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Jacquet Metals — Interim / Quarterly Report 2018
May 4, 2018
1454_10-q_2018-05-04_da3ac748-c59e-4f1f-ad78-61bc2bd703e6.pdf
Interim / Quarterly Report
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First quarter results 2018
May 4, 2018 - 8.00 am CET
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Sales €503 million (+8.1% vs. Q1 2017) > EBITDA €34.5 million (6.9% of sales)
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Net income (group share) €22.4 million
On May 3, 2018 the Board of Directors, chaired by Éric Jacquet, approved the non audited consolidated financial statements for the three months ended March 31, 2018.
| €m Q1 2018 |
Q1 2017 |
|---|---|
| Sales 502.5 |
465.0 |
| Gross margin 126.0 |
121.8 |
| % of sales 25.1% |
26.2% |
| EBITDA 1 34.5 |
31.2 |
| % of sales 6.9% |
6.7% |
| Adjusted operating income 1 29.4 |
26.9 |
| % of sales 5.9% |
5.8% |
| Operating income 33.4 |
27.1 |
| Net income (Group share) 22.4 |
15.3 |
Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
First quarter 2018 sales and earnings
Sales amounted to €502.5 million, an increase of +8.1% compared to 2017, including the following effects:
Volumes sold: +3.5%;
Price: +4.6%. The price effect compared to Q4 2017 was +2.9%.
The gross margin came to €126 million (25.1% of sales) compared to €122 million (26.2% of sales) during the first quarter of 2017. The gross margin rate variation is explained among others by a positive price effect more important in Q1 2017 than in Q1 2018.
Operating charges excluding non recurring items have been controlled and amounted to €96.6 million, compared to €95 million during the first quarter of 2017, an evolution of +1.7% mainly linked to the Group's sales increase.
In this context, EBITDA amounted to €34.5 million (6.9% of sales) compared to €31.2 million in Q1 2017 (6.7% of sales).
Net income (Group share) amounted to €22.4 million (€15.3 million in Q1 2017), after booking a net gain of €2.8 million linked to the disposal of a real estate asset.
Financial position
Operating working capital represents to 23.3% of sales (€415 million of which €444 million of inventory) versus 22% at the end of 2017 (€383 million of which €418 million of inventory).
In this context, Group net debt at March 31, 2018 stood at €192 million, compared to shareholders' equity of €354 million, resulting in a net debt to equity (gearing) ratio of 54% (55.2% at December 31, 2017).
Dividend
The Board of Directors will propose a dividend of €0.70 per share to the General Meeting of Shareholders on June 29, 2018.
Q1 2018 sales by division
| Stainless steel and wear resistant quarto plates |
Stainless steel long products |
Engineering steels | |
|---|---|---|---|
| m€ | Q1 2018 | Q1 2018 | Q1 2018 |
| Sales | 104.1 | 129.2 | 268.4 |
| Change vs 2017 | 6.1% | 2.4% | 11.5% |
| Price effect | -1.5% | -0.5% | 9.4% |
| Volume effect | 7.6% | 2.8% | 2.1% |
| EBITDA1 2 | 7.5 | 7.3 | 17.7 |
| % of sales | 7.2% | 5.7% | 6.6% |
| Adjusted operating income2 | 5.7 | 7.2 | 15.6 |
| % of sales | 5.4% | 5.6% | 5.8% |
1 Non-division activities (including Jacquet Metal Service SA) contributed €2 million to Q1 2018 EBITDA.
2 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
JACQUET – Abraservice spe-
cializes in the distribution of stainless steel and wear-resistant quarto plates. JACQUET and Abraservice have separate sales networks. The division generated 75% of its business in Europe and 18% in North America.
Sales amounted to €104.1 million compared to €98.1 million in Q1 2017, an increase of +6.1% (volume effect +7.6%, price effect -1.5%).
The gross margin amounted to €32.7 million (31.5% of sales), compared to €31.1 million in Q1 2017 (31.7% of sales).
EBITDA amounted to €7.5 million (7.2% of sales) compared to €7.1 million (7.2% of sales) in Q1 2017.
STAPPERT specializes in the distribution of stainless steel long products in Europe. It generates 41% of its sales in Germany, the largest European market.
Sales amounted to €129.2 million compared to €126.2 million in Q1 2017, or an increase of +2.4% (volume effect +2.8%, price effect -0.5%).
The gross margin amounted to €27.8 million (21.5% of sales), compared to €30.5 million in Q1 2017 (24.1% of sales).
EBITDA amounted to €7.3 million (5.7% of sales) compared to €9.7 million (7.7% of sales) in Q1 2017.
IMS group specializes in the distribution of engineering steels, mostly in the form of long products. The division generates 48% of its sales in Germany, the largest European market.
Sales amounted to €268.4 million compared to €240.7 million in Q1 2017, an increase of +11.5% (volume effect +2.1%, price effect +9.4%).
The gross margin amounted to €63.9 million (23.8% of sales), compared to €60 million in Q1 2017 (24.9% of sales).
EBITDA came to €17.7 million (6.6% of sales), compared to €13.9 million (5.8% of sales) in Q1 2017.
Key financial information
Income statement
| €m | Q1 2018 | Q1 2017 |
|---|---|---|
| Sales | 502.5 | 465.0 |
| Gross margin | 126.0 | 121.8 |
| % of sales | 25.1% | 26.2% |
| EBITDA1 | 34.5 | 31.2 |
| % of sales | 6.9% | 6.7% |
| Adjusted operating income1 | 29.4 | 26.9 |
| % of sales | 5.9% | 5.8% |
| Operating income | 33.4 | 27.1 |
| Net income (Group share) | 22.4 | 15.3 |
Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
Cash flow
| €m | Q1 2018 | Q1 2017 |
|---|---|---|
| Operating cash flow before change in working capital | 30.5 | 25.1 |
| Change in working capital | (33.8) | 16.5 |
| Cash flow from operating activities | (3.3) | 41.6 |
| Capital expenditure | (5.3) | (4.1) |
| Asset disposals | 4.1 | 0.5 |
| Dividends paid to shareholders of Jacquet Metal Service SA | — | — |
| Interest paid | (2.2) | (2.6) |
| Other movements | (1.7) | 0.1 |
| Change in net debt | (8.4) | 35.5 |
| Net debt brought forward | 183.1 | 205.3 |
| Net debt carried forward | 191.5 | 169.7 |
Balance sheet
| €m | 31.03.18 | 31.12.17 |
|---|---|---|
| Goodwill | 68.2 | 68.3 |
| Net non-current assets | 155.8 | 156.2 |
| Net inventory | 444.0 | 418.0 |
| Net trade receivables | 249.5 | 189.3 |
| Other assets | 104.1 | 94.0 |
| Cash & cash equivalents | 124.1 | 102.1 |
| Total assets | 1,145.7 | 1,027.9 |
| Shareholders' equity | 354.4 | 331.8 |
| Provisions (including provisions for employee benefit obligations) | 105.6 | 106.5 |
| Trade payables | 278.3 | 224.0 |
| Total borrowings | 320.0 | 289.6 |
| Other liabilities | 87.4 | 76.0 |
| Total equity and liabilities | 1,145.7 | 1,027.9 |
Activity report available: www.jacquetmetalservice.com First half 2018 results: September 5, 2018 after close of trading
Jacquet Metal Service is a European leader in the distribution of specialty steels. The Group operates and develops a portfolio currently comprising four brands: JACQUET (stainless steel quarto plates), STAPPERT (long stainless steel products), Abraservice (wear-resistant quarto plates) and IMS group (engineering steels). With 3,329 employees, Jacquet Metal Service has a network of 110 distribution centers located in 25 countries in Europe, China and North America.
Jacquet Metal Service Thierry Philippe - Group CFO [email protected]
NewCap - Investor relations Julien Perez T : +33 1 44 71 94 94 [email protected]
Compartment B ISIN : FR0000033904 Reuters : JCQ.PA Bloomberg : JCQ FP