Sabaf

Earnings Release • Feb 11, 2016

Informazione Regolamentata n. 0226-20-2016		Data/Ora Ricezione 11 Febbraio 2016 12:39:50	MTA - Star
Societa'	:	SABAF
Identificativo Informazione Regolamentata	:	69393
Nome utilizzatore	:	SABAFN03 - Beschi
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	11 Febbraio 2016 12:39:50
Data/Ora Inizio Diffusione presunta	:	11 Febbraio 2016 12:54:51
Oggetto	:	Fourth-quarter 2015 results approved
Testo del comunicato

Vedi allegato.

Press release Ospitaletto (BS), 11 February 2016

SABAF: FOURTH-QUARTER 2015 RESULTS APPROVED

• Revenue for 4Q 2015 €33.4 million (-2.7%); EBITDA €5.7 million (-6.6%); EBIT €2.6 million (+2.7%); net profit €1.3 million (-39.8%)
• Revenues for FY 2015 €138 million (+1.2%); EBITDA €26.2 million (+0.8%); EBIT €14.1 million (+7%); net profit €9 million (+7.9%)
• Proposed dividend of €0.48 per share (dividend of €0.40 paid in 2015) *****************************************************************************

The Board of Directors of Sabaf S.p.A. met today in Ospitaletto to approve the Interim Management Statement for the fourth quarter of 2015.

Consolidated results for 4Q15

In 4Q 2015, the Sabaf Group booked sales revenue of €33.4 million, a decrease of 2.7% compared with the figure of €34.4 million registered in 4Q 2014. Sales fell over the period on European markets, particularly in Eastern Europe. Conversely, all markets outside Europe registered positive growth rates.

With average sales prices down approximately 0.6% and higher commodity prices, which had an impact amounting to 0.5% of revenues, the Group benefited from a positive exchange rate effect equal to 0.8% of sales.

EBITDA for 4Q 2015 amounted to €5.7 million, with a 16.9% margin on sales, down by 6.6% versus €6.1 million (17.6% margin on sales) in 4Q 2014. EBIT was €2.6 million, equivalent to 7.7% of sales, and 2.7% higher than the €2.5 million of the same quarter in 2014 (7.3% of sales). Pre-tax profit, which was affected by the booking of negative exchange rate differences of €0.5 million, was €2 million, a fall of 8.5% from the figure of €2.2 million in 4Q 2014. Net profit for the period came in at €1.3 million, down 39.8% compared with €2.1 million in 4Q 2014 (when positive non-recurring items of €0.9 million were recorded under income taxes).

Consolidated results for full-year 2015

Revenues for full-year 2015 came in at €138 million, up 1.2% compared with €136.3 million in 2014. Gross profitability remained broadly unchanged: EBITDA was €26.2 million (with a 19% margin on sales, up 0.8%), while EBIT registered a more significant improvement, coming in at €14.1 million (with a 10.2% margin on sales, an increase of 7% compared with €13.2 million in 2014). Finally, net profit was €9 million (6.5% of sales, +7.9% compared with 2014).

Equity and cash flow

Quarter investments totalled €2.5 million, bringing total investments for the year to €12.1 million (€11.5 million in FY 2014).

At 31 December 2015, net financial debt was €25.9 million, compared with €25.6 million at 30 September 2015 and €26.9 million at 31 December 2014.

Outlook

2016 got off to a highly uncertain start, owing to political, economic and financial tensions that affect the main markets on which Sabaf operates. Sales in the first quarter are expected to fall compared with 2015, which was marked by a highly positive start.

However, agreements reached with some of our leading customers for 2016 point to an increase in our supply share, and the launch of supply for significant new projects. If the macroeconomic environment stabilises, the Group therefore believes it will be able to improve sales and profitability in the full year compared with 2015. If the economic situation were to change significantly, actual figures might diverge from forecasts.

The directors plan to offer the shareholders a dividend of €0.48 per share, versus a dividend paid of €0.40 per share in 2015.

*****************************************************************************

Today at 3 p.m. CET there will be a conference call to illustrate the results of the fourth quarter and FY 2015 to financial analysts and institutional investors (please call the number +39 02-8058811).

The Interim Management Statement for 4Q 2015, which has not been independently audited, is available in the Investor Relations section of the website www.sabaf.it.

Pursuant to Article 154-bis, paragraph 2 of the Italian Consolidated Finance Act (Testo Unico della Finanza), the company's Financial Reporting Officer Gianluca Beschi declares that the financial disclosure contained in this press release corresponds to the company's records, books and accounting entries. The consolidated financial statements are attached.

For more information:

Investor Relations	Press Office
Gianluca Beschi	Power Emprise - tel. +39 02 39400100
tel. +39 030 6843236	Cosimo Pastore - +39 335 213305
gianluca.beschi@sabaf.it	cosimopastore@poweremprise.com
www.sabaf.it	Sara Pavesi - +39 340 6486083
	sarapavesi@poweremprise.com
	Erminia Cannistrà - +39 340 8684279
	erminiacannistra@poweremprise.com

Founded in the early 1950s, SABAF has grown consistently over the years to become the key manufacturer in Italy – and one of the leading in the world – of components for kitchens and domestic gas cooking appliances.

There are four main production lines: valves, thermostats and burners for gas cooking appliances and hinges for ovens, washing machines and dishwashers.

Technological expertise, manufacturing flexibility, and the ability to offer a vast range of components – tailor-made to meet the requirements of individual manufacturers of cookers and built-in hobs and ovens and in line with the specific characteristics of its core markets – are Sabaf's key strengths in a sector featuring major specialisation, constantly evolving demand and an ever-increasing orientation towards products assuring total reliability and safety.

The Sabaf Group has more than 700 employees. It operates through its direct parent company Sabaf S.p.A. and the subsidiaries Faringosi Hinges (leader in the production of oven and dishwasher hinges), and Sabaf do Brasil and Sabaf Turkey, which are active in production of burners for the South American and Turkish markets.

Consolidated statement of financial position

(€'000)	31.12.2015	30.09.2015	31.12.2014
ASSETS
NON-CURRENT ASSETS
Tangible assets (property, plant, and equipment)	73,037	73,320	74,483
Real estate investment	6,712	6,822	7,228
Intangible assets	7,525	7,524	7,359
Investments	204	204	974
Non-current receivables	432	239	529
Deferred tax assets	4,887	5,409	5,579
Total non-current assets	92,797	93,518	96,152
CURRENT ASSETS
Inventories	31,009	31,911	30,774
Trade receivables	40,425	38,530	40,521
Tax receivables	2,489	2,438	2,390
Other current receivables	1,447	1,576	1,095
Current financial assets	69	0	0
Cash and cash equivalents	3,991	5,686	2,958
Total current assets	79,430	80,141	77,738
ASSETS HELD FOR SALE	0	0	0
TOTAL ASSETS	172,227	173,659	173,890
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital	11,533	11,533	11,533
Retained earnings, other reserves	90,509	89,329	90,867
Net profit for the period	8,998	7,747	8,338
Total equity interest of the Parent Company	111,040 0	108,609 0	110,738 0
Minority interests Total shareholders' equity	111,040	108,609	110,738
NON-CURRENT LIABILITIES
Loans	6,388	7,575	10,173
Post-employment benefit and retirement
reserves	2,914	2,968	3,028
Reserves for risks and contingencies	395	510	605
Deferred tax	772	740	692
Total non-current liabilities	10,469	11,793	14,498
CURRENT LIABILITIES
Loans	23,480	23,750	19,613
Other financial liabilities	31	7	105
Trade payables	19,450	19,564	19,328
Tax payables	1,219	2,294	2,453
Other liabilities	6,538	7,642	7,155
Total current liabilities	50,718	53,257	48,654
LIABILITIES HELD FOR SALE
	0	0	0
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY	172,227	173,659	173,890

Consolidated income statement

	Q4 2015		Q4 2014		12M 2015		12M 2014
(€'000)
CONTINUING OPERATIONS
OPERATING REVENUE AND INCOME
Revenues	33,434	100.0%	34,371	100.0%	138,003	100.0%	136,337	100.0%
Other income	906	2.7%	895	2.6%	3,758	2.7%	3,748	2.7%
Total operating revenue and
income	34,340	102.7%	35,266	102.6%	141,761	102.7%	140,085	102.7%
OPERATING COSTS
Materials	(13,057)	-39.1%	(11,778)	-34.3%	(54,366)	-39.4%	(54,472)	-40.0%
Change in inventories	(1,057)	-3.2%	(2,483)	-7.2%	1,025	0.7%	2,447	1.8%
Services	(6,871)	-20.6%	(7,244)	-21.1%	(29,759)	-21.6%	(29,875)	-21.9%
Payroll costs	(7,911)	-23.7%	(7,765)	-22.6%	(32,526)	-23.6%	(32,180)	-23.6%
Other operating costs	(77)	-0.2%	(180)	-0.5%	(1,193)	-0.9%	(1,042)	-0.8%
Costs for capitalised in-house work	292	0.9%	243	0.7%	1,230	0.9%	989	0.7%
Total operating costs	(28,681)	-85.8%	(29,207)	-85.0%	(115,589)		-83.8% (114,133)	-83.7%
OPERATING PROFIT BEFORE DEPRECIATION & AMORTISATION, CAPITAL GAINS/LOSSES, AND WRITE DOWNS/WRITE-BACKS OF NON
CURRENT ASSETS (EBITDA)	5,659	16.9%	6,059	17.6%	26,172	19.0%	25,952	19.0%
Depreciation & amortisation	(3,124)	-9.3%	(3,001)	-8.7%	(12,185)	-8.8%	(12,292)	-9.0%
Capital gains/(losses) on disposals of non-current assets	45	0.1%	1	0.0%	104	0.1%	63	0.0%
Write-downs/write-backs of non
current assets	0	0.0%	(548)	-1.6%	0	0.0%	(548)	-0.4%
OPERATING PROFIT (EBIT)	2,580	7.7%	2,511	7.3%	14,091	10.2%	13,175	9.7%
Financial income	23	0.1%	12	0.0%	67	0.0%	61	0.0%
Financial expense	(134)	-0.4%	(130)	-0.4%	(596)	-0.4%	(592)	-0.4%
Exchange rate gains and losses	(489)	-1.5%	(11)	0.0%	(89)	-0.1%	119	0.1%
Profits and losses from equity
investments	0	0.0%	(219)	-0.6%	0	0.0%	(606)	-0.4%
PROFIT BEFORE TAXES	1,980	5.9%	2,163	6.3%	13,473	9.8%	12,157	8.9%
Income tax	(729)	-2.2%	(85)	-0.2%	(4,475)	-3.2%	(3,819)	-2.8%
Minority interests	0	0.0%	0	0.0%	0	0.0%	0	0.0%
NET PROFIT FOR THE PERIOD	1,251	3.7%	2,078	6.0%	8,998	6.5%	8,338	6.1%

Consolidated statement of cash flows

(€'000)	Q4 2015	Q4 2014	12M 2015	12M 2014
Cash and cash equivalents at beginning of
period (*)	5,686	2,637	3,675	5,111
Net profit/(loss) for the period	1,251	2,078	8,998	8,338
Adjustments for:
- Depreciation for the period	3,124	3,001	12,185	12,292
- Realised gains/losses	(45)	(1)	(104)	(63)
- Write-downs/write-backs of non-current assets	0	548	0	548
- Profits and losses from equity investments	0	219	0	606
- Financial income and expenses	111	118	529	531
- Income tax	729	85	4,475	3,819
Payment of post-employment benefit reserve	(37)	(3)	(129)	(158)
Change in risk provisions	(115)	61	(210)	(67)
Change in trade receivables	(1,895)	(1,025)	107	(4,079)
Change in inventories	902	2,532	(170)	(2,548)
Change in trade payables	(114)	(650)	(58)	365
Change in net working capital	(1,107)	857	(121)	(6,262)
Change in other receivables and payables,
deferred tax	(304)	116	(72)	210
Payment of taxes	(2,154)	(153)	(5,931)	(2,325)
Payment of financial expenses	(154)	(136)	(556)	(553)
Collection of financial income	23	12	67	61
Cash flow from operations	1,322	6,802	19,131	16,977
Net investments	(2,476)	(4,173)	(12,079)	(11,491)
Repayment of loans	(4,252)	(5,451)	(19,480)	(16,993)
New loans	2,819	14,660	19,488	25,047
Short-term financial assets	(69)	0	(69)	0
Purchase/sale of own shares	(543)	0	(718)	0
Payment of dividends	0	(11,533)	(4,613)	(16,146)
Cash flow from financing activities	(2,045)	(2,324)	(5,392)	(8,092)
Foreign exchange differences	1,504	16	(1,344)	453
Net financial flows for the period	(1,695)	321	316	(2,153)
Cash and cash equivalents at end of period	3,991	2,958	3,991	2,958
Current financial debt	23,511	19,718	23,511	19,718
Non-current financial debt	6,388	10,173	6,388	10,173
Net financial debt	25,908	26,933	25,908	26,933

(*) the balance of cash and cash equivalents at 01/01/2015 differs in the amount of €717,000 from the balance at 31/12/2014 owing to the change in the method of consolidation for Sabaf Appliance Components (Kunshan)

Consolidated net financial position

	(€'000)	31.12.2015	30.09.2015	31.12.2014
A.	Cash	11	15	9
B.	Positive balances of unrestricted bank accounts	3,822	5,376	2,691
C.	Other cash equivalents	158	295	258
D.	Liquidity (A+B+C)	3,991	5,686	2,958
E.	Current bank overdrafts	19,697	19,985	15,890
F.	Current portion of non-current debt	3,783	3,765	3,723
G.	Other current financial payables	31	7	105
H.	Current financial debt (E+F+G)	23,511	23,757	19,718
I.	Current net financial debt (H-D)	19,520	18,071	16,760
J.	Non-current bank payables	4,632	5,782	8,275
K.	Other non-current financial payables	1,756	1,793	1,898
L.	Non-current financial debt (J+K)	6,388	7,575	10,173
M.	Net financial debt (L+I)	25,908	25,646	26,933