BELYSSE GROUP NV LSF9 BALTA ISSUER S.à r.l.
Senior Secured Notes due 2024
Period ended June 30, 2022
Registered office:
15, Boulevard Friedrich Wilhelm Raiffeisen
L-2411 Luxembourg
R.C.S. Luxembourg: B 198084
Q2 2022
QUARTERLY REPORT
Table of Contents | ||
3.2. | EUROPE.............................................................................................................................................................. | 6 | |
3.3. | UNITED STATES .................................................................................................................................................. | 6 | |
4. OTHER FINANCIAL ITEMS REVIEW.......................................................................................................................... | 7 | ||
4.1. INTEGRATION AND RESTRUCTURING EXPENSES FOR CONTINUING OPERATIONS .............................................. | 7 | ||
4.2. NET FINANCING EXPENSES FOR CONTINUING OPERATIONS............................................................................... | 7 | ||
4.3. TAXATION FOR CONTINUING OPERATIONS........................................................................................................ | 7 | ||
4.4. EARNINGS PER SHARE FOR CONTINUING OPERATIONS...................................................................................... | 7 | ||
4.5. EARNINGS PER SHARE FOR DISCONTINUED OPERATIONS .................................................................................. | 7 | ||
4.6. CASHFLOW AND NET DEBT................................................................................................................................. | 7 | ||
5. | RISK FACTORS ........................................................................................................................................................ | 7 | |
6. CONSOLIDATED INTERIM FINANCIAL STATEMENTS................................................................................................ | 8 | ||
6.1. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME .............................................................................. | 8 | ||
6.2. CONSOLIDATED STATEMENT OF FINANCIAL POSITION....................................................................................... | 9 | ||
6.3. CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................. | 10 | ||
6.4. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY...................................................................................... | 11 | ||
6.5. | DISCONTINUED OPERATIONS ........................................................................................................................... | 12 | |
6.6. SELECTED EXPLANATORY NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS ..... | 14 | ||
6.6.1. | SIGNIFICANT ACCOUNTING POLICIES............................................................................................................ | 14 | |
6.6.2. | SEGMENT REPORTING .................................................................................................................................. | 15 | |
6.6.3. INTEGRATION AND RESTRUCTURING EXPENSES........................................................................................... | 16 | ||
6.6.4. | GOODWILL ................................................................................................................................................... | 16 | |
6.6.5. | NET DEBT RECONCILIATION .......................................................................................................................... | 16 | |
6.6.6. | RELATED PARTY TRANSACTIONS .................................................................................................................. | 16 | |
6.6.7. | COMMITMENTS............................................................................................................................................ | 17 | |
6.6.8. EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE................................................................... | 17 | ||
7. | GLOSSARY: ALTERNATIVE PERFORMANCE MEASURES ......................................................................................... | 18 |
2
1. Key Figures
(€ thousands) | H1 2022 | H1 2021 (1) |
Results from continuing operations | ||
Revenue | 164,181 | 132,059 |
Adjusted EBITDA | 16,865 | 20,567 |
Adjusted EBITDA Margin | 10.3% | 15.6% |
Integration and restructuring expenses | (1,301) | (6,108) |
EBITDA | 15,564 | 14,459 |
Depreciation / amortisation | (8,471) | (8,377) |
Operating profit / (loss) for the period | 7,093 | 6,082 |
Net finance expenses | (11,602) | (15,289) |
Income tax benefit / (expense) | (2,776) | 646 |
Profit/(loss) for the period | (7,285) | (8,561) |
Cash flow | ||
Cash, cash equivalents and bank overdrafts at the beginning of the | ||
period from continuing operations | 51,394 | 104,440 |
Net cash generated / (used) by operating activities | 871 | 9,461 |
Net cash used by investing activities | 158,624 | (4,373) |
Net cash generated / (used) by financing activities | (175,053) | (20,089) |
Financing and cash transactions between continued and discontinued | ||
operations | 363 | (4,233) |
Cash, cash equivalents and bank overdrafts at the end of the period | ||
from continuing operations | 36,198 | 85,206 |
(1) Restated for the impact of the Discontinued Operations in accordance with IFRS 5
Financial position
In relation to Balta's financing agreements, the documentation provides for the effect of changes in accounting standards to be neutralized. As such, the application of IFRS 16 had no consequence for the Group's financing.
(€ thousands) | H1 2022 | H1 2021 |
Net debt1 | 118,381 | 260,274 |
Leverage | 3.6 | 3.0 |
Note 1: IFRS 16 effect is excluded from the leverage comparison (see glossary)
3
2. Management discussion and analysis of the results 2.1. Group Highlights Continuing Operations
- H1 consolidated Revenue of €164.2m (+24.3% YoY)
- Organic revenue improved by 18.6%, while FX impact contributed 5.7%
- Revenue growth by division: Europe 17.1%, United States (US) 32.7%
- H1 Adjusted EBITDA decreased to €17.0m (-17.6% YoY) with an Adjusted EBITDA margin of 10.3% (15.6% in H1 2021)
- Europe EBITDA was €1.3m (vs €9.6m in H1 21)
- US EBITDA increased to €15.6m (+42.5% YoY)
- In Europe, the strong revenue increase reflects the price increases implemented during the year. The decline of EBITDA is explained by a partially anticipated margin compression versus a strong H1 2021 (that still benefited from 2020 cost prices) and the rapid recent surges in input costs which were not immediately fully passed on to our customers.
- In the US, the strong results are reflecting the combined effect of increased volumes and the full compensation of the higher input & transformation costs via sales price increases.
- Pro-forma1 H1 Net Debt was €153m (including €30m of IFRS 16 impact) resulting in a leverage2 of 3.7x (3.8x pro-forma Q1 2022).
- Total available liquidity (including headroom under the RCF) at the end of H1 amounted to €73m.
2.2. Business Update
Balta Group nv continues to be faced with a challenging macro-economic environment creating strongly inflated raw materials, energy and transportation costs. Multiple price increases have been implemented across all lines of the business in response to these input cost increases In Europe, where cost inflation is continuing at high rates, more pricing action is required and is being implemented.
Our US Division, which now represents approximately 50% of our business, saw its strong market position in H1 translated into sales and EBITDA growth.
2.3. Cyrille Ragoucy, CEO and Chairman of the Board of Balta
said,
"H1 2022 marked a new and important chapter in the history of the company with the closing of the Transaction with Victoria PLC and transformation of Balta Group nv into a more focused and resilient business.
During H1, we experienced a strong order book in our US business, with higher costs that were promptly passed on to our customers. In our European business, we suffered from the significant headwinds caused by unprecedented and sudden cost increases which require further commercial action and recently lower footfall in shops in many of our Residential markets."
- Adjusted for residual anticipated payments on the Transaction
- As defined in the SSN facility agreements, excluding IFRS16 impact but including sale and leasebacks
4
3. Operating review per segment
3.1. Revenue and Adjusted EBITDA per segment for Continuing Operations
3.1.1.Q2 2022
Q2 | Q2 | o/w organic | o/w | ||
(€ million, unless otherwise mentioned) | 2022 | 2021 | % Change | growth | FX |
Europe | 42.4 | 35.9 | 17.9% | ||
US | 46.8 | 30.9 | 51.6% | ||
Consolidated Revenue | 89.2 | 66.8 | 33.4% | 25.7% | 7.8% |
Europe | 1.4 | 5.3 | (74.4)% | ||
US | 9.6 | 6.2 | 54.4% | ||
Consolidated Adjusted EBITDA | 10.9 | 11.5 | (5.0)% | (14.1)% | 9.0% |
Europe | 3.2% | 14.8% | |||
US | 20.5% | 20.1% | |||
Consolidated Adjusted EBITDA Margin | 12.3% | 17.2% |
Note: the segment table has been copied from the press release issued by Balta Group NV, where EBITDA is slightly higher than at LSF9 Balta Issuer level due to a markup on management services provided at level of Balta Group NV and then charged to LSF9 Balta Issuer and subsidiaries.
3.1.2.H1 2022
Note: the segment table has been copied from the press release issued by Balta Group NV, where EBITDA is €0.08m higher than at LSF9 Balta Issuer level due to a markup on management services provided at level of Balta Group NV and then charged to LSF9 Balta Issuer and subsidiaries.
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Balta Group NV published this content on 30 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2022 07:23:09 UTC.
