte Bedrijfsrevisoren, represented by Luc Van Coppenolle, has confirmed that the audit procedures of the consolidated financial statements are substantially completed and that these procedures have not revealed any material modification that would have to be made to the accounting information, derived from the consolidated financial statements and included in this communiqué.
The annual financial report will be made available for the public on 20 April 2018 on the website of Campine.
For further information you can contact Karin Leysen (tel. no +32 14 60 15 49) (email: [email protected])
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