Quarterly Report • Aug 29, 2014
Quarterly Report
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Brussels, 29 August 2014 – 07:00 CET
| in million EUR | 1H2013 | 1H2014 | D1H14/1H13 |
|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | |
| Sales | 494,7 | 494,0 | 0% |
| Gross profit | 76,7 | 88,9 | 16% |
| as % of sales | 15,5% | 18,0% | |
| EBITDA | 14,4 | 20,2 | 40% |
| as % of sales | 2,9% | 4,1% | |
| EBIT | ( 2,6) | 5,9 | n.r. |
| as % of sales | -0,5% | 1,2% | |
| Result of the period (share of the Group) | ( 10,1) | ( 5,0) | n.r. |
| Result of the period (share of the Group) - | |||
| base (per share, in EUR) | ( 0,35) | ( 0,17) | n.r. |
| Total Equity | 217,3 | 174,1 | -20% |
| Net financial debt 1 | 123,7 | 161,3 | 30% |
| Gearing ratio | 56,9% | 92,7% | |
1 Excluding the drawn amounts under non-recourse factoring/forfeiting programs: EUR 67.3 million per 30 June 2014 versus EUR 67.8 million per 30 June 2013 and EUR 53.4 million per 31 December 2013.
For the definition of other used terminology, see lexicon at the end of this press release.
All comparisons are made with the comparable period of 2013, unless mentioned otherwise.
The figures mentioned have been subject to a limited auditor's review.
| in million EUR | 1H2013 | 1H2014 | D | |
|---|---|---|---|---|
| (a) | (b) | (b)/(a)-1 | ||
| Sales | 632,6 | 645,2 | 2% | |
| Gross profit | 95,1 | 108,3 | 14% | |
| as % of sales | 15,0% | 16,8% | ||
| REBITDA | 33,3 | 38,8 | 17% | |
| as % of sales | 5,3% | 6,0% | ||
| EBITDA | 20,2 | 26,2 | 30% | |
| as % of sales | 3,2% | 4,1% | ||
| REBIT | 13,4 | 20,8 | 55% | |
| as % of sales | 2,1% | 3,2% | ||
| EBIT | ( 0,8) | 8,1 | n.a. | |
| as % of sales | -0,1% | 1,2% | ||
| Total Equity | 217,3 | 174,1 | -20% | |
| Net financial debt 1 | 156,1 | 191,8 | 23% | |
| Gearing ratio | 71,9% | 110,2% | ||
1Excluding the drawn amounts under non-recourse factoring/forfeiting programs: EUR 74.8 million per 30 June 2014 versus EUR 73.4 million per 30 June 2013 and EUR 59.7 million per 31 December 2013.
Detailed comments on the sales and results of the different segments (IFRS 8) are given in chapter 7 on the basis of the combined figures (joint ventures integrated following the proportionate consolidation method).
Before exchange rate differences (accounting for -0.6%) and net changes in the scope of consolidation (-0.1%), consolidated sales increased by +0.6%.
In 2014, the only change in the scope of consolidation consists in the elimination of IPF - Ingenieria de Poliurethano Flexible s.l. (Spain; Flexible Foams) following its divestment in 2013.
There were no changes in the scope of consolidation in 2013.
Before exchange rate differences (accounting for -0.6%) and net changes in the scope of consolidation (-0.1%) combined sales increased by +2.7%.
| in million EUR | 1Q2013 | 2Q2013 | 1H2013 | 1Q2014 | 2Q2014 | 1H2014 | D 1Q | D 2Q | D 1H |
|---|---|---|---|---|---|---|---|---|---|
| Flexible Foams | 151,5 | 145,8 | 297,3 | 156,1 | 144,0 | 300,1 | 3% | -1% | 1% |
| Bedding | 75,5 | 64,5 | 140,0 | 76,0 | 59,4 | 135,4 | 1% | -8% | -3% |
| Insulation | 49,9 | 59,6 | 109,5 | 55,5 | 55,3 | 110,8 | 11% | -7% | 1% |
| Automotive | 63,5 | 66,2 | 129,7 | 68,7 | 71,9 | 140,6 | 8% | 9% | 8% |
| Eliminations | ( 22,5) | ( 21,3) | ( 43,9) | ( 22,9) | ( 18,7) | ( 41,6) | 2% | -12% | -5% |
| TOTAL COMBINED SALES | 317,9 | 314,8 | 632,6 | 333,4 | 311,8 | 645,2 | 5% | -1% | 2% |
| Elimination joint ventures contribution (IFRS 11) |
( 70,4) | ( 67,5) | ( 137,8) | ( 77,5) | ( 73,7) | ( 151,2) | 10% | 9% | 10% |
| TOTAL CONSOLIDATED SALES | 247,5 | 247,3 | 494,8 | 255,9 | 238,1 | 494,0 | 3% | -4% | 0% |
After the positive sales evolution in 1Q2014 (+4.9%), the activity has softened during 2Q2014 (- 0.9%), except in the Automotive segment.
The Bedding and Flexible Foams segments, while maintaining or slightly improving their market shares, have been impacted by the weak European comfort and bedding market conditions due to low consumer spending.
The Insulation segment had a strong 1Q2014 sales level when compared to 1Q2013, which had been heavily impacted by the harsh winter. Likewise, 2Q2014 sales level compares unfavourably with 2Q2013, which had benefitted from significant workload transfer from 1Q2013.
The Automotive segments continued to benefit from the positive trend observed in the endmarkets since 4Q2013.
The improved recurrent profitability results from higher sales, the improved cost performance following the significant restructuring efforts in the Flexible Foams and Automotive segments, as well as the deployment of successful product/market-mix initiatives.
The average 1H2014 raw material market prices were marginally lower than in 1H2013.
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Flexible Foams | 15,0 | 17,3 | 15% |
| Bedding | 4,7 | 3,5 | -26% |
| Insulation | 12,7 | 13,3 | 5% |
| Automotive | 8,5 | 12,8 | 51% |
| Corporate | ( 7,5) | ( 8,0) | 6% |
| TOTAL COMBINED REBITDA | 33,3 | 38,8 | 17% |
The Group continued to benefit from the structural productivity and efficiency improvement measures throughout the entire supply chain.
In summary:
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Flexible Foams | 8,9 | 11,6 | 32% |
| Bedding | 1,6 | 0,1 | -92% |
| Insulation | 9,9 | 10,3 | 5% |
| Automotive | 1,2 | 7,2 | 518% |
| Corporate | ( 8,1) | ( 8,6) | 6% |
| TOTAL COMBINED REBIT | 13,4 | 20,8 | 55% |
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 -12.7 million (compared to EUR –14.3 million in 1H2013).
| in million EUR | 1H/2013 | 1H/2014 |
|---|---|---|
| Provision for settlement German Federal Cartel Office investigation | 0,0 | ( 8,2) |
| Restructuring charges and provisions | ( 10,6) | ( 4,2) |
| Other (i.e. Legal and advisory fees, sale of operating assets, ) | ( 2,4) | ( 0,2) |
| Total impact on EBITDA | ( 13,1) | ( 12,6) |
| Impairments | ( 1,2) | ( 0,1) |
| Total impact on EBIT | ( 14,3) | ( 12,7) |
The main non-recurring item is the recognition of a provision for the settlement of the German Federal Cartel Office investigation (EUR -8.2 million) (cfr press release dd 22 August 2014).
Non-recurring elements also relate to various restructuring measures which were implemented in execution of the Group's rationalisation plan.
The Flexible Foams operations in the United Kingdom, Sweden, Spain and Turkey were further streamlined. In addition, a provision has been recognized for the expected costs with regard to the intended closing of the Wijchen plant in The Netherlands (cfr press release dd 07 May 2014).
In the Bedding segment additional restructuring charges have been incurred with respect to the transfer of production activities from Büron (Switzerland) to Flüh (Switzerland), Hulshout (Belgium) and Lodz (Poland), leading to the closing of the Büron plant (cfr press release dd 07 May 2014).
Impairment charges (EUR -0.1 million) (1H2013: EUR -1.6 million) result from the abovementioned restructurings.
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Flexible Foams | 12,6 | 16,2 | 28% |
| Bedding | 3,6 | ( 6,6) | n.r. |
| Insulation | 12,6 | 13,3 | 5% |
| Automotive | 0,5 | 12,4 | n.r. |
| Corporate | ( 9,0) | ( 9,0) | -1% |
| TOTAL COMBINED EBITDA | 20,2 | 26,2 | 29% |
| Elimination joint ventures contribution (IFRS 11) |
( 5,8) | ( 6,0) | 3% |
| TOTAL CONSOLIDATED EBITDA | 14,4 | 20,2 | 40% |
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Flexible Foams | 6,4 | 10,5 | 63% |
| Bedding | 0,5 | ( 10,0) | n.a. |
| Insulation | 9,8 | 10,3 | 5% |
| Automotive | ( 8,0) | 6,9 | n.a. |
| Corporate | ( 9,6) | ( 9,6) | 0% |
| TOTAL COMBINED EBIT | ( 0,8) | 8,1 | n.a. |
| Elimination joint ventures contribution (IFRS 11) |
( 1,7) | ( 2,2) | 24% |
| TOTAL CONSOLIDATED EBIT | ( 2,6) | 5,9 | n.a. |
Net interest charges increased from EUR -4.4 million to EUR -4.8 million. Average credit interest margins slightly increased. The average net interest-bearing debt, including the usage of 'off-balance' factoring/forfeiting programs, was also higher following the partial payment of the EC fine in April 2014 and increased seasonal working capital needs.
'Other net financial income and expenses' (EUR -2.2 million, compared to EUR -1.2 million in 1H2013 comprise mainly interest capitalisation costs under provisions for pension liabilities (EUR –0.8 million versus EUR -0.8 million in 1H2013), exchange rate differences (EUR -0.6 million versus EUR -0.3 million in 1H2013) and EUR -0.8 million financing costs resulting from the EC fine payment terms.
On 30 June 2014, the Group net consolidated financial debt amounted to EUR 161.3 million (30 June 2013: EUR 123.7 million; 31 December 2013: EUR 138.2 million) excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of EUR 67.3 million (30 June 2013: EUR 67.8 million; 31 December 2013: EUR 53.4 million).
On a combined basis, net financial debt amounted to EUR 191.8 million on 30 June 2014 (30 June 2013: EUR 156.1 million; 31 December 2013: EUR 165.1 million) excluding the drawn amounts under the off-balance non-recourse factoring/forfeiting programs of EUR 74.8 million (30 June 2013: EUR 73.4 million; 31 December 2013: EUR 59.7 million).
The increase of the net financial debt is the consequence of the payment of the first tranche of the EC fine, cash-outlays for previously announced restructurings, as well as increased seasonal working capital needs.
Total equity on 30 June 2014 amounts to EUR 174.1 million compared to EUR 186.8 million on 31 December 2013.
Hence, on a consolidated basis 'net debt to equity' ratio per 31 June 2014 increased to 92.7% (31 December 2013: 74.0%).
On a combined basis, 'net debt to equity' ratio is 110.2%, compared to 88.4% at the end of 2013.
A convertible bond was issued in July 2007 for a nominal amount of EUR 57.5 million, of which EUR 27.7 million is still outstanding; and of which EUR 25.8 million is recorded under "current" interest-bearing borrowings, as the bond contained a put option for investors, expiring on 23 July 2014. Only EUR 50,000 were exercised at that maturity; the balance of EUR 25.75 million will be reclassified as "non-current" interest-bearing borrowings as per 31 December 2014.
The corporate objective remains to reduce the gearing ratio below 50%.
On 29 January 2014, Recticel announced that it reached a settlement of EUR 27 million with the European Commission in the context of the investigation in the Flexible Foams markets for alleged cartel activities.
In April 2014, Recticel has obtained confirmation by the European Commission's Directorate General for Budget allowing it to pay its fine (excluding the fine to be paid by the joint venture Eurofoam) in three annual installments on 30 April 2014, 2015 and 2016. On 30 April 2014, the Group has paid EUR 13.9 million (including its portion in the Eurofoam fine). The balance of the EC fine will be paid on 30 April 2015 (EUR 6.5 million) and on 30 April 2016 (EUR 6.9 million).
On 22 August 2014, Recticel announced that its German bedding affiliate, Recticel Schlafkomfort GmbH, has reached a settlement with the German Federal Cartel Office ("FCO") in the framework of an investigation the FCO launched into the German bedding market. This settlement brings this matter to a close for Recticel.
Under the settlement decision, Recticel Schlafkomfort GmbH's fine amounts to EUR 8.2 million. The fine is payable 14 days after the FCO's decision.
The amount of the fine has been provisioned in the 1H2014 accounts.
Recticel confirms that this fine will have no impact on the existing financial arrangements with its banks.
While remaining prudent due to persisting market volatility, Recticel confirms that it anticipates in 2014 its combined sales to grow by about 2%, and its combined recurring EBITDA to increase by up to 10%.
The Group maintains its focus on the execution of the strategic plan 2015, which includes (i) a strict prioritization of the allocation of its resources to its portfolio of business, (ii) a continuous effort to streamline operations and reduce complexity, (iii) geographical diversification to reduce dependency on Europe and (iv) the introduction of new innovative solutions.
The Group has adopted IFRS 8 since 1 January 2009. 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.
| 1H2013 | 1H2014 | D 1H |
|---|---|---|
| 297,3 | 300,1 | 1% |
| 15,0 | 17,3 | 15% |
| 5,0% | 5,8% | |
| 12,6 | 16,2 | 28% |
| 4,2% | 5,4% | |
| 8,9 | 11,6 | 32% |
| 3,0% | 3,9% | |
| 6,4 | 10,5 | 63% |
| 2,2% | 3,5% | |
Combined sales, which include intersegment sales (2Q2014: EUR 13.7 million; -9.3%), decreased from EUR 145.8 million in 2Q2013 to EUR 144.0 million in 2Q2014 (-1.2%).
However, excluding intersegment sales, underlying combined external sales remained flat in 2Q2014 (EUR 130.3 million; -0.03%), albeit with an improved product-mix. Increased sales in Technical Foams (+5.4%) compensated for lower Comfort sales (-5.2%).
For 1H2014, combined sales in the Comfort sub-segment decreased by -3.2% in 1H2014, whereas sales in the Technical foams sub-segment substantially increased by +8.2%, supported by stronger industrial and automotive markets, as well as improved demand in the Eastern European markets.
In April 2014, Recticel BV (The Netherlands) announced its intention to streamline its converting activities by closing its foam converting factory of Wijchen (cfr press release dd 07 May 2014). This closure is expected to be fully executed by the end of 2014.
EBITDA increased from EUR 12.6 million to EUR 16.2 million, supported by slightly higher sales, improved cost performance and better product-mix. EBITDA includes EUR -1.1 million of non-recurring elements (1H2013: EUR -2.4 million): i.e. (i) restructuring costs for EUR -1.3 million, mainly related to the intended closure of the plant in Wijchen (The Netherlands) and to some additional streamlining measures in the United Kingdom, Sweden, Spain and Turkey, and (ii) other non-recurring elements (EUR +0.2 million).
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Sales | 140,0 | 135,4 | -3% |
| REBITDA | 4,7 | 3,5 | -26% |
| as % of sales | 3,4% | 2,6% | |
| EBITDA | 3,6 | ( 6,6) | n.r. |
| as % of sales | 2,6% | -4,9% | |
| REBIT | 1,6 | 0,1 | -92% |
| as % of sales | 1,2% | 0,1% | |
| EBIT | 0,5 | ( 10,0) | n.r. |
| as % of sales | 0,4% | -7,4% | |
Combined sales, which include intersegment sales (2Q2014: EUR 4.9 million), decreased from EUR 64.5 million in 2Q2013 to EUR 59.5 million in 2Q2014 (-7.9%). Excluding intersegment sales, underlying combined external sales decreased from EUR 58.4 million in 2Q2013 to EUR 54.6 million in 2Q2014 (-6.6%).
Sales in the Brand sub-segment decreased by -2.8% during 2Q2014, which is in line with the market development. Besides the product-mix improved as the GELTEX® inside products continue to grow.
Sales in the more competitive Non-Branded/Private Label sub-segment decreased by -11.3% during 2Q2014, in a very weak and competitive market environment. Sales decreased in all markets, except in Germany.
For 1H2014, combined sales, which include intersegment sales of EUR 10.5 million, decreased from EUR 140.0 million to EUR 135.4 million (-3.3%). Excluding intersegment sales, underlying combined external sales decreased by -2.2% from EUR 127.7 million to EUR 124.9 million. The Brand sub-segment sales increased (+1.5%), supported by the further development of the GELTEX® inside products. The Non-Branded/Private Label sub-segment overall recorded lower sales (-7.1%).
Consumer confidence remained weak and resulted in negative trends in all Bedding markets where Recticel is present. The new GELTEX® inside collection is well received by the market and is expected to remain the main growth driver in the Brand sub-segment.
In March 2014, Recticel Bedding (Schweiz) AG announced (cfr press release dd 07 May 2014) its intention to rationalize its Swiss bedding activities by closing its production and logistics operations in Büron (Switzerland). These activities are currently transferred to Hulshout (Belgium), Flüh (Switzerland) and Lodz (Poland).
EBITDA decreased from +3.6 million to EUR -6.6 million. This decrease is primarily explained by (i) EUR -10.1 million of non-recurring elements (1H2013: EUR -1.1 million), which relate to a provision of EUR -8.2 million in respect of the settlement of the German Federal Cartel Office investigation and to the restructuring in Switzerland, and (ii) increased marketing and advertising costs, lower external sales volumes and aggressive market pricing conditions.
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Sales | 109,5 | 110,8 | 1% |
| REBITDA | 12,7 | 13,3 | 5% |
| as % of sales | 11,6% | 12,0% | |
| EBITDA | 12,6 | 13,3 | 5% |
| as % of sales | 11,5% | 12,0% | |
| REBIT | 9,9 | 10,3 | 5% |
| as % of sales | 9,0% | 9,3% | |
| EBIT | 9,8 | 10,3 | 5% |
| as % of sales | 8,9% | 9,3% | |
Combined sales decreased from EUR 59.6 million in 2Q2013 to EUR 55.2 million in 2Q2014 (-7.4%).
After a very strong 1Q2014 (+11.3%), sales in the Building Insulation sub-segment decreased by -8.2% in 2Q2014. These important variations are mainly explained by the 2013 comparison basis, which saw a very weak 1Q2013, impacted by the harsh winter conditions, followed by a very strong 2Q2013 influenced by a "catch-up" effect following 1Q2013. In addition, European residential construction and renovation markets remained soft, except in the United Kingdom.
The Industrial Insulation sub-segment recorded higher sales during 2Q2014 (+5.4%).
In 1H2014, sales amounted to EUR 110.8 million (+1.1%).
Despite the overall soft European residential construction and renovation markets, sales volumes in the sub-segment Building Insulation, which accounts for 93% of the segment sales, increased in 1H2014 (EUR 103.3 million; +0.6%).
Further growth in the structural demand for high performing polyurethane building insulation products is expected over the long term as a result of stricter insulation standards and regulations (cfr European Energy Performance of Buildings Directive (EPBD) (Directive 2010/31/EU) which are progressively adopted by the EU member states), volatile energy prices and ever growing awareness of the need for more and better insulation.
The Industrial Insulation sub-segment also recorded higher sales in 1H2014 (+9.0%).
EBITDA increased from EUR 12.6 million to EUR 13.1 million (+4.4%) as a result of higher volumes and a favourable product-mix.
| in million EUR | 1H2013 | 1H2014 | D 1H |
|---|---|---|---|
| Sales | 129,7 | 140,6 | 8% |
| REBITDA | 8,5 | 12,8 | 51% |
| as % of sales | 6,5% | 9,1% | |
| EBITDA | 0,5 | 12,4 | n.r. |
| as % of sales | 0,4% | 8,8% | |
| REBIT | 1,2 | 7,2 | 518% |
| as % of sales | 0,9% | 5,2% | |
| EBIT | ( 8,0) | 6,9 | n.r. |
| as % of sales | -6,2% | 4,9% | |
Combined sales increased from EUR 66.2 million in 2Q2013 to EUR 71.9 million in 2Q2014 (+8.5%).
New car registrations in the EU27 automotive market are picking up and have shown a yearon-year increase for nine months in a row, while exports to other regions remain strong. The Interiors (+4.2%) and Seating (+12.6%) sub-segments performed in line with this trend.
In 1H2014 combined sales in Interiors increased by 3.3% to EUR 59.7 million. The planned phasing-out of some programs, mainly in the USA, was compensated by higher volumes in China for Daimler and BMW and moulds sales for the new programs.
Sales in Seating (i.e. Proseat, the 51/49 joint venture between Recticel and Woodbridge) increased by +13.7% in 1H2014 to EUR 75.4 million.
1H2014 sales in 'Exteriors' were slightly lower (EUR 5.5 million; -2.4%). Since the sale of the compounding activities to BASF in 2008, sales are limited to compounds produced for the account of BASF under a toll agreement.
EBITDA increased from EUR 0.5 million to EUR 12.4 million, including net non-recurring elements of EUR -0.4 million (1H2013: EUR –7.9 million), primarily explained by the higher production volumes and the benefits from past restructuring programs. In this respect the restructuring of the Rheinbreitbach plant is now 80% completed.
The new projects order book, which stood at EUR 364 million per end 2013 (cfr press release dd. 22-12-2013), has considerably increased during 1H2014. It currently amounts to EUR 438 million; whereas some programs have now entered into production (i.e. Porsche Macan), new additional contracts have been acquired (i.e. Renault Scenic, Scania and Volkswagen Magotan).
| OEM | Car model | Estimated cumulative lifetime sales (in million EUR) |
Country of production |
|---|---|---|---|
| Volkswagen Passat | 92 | Czech Republic | |
| Volkswagen Golf Plus | 17 | China | |
| Volvo | models | 81 | Czech Republic |
| Mercedes | E-class | 64 | Czech Republic |
| Mercedes | E-class | 41 | China |
| BMW | 5-series | 40 | Germany |
| BMW | 5-series | 28 | China |
| Renault | Scenic | 25 | Czech Republic |
| Scania | 8 | Czech Republic | |
| Volkswagen Magotan | 42 | China | |
| TOTAL | 438 |
* The above contracts will progressively enter into production over the coming 3 years; hence their full impact on sales will not be immediate, but spread over 6-7 years after production start-up.
°°°
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 available annual report at 31 December 2013, 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/will be available from www.recticel.com.
| in million EUR | 1H2013 | 1H2014 | D |
|---|---|---|---|
| Sales | 494,7 | 494,0 | 0% |
| Distribution costs | ( 26,6) | ( 26,8) | 1% |
| Cost of sales | ( 391,4) | ( 378,2) | -3% |
| Gross profit | 76,7 | 88,9 | 16% |
| General and administrative expenses | ( 32,3) | ( 35,6) | 10% |
| Sales and marketing expenses | ( 33,4) | ( 36,5) | 9% |
| Research and development expenses | ( 5,4) | ( 6,9) | 27% |
| Impairments | ( 1,2) | ( 0,1) | -92% |
| Other operating revenues (1) | 4,1 | 3,8 | -8% |
| Other operating expenses (2) | ( 13,3) | ( 15,0) | 12% |
| Other operating result (1)+(2) | ( 9,2) | ( 11,2) | 22% |
| Income from joint ventures & associates | 2,2 | 7,2 | 222% |
| Income from investments | 0,0 | 0,0 | - |
| EBIT | ( 2,6) | 5,9 | n.r. |
| Interest income | 0,4 | 0,3 | -20% |
| Interest expenses | ( 4,8) | ( 5,1) | 8% |
| Other financial income | 4,9 | 3,7 | -24% |
| Other financial expenses | ( 6,1) | ( 5,9) | -3% |
| Financial result | ( 5,6) | ( 7,0) | 26% |
| Result of the period before taxes | ( 8,2) | ( 1,1) | -86% |
| Income taxes | ( 2,0) | ( 3,8) | 95% |
| Result of the period after taxes | ( 10,1) | ( 5,0) | -51% |
| of which attributable to the owners of the parent | ( 10,1) | ( 5,0) | -51% |
| of which attributable to non-controlling interests | 0,0 | 0,0 | - |
| in EUR | 1H2013 | 1H2014 | D |
|---|---|---|---|
| Number of shares outstanding (including treasury shares) | 28 944 356 | 29 530 356 | 2% |
| Weighted average number of shares outstanding (before dilution effect) | 28 885 933 | 28 645 036 | -1% |
| Weighted average number of shares outstanding (after dilution effect) | 28 885 933 | 28 645 036 | -1% |
| EBITDA | 0,50 | 0,68 | 37% |
| EBIT | ( 0,09) | 0,20 | n.r. |
| Result for the period before taxes | ( 1,11) | ( 0,04) | n.r. |
| Result for the period after taxes | ( 0,35) | ( 0,17) | n.r. |
| Result for the period (share of the Group) - basic | ( 0,35) | ( 0,17) | -50% |
| Result for the period (share of the Group) - diluted | ( 0,35) | ( 0,17) | -50% |
| Net book value | 7,51 | 5,89 | -21% |
| in million EUR | 1H2013 | 1H2014 |
|---|---|---|
| Result for the period after taxes | ( 10,1) | ( 5,0) |
| Other comprehensive income | ||
| Items that will not subsequently be recycled to profit and loss | ||
| Actuarial gains and losses on employee benefits recognized in equity | ( 2,9) | ( 4,2) |
| Deferred taxes on actuarial gains and losses on employee benefits | 0,1 | 0,0 |
| Total | ( 2,8) | ( 4,2) |
| Items that subsequently may be recycled to profit and loss | ||
| Hedging interest reserves | 2,1 | ( 0,8) |
| Hedging net investment reserves | 0,1 | ( 0,1) |
| Hedging reserves | 2,2 | ( 0,9) |
| Investment revaluation reserve | ( 0,1) | 0,0 |
| Currency translation differences | ( 3,5) | 0,0 |
| Deferred taxes on hedging interest reserves | ( 0,7) | 0,3 |
| Total | ( 2,1) | ( 0,6) |
| Other comprehensive income net of tax | ( 4,9) | ( 4,8) |
| ( 15,0) | ( 9,8) | |
| Total comprehensive income for the period | ||
| ( 15,0) | ( 9,8) | |
| Total comprehensive income for the period | ||
| of which attributable to the owners of the parent | ( 15,0) | ( 9,8) |
| of which attributable to non-controlling interests | 0,0 | 0,0 |
| in million EUR | 31 DEC 13 | 30 JUN 14 | D |
|---|---|---|---|
| Intangible assets | 12,0 | 12,1 | 1% |
| Goodwill | 24,6 | 24,9 | 1% |
| Property, plant & equipment | 204,6 | 199,7 | -2% |
| Investment property | 3,3 | 3,3 | 0% |
| Interest in joint ventures & associates | 72,5 | 79,4 | 10% |
| Other financial investments and available for sale investments | 0,4 | 0,3 | -35% |
| Non-current receivables | 11,0 | 12,1 | 10% |
| Deferred tax | 48,9 | 47,3 | -3% |
| Non-current assets | 377,4 | 379,1 | 0% |
| Inventories and contracts in progress | 94,0 | 100,5 | 7% |
| Trade receivables | 64,5 | 84,1 | 30% |
| Other receivables | 46,4 | 41,1 | -11% |
| Income taxe receivables | 3,9 | 3,3 | -14% |
| Available for sale investments | 0,1 | 0,1 | 0% |
| Cash and cash equivalents | 26,2 | 27,0 | 3% |
| Current assets | 235,0 | 256,0 | 9% |
| TOTAL ASSETS | 612,4 | 635,0 | 4% |
| in million EUR Equity (share of the Group) |
31 DEC 13 186,8 |
30 JUN 14 174,1 |
D -7% |
| Non-controlling interests | 0,0 | 0,0 | - |
| Total equity | 186,8 | 174,1 | -7% |
| Pensions and other provisions | 52,7 | 55,9 | 6% |
| Deferred tax | 8,2 | 8,9 | 8% |
| Interest-bearing borrowings | 98,8 | 127,4 | 29% |
| Other amounts payable | 0,4 | 7,0 | 1478% |
| Non-current liabilities | 160,2 | 199,2 | 24% |
| Pensions and other provisions | 8,5 | 13,8 | 61% |
| Interest-bearing borrowings | 66,2 | 61,2 | -8% |
| Trade payables | 81,7 | 83,9 | 3% |
| Income tax payables | 3,1 | 2,7 | -13% |
| Other amounts payable | 105,9 | 100,2 | -5% |
| Current liabilities | 265,5 | 261,8 | -1% |
| TOTAL LIABILITIES | 612,4 | 635,0 | 4% |
| in million EUR | 31 DEC 13 | 30 JUN 14 | D |
| in million EUR | 31 DEC 13 | 30 JUN 14 | D |
|---|---|---|---|
| Net financial debt | 138,2 | 161,3 | 17% |
| Net financial debt / Equity (non-controlling interests included) | 74,0% | 92,7% | |
| Equity (non-controlling interests included) / Total assets | 30,5% | 27,4% |
| in million EUR | 1H2013 | 1H2014 | D |
|---|---|---|---|
| EBIT | ( 2,6) | 5,9 | nr |
| Depreciation, amortisation and impairment losses on assets | 17,8 | 14,6 | -18% |
| Income from associates and joint ventures | ( 2,2) | ( 7,2) | 222% |
| Other non-cash elements | 1,2 | 3,4 | 188% |
| Gross operating cash flow | 14,2 | 16,8 | 18% |
| Changes in working capital | 13,4 | ( 13,2) | nr |
| Gross operating cash flow after changes in working capital | 27,5 | 3,6 | -87% |
| Income taxes paid | ( 1,5) | ( 1,0) | -31% |
| Net cash flow from operating activities (a) | 26,1 | 2,6 | -90% |
| Net cash flow from investment activities (b) | ( 3,6) | ( 14,8) | 306% |
| Paid interest charges (1) | ( 2,7) | ( 4,2) | 58% |
| Paid dividends (2) | ( 5,9) | ( 5,8) | -1% |
| Increase (Decrease) of capital (3) | 0,1 | 2,7 | nr |
| Increase (Decrease) of financial liabilities (4) | 4,5 | 20,1 | 351% |
| Other (5) | 0,0 | 0,0 | nr |
| Net cash flow from financing activities (c)= (1)+(2)+(3)+(4)+(5) | ( 4,0) | 12,8 | nr |
| Effect of exchange rate changes (d) | ( 0,7) | 0,1 | nr |
| Effect of change in scope of consolidation (e) | 0,0 | 0,0 | #DIV/0! |
| Changes in cash and cash equivalents (a)+(b)+(c)+(d)+(e) | 17,7 | 0,8 | -96% |
| FREE CASH FLOW (a)+(b)+(1) | 19,8 | ( 16,4) | nr |
| in million EUR | Capital | Share premium |
Treasury shares |
Investment revaluation reserve |
Actuarial gains and losses |
IFRS 2 Other capital 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 preceding period (31 December 2013) |
72,4 | 107,0 | ( 1,7) | ( 0,0) | ( 9,5) | 2,8 | 34,1 | ( 12,1) | ( 6,2) | 186,8 | 0,0 | 186,8 |
| Dividends | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | ( 5,7) | 0,0 | 0,0 | ( 5,7) | 0,0 | ( 5,7) |
| Stock options (IFRS 2) | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,1 | 0,0 | 0,0 | 0,0 | 0,1 | 0,0 | 0,1 |
| Capital movements | 1,5 | 1,3 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 2,7 | 0,0 | 2,7 |
| Shareholders' movements |
1,5 | 1,3 | 0,0 | 0,0 | 0,0 | 0,1 | ( 5,7) | 0,0 | 0,0 | ( 2,9) | 0,0 | ( 2,9) |
| Profit or loss of the period |
0,0 | 0,0 | 0,0 | 0,0 | 0,0 | 0,0 | ( 5,0) | 0,0 | 0,0 | ( 5,0) | 0,0 | ( 5,0) |
| Comprehensive income' |
0,0 | 0,0 | 0,0 | 0,0 | ( 4,4) | 0,0 | ( 5,0) | 0,2 | ( 0,6) | ( 9,8) | 0,0 | ( 9,8) |
| At the end of the period (30 June 2014) |
73,8 | 108,3 | ( 1,7) | 0,0 | ( 13,9) | 2,9 | 23,4 | ( 11,9) | ( 6,8) | 174,1 | 0,0 | 174,1 |
| in million EUR | 1H2013 | 1H2014 | |||
|---|---|---|---|---|---|
| As published | Impact IFRS 11 |
Consolidated | Consolidated | D 14/13 | |
| Sales | 632,6 | ( 137,9) | 494,7 | 494,0 | 0% |
| Distribution costs | ( 32,2) | 5,6 | ( 26,6) | ( 26,8) | 1% |
| Cost of sales | ( 505,4) | 114,0 | ( 391,4) | ( 378,2) | -3% |
| Gross profit | 95,1 | ( 18,4) | 76,7 | 88,9 | 16% |
| General and administrative expenses | ( 41,0) | 8,8 | ( 32,3) | ( 35,6) | 10% |
| Sales and marketing expenses | ( 37,8) | 4,4 | ( 33,4) | ( 36,5) | 9% |
| Research and development expenses | ( 6,4) | 1,0 | ( 5,4) | ( 6,9) | 27% |
| Impairments | ( 1,2) | 0,0 | ( 1,2) | ( 0,1) | -92% |
| Other operating revenues (1) | 4,2 | ( 0,1) | 4,1 | 3,8 | -8% |
| Other operating expenses (2) | ( 14,0) | 0,7 | ( 13,3) | ( 15,0) | 12% |
| Other operating result (1)+(2) | ( 9,8) | 0,5 | ( 9,2) | ( 11,2) | n.r. |
| Income from joint ventures & associates | 0,3 | 2,0 | 2,2 | 7,2 | 222% |
| Income from investments | 0,0 | 0,0 | 0,0 | 0,0 | n.r. |
| EBIT | ( 0,8) | ( 1,7) | ( 2,6) | 5,9 | n.r. |
| Interest income | 0,2 | 0,2 | 0,4 | 0,3 | -20% |
| Interest expenses | ( 5,6) | 0,8 | ( 4,8) | ( 5,1) | 8% |
| Other financial income | 6,9 | ( 2,1) | 4,9 | 3,7 | -24% |
| Other financial expenses | ( 8,0) | 1,9 | ( 6,1) | ( 5,9) | -3% |
| Financial result | ( 6,5) | 0,9 | ( 5,6) | ( 7,0) | 26% |
| Result of the period before taxes | ( 7,3) | ( 0,9) | ( 8,2) | ( 1,1) | -86% |
| Income taxes | ( 2,8) | 0,9 | ( 2,0) | ( 3,8) | 95% |
| Result of the period after taxes | ( 10,1) | ( 0,0) | ( 10,1) | ( 5,0) | -51% |
| of which attributable to the owners of the | ( 10,1) | ( 0,0) | ( 10,1) | ( 5,0) | -51% |
| of which attributable to non-controlling | 0,0 | 0,0 | 0,0 | 0,0 | - |
| in million EUR | 30 June 2013 | 30 June 2014 | ||||
|---|---|---|---|---|---|---|
| As published | Impact IFRS 11 |
Consolidated Consolidated | D 14/13 | |||
| Intangible assets | 13,7 | ( 1,6) | 12,1 | 12,1 | 0% | |
| Goodwill | 34,4 | ( 9,9) | 24,6 | 24,9 | 1% | |
| Property, plant & equipment | 258,4 | ( 49,1) | 209,4 | 199,7 | -5% | |
| Investment property | 4,5 | 0,0 | 4,5 | 3,3 | -25% | |
| Interest in joint ventures & associates | 13,3 | 49,4 | 62,6 | 79,4 | 27% | |
| Other financial investments and available for | ||||||
| sale investments | 0,4 | ( 0,0) | 0,4 | 0,3 | -19% | |
| Non-current receivables | 10,0 | 2,4 | 12,4 | 12,1 | -2% | |
| Deferred tax | 49,9 | ( 0,4) | 49,5 | 47,3 | -5% | |
| Non-current assets | 384,6 | ( 9,3) | 375,4 | 379,1 | 1% | |
| Inventories and contracts in progress | 121,2 | ( 24,6) | 96,7 | 100,5 | 4% | |
| Trade receivables | 118,0 | ( 37,3) | 80,7 | 84,1 | 4% | |
| Other receivables | 45,7 | 9,7 | 55,4 | 41,1 | -26% | |
| Income taxe receivables | 5,4 | ( 1,0) | 4,4 | 3,3 | -24% | |
| Available for sale investments | 0,0 | 0,0 | 0,0 | 0,1 | 33% | |
| Cash and cash equivalents | 43,6 | ( 7,4) | 36,2 | 27,0 | -25% | |
| Current assets | 334,0 | -60,6 | 273,4 | 256,0 | -6% | |
| TOTAL ASSETS | 718,6 | ( 69,9) | 648,8 | 635,0 | -2% | |
| Equity (share of the Group) | 217,3 | 0,0 | 217,3 | 174,1 | -20% | |
| Non-controlling interests | 0,0 | 0,0 | 0,0 | 0,0 | n.r. | |
| Total equity | 217,3 | 0,0 | 217,3 | 174,1 | -20% | |
| Pensions and other provisions | 63,8 | ( 7,8) | 56,0 | 55,9 | 0% | |
| Deferred tax | 9,5 | ( 1,3) | 8,2 | 8,9 | 8% | |
| Interest-bearing borrowings | 157,7 | ( 21,6) | 136,1 | 127,4 | -6% | |
| Other amounts payable | 0,4 | 0,1 | 0,6 | 7,0 | 1085% | |
| Non-current liabilities | 231,4 | ( 30,6) | 200,9 | 199,2 | -1% | |
| Pensions and other provisions | 7,4 | ( 0,3) | 7,1 | 13,8 | 93% | |
| Interest-bearing borrowings | 43,3 | ( 18,4) | 24,9 | 61,2 | 146% | |
| Trade payables | 122,0 | ( 20,6) | 101,4 | 83,9 | -17% | |
| Income tax payables | 3,1 | ( 0,3) | 2,8 | 2,7 | -4% | |
| Other amounts payable | 94,2 | 0,3 | 94,4 | 100,2 | 6% | |
| Current liabilities | 270,0 | ( 39,3) | 230,6 | 261,8 | 14% | |
| TOTAL LIABILITIES | 718,6 | ( 69,9) | 648,8 | 635,0 | -2% |
The auditor's limited review reporta on the consolidated half-year financial information for the six month period ended 30 June 2014 contains an unqualified opinion.
Diegem, 28 August 2014
______________________________________
a For the full version of the limited 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 2014
| 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. |
| EBITDA | : = EBIT + depreciation, amortisation and impairment on assets. |
| Net financial debt | : Interest bearing financial debts at more than one year + interest bearing financial debts within maximum one year – cash and cash equivalents - Available for sale investments + 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. |
| REBITDA | : = EBITDA before non-recurring elements; REBIT = EBIT before non-recurring elements. |
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.
Annual General Meeting 27.05.2015 (at 10:00 AM CET)
First half-year 2014 results 29.08.2014 (before opening of the stock exchange) Third quarter 2014 trading update 31.10.2014 (before opening of the stock exchange) FY2014 Results 27.02.2015 (before opening of the stock exchange) First quarter 2015 trading update 07.05.2015 (before opening of the stock exchange) First half-year 2015 results 28.08.2015 (before opening of the stock exchange)
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 also operates in the rest of the world. Recticel has 100 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®, Ubica®, etc.) and GELTEX® inside. Within the Insulation sub-segment highquality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck® and Powerwall®.
Recticel is driven by technological progress and innovation, which has led to a revolutionary breakthrough at the biggest names in the car industry.
In 2013 Recticel achieved combined sales of EUR 1.26 billion (IFRS 11 consolidated sales: EUR 0.98 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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