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Tessenderlo Group nv — Earnings Release 2017
Apr 27, 2017
4010_10-q_2017-04-27_3f4d0415-957f-4e4c-a70e-f9364a007d90.pdf
Earnings Release
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Brussels, April 27, 2017 8:00 am CET
Regulated information1
Press release
Tessenderlo Group first quarter 2017 trading update
Key Events
Construction works on the new Thio-Sul® plants in East Dubuque (US) and Rouen (France), and the new electrolysis plant in Loos (France) are on schedule. The completion date for the construction of the three plants is expected to be in the second half of 2017.
1Q17 REBITDA improved by 6.9 million EUR compared to the same period in 2016, thanks to the performance of the Bio-valorization operating segment.
| Million EUR | 1Q17 | 1Q16 | % Change |
|---|---|---|---|
| Revenue Group | 447.2 | 410.9 | 8.8% |
| - Other revenue included in revenue Group2 | -15.9 | -9.1 | |
| Revenue | 431.3 | 401.8 | 7.3% |
| REBITDA Group | 56.2 | 47.9 | 17.4% |
| - Other REBITDA included in REBITDA Group² | -1.4 | 0.1 | |
| REBITDA | 54.8 | 47.9 | 14.4% |
| Net debt | 110.4 | 175.7 |
Revenue
1Q17 revenue increased by 7.3% (or by 6.9% when excluding the foreign exchange effect) compared to the same period last year. Revenue, excluding foreign exchange effect, increased within Biovalorization (14.9%) and Industrial Solutions (10.3%), partially offset by a minor decrease within Agro (-1.6%).
REBITDA
The REBITDA in 1Q17 amounts to 54.8 million EUR, compared to 47.9 million EUR one year earlier (an increase by 14.4% or by 12.2% when excluding the foreign exchange effect). A net reversal of inventory write-offs following accounting estimates concerning inventory obsolescence amounted to +1.7 million EUR in 1Q17, while a net write-off of -4.2 million EUR was recognized in 1Q16 (mainly impacting the segment Bio-valorization for both periods).
The REBITDA increase could be mainly realized within the operating segment Bio-valorization. The REBITDA of the segments Agro and Industrial Solutions slightly decreased year-on-year, when excluding the foreign exchange impact.
1 The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.
2 The line "Other" refers to engineering and construction activities of the subsidiary Tessenderlo Kerley Services Inc., for the joint venture Jupiter Sulphur LLC, which were reported previously within the Agro segment.
Net financial debt
At the end of the first quarter of 2017, group net financial debt amounts to 110.4 million EUR, resulting in a leverage of 0.5x. Net financial debt as per year-end 2016 amounted to 136.6 million EUR. The decrease of debt in the first quarter of 2017 can be explained by the cash flow from operations, partially offset by the 1Q17 capital expenditure. The first quarter capital expenditure amounts to 20.6 million EUR (1Q16: 18.0 million EUR).
Outlook
Tessenderlo Group confirms its previous forecast to realize a single digit growth of the 2017 REBITDA compared to the REBITDA of 198.0 million EUR in 2016, despite the current lack of visibility in the different end markets for the remainder of the year.
The group wishes to emphasize that it currently operates in a volatile political, economic and financial environment.
| Financial calendar | |
|---|---|
| Annual General Meeting and Extraordinary General Meeting of Shareholders Half year 2017 results |
June 6, 2017 August 23, 2017 |
| Third quarter 2017 trading update | October 26, 2017 |
Agenda for April 27, 2017
3 pm CET/2 pm UK - conference call and webcast for analysts and investors. Registration details are available at www.tessenderlo.com.
Tessenderlo Group is a diversified industrial group that focuses on agriculture, valorizing bio-residuals and providing industrial solutions. The group employs about 4,900 people and is a leader in most of its markets, with a consolidated revenue of 1.6 billion EUR in 2016. Tessenderlo Chemie nv is listed on Euronext Brussels and is part of Next 150 and BEL Mid indices. Financial News wires: Bloomberg: TESB BB – Reuters: TESB.BR – Datastream: B:Tes
Media Relations Investor Relations Frederic Dryhoel Kurt Dejonckheere +32 2 639 19 85 +32 2 639 18 41
[email protected] [email protected]
This press release is available in Dutch and English on the corporate website www.tessenderlo.com - under 'News & Media'
Disclaimer
This document may contain forward-looking statements. Such statements reflect the views of management regarding future events at the date of this document. Furthermore, they involve known and unknown risks, uncertainties and other factors that may cause actual results to be different from any results, performance or achievements expressed or implied by such forward-looking statements. Tessenderlo Group provides the information in this press release as at the date of publication and, subject to applicable legislation, does not undertake any obligation to update, clarify or correct any forward-looking statements contained in this press release in light of new information, future events or otherwise. Tessenderlo Group disclaims any liability for statements made or published by third parties (including any employees who are not explicitly mandated by Tessenderlo Group) and, subject to applicable legislation, does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other press release it issues.