Quarterly Report • Aug 29, 2018
Quarterly Report
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Brussels, 29 August 2018 – 07:00 CET
Olivier Chapelle (CEO): "We are satisfied with the overall 4.0% sales growth generated during the 1 st half of 2018, amid challenging market conditions in the comfort and bedding markets , and despite a -1.2% adverse currency environment.
Our combined REBITDA margin further improves from 6.9% to 7.4%, thanks to the dedication of our teams to mitigate the effects of historically high raw material prices during 1st quarter and of adverse currency evolutions.
Going forward, we remain concentrated on three axes to create the conditions for future growth:
Regarding our decision to divest our Automotive divisions, we confirm that the processes engaged during the 1st quarter are on-going, and so far progressing according to plan.
For the full-year 2018 the Group expects continued growth of its combined sales and REBITDA thanks to a combination of volume growth, improved mix and efficiency gains.
All comparisons are made with the comparable period of 2017, unless mentioned otherwise. The figures mentioned have been subject to an auditor's review.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
a For the definition of other used terminology, see glossary at the end of this press release.
| in million EUR | 1H2017 | 1H2018 1 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 566,0 | 579,7 | 2,4% |
| Gross profit 2 | 81,1 | 102,2 | 26,0% |
| as % of sales | 14,3% | 17,6% | |
| EBITDA | 35,4 | 45,4 | 28,1% |
| as % of sales | 6,3% | 7,8% | |
| EBIT | 20,6 | 29,1 | 41,5% |
| as % of sales | 3,6% | 5,0% | |
| Result of the period (share of the Group) | 14,3 | 18,7 | 30,7% |
| Result of the period (share of the Group) - base | 0,27 | 0,34 | 29,4% |
| (per share, in EUR) | |||
| 31 Dec 17 | 30 Jun 18 | ||
| Total Equity 3 | 261,8 | 254,7 | -2,7% |
|---|---|---|---|
| Net financial debt 4 | 87,1 | 104,3 | 19,7% |
| Gearing ratio (Net financial debt4 /Total Equity) |
33,3% | 41,0% |
1 The consolidated financial statements of 1H2018 include the impact of IFRS 15.
2 The gross profit of 1H2018 includes EUR -0.8 million (1H2017: EUR -17.0 million) non-recurring costs from residual additional expenses incurred due to alternative production solutions following the fire incident in Automotive Interiors plant in Most (Czech Republic).
For consistency reasons a reclassification has been recorded in 1H2017 between 'Cost of sales' and 'General and administrative expenses' for an amount of EUR 9.9 million.
| in million EUR | 1H2017 | 1H2018 1 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 726,8 | 755,9 | 4,0% |
| Gross profit ² | 100,2 | 122,4 | 22,1% |
| as % of sales | 13,8% | 16,2% | |
| REBITDA | 50,1 | 56,2 | 12,1% |
| as % of sales | 6,9% | 7,4% | |
| EBITDA | 41,0 | 51,6 | 25,7% |
| as % of sales | 5,6% | 6,8% | |
| REBIT | 31,3 | 36,2 | 15,5% |
| as % of sales | 4,3% | 4,8% | |
| EBIT | 22,2 | 31,0 | 39,4% |
| as % of sales | 3,1% | 4,1% |
| 31 Dec 17 | 30 Jun 18 | ||
|---|---|---|---|
| Total Equity 3 | 261,8 | 254,7 | -2,7% |
| Net financial debt 4 | 122,9 | 138,7 | 12,9% |
| Gearing ratio (Net financial debt4 /Total Equity) |
46,9% | 54,5% |
1 The combined financial statements of 1H2018 include the impact of IFRS 15.
Detailed comments on sales and results of the different segments are given in chapter 4 on the basis of the combined figures (joint ventures integrated following the proportionate consolidation method).
There were no changes in the scope of consolidation in 1H2018.
Combined Sales: from EUR 726.8 million to EUR 755.9 million (+4.0%), including an adverse currency impact of -1.2% due to the depreciation of most currencies versus the Euro.
All divisions reported higher sales during 1H2018, except Bedding.
| in million EUR | 1Q2017 | 2Q2017 | 1H2017 | 1Q2018 | 2Q2018 | 1H2018 | D 1Q | D 2Q | D 1H |
|---|---|---|---|---|---|---|---|---|---|
| Flexible Foams | 160,6 | 157,0 | 317,5 | 170,9 | 159,7 | 330,6 | 6,4% | 1,8% | 4,1% |
| Bedding | 75,0 | 63,3 | 138,3 | 70,7 | 54,0 | 124,6 | -5,8% | -14,8% | -9,9% |
| Insulation | 61,3 | 67,9 | 129,2 | 60,1 | 72,6 | 132,7 | -2,0% | 7,0% | 2,7% |
| Automotive | 84,6 | 88,8 | 173,5 | 95,5 | 100,1 | 195,6 | 12,8% | 12,7% | 12,8% |
| Eliminations | ( 16,3) | ( 15,4) | ( 31,7) | ( 15,0) | ( 12,6) | ( 27,6) | -7,6% | -18,6% | -13,0% |
| TOTAL COMBINED SALES | 365,3 | 361,5 | 726,8 | 382,0 | 373,9 | 755,9 | 4,6% | 3,4% | 4,0% |
| Adjustment for joint ventures by application of IFRS 11 |
( 83,4) | ( 77,4) | ( 160,8) | ( 90,8) | ( 85,3) | ( 176,2) | 8,9% | 10,2% | 9,6% |
| TOTAL CONSOLIDATED SALES | 281,9 | 284,1 | 566,0 | 291,2 | 288,5 | 579,7 | 3,3% | 1,5% | 2,4% |
Combined REBITDA: from EUR 50.1 million to EUR 56.2 million (+12.1%)
REBITDA margin increased from 6.9% to 7.4%.
The REBITDA improvement is driven by Insulation and Automotive. Flexible Foams to some extent, and Bedding to a larger extent, have been impacted by (i) a softer market environment, especially in Germany, and (ii) by substantial raw material price increases during 1Q2018.
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| Flexible Foams | 23,3 | 21,6 | -7,2% |
| Bedding | 7,7 | 5,4 | -29,9% |
| Insulation | 14,2 | 22,8 | 60,5% |
| Automotive | 13,5 | 14,7 | 9,0% |
| Corporate | ( 8,6) | ( 8,4) | -2,7% |
| TOTAL COMBINED REBITDA | 50,1 | 56,2 | 12,1% |
REBIT margin increased from 4.3% to 4.8%.
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| Flexible Foams | 17,1 | 15,4 | -9,9% |
| Bedding | 5,4 | 3,2 | -40,9% |
| Insulation | 11,0 | 19,6 | 79,0% |
| Automotive | 7,0 | 6,7 | -4,2% |
| Corporate | ( 9,1) | ( 8,7) | -4,2% |
| TOTAL COMBINED REBIT | 31,3 | 36,2 | 15,5% |
Non-recurring elements: (on combined basis, including pro rata share in joint ventures)
EBIT includes non-recurring elements for a total net amount of EUR -5.2 million (1H2017: EUR -9.1 million).
| in million EUR | 1H2017 | 1H2018 |
|---|---|---|
| Net impact fire incident Automotive Interiors Restructuring charges and provisions Other |
( 4,9) 0,4 ( 4,5) |
( 0,8) ( 0,2) ( 3,7) |
| Total impact on EBITDA | ( 9,1) | ( 4,6) |
| Impairments | 0,0 | ( 0,6) |
| Total impact on EBIT | ( 9,1) | ( 5,2) |
Non-recurring elements in 1H2018 relate to mainly (i) provisions for litigations and legal fees and (ii) the residual impact of the fire incident in the Automotive Interiors plant in Most (Czech Republic in 1Q2017).
EBITDA margin increased from 5.6% to 6.8%.
| in million EUR | 1H2017 | 1H2018 | D | |
|---|---|---|---|---|
| Flexible Foams | 18,7 | 18,8 | 0,9% | |
| Bedding | 7,6 | 5,5 | -27,3% | |
| Insulation | 14,2 | 22,8 | 60,6% | |
| Automotive | 9,1 | 13,2 | 45,1% | |
| Corporate | ( 8,6) | ( 8,9) | 3,1% | |
| TOTAL COMBINED EBITDA | 41,0 | 51,6 | 25,7% | |
| Adjustment for joint ventures by application of IFRS 11 |
( 5,6) | ( 6,1) | 10,5% | |
| TOTAL CONSOLIDATED EBITDA | 35,4 | 45,4 | 28,1% | |
EBIT margin increased from 3.1% to 4.1%.
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| Flexible Foams | 12,5 | 11,6 | -6,9% |
| Bedding | 5,3 | 3,7 | -29,3% |
| Insulation | 11,0 | 19,6 | 79,0% |
| Automotive | 2,6 | 5,2 | 99,4% |
| Corporate | ( 9,1) | ( 9,2) | 1,2% |
| TOTAL COMBINED EBIT | 22,2 | 31,0 | 39,4% |
| Adjustment for joint ventures by application of IFRS 11 |
( 1,6) | ( 1,8) | 12,2% |
| TOTAL CONSOLIDATED EBIT | 20,6 | 29,1 | 41,5% |
Net interest charges decreased from EUR -3.6 million to EUR -2.1 million due to a lower average debt combined to a reduced cost of debt, mainly induced by the increased issuance under a cost-efficient commercial paper program and the reimbursement of the convertible bonds in July 2017.
'Other net financial income and expenses' totalled EUR -2.3 million, compared to EUR +1.5 million in 1H2017, and comprise mainly interest capitalisation costs under provisions for pension liabilities (EUR -0.4 million versus EUR -0.5 million in 1H2017) and exchange rate differences (EUR -1.9 million versus EUR +2.0 million in 1H2017).
Consolidated income taxes and deferred taxes: increased from EUR -4.2 million to EUR -6.1 million:
Consolidated result of the period (share of the Group): from EUR +14.3 million to EUR +18.7 million (+30.7%).
On 30 June 2018 the combined net financial debt amounted to EUR 138.7 million (30 June 2017: EUR 151.4 million; 31 December 2017: EUR 122.9 million) excluding the amount of EUR 62.3 million drawn under the factoring programs (30 June 2017: EUR 70.8 million; 31 December 2017: EUR 54.7 million),
Total combined debt, including amounts drawn under the factoring programs, amounted to EUR 201.0 million (30 June 2017: 222.2 million; 31 December 2017: 177.6 million).
On 30 June 2018 the consolidated net financial debt amounted to EUR 104.3 million (30 June 2017: EUR 117.5 million; 31 December 2017: EUR 87.1 million) excluding the amounts of EUR 62.3 million drawn under the factoring programs (30 June 2017: EUR 70.8 million; 31 December 2017: EUR 54.7 million),
Total consolidated debt, including amounts drawn under off-balance non-recourse factoring programs, amounted to EUR 166.6 million (30 June 2017: 188.3 million; 31 December 2017: 141.8 million).
On 30 June 2018 total equity amounted to EUR 254.7 milliona compared to EUR 261.8 million (as published) on 31 December 2017.
Combined 'net debt to equity' ratio: 54.5% versus 30 June 2017: 58.9% (as published) and 31 December 2017: 46.9% (as published).
Consolidated 'net debt to equity' ratio: 41.0% versus 30 June 2017: 44.6% (as published) and 31 December 2017: 33.3% (as published).
The Group confirms that all conditions under the financial arrangements with its banks are respected on 30 June 2018.
IFRS 8 requires operating segments to be identified on the basis of the internal reporting structure of the Group that allows a regular performance review by the chief operating decision maker and an adequate allocation of resources to each segment. Therefore, the Group will continue to comment on the development of the different segments on the basis of the combined figures, consistent with the managerial reporting and in line with IFRS 8.
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 317,5 | 330,6 | 4,1% |
| REBITDA | 23,3 | 21,6 | -7,2% |
| as % of sales | 7,3% | 6,5% | |
| EBITDA | 18,7 | 18,8 | 0,9% |
| as % of sales | 5,9% | 5,7% | |
| REBIT | 17,1 | 15,4 | -9,9% |
| as % of sales | 5,4% | 4,7% | |
| EBIT | 12,5 | 11,6 | -6,9% |
| as % of sales | 3,9% | 3,5% |
After a good 1Q2018 (+6.4%), combined sales further increased from EUR 157.0 million in 2Q2017 to EUR 159.7 million in 2Q2018 (+1.8%), including a -1.4% impact from exchange rate differences. Excluding intersegment sales, combined external sales increased by +3.5% from EUR 144.0.million to EUR 149.1 million.
Over 1H2018, combined sales increased from EUR 317.5 million to EUR 330.6 million (+4.1%), including a -1.3% impact from exchange rate differences. Excluding intersegment sales, combined external sales increased by +5.5% from EUR 291.4 million to EUR 307.4 million.
Comfort Foams (+2.5%) has passed through the significantly higher chemical raw material costs to the market, off-setting slightly lower volumes due to an overall softer market.
Sales in Technical Foams (+6.3%) continued to benefit from good demand in the industrial and automotive markets within Europe, as well as in the USA, China, India and Turkey. The expansion is pursued through new converting sites in Wuxi (China) and Tanger (Morocco) which have been started up, while production in Buren (The Netherlands) will be closed by year-end.
REBITDA margin decreased from 7.3% to 6.5%.
REBITDA margin decreased versus 1H2017 as a result of the time lag, although very limited, required to pass through the substantial 1Q2018 raw material price increases in the selling prices.
EBITDA remained stable at EUR 18.8 million, including non-recurring elements for EUR -2.8 million (1H2017: EUR -4.6 million).
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 138,3 | 124,6 | -9,9% |
| REBITDA | 7,7 | 5,4 | -29,9% |
| as % of sales | 5,6% | 4,3% | |
| EBITDA | 7,6 | 5,5 | -27,3% |
| as % of sales | 5,5% | 4,4% | |
| REBIT | 5,4 | 3,2 | -40,9% |
| as % of sales | 3,9% | 2,6% | |
| EBIT | 5,3 | 3,7 | -29,3% |
| as % of sales | 3,8% | 3,0% |
After a weak 1Q2018 (-5.8%), combined sales further decreased by -14.8% from EUR 63.3 million in 2Q2017 to EUR 54.0 million in 2Q2018, including a -0.9% impact from exchange rate differences. Excluding intersegment sales, combined external sales decreased by -14.2% to amount EUR 52.5 million in 2Q2018.
Over 1H2018, combined sales decreased from EUR 138.3 million to EUR 124.6 million (-9.9%). Excluding intersegment sales, combined external sales decreased by -9.3% from EUR 133.7 million to EUR 121.2 million.
The sub-segment "Branded Products" contracted by 7.6% while the sub-segment "Non-Branded/Private Label" receded by 12.0%, as a result of low shop traffic.
The introduction of the new innovative Geltex 2.0 and boxsprings product lines is taking place in order to be ready for the high season starting in 3Q2018.
REBITDA margin decreased from 5.6% to 4.3%.
The improved mix and operational efficiency were insufficient to compensate for the negative impact of the lower volumes.
EBITDA decreased from EUR 7.6 million to EUR 5.5 million, including non-recurring elements for EUR +0.1 million.
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 129,2 | 132,7 | 2,7% |
| REBITDA | 14,2 | 22,8 | 60,5% |
| as % of sales | 11,0% | 17,2% | |
| EBITDA | 14,2 | 22,8 | 60,6% |
| as % of sales | 11,0% | 17,2% | |
| REBIT | 11,0 | 19,6 | 79,0% |
| as % of sales | 8,5% | 14,8% | |
| EBIT | 11,0 | 19,6 | 79,0% |
| as % of sales | 8,5% | 14,8% | |
After the slowdown in 1Q2018 (-2.0%) due to the consequence of the 2017 MDI shortage and the unfavourable weather conditions, sales increased by +7.0% in 2Q2018, from EUR 67.9 million to EUR 72.6 million.
Over 1H2018, sales increased by +2.7% from EUR 129.2 million to EUR 132.7 million, including a negative currency impact of -0.8%.
The construction of the new plant in Finland, dedicated to the supply of the Scandinavian and Baltics markets, is on schedule to start up in 4Q2018.
REBITDA margin increased from 11.0% to 17.2%.
Profitability improved strongly, as a result of positive mix, price and efficiencies.
| (a) | (b) | (b)/(a)-1 |
|---|---|---|
| 195,6 | 12,8% | |
| 13,5 | 14,7 | 9,0% |
| 45,1% | ||
| -4,2% | ||
| 99,4% | ||
| 1,5% | 2,7% | |
| 173,5 7,8% 9,1 5,3% 7,0 4,0% 2,6 |
7,5% 13,2 6,8% 6,7 3,4% 5,2 |
After a strong 1Q2018 (+12.8%), the growth trend continued in 2Q2018 with a combined sales increase from EUR 88.8 million to EUR 100.1 million (+12.7%), despite a negative currency impact of -2.9%.
The Automotive segment continued to benefit from positive market dynamics and new program start-ups. Both sub-segments reported double-digit growth rates in 2Q2018; Interiors (+14.4%) and Seating (i.e. Proseat, the 51/49 joint venture between Recticel and Woodbridge) (+10.8%).
Over 1H2018 combined sales increased from EUR 173.5 million to EUR 195.6 million (+12.8%), including a -1.2 % impact from exchange rate differences, with Interiors: EUR 104.7 million, +13.4% and Seating: EUR 90.8 million; +12.0%.
REBITDA margin remained broadly stable from 7.8% to 7.5%.
Strong volumes in both segments, as well as a gradual adaptation of sales prices to reflect higher raw material costs in Seating, supported the stabilisation of profit margins; despite the negative impact linked to the depreciation of the Chinese Yuan and the US dollar.
EBITDA includes non-recurring elements (EUR -1.5 million, compared to EUR -4.4 million in 1H2017) which mainly relate to the consequences of the fire accident in the Most plant (Czech Republic)
1 The financial figures of 1H2018 include the impact of IFRS 15.
All figures and tables contained in these annexes have been compiled in accordance with the IFRS accounting and valuation principles, as adopted within the European Union. The applied valuation principles, as published in the latest annual report at 31 December 2017, were consistently applied for the figures included in this press release.
The analysis of the risk management is described in the annual report which is be available from www.recticel.com.
| in million EUR | 1H2017 | 1H2018 1 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 566,0 | 579,7 | 2,4% |
| Distribution costs | ( 31,7) | ( 29,4) | -7,3% |
| Cost of sales 2 | ( 453,2) | ( 448,2) | -1,1% |
| Gross profit | 81,1 | 102,2 | 26,0% |
| General and administrative expenses 2 | ( 33,1) | ( 35,3) | 6,8% |
| Sales and marketing expenses | ( 33,9) | ( 34,4) | 1,3% |
| Research and development expenses | ( 7,0) | ( 6,9) | -1,8% |
| Impairments | 0,0 | ( 0,6) | n.m. |
| Other operating revenues (1) 4 | 25,2 | 5,0 | -80,1% |
| Other operating expenses (2) | ( 13,1) | ( 8,3) | -36,9% |
| Other operating result (1)+(2) | 12,0 | ( 3,3) | -127,3% |
| Income from joint ventures & associates 3 | 1,5 | 7,5 | 395,9% |
| Income from investments | 0,0 | 0,0 | n.m. |
| EBIT | 20,6 | 29,1 | 41,5% |
| Interest income | 0,4 | 0,3 | -30,3% |
| Interest expenses | ( 4,0) | ( 2,3) | -41,0% |
| Other financial income | 8,7 | 3,3 | -62,6% |
| Other financial expenses | ( 7,2) | ( 5,6) | -23,0% |
| Financial result | ( 2,1) | ( 4,4) | 109,7% |
| Result of the period before taxes | 18,5 | 24,8 | 33,8% |
| Income taxes | ( 4,2) | ( 6,1) | 44,7% |
| Result of the period after taxes | 14,3 | 18,7 | 30,7% |
| of which attributable to the owners of the parent | 14,3 | 18,7 | 30,7% |
| of which attributable to non-controlling interests | 0,0 | 0,0 | n.m. |
1 The consolidated financial statements of 1H2018 include the impact of IFRS 15.
2 The gross profit of 1H2018 includes EUR -0.8 million (1H2017: EUR -17,0 million) non-recurring costs from residual expenses incurred due to alternative production solutions following the fire incident in Automotive Interiors plant in Most (Czech Republic).
For consistency reasons a reclassification has been recorded in 1H2017 between 'Cost of sales' and 'General and administrative expenses' for an amount of EUR 9.9 million.
3 "Income from joint ventures & associates" improved compared to 1H2017 as a result of price adjustments to compensate for the increased chemical raw material costs, compensations received (EUR +0.9 million), a reversal of provisions (EUR +1.5 million) and improved operational performance.
In 1H2017 results were negatively impacted by the significant increase of chemical raw materials costs (i.e. isocyanates) in 2Q2017.
4 In 1H2017 "Other operating revenues" included mainly the first tranche of the insurers compensation (EUR +21.0 million) related to the fire incident in Most.
| (a) (b) (b)/(a)-1 Number of shares outstanding (including treasury shares) 54 542 382 54 998 850 0,8% Weighted average number of shares outstanding (before 53 918 269 54 527 800 1,1% dilution effect) |
|---|
| Weighted average number of shares outstanding (after dilution 60 351 199 55 139 945 -8,6% effect) |
| EBITDA 0,66 0,83 26,7% |
| EBIT 0,38 0,53 40,0% |
| Result for the period before taxes 0,34 0,45 32,3% |
| Result for the period after taxes 0,27 0,34 29,2% |
| Result for the period (share of the Group) - basic 0,265 0,343 29,2% |
| Result for the period (share of the Group) - diluted 0,248 0,339 36,6% |
| Net book value 4,71 4,63 -1,7% |
1 The consolidated financial statements of 1H2018 include the impact of IFRS 15.
| in million EUR | 1H2017 | 1H2018 1 |
|---|---|---|
| Result for the period after taxes | 14,3 | 18,7 |
| Other comprehensive income | ||
| Items that will not subsequently be recycled to profit and loss | ||
| Actuarial gains (losses) on employee benefits recognized in equity | 0,4 | 4,5 |
| Deferred taxes on actuarial gains (losses) on employee benefits | ( 0,1) | ( 0,6) |
| Currency translation differences | 0,2 | ( 0,0) |
| Joint ventures & associates | ( 0,0) | 0,5 |
| Total | 0,4 | 4,4 |
| Items that subsequently may be recycled to profit and loss | ||
| Hedging reserves | 1,1 | 0,6 |
| Currency translation differences | ( 3,8) | 0,5 |
| Deferred taxes on hedging interest reserves | ( 0,4) | ( 0,1) |
| Joint ventures & associates | 0,9 | ( 1,4) |
| Total | ( 2,1) | ( 0,4) |
| Other comprehensive income net of tax | ( 1,7) | 4,0 |
| Total comprehensive income for the period | 12,6 | 22,6 |
| Total comprehensive income for the period | 12,6 | 22,6 |
| of which attributable to the owners of the parent | 12,6 | 22,6 |
| of which attributable to non-controlling interests | 0,0 | 0,0 |
1 The consolidated financial statements of 1H2018 include the impact of IFRS 15.
| in million EUR | 31 DEC 17 | 30 JUN 18 1 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Intangible assets | 12,3 | 12,2 | -1,3% |
| Goodwill | 24,2 | 23,3 | -3,6% |
| Property, plant & equipment | 226,8 | 234,6 | 3,4% |
| Investment property | 3,3 | 3,3 | 0,0% |
| Interest in joint ventures & associates | 76,2 | 76,9 | 0,8% |
| Other financial investments and available for sale investments | 0,7 | 0,8 | 18,6% |
| Non-current receivables | 14,8 | 14,6 | -1,2% |
| Non-current contract assets | 0,0 | 19,2 | n.m. |
| Deferred tax | 26,2 | 23,3 | -11,3% |
| Non-current assets | 384,6 | 408,1 | 6,1% |
| Inventories and contracts in progress | 99,4 | 107,2 | 7,9% |
| Trade receivables | 110,9 | 142,6 | 28,5% |
| Current contract assets | 0,0 | 14,2 | n.m. |
| Other receivables | 73,4 | 57,3 | -21,9% |
| Income tax receivables | 1,4 | 2,1 | 57,6% |
| Other investments | 0,1 | 0,1 | 0,0% |
| Cash and cash equivalents | 57,8 | 41,2 | -28,7% |
| Disposal group held for sale | 2,6 | 2,6 | 0,0% |
| Current assets | 345,6 | 367,4 | 6,3% |
| TOTAL ASSETS | 730,2 | 775,5 | 6,2% |
| in million EUR | 31 DEC 17 | 30 JUN 18 1 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Equity (share of the Group) | 261,8 | 254,7 | -2,7% |
| Non-controlling interests | 0,0 | 0,0 | n.m. |
| Total equity | 261,8 | 254,7 | -2,7% |
| Pensions and other provisions | 68,6 | 60,7 | -11,4% |
| Deferred tax | 9,1 | 9,2 | 0,9% |
| Interest-bearing borrowings | 96,1 | 19,5 | -79,7% |
| Other amounts payable | 0,2 | 0,2 | 2,6% |
| Non-current contract liabilities | 0,0 | 30,2 | n.m. |
| Non-current liabilities | 174,0 | 119,9 | -31,1% |
| Pensions and other provisions | 5,1 | 4,0 | -21,3% |
| Interest-bearing borrowings | 49,0 | 126,9 | 158,9% |
| Trade payables | 126,6 | 108,9 | -14,0% |
| Current contract liabilities | 0,0 | 45,8 | n.m. |
| Income tax payables | 2,4 | 1,4 | -41,4% |
| Other amounts payable | 111,3 | 114,0 | 2,4% |
| Current liabilities | 294,4 | 401,0 | 36,2% |
| TOTAL LIABILITIES | 730,2 | 775,5 | 6,2% |
1The consolidated financial statements of 1H2018 include the impact of IFRS 15.
| in million EUR | 31 DEC 17 | 30 JUN 18 | D |
|---|---|---|---|
| Net financial debt | 87,1 | 104,3 | 19,7% |
| Net financial debt / Equity (non-controlling interests included) | 33% | 41% | |
| Equity (non-controlling interests included) / Total assets | 35% | 33% | |
| in million EUR | 1H2017 | 1H2018 | D |
|---|---|---|---|
| (a) | (b) | (b)/(a) -1 | |
| EBIT | 20,6 | 29,1 | 41,5% |
| Depreciation, amortisation and impairment losses on assets | 14,8 | 16,3 | 9,8% |
| Write-offs (-back) on assets | 1,4 | ( 0,3) | nr |
| Changes in provisions | ( 2,9) | ( 4,8) | 67,0% |
| Income from associates and joint ventures | ( 1,5) | ( 7,5) | 395,9% |
| Other non-cash elements | 3,2 | ( 0,0) | nr |
| Gross operating cash flow | 35,7 | 32,8 | -8,2% |
| Changes in working capital | ( 24,1) | ( 14,7) | -38,9% |
| Gross operating cash flow after changes in working capital | 11,6 | 18,0 | 55,8% |
| Income taxes paid | ( 2,8) | ( 4,0) | 45,0% |
| Net cash flow from operating activities (a) | 8,8 | 14,0 | 59,2% |
| Net cash flow from investment activities (b) | ( 8,9) | ( 18,1) | 102,1% |
| Paid interest charges (1) | ( 3,4) | ( 3,3) | -2,0% |
| Paid dividends (2) | ( 9,7) | ( 12,0) | 24,2% |
| Increase (Decrease) of capital (3) | 2,8 | 1,6 | -44,3% |
| Increase (Decrease) of financial liabilities (4) | 21,4 | 1,3 | -94,1% |
| Other (5) | 0,0 | 0,0 | - |
| Net cash flow from financing activities (c)= (1)+(2)+(3)+(4)+(5) | 11,1 | ( 12,6) | nr |
| Effect of exchange rate changes (d) | 0,3 | ( 0,0) | nr |
| Effect of change in scope of consolidation (e) | 0,0 | 0,0 | - |
| Changes in cash and cash equivalents (a)+(b)+(c)+(d)+(e) | 11,3 | ( 16,6) | nr |
| FREE CASH FLOW (a)+(b)+(1) | ( 3,5) | ( 7,4) | 108,5% |
| in million EUR | Capital | Share premium |
Treasury shares |
Other reserves Retained | earnings | Translation differences reserves |
Hedging reserves |
Total shareholders' equity |
Non controlling interests |
Total equity, non controlling interests included |
|---|---|---|---|---|---|---|---|---|---|---|
| At the end of the period (31 December 2017) |
136,9 | 128,0 | ( 1,5) | ( 22,6) | 40,9 | ( 16,4) | ( 3,5) | 261,8 | 0,0 | 261,8 |
| IFRS 9 IFRS 15 |
0,0 0,0 |
0,0 0,0 |
0,0 0,0 |
0,0 0,0 |
0,0 ( 19,5) |
0,0 0,0 |
0,0 0,0 |
0,0 ( 19,5) |
0,0 0,0 |
0,0 ( 19,5) |
| Changes in accounting policies |
0,0 | 0,0 | 0,0 | 0,0 | ( 19,5) | 0,0 | 0,0 | ( 19,5) | 0,0 | ( 19,5) |
| Dividends | 0,0 | 0,0 | 0,0 | 0,0 | ( 12,0) | 0,0 | 0,0 | ( 12,0) | 0,0 | ( 12,0) |
| Stock options (IFRS 2) | 0,0 | 0,0 | 0,0 | 0,2 | 0,0 | 0,0 | 0,0 | 0,2 | 0,0 | 0,2 |
| Capital movements | 0,6 | 1,0 | 0,0 | ( 0,3) | 0,3 | 0,0 | 0,0 | 1,6 | 0,0 | 1,6 |
| Shareholders' movements |
0,6 | 1,0 | 0,0 | ( 0,1) | ( 11,8) | 0,0 | 0,0 | ( 10,3) | 0,0 | ( 10,3) |
| Profit or loss of the period |
0,0 | 0,0 | 0,0 | 0,0 | 18,7 | 0,0 | 0,0 | 18,7 | 0,0 | 18,7 |
| Other comprehensive income' |
0,0 | 0,0 | 0,0 | 4,4 | 0,0 | ( 0,9) | 0,5 | 4,0 | 0,0 | 4,0 |
| At the end of the period (30 June 2018) |
137,5 | 129,0 | ( 1,5) | ( 18,3) | 28,3 | ( 17,3) | ( 3,0) | 254,7 | 0,0 | 254,7 |
| in million EUR | 1H2017 | 1H2018 |
|---|---|---|
| EBIT | 20,6 | 29,1 |
| Depreciation intangible assets | 1,3 | 1,3 |
| Depreciation tangible assets | 12,7 | 13,6 |
| Impairment | 0,0 | 0,6 |
| Amortisation other operational assets a | 0,8 | 0,9 |
| EBITDA | 35,4 | 45,4 |
| in million EUR | 31 DEC 2017 | 30 JUN 2018 |
|---|---|---|
| Non-current interest-bearing borrowings | 96,1 | 19,5 |
| Current interest-bearing borrowings | 49,0 | 126,9 |
| Cash | ( 57,8) | ( 41,2) |
| Other financial assets b | ( 0,2) | ( 0,9) |
| Net financial debt | 87,1 | 104,3 |
a Cost to obtain a contract/Upfront fees (Automotive) and showroom (Bedding)
b Hedging instruments and interest advances
To the Board of Directors
The auditor confirms that the review is substantially completed, and did not reveal any significant adjustments to the financial information included in the press release.
Ghent, 28 August 2018
The Statutory Auditor
DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA
______________________________________
Represented by Kurt Dehoorne
a For the full version of the review report we refer to the half-year consolidated financial statements on our website www.recticel.com under the chapter Investor Relations > Annual and half-year Reports > Condensed financial statements per 30 June 2018
| IFRS measures |
|
|---|---|
| Combined (figures) | : Figures including Recticel's pro rata share in the joint ventures, after elimination of intercompany transactions, in accordance with the proportional consolidation method. |
| Consolidated (figures) | : Figures following the application of IFRS 11, whereby Recticel's joint ventures are integrated on the basis of the equity method. |
In addition, the Group uses alternative performance measures (Alternative Performance Measures or "APM") to express its underlying performance and to help the reader to better understand the results. APM are not defined performance indicators by IFRS. The Group does not present APM as an alternative to financial measures determined in accordance with IFRS and does not give more emphasis to APM than the defined IFRS financial measures.
| EBITDA | : = EBIT + depreciation, amortisation and impairment on assets. | ||||
|---|---|---|---|---|---|
| Gearing | : Net financial debt / Total equity | ||||
| Net financial debt | : Interest bearing financial debts at more than one year + interest bearing financial debts within maximum one year – cash and cash equivalents + Net marked-to-market value position of hedging derivative instruments. The interest-bearing borrowings do not include the drawn amounts under non-recourse factoring/forfeiting programs |
||||
| Non-recurring elements | : Non-recurring elements include operating revenues, expenses and provisions that pertain to restructuring programmes (redundancy payments, closure & clean-up costs, relocation costs,), reorganisation charges and onerous contracts, impairments on assets ((in)tangible assets and goodwill), revaluation gains or losses on investment property, gains or losses on divestments of non-operational investment property, and on the liquidation of investments in affiliated companies, gains or losses on discontinued operations, revenues or charges due to important (inter)national legal issues. |
||||
| REBIT | : = EBIT before non-recurring elements. | ||||
| REBITDA | : = EBITDA before non-recurring elements | ||||
| Total net financial debt | : = Net financial debt + the drawn amounts under off-balance sheet non-recourse factoring/forfeiting programs |
This press report contains forecasts which entail risks and uncertainties, including with regard to statements concerning plans, objectives, expectations and/or intentions of the Recticel Group and its subsidiaries. Readers are informed that such forecasts entail known and unknown risks and/or may be subject to considerable business, macroeconomic and competition uncertainties and unforeseen circumstances which largely lie outside the control of the Recticel Group. Should one or more of these risks, uncertainties or unforeseen or unexpected circumstances arise or if the underlying assumptions were to prove to be incorrect, the final financial results of the Group may possibly differ significantly from the assumed, expected, estimated or extrapolated results. Consequently, neither Recticel nor any other person assumes any responsibility for the accuracy of these forecasts.
First half-year 2018 results 29.08.2018 (at 07:00 AM CET) Third quarter 2018 trading update 31.10.2018 (at 07:00 AM CET) Annual results 2018 28.02.2019 (at 07:00 AM CET) First quarter 2019 trading update 29.04.2019 (at 07:00 AM CET) Annual General Meeting 28.05.2019 (at 10:00 AM CET) First half-year 2019 results 30.08.2019 (at 07:00 AM CET) Third quarter 2019 trading update 30.10.2019 (at 07:00 AM CET)
| RECTICEL - Olympiadenlaan 2, B-1140 Brussels (Evere) | |||
|---|---|---|---|
| PRESS | INVESTOR RELATIONS | ||
| Mr Olivier Chapelle | Mr Michel De Smedt | ||
| Tel: +32 2 775 18 01 | Mobile: +32 479 91 11 38 | ||
| [email protected] | [email protected] | ||
Recticel is a Belgian Group with a strong European dimension, but it also operates in the rest of the world. Recticel employs 8,411 people in 98 establishments in 28 countries.
Recticel contributes to daily comfort with foam filling for seats, mattresses and slat bases of top brands, insulation material, interior comfort for cars and an extensive range of other industrial and domestic applications.
Recticel is the Group behind well-known bedding brands (Beka®, Lattoflex®, Literie Bultex®, Schlaraffia®, Sembella®, Swissflex®, Superba®, etc.) and GELTEX® inside. Within the Insulation sub-segment high-quality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck®, Powerwall® and Xentro®. Technological progress and innovation have led to breakthrough at the biggest names in the Automotive industry thanks to Colo-Fast®, Colo-Sense® and Colo-Sense Lite®.
In 2017 Recticel achieved combined sales of EUR 1.46 billion (IFRS 11 consolidated sales: EUR 1.14 billion).
Recticel (Euronext: REC – Reuters: RECTt.BR – Bloomberg: REC:BB) is listed on Euronext in Brussels.
The press release is available in English, Dutch and French on the website www.recticel.com
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