Earnings Release • Feb 23, 2017
Earnings Release
Open in ViewerOpens in native device viewer
Regulated information – 2016 results Under embargo until Thursday 23 February 2017 at 7:00 a.m. CET
"We are pleased with our 2016 result and would like to thank all our partners for their trust. Our performance further improved in all key markets, which confirms our strategy.
Key 2016 projects like the realisation of 2 state-of-the-art manufacturing facilities in Turkey, the start of the new plant in Fernley (US) and the acquisition of an innovative ventilation and aluminium system have been successfully delivered.
Uncertainty in Turkey is likely to remain high but experts like IMF and OECD see continued growth and our management team in the region has a strong track record. In addition we carefully monitor the recent rise in raw material prices and will take appropriate action."
| (in € million) | 2015 | 2016 | Var (%) | 1H 2016 | 2H 2016 |
|---|---|---|---|---|---|
| Sales | 644.5 | 670.9 | 4.1% | 330.2 | 340.7 |
| Gross profit | 182.0 | 204.7 | 12.5% | 103.6 | 101.1 |
| Gross-margin (%) | 28.2% | 30.5% | 31.4% | 29.7% | |
| EBITDA(1) | 53.4 | 67.0 | 25.4% | 34.6 | 32.3 |
| REBITDA(1) | 55.9 | 65.1 | 16.5% | 32.5 | 32.5 |
| REBITDA-margin (%) | 8.7% | 9.7% | 9.9% | 9.6% | |
| EBIT | 26.9 | 36.1 | 34.5% | 21.2 | 14.9 |
| Financial result | (10.0) | (13.9) | (5.8) | (8.1) | |
| EBT | 16.9 | 22.2 | 31.8% | 15.4 | 6.8 |
| Income taxes | (3.5) | (1.3) | (2.3) | 1.0 | |
| Net profit | 13.3 | 21.0 | 57.1% | 13.1 | 7.8 |
(1): EBITDA has been redefined as EBIT excluding depreciations of fixed assets and amortization of goodwill. REBITDA has been redefined as EBITDA excluding non recurring costs or benefits such as capital gains or major restructuring programs.
Under the previous definitions EBITDA would have amounted to €71.3m and REBITDA €74.3m
| (in € million) | 2015 | 2016 | Var (%) |
|---|---|---|---|
| Equity | 269.3 | 275.0 | 2.1% |
| Net debt | 92.1 | 88.4 | (4.0%) |
| Total assets | 562.6 | 601.1 | 6.8% |
| Capital expenditure | 38.7 | 79.4 | 105.0% |
| Working capital | 142.9 | 111.1 | (22.2%) |
| % of sales | total | Western Europe |
Central & Eastern Europe |
Turkey & Emerging markets |
North America |
|---|---|---|---|---|---|
| Sales (in € million) 2015 | 644.5 | 170.5 | 169.7 | 193.1 | 111.2 |
| Volume | 3.6% | 2.7% | (4.7%) | 9.2% | 7.6% |
| Exchange rate | (4.4%) | (2.1%) | (1.9%) | (11.0%) | 0.3% |
| Other (price,mix) | 4.9% | 2.9% | 2.0% | 12.8% | (1.3%) |
| Total | 4.1% | 3.5% | (4.7%) | 10.8% | 6.6% |
| Sales (in € million) 2016 | 670.9 | 176.5 | 161.8 | 214.0 | 118.6 |
2016 Sales in Western Europe increased by 3.5% to € 176.5 million (2015: € 170.5 million). This is driven by one-off project sales (€ 3.1m sound walls) and strong growth in NL, IT and UK (in local currency) which have been partially offset by weak market conditions and competitive pressure in FR and the 13% GBP weakening (-€3.5m) which was only partially compensated by price increases.
In Central & Eastern Europe 2016 sales decreased by 4.7% to € 161.8 million (2015: € 169.7 million). This is mainly explained by our decision to phase out selected low margin products and the further decline of the Russian market, which is partially compensated by strong business development in the Balkans. The 9% RUB depreciation has been compensated by price increases.
Turkey & Emerging Markets predominantly serves the domestic market in Turkey. 2016 Sales increased by 10.8% to € 214.0 million (2015: € 193.1 million). Despite a slowdown of real GDP growth to 2.9% volumes increased 9.2% thanks to superior products, service and branding in Turkey and further growth in Emerging Markets (mainly Chile). The TRY depreciation has been compensated by price increases.
Sales in North America increased by 6.6% to € 118.6 million (2015: € 111.2 million). Sales growth was driven by strong business development on the back of superior service, which has been partially offset by the sale of the decking business in January 2016. The sale of the decking business had a negative impact on sales of an estimated 5%. USD/EUR remained stable at 1.11.
REBITDA(1) increased to € 65.1 million or 9.7% on sales (2015: € 55.9 million or 8.7% on sales). The REBITDA improvement was the result of higher volumes in all regions except for Central and Eastern Europe, efficiency improvements (integration of Gebze into Kartepe plant in Turkey and the integration of Enwin in the Protvino plant in Russia, the phase out of low margin products), and one-off raw material savings. The improvement was partially offset by the impact of the Brexit and one-off costs (restructuring, start-up costs Tunal and Isora, development of SAP template).
EBITDA(1) increased to € 67.0 million (2015: € 53.4 million) explained by higher REBITDA and the oneoff € 2.8 million capital gain realized on the divestment of the US decking business.
Operating result (EBIT) was € 36.1 million (2015: € 26.9 million). Depreciation and amortisation expenses increased due to higher capex and impairment on Czech building following the decision to integrate the Czech warehousing operations in Poland.
Financial result was € (13.9) million (2015: € (10.0) million). The increase in financial expenses is explained by FX (revaluation of EUR denominated loans in Turkey) and the higher interest cost of the retail bond.
Income tax expenses amounted to € 1.3 million (2015: € 3.5 million) and include the one time recognition of US tax assets and tax incentives for construction of new facility in Turkey, partially compensated by the reversal of previously recognized tax assets in Belgium
The net profit in 2016 was € 21.0 million versus € 13.3 million in 2015.
Trade working capital on sales reduced to 16.6% compared to 22.2% end 2015, which is mainly explained by increased factoring from €16.2m in 2015 to €27.9m in 2016 and the €21.0m extension of payment terms to suppliers in Turkey.
Capital expenditures in 2016 amounted to € 79.4 million compared to € 38.7 million in 2015. This increase is mainly explained by the investments in new factories in Turkey (Menemen) and the United States (Fernley), development of new products and a further improvement of the productivity of our operational processes.
The net financial debt at 31 December 2016 amounted to € 88.4 million against € 92.1 million at 31 December 2015, implying that investments have been financed by operating cash flow, the sale of the US decking business and the extension of supplier terms in Turkey.
Assuming no material macro-economic disturbance in our key regions, growth is expected to continue throughout 2017 on the back of innovative product launches and superior quality and service, and supported by further efficiency gains. We however closely monitor the recent evolution of currencies and raw material prices as well as the increased level of uncertainty in some of our end markets.
| 23 | February | 2017 | 2016 Annual results |
|---|---|---|---|
| 25 | April | 2017 | Annual Shareholders Meeting at 4 pm |
| 24 | August | 2017 | H1 2017 results |
End of press release
Founded in 1937, Deceuninck is a top 3 independent manufacturer of PVC and composite profiles for windows and doors, outdoor living, roofline & cladding and interior applications.
Headquartered in Hooglede-Gits (BE), Deceuninck is organised in 4 geographical segments: Western Europe, Central & Eastern Europe, North America and Turkey & Emerging Markets.
Deceuninck operates 15 vertically integrated manufacturing facilities, which together with 21 warehousing and distribution facilities guarantee the necessary service and response time to Customers. Deceuninck strongly focuses on innovation, ecology, design.
Contact Deceuninck: Bert Castel • T +32 51 239 204 • M +32 474 212 414 • [email protected]
| Sales 2016 | People | Customers | Countries | Logistic centres |
|---|---|---|---|---|
| € 670.9 million | 3,700 | >4,000 | 91 | 21 |
Press release
Regulated information – 2016 results_E www.deceuninck.com
| For the 12 month period ended 31 December (in € thousand) |
2015 | 2016 |
|---|---|---|
| Sales | 644,524 | 670,880 |
| Cost of goods sold | (462,522) | (466,150) |
| Gross profit | 182,002 | 204,730 |
| Marketing, sales and distribution expenses | (104,465) | (113,122) |
| Research and development expenses | (7,643) | (8,034) |
| Administrative and general expenses | (40,818) | (45,875) |
| Other net operating result | (2,127) | (1,576) |
| Operating profit before gain from bargain purchase | 26,949 | 36,123 |
| Gain from bargain purchase | (96) | |
| Operating profit (EBIT) | 26,853 | 36,123 |
| Financial charges | (17,473) | (38,956) |
| Financial income | 7,483 | 25,059 |
| Profit before taxes (EBT) | 16,864 | 22,226 |
| Income taxes | (3,522) | (1,272) |
| Net profit | 13,341 | 20,954 |
| The net profit is attributable to: | ||
|---|---|---|
| Shareholders of the parent company | 13,582 | 20,795 |
| Non-controlling interests | (241) | 159 |
| Earnings per share distributable to the shareholders of the parent company (in €): |
||||
|---|---|---|---|---|
| Normal earnings per share | 0.10 | 0.15 | ||
| Diluted earnings per share | 0.10 | 0.15 |
| (in € thousand) | 31 December 2015 |
31 December 2016 |
|---|---|---|
| Assets | ||
| Non-current assets | 255,066 | 291,481 |
| Inventories | 95,454 | 98,963 |
| Trade receivables | 121,484 | 113,773 |
| Other receivables | 16,424 | 20,580 |
| Cash and cash equivalents | 70,720 | 72,425 |
| Fixed assets held for sale | 3,473 | 3,829 |
| Current assets | 307,553 | 309,570 |
| Total assets | 562,620 | 601,051 |
| Equity and liabilities | ||
| Equity including non-controlling interest | 269,252 | 275,039 |
| Interest-bearing loans | 143,486 | 129,206 |
| Long-term provisions | 25,119 | 28,439 |
| Deferred tax liabilities | 4,529 | 2,277 |
| Non-current liabilities | 173,134 | 159,922 |
| Interest-bearing loans | 19,324 | 31,640 |
| Trade payables | 74,070 | 101,593 |
| Tax liabilities | 6,933 | 9,721 |
| Employee related liabilities | 12,434 | 15,456 |
| Short-term provisions | 1,127 | 1,321 |
| Other liabilities | 6,345 | 6,359 |
| Current liabilities | 120,233 | 166,090 |
| Total equity and liabilities | 562,620 | 601,051 |
| Total net debt | 92,091 | 88,421 |
| For the 12 month period ended in 31 December (in € thousand) | 2015 | 2016 |
|---|---|---|
| Operating activities | ||
| Cash flow from operating activities before movements in | ||
| working capital and provisions | 53,596 | 70,892 |
| Decrease / (increase) in trade receivables | (14,147) | (7,523) |
| Decrease / (increase) in inventories | (2,277) | (7,507) |
| Increase / (decrease) in trade payables | (7,552) | 36,310 |
| Decrease / (increase) in other non-current assets | 12 | (1,677) |
| Decrease / (increase) in other current assets/liabilities | (5,145) | (4,183) |
| Increase / (decrease) in other non-current liabilities | (364) | 406 |
| Cash flow generated from operating activities | 24,123 | 86,718 |
| Interest received | 1,735 | 1,294 |
| Income taxes paid (-) / received (+) | (3,545) | (1,142) |
| Cash flow from operating activities | 22,313 | 86,870 |
| Investing activities | ||
| Cash receipts on sale of tangible fixed assets | 5,297 | 6,647 |
| Purchases of tangible fixed assets | (37,839) | (78,791) |
| Purchases of intangible fixed assets | (906) | (639) |
| Cash flow from investing activities | (33,448) | (72,783) |
| Financing activities | ||
| Capital increase | 1,195 | 415 |
| New (+) / repayments (-) of long-term debts | 108,791 | (8,571) |
| New (+) / repayments (-) of short-term debts | (40,583) | 11,955 |
| Interests paid | (7,664) | (8,873) |
| Dividends paid | (2,679) | (3,371) |
| Other financial items | (4,375) | (474) |
| Cash flow from financing activities | 54,685 | (8,917) |
| Net increase (+) / decrease (-) in cash and cash equivalents | 43,551 | 5,170 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.