Earnings Release • Apr 17, 2020
Earnings Release
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Given the increased uncertainty resulting from the COVID-19 pandemic, we felt it appropriate to provide clarity on our unaudited Q1 2020 results and on our further response to COVID-19 since the 20 March 2020 press release.
First however, we would like to recognize the drive and flexibility of our people around the world. Their safety and well-being remains our number one priority. Where possible, people work from home. Where operations need to continue on site, we strictly follow or even exceed government guidelines. This is challenging for everyone but we are working closely together to support each other through these unprecedented times.
Our Q1 2020 results are strong with revenues growing 5.7% to €153m (vs. €145m in Q1 2019), and adjusted EBITDA nearly doubling to €14m (vs. €7.5m in Q1 2019). This is mainly driven by strong business development in all regions and an improved macro-economic environment in Turkey. As of early March, this was partially offset by a negative COVID-19 impact in Europe. Volumes in other regions remained strong throughout Q1, but started to decline as well since early April.
It remains difficult to quantify the impact and duration of the COVID-19 crisis, as this largely depends on when and how the economic activity will pick up again in our sector. Out of precaution, we have taken immediate action to reduce our cost base and maximize liquidity levels. Production sites in Belgium, France, UK, Croatia, and Russia have been temporarily closed, with most people enrolled in temporary workforce reduction schemes. In the meantime the Belgian and French plants have partly been reopened in order to be able to respond to customer requests. Recently we also decided to reduce our operations in the United States. Unfortunately, this has impacted 230 people, one third of our US workforce.
Furthermore, the Board of Directors, the CEO and senior management agreed to a voluntary reduction of their compensation, and, as communicated on March 20, the Board of Directors will propose to the General Meeting not to pay any dividend over 2019.
We continue to monitor the situation very closely and will take appropriate measures to safeguard the health of our people and the performance of our company.
End of press release
Founded in 1937, Deceuninck is a top 3 independent manufacturer of PVC and composite profiles for windows and doors. Headquartered in Hooglede-Gits (BE), Deceuninck is organized in 3 geographical segments: 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 and design. Deceuninck is listed on Euronext Brussels ("DECB").
Contact Deceuninck: Bert Castel • T +32 51 239 204 • [email protected]
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