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Gabriel Holding Earnings Release 2020

Apr 20, 2020

3400_rns_2020-04-20_324ae61f-d18f-4ba7-be8c-48a11261a9e6.pdf

Earnings Release

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Announcement no. 3/2020

Date: 20 April 2020

Gabriel

COMPANY ANNOUNCEMENT AND PRESS RELEASE

Gabriel Holding A/S

Gabriel Holding A/S realises a solid first half of the 2019/20 financial year but the outbreak of coronavirus (Covid-19) has an adverse effect on market conditions for the company. As a result, the expectations for the 2019/20 financial year are updated.

On 20 March 2020, Gabriel Holding A/S temporarily suspended its financial expectations for the 2019/20 financial year.

In accordance with the Group's financial calendar, the financial statements for the first half of the year (1 October 2019 to 31 March 2020) will be published on 30 April 2020. The interim report will be published in its entirety on that date, but a summary for the period and an update on financial expectations are published below.

Summary

  • Revenue increased by DKK 74.2 million (22%) to DKK 418.0 million (DKK 343.7 million)
  • The increase in the second quarter was 20% to DKK 213.6 million (DKK 178.4 million)
  • Operating profit (EBIT) increased by 10% to DKK 39.7 million (DKK 36.0 million)
  • The increase in the second quarter was 18% to DKK 22.6 million (DKK 19.2 million)
  • Net finance income and costs in the half-year was DKK -4.9 million (DKK -0.7 million), primarily as a result of increased drawing on credit facilities, currency movement in the period and the effect of IFRS 16
  • Profit before tax increased to DKK 36.7 million (DKK 36.4 million)
  • In the second quarter, profit before tax increased by 8% to DKK 21.1 million (DKK 19.6 million)
  • Return on invested capital was 19.9% (24.9%)
  • Operating margin was 9.5% (10.5%).

Expectations for the 2019/20 financial year:

  • Revenue and earnings realised for the first half-year are in line with management's expectations.
  • As a result of the outbreak of coronavirus (Covid-19), however, prospects for continued growth in the coming months have deteriorated significantly.

Gabriel Holding A/S
Hjulmagervej 55
9000 Aalborg, Denmark
Company registration no. 58868728
Phone: +45 9630 3100
Contact: Anders Hedegaard Petersen, CEO


Announcement no. 3/2020

Date: 20 April 2020

Gabriel

The outbreak will have an adverse effect on market conditions for the company and visibility on the market is very limited at present. This makes it difficult to determine valid expectations for revenue and profit for the full 2019/20 financial year, and a high level of uncertainty is thus associated with them.

  • A moderately adverse market effect is expected throughout the second half-year. On that basis, the company's expectations for the full financial year are revenue of DKK 670-690 million (DKK 708 million) and profit before tax of DKK 10-15 million (DKK 69.3 million).

  • The expectations for the second half-year are thus a 25-30% decrease in revenue and a loss before tax of DKK 22-27 million.

GROUP
Financial highlights, DKK million 2019/20
H1 2018/19
H1 2019/20
Q2 2018/19
Q2 2018/19
Full year
Net revenue 418.0 343.7 213.6 178.4 708.2
Operating profit (EBIT) 39.7 36.0 22.6 19.2 61.9
Share of profit after tax in joint venture 1.9 1.1 0.6 0.4 2.3
Net finance income and costs -4.9 -0.7 -2.1 - -1.3
Profit before tax 36.7 36.4 21.1 19.6 62.9
Tax -8.1 -8.1 -4.1 -4.5 -13.9
Profit for the period 28.6 28.4 17.0 15.2 49.0
Statement of financial position total 688.4 503.2 562.3
Equity 290.6 261.7 281.2
Invested capital 490.0 310.0 349.1
Working capital 193.8 144.5 166.3
Cash flows from operating activities 14.9 18.4 5.7 12.1 43.8
Investments in property, plant and equipment 4.6 10.9 1.2 4.6 25.2
Depreciation, amortisation and impairment losses 17.7 8.8 5.8 5.8 19.2
Financial ratios:
Gross margin, % 37.3 41.2 37.6 41.4 40.1
Operating margin (EBIT margin), % 9.5 10.5 10.6 10.8 8.7
Return on invested capital (ROIC) before tax, % 19.9 24.9 22.6 26.6 22.7
Earnings per share (EPS), DKK 30.3 30.0 35.9 32.1 25.9
Return on equity, % 20.7 23.2 24.6 24.8 18.5
Price earnings (PE), DKK 23.7 19.4 20.0 18.1 27.5
Number of employees (average over the period) 1,156 689 1,190 761 855
- including production staff 837 434 870 419 645

Gabriel Holding A/S

Hjulmagervej 55

9000 Aalborg, Denmark

Company registration no. 58868728

Phone: +45 9630 3100

Contact: Anders Hedegaard Petersen, CEO