BEFESA S.A.
DGAP-News: Befesa S.A. / Key word(s): Half Year Results Befesa continues earnings growth in Q2 2018 in line with annual guidance
Luxembourg, 30 August 2018 - Befesa S.A. ("Befesa"), the European market leader for steel dust and aluminium salt slags recycling services, achieved another quarter of YoY earnings growth and continued delivery of growth targets. The main drivers behind this earnings growth were the increased volume of steel dust treated, largely originating from Befesa's South Korean operations, alongside favourable average zinc and aluminium alloy prices during Q2. Revenues in Q2 2018 decreased by 7.3% to EUR187.0m compared to the same period in 2017. This decrease was due to accounting amendments implemented January 1, 2018, decreasing revenue by EUR29m. Adjusted EBITDA grew by 6.8% to EUR44.3m and adjusted EBIT grew by 7.9% to EUR37.0m compared to Q2 2017. Accordingly, Befesa's Q2 2018 adjusted EBITDA margin increased to 23.7%, up 3.1 percentage points and adjusted EBIT margin grew to 19.8%, up 2.8 percentage points compared to the same period in 2017. Overall revenues for H1 2018 were up by 2.1% to EUR382.4m compared to H1 2017.Adjusted EBITDA grew 6.9% to EUR88.9m and adjusted EBIT rose 7.5% to EUR74.3m compared to the first half of 2017. Correspondingly, margins also improved over last year, with adjusted EBITDA margin and EBIT margin both increasing by 1.0 percentage point to 23.2% and 19.4% respectively. In Q2 2018, net profit increased by 101% to EUR24.8m, bringing earnings per share (EPS) to EUR0.68 in the quarter. For H1, cumulated net income increased by 55.4% to EUR44.8m representing H1 2018 EPS of EUR1.32. This was largely driven by a decrease in financial expenses by approximately 60% under the new capital structure in place since December 7, 2017. Operating cash flow in Q2 2018 was EUR26.8m and cash on hand at the end of the quarter amounted to EUR104.4m after having distributed the annual dividend for 2017 of EUR0.73 per share or EUR25m during the quarter. Javier Molina, CEO of Befesa, commented: "Despite the challenging macro-economic market dynamics that we are seeing recently in many areas of the markets where we operate, we have delivered another strong quarter of earnings growth, with steel dust volumes increasing according to our expectations. The H1 2018 results are in line with the guidance we provided at the beginning of the year of single digit earnings growth and we are focusing on our organic growth initiatives. With our efficient capital structure and financial expenses reduced to less than half, full year 2018 Net Income and EPS will be significantly higher compared to 2017."
About Befesa Media Relations
30.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Language: | English |
| Company: | Befesa S.A. |
| 46 Boulevard Grande-Duchesse Charlotte | |
| 1330 Luxembourg | |
| Luxemburg | |
| E-mail: | irbefesa@befesa.com |
| Internet: | www.befesa.com |
| ISIN: | LU1704650164 |
| WKN: | A2H5Z1 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; London |
| End of News | DGAP News Service |
718943 30.08.2018
