DECEUNINCK NV Regulated information - 2015 results
Under embargo until Thursday 25 February 2016 at 7:15 a.m. CET
Growth driven by successful integration of Pimapen, new customers and improved operating efficiencies.
Growth is supported by a more positive economic environment in US, UK and Southern Europe but has been partially offset by market contraction in Russia.
Sales grow 16.6% to € 644.5 million.
Comparable scope: +7.3% (volume: +4.4%; exchange rates: +1.9%; mix:
+1.0%) thanks to strong growth in all regions except Russia.
Pimapen (TR) and Enwin (R) add +9.3% or € 51.3 million
Gross margin increases to 28.2% (2014: 27.3%), mainly driven by improved operating efficiencies. Favourable raw material prices largely offset by currencies.
EBITDA at € 54.4 million or 8.4% of sales (2014: € 35.3 million or 6.4%)
Net profit increases to € 13.3 million (2014: € 10.5 million)
€ 38.7 million capital expenditures mainly for expansion and new product development
Successful issue of € 100 million retail bond provides extra € 40 million liquidity to finance further investments in manufacturing efficiency and growth (US West Coast and Turkey)
The Board proposes to increase gross dividend to € 0.025 per share.
CEO Tom Debusschere steps down on 1 March to take up a new challenge. Francis Van Eeckhout is named interim CEO. The Strategy for Growth continues unabated.
Tom Debusschere, Deceuninck CEO:
"2015 was a good year for Deceuninck. We realized strong organic volume growth in Western Europe, North America and Turkey and Emerging Markets, and successfully integrated the Pimaş acquisition in Turkey. On top of volume growth EBITDA margin also benefited from further manufacturing efficiencies and strict cost control.
The successful issue of the retail bond in December provided us with extra € 40 million liquidity which will be used to finance further growth, among which the new facilities in Turkey and on the US West Coast.
I would like to thank all our customers for their trust and all our people worldwide for their passionate dedication.
Press release www.deceuninck.com
Outlook 2016
In 2016 we expect further growth on the back of innovative product launches and superior service to our customers. This will be enabled by the additional capacity in Turkey and in the US, and supported by further investments in manufacturing efficiency.
We, however, closely monitor the increased macro-economic uncertainty in our end markets. EBITDA evolution will be influenced by currencies and raw material prices, as well as by the start-up costs of our planned efficiency and growth initiatives"
Tom Debusschere steps down as CEO on 1 March for a new challenge. Until 10 May he remains non-executive member of the Board
Pierre Alain Baron De Smedt, Chairman of the Board:'The Board regrets but respects Tom's decision. We are very grateful to Tom for his commitment to the company over the past few years. In February 2009 he started as a CEO when the company was going through a difficult period. In a short period of time he succeeded in turning Deceuninck into a financially healthy company and in regaining the confidence of the shareholder. He leaves us with a healthy company that is well positioned for the future.
In anticipation of a successor to Tom Debusschere, Vice Chairman of the Board, Francis Van Eeckhout, will act as interim CEO.
Francis Van Eeckhout, Vice Chairman of the Board and interim CEO:I would like to thank Tom for his performance as a CEO since February 2009. He was instrumental in creating the growth strategy which is now being implemented, This includes the construction of the new factories in Turkey and the US. This strategy will be continued. Tom has built a strong management team in which we maintain every confidence. We hope to name a successor to Tom very soon."
Key figures
(in € million)
2014
2015
Var (%)
1H 2015
2H 2015
Sales
552.8
644.5
16.6%
312.1
332.4
Gross profit
150.8
182.0
20.7%
90.7
91.3
Gross-margin (%)
27.3%
28.2%
29.1%
27.5%
EBITDA
35.3
54.4
53.9%
27.2
27.2
EBITDA-margin (%)
6.4%
8.4%
8.7%
8.2%
REBITDA
36.6
56.5
54.5%
28.7
27.8
REBITDA-margin (%)
6.6%
8.8%
9.2%
8.4%
EBIT
14.3
26.9
87.7%
12.0
14.8
EBIT-margin (%)
2.6%
4.2%
3.9%
4.5%
Financial result
-7.5
-10.0
-4.6
-5.4
EBT
6.9
16.9
146.0%
7.5
9.4
Income taxes
3.6
-3.5
-2.7
-0.8
Net profit
10.5
13.3
27.6%
4.7
8.6
Net profit-margin (%)
1.9%
2.1%
1.5%
2.6%
(in € million)
2014
2015
Var (%)
Equity
264.5
269.3
1.8%
Net debt
71.0
92.1
29.7%
Total assets
503.7
562.7
11.7%
Capital expenditure
31.3
38.7
23.7%
Working capital
124.6
142.9
14.7%
Comments on the consolidated results
Sales
Sales breakdown 2015Consolidated 2015 sales increased 16.6% to € 644.5 million (2014: € 552.8 million). At comparable scope sales increased 7.3% to € 593.2 million.
Volume: +4.4%, explained by strong organic volume growth in Western Europe, North America and Turkey and Emerging Markets, which is partially offset by the contraction of the Russian market
Exchange rates: +1.9%, explained by the strengthening of the USD and GBP versus the EUR, which was partially offset by a weakening TRY and RUB.
Mix effects: +1.0%
Scope change as a result of the acquisition of Pimaş in Turkey and Russia resulted in a favourable impact of sales of € 51.3 million (+9.3%).
Overall sales growth is primarily explained by the Pimaş acquisition in 4Q 2014, which - as Pimaş revenues were already reported in 4Q 2014 to a large extent - also explains why the growth rate between Q4 2014 and Q4 2015 is lower than during the first 3 quarters.
Organic volume growth remained strong throughout the year especially during 4Q supported by mild weather conditions and improved builder confidence in Western Europe and US and driven by strong brands in Turkey.
% of sales | 1Q 2015 | 2Q 2015 | 3Q 2015 | 4Q 2015 FY 2015 | |
Sales (in € million) 2014 | 115.4 | 148.8 | 141.3 | 147.2 | 552.8 |
Exchange rate | 4.6% | 3.9% | -0.3% | -0.1% | 1.9% |
Volume | 3.1% | 4.6% | 4.6% | 5.6% | 4.4% |
Mix (country, price, product) | 0.9% | -2.3% | 2.1% | 2.6% | 1.0% |
Change of scope | 9.4% | 12.0% | 11.8% | 4.1% | 9.3% |
Total | 18.0% | 18.2% | 18.2% | 12.3% | 16.6% |
Sales (in € million) 2015 | 136.2 | 175.9 | 167.1 | 165.3 | 644.5 |
Deceuninck NV issued this content on 25 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 February 2016 06:20:22 UTC
Original Document: http://www.deceuninck.com/en/show-press.aspx?id=328&language=EN
