PRESS RELEASE
Q4 2017 ADDITIONAL PERIODIC
DISCLOSURE APPROVED
BIGGER AND STRONGER ELICA DELIVERS RECORD REVENUES AND BOOSTS MARGINS IN 2017
ALL 2017 PERFORMANCE OBJECTIVES EXCEEDED
Q4 2017 consolidated financial highlights
• Revenue: Euro 121.6 million, up 2.8%;
• Adjusted EBITDA1: Euro 9.6 million, up 31.0%;
• Adjusted EBIT2: Euro 4.7 million, up 91.3%;
• Profit: Euro 3.9 million, up 143.3%;
2017 preliminary consolidated financial highlights
• Revenue: Euro 479.3 million, up 9.1%;
• Adjusted EBITDA3: Euro 36.8 million, up 13.8%;
• Adjusted EBIT4: Euro 16.3 million, up 19.2%;
• Profit: Euro 1.4 million, up 125.3%;
• Net Financial Position: Euro 69.3 million, increasing on Euro 60.8 million at December 31, 2016, both due to the corporate operations in the third quarter of 2017 and increased capex on the previous year;
• Return On Net Assets (RONA) in 2017 of 8.1%;
2017-2019 Performance Objectives Aligned
Third Cycle of the 2016-2022 Phantom Stock & Voluntary Co-investment Plan launched
Shareholders' Meeting Call
Milan, February 12, 2018 - The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of kitchen range hoods, today approved the additional periodic disclosure for Q4 2017, prepared in accordance with IFRS.
1 See Definitions and Reconciliations
2 See Definitions and Reconciliations
3 See Definitions and Reconciliations
4 See Definitions and Reconciliations
"Elica in 2017 is bigger and stronger than ever, as apparent in the numbers and the business itself. Increased Elica brand sales and market share, growth across all regions and greater than expected value creation, are indicative of an appropriate strategy and one which is paying off. In 2018, we shall impress the market with highly original products which respond to consumer demands or indeed anticipate them. Onwards we go!" stated Francesco Casoli, Chairman of Elica S.p.A..
Consolidated revenue - Q4 2017
In the fourth quarter of 2017, Elica Group consolidated revenue amounted to Euro 121.6 million - an increase of 2.8% on the same period of the previous year and of 6.1% at like-for-like consolidation scope5. Global range hood demand continued to grow (+3.1%) in the fourth quarter of 2017. Demand has been sustained principally by the Asian market (+2.7% in Q4 2017), the development of Eastern European demand - featuring Turkish and Russian market growth - and in Western Europe by growing demand in France. Growth slowed in North America on the first half of the year (+3.5% in Q4 2017), while Latin America in the fourth quarter of 2017 saw a decisive turnaround with growth of 1.6%.
Group revenue growth was driven - again in the fourth quarter - by own brand product sales (up 13.2%6), with the Elica brand performing very strongly and reporting in the fourth quarter of 2017 a 17.8%7 improvement on the same period of 2016. The fourth quarter results also therefore reflect the effective implementation of the Strategic Plan, which throughout 2017 brought dedicated investment and spending.
Analysing revenue by the principal markets8, EMEA9 saw growth of 9.2%, with product sales in Asia up 6.2%, while revenue in the Americas contracted 6.0% due to currency movements.
For completeness, the breakdown of consolidated revenue by geographic location of the Group companies is reported below.
Asia and the Rest ofEurope
Americas
WorldUnallocated items and eliminationsConsolidated
In Euro thousands | Q4 17 | Q4 16 | Q4 17 | Q4 16 | Q4 17 | Q4 16 | Q4 16 | Q4 17 | Q4 16 | |
Segment revenue: | ||||||||||
Third parties | 88,306 | 85,616 | 17,391 | 17,156 | 15,854 | 15,797 | 21 | (287) | 121,572 | 118,283 |
Inter-segment | 3,530 | 3,971 | 9 | 10 | 2,007 | 1,834 | (5,546) | (5,815) | - | - |
Total revenue | 91,836 | 89,587 | 17,401 | 17,167 | 17,860 | 17,630 | (5,525) | (6,101) | 121,572 | 118,283 |
Q4 17
Profitability - Q4 2017
Q4 2017 Adjusted EBITDA10 of Euro 9.6 million (7.9% of Net Revenue) was up 31.0% on Q4 2016, principally as a result of increased sales volumes, which were partly offset by reduced supply chain efficiencies and higher overheads for the expansion of own brand business.
5 The 2016 figures do not include the German subsidiary Gutmann sold on August 28, 2017.
6 The 2016 figures do not include the German subsidiary Gutmann sold on August 28, 2017.
7 The 2016 figures do not include the German subsidiary Gutmann sold on August 28, 2017.
8 The 2016 figures do not include the German subsidiary Gutmann sold on August 28, 2017.
9 Europe, Middle East, Africa and CIS.
10 See Definitions and Reconciliations
Q4 2017 EBITDA totalled Euro 8.9 million, compared to Euro 2.0 million for the same period of 2016 - reflecting the above
dynamics impacting the margin. This growth was impacted also by non-core business charges of Euro 5.4 million in the fourth quarter of 2016, against Euro 0.8 million of non-core business charges in the same period of 2017.
The Adjusted EBIT11 of Euro 4.7 million grew 91.3% on Euro 2.5 million for the same period of 2016.
The Profit of Euro 3.9 million compares to a loss of Euro 9.0 million in Q4 2016, benefitting also from the non-recurring Patent Box tax break for financial years 2015 and 2016 for approx. Euro 1 million.
Q4 2017
% revenue
Q4 2016 -
MTD
% revenue
17 Vs 16 %
Q4 2016
Restated12
% revenue
In Euro thousands
Revenue
Adjusted EBITDA* EBITDA
Adjusted EBIT* EBIT
121,572 9,638 8,854 4,739
7.9%
7.3%
3.9%
118,283 7,359 1,986 2,477
6.2%
2.8% 114,546 31.0% 8,872 7.7%
1.7% 345.8% 3,499 3.1%
2.1%
91.3% 4,415 3.9%
Net financial charges Income taxes
3,955 (1,164)
3.3%
(1.0%)
(5,896) (1,312)
(5.0%)
167.1%
(3,958) (3.5%)
(1.1%)
11.3%
(1,243) (1.1%)
Adjusted Profit/(loss)*
Profit/(loss)
1,101 3,360 3,900
0.9%
(1,789)
(1.5%)
161.5%
2.8%
(2,096)
(1.8%)
260.3%
Profit/(loss) attribut. to the owners of the Parent - Adjusted*
Profit/(loss) attributable to the owners of the Parent
2,540 3,080
3.2% 2.1% 2.5%
(9,011)
(7.6%)
143.3%
n/a n/a n/a
(1,839)
(8,624)
(1.6%) (7.3%)
238.1% 135.7%
n/a n/a
Basic earnings/(loss) per share on continuing operations and discontinued operations (Euro/cents) Diluted earnings/(loss) per share on continuing operations and discontinued operations (Euro/cents)
4.96
(13.90)
135.7%
n/a
4.96
(13.90)
135.7%
n/a
2017 preliminary consolidated revenue
The Elica Group delivered in 2017 record consolidated revenue of Euro 479.3 million, up 9.1% on 2016 and 10.2% at like-for-like consolidation scope13, despite the smaller scope of companies following the disposal of the German subsidiary Exklusiv-Hauben Gutmann.
Consolidated revenue continued to grow across all business areas in 2017, driven particularly by the 32.2%14 increase in Elica brand sales, which were confirmed not only as a driver of revenue but also of global market share. The Motors business grew revenue 12.4%15 in 2017 thanks to development initiatives. Alongside the excellent results delivered by the strategy pursued in 2017 on the basis of the guidelines and the Three-year plan, new opportunities have emerged from the corporate operations supporting the Group's future development.
11 See Definitions and Reconciliations
12 The 2016 figures include the German subsidiary Gutmann until the disposal date.
13 The 2016 figures include the German subsidiary Gutmann until the disposal date.
14 The 2016 figures include the German subsidiary Gutmann until the disposal date.
15 The 2016 figures include the German subsidiary Gutmann until the disposal date.
Analysing revenue from sales on the main markets16, Asian17 revenue grew strongly (+13.9%18), thanks particularly to Indian market growth (+42%). EMEA and Americas sales respectively grew 10.7%19 and 5.5%20.
For completeness, the breakdown of consolidated revenues by geographic location of the Group companies is reported below.
Asia and the Rest ofEurope
Americas
WorldUnallocated items and eliminationsConsolidated
In Euro thousands
2017
2016
2017
2016
2017
2016
2017
2016
2017
2016
Segment revenue:
Third parties
Inter-segment Total revenue
351,088 14,250
322,969 13,634
70,904 65,496
196 23
57,219 6,217
51,098 93
(246)
479,305
6,468
(20,663)
(20,124) -439,318 -
365,338
336,603
71,100 65,519
63,436
57,566
(20,570)
(20,369) 479,305
439,318
Profitability - FY 2017
Adjusted EBITDA21 was Euro 36.8 million (7.7% of Net Revenue), up 13.8% on 2016. The margin benefitted from improved sales volumes and currency movements, partially offset by reduced supply chain efficiency and increased overheads for the own brand business growth and development strategy.
Adjusted EBIT22 was Euro 16.3 million (3.4% of Net Revenue), up 19.2% on 2016 and in line with the dynamics reported above impacting the business margin.
EBIT of Euro 14.0 million, although impacted for Euro 2.0 million by restructuring charges and for Euro 0.3 million by costs for the disposal of the German subsidiary Exklusiv Hauben Gutmann GmbH, significantly improved on Euro 3.6 million in 2016. This increase was however considerably impacted by Euro 10.1 million of non-core business charges in 2016.
The 2017 preliminary Profit of Euro 1.4 million compared to a loss of Euro 5.5 million in the previous year, impacted by - in addition to that outlined above - Euro 3.9 million of non-recurring charges in 2017 from the sale of the German subsidiary Exklusiv Hauben Gutmann GmbH, while benefitting from the non-recurring impact of the Patent Box tax breaks for 2015 and 2016 recognised for approx. Euro 1 million.
2017
% revenue
2016
% revenue
17 Vs 16 %
2016 Restated23
% revenue
In Euro thousands
Revenue
Adjusted EBITDA* EBITDA
479,305 36,840 34,521
7.7% 7.2%
439,318 32,370 25,229
9.1% 434,775 7.4% 13.8% 34,488 7.9% 5.7% 36.8% 27,347 6.3%
16 Data concerns sales revenue by geographic area and therefore does not refer to the breakdown by operating segment according to the various Group company locations.
17 Europe, Middle East, Africa and CIS.
18 The 2016 figures include the German subsidiary Gutmann until the disposal date.
19The 2016 figures include the German subsidiary Gutmann until the disposal date.
20 The 2016 figures include the German subsidiary Gutmann until the disposal date.
21 See Definitions and Reconciliations.
22 See Definitions and Reconciliations.
23The 2016 figures include the German subsidiary Gutmann until the disposal date.
Adjusted EBIT* EBIT
Net financial charges
Charges from subsidiary disposal Income taxes
16,324 14,005 (5,242) (3,908) (3,463)
3.4% 2.9%
13,694 3,553
3.1% 0.8%
19.2% 294.2%
16,366 3.8%
6,225 1.4%
(1.1%) (3,655)
(0.8%) (43.4%)
(3,538) (0.8%)
(0.8%)
0
0.0% (100.0%)
n.m.
(0.7%) (5,398)
(1.2%)
Adjusted Profit * Profit
5,919 1,392
1.2% 3,183
0.3% (5,500)
0.7% (1.3%)
Profit attribut. to the owners of the Parent - Adjusted*
4,693
1.0% 2,990
0.7%
Profit/(loss) attributable to the owners of the Parent
166
0.0%
(5,563)
(1.3%)
35.9% 86.0% 125.3% 57.0% 103.0%
n.m. n.m. n.m.
n.m.
n.m.
Basic earnings/(loss) per share on continuing operations and discontinued operations (Euro/cents)
0.27
(8.97)
103.0%
n.m.
Diluted earnings/(loss) per share on continuing operations and discontinued operations (Euro/cents)
0.27
(8.97)
103.0%
n.m.
Statement of Financial Position
The Net Financial Position at December 31, 2017 was Euro 69.3 million, increasing on Euro 60.8 million at December 31, 2016, both due to the corporate operations completed in the third quarter of 2017 requiring cash of Euro 3.5 million and the increased absorption of resources related to business growth ahead of expectations.
Dec 31, 2017 | Dec 31, 2016 | 31/12/2016 | |
In Euro thousands | Restated24 | ||
Cash and cash equivalents | 34,873 | 31,998 | 30,771 |
Finance leases and other lenders | 0 | (21) | (18) |
Bank loans and borrowings | (57,040) | (59,004) | (59,004) |
Current loans and borrowings | (57,040) | (59,025) | (59,022) |
Finance leases and other lenders | (33) | (6) | 0 |
Bank loans and borrowings | (47,121) | (33,718) | (33,718) |
Non-current loans and borrowings | (47,154) | (33,724) | (33,718) |
Net Financial Position | (69,321) | (60,751) | (61,969) |
Managerial Working Capital on annualised revenue of 6.0% increased on 5.3% at December 31, 2016 due to the absorption of resources in support of business growth.
Dec 31, 2017
Dec 31, 2016
In Euro thousands
31/12/2016 Restated25
Trade receivables Inventories Trade payables
75,923 73,298
70,561 72,573
67,732 64,251
(120,541)
(114,831)
(113,060)
24The 2016 figures include the German subsidiary Gutmann until the disposal date. 25The 2016 figures include the German subsidiary Gutmann until the disposal date.
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Elica S.p.A. published this content on 02 December 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 01 December 2018 04:06:02 UTC