ELICA S.p.A. BoD APPROVES Q1 2019 RESULTS

OWN BRAND PRODUCT SALES CONTINUE TO GROW

AS MARGIN STRENGTHENS FURTHER

FY 2019 GUIDELINES APPROVED

GROWTH IN REVENUES AND STRENGTHENING OF MARGINS

Consolidated Highlights - Q1 2019

Revenue: Euro 116.6 million (Euro 118.9 million in Q1 2018), -1.9% on the same period of the previous year (-3.0% net of the currency effect). Cooking segment in line with Q1 2018, Motors segment impacted by slower European and Turkish demand;

Own brand product sales, mainly the Elica brand, continue to grow - reporting a revenue increase of 8.2%, while in Q1 2019 the own brand product contribution to cooking revenue rises to 50.0%;

OEM revenue, mainly in EMEA, again impacted by forecast lower market demand in the area and sales numbers of some of the main segment customers.

EBITDA1: Euro 10.2 million, up 5.2% (+70bp) on Q1 2018 (Euro 9.7 million); margin rises to 8.8% from 8.1% in the same period of the previous year;

EBIT: Euro 4.3 million (Euro 4.8 million in Q1 2018), with 3.7% revenue margin due to higher amortisation and depreciation with the full implementation of the investment plan supporting the development of the new product range launched in 2018;

Net Profit attributable to the Group: Euro 1.4 million, with significant growth of 29.8% on Euro 1 million for the same period of 2018;

Net Financial Position2: Euro 67.4 million (Euro 73.0 million in Q1 2018), compared to Euro 56.3 million at December 31, 2018, featuring increased inventory in support of B2C segment development and reduced Capex;

Milan, May 7, 2019 - The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of kitchen range hoods, has today approved the Q1 2019 consolidated results, prepared in accordance with IFRS.

***

1Inclusive of IFRS 16 effect, as outlined in the reconciliation tables (8.2% net of IFRS 16 effect)

2 Net of IFRS 16 effect, as outlined in the reconciliation tables

"The Q1 results highlight continued own brand products sales growth (+8.2%) and an improving operating margin (rising to 8.8% of revenue). The Cooking business result was substantially in line with the first quarter of 2018, despite the EMEA B2B contraction and lower estimated demand levels. The contribution of the new Nicola Tesla and New Ceiling range shall be fully apparent in the Q2 results, while reporting double- digit growth on the first quarter of 2018. In the second half of 2019, the negative impact from the EMEA B2B segment shall ease and the benefits from strengthening the sales structures and rolling out marketing investments shall become evident" stated Antonio Recinella, Chief Executive Officer of Elica.

***

Q1 2019 Consolidated revenue

In the first quarter of 2019, Elica returned Consolidated revenue of Euro 116.6 million, -1.9% on Q1 2018 (-3.0% net of the currency effect).

The market in the first quarter of 2019 saw demand reduce 0.4%. This development mainly owes to Western Europe (-1.5%), in particular Germany, the UK and France, while North America reported growth of 2.1%3.

Own brand sales rose 8.2% in the first quarter, with EMEA and India performing particularly strongly, alongside the contribution of the Cooking segment which rose to ~50.0%, again highlighting the Group's strategy to sharpen its focus on this product category.

OEM revenue contracted 5.9% on the same period of the previous year (-7.9% at like-for-like exchange rates).

The Motors business, representing 13% of turnover, reported a 16% revenue contraction in Q1 2019, in line with the general OEM sector in the EMEA region and weaker demand - particularly in Turkey (-15.8% at like-for-like exchange rates).

Profitability - Q1 2019

EBITDA of Euro 10.2 million was up 5.2% on the same period of 2018 (Euro 9.7 million), with a margin of 8.8% significantly improving on 8.1% for the first quarter of 2018. Net of the IFRS 16 effect, EBITDA was Euro 9.5 million (8.2% margin).

EBIT was Euro 4.3 million, compared to Euro 4.8 million for Q1 2018, due to higher amortisation and depreciation with the full implementation of the investment plan supporting the development of the new product range launched in 2018.

Financial charges of Euro 0.85 million were significantly down on Euro 1.0 million in Q1 2018, thanks to lower interest on the improved net financial position, the renegotiation of the medium-term debt and reduced coverage costs and currency losses.

3Source: Elica Group: internal estimates

The Net Profit attributable to the owners of the Parent was Euro 1.4 million, significantly improving (29.8%) on Euro 1.0 million for Q1 2018 and mainly thanks to the dynamics outlined above. Minorities of Euro 0.8 million were in line with the same period of 2018.

In Euro thousands

Q1 19

% revenue

Q1 18

% revenue

19 Vs 18%

Q1 19 GAAP

% revenue

2018 (*)

Revenue

116,612

118,878

-1.90%

116,612

EBITDA

10,217

8.80%

9,681

8.10%

5.50%

9,505

8.20%

EBIT

4,263

3.70%

4,760

4.00%

-10.40%

4,274

3.70%

Net financial charges

-851

-0.70%

-1,012

-0.90%

15.90%

-792

-0.70%

Income taxes

-1,322

-1.10%

-1,956

-1.60%

32.40%

-1,339

-1.10%

Profit from continuing operations

2,090

1.80%

1,792

1.50%

-16.60%

2,143

1.80%

Profit for the period

2,090

1.80%

1,792

1.50%

-16.60%

2,143

1.80%

Profit attributable to the owners of

1,317

1.10%

1,015

0.90%

-29.80%

1,367

1.20%

the Parent

Basic earnings per share on

continuing operations and

2.12

1.64

-29.30%

2.2

discontinued operations

(Euro/cents)

Diluted earnings per share on

continuing operations and

2.12

1.64

-29.30%

2.2

discontinued operations

(Euro/cents)

(*) see paragraph on the application of IFRS 16 Leases in Definitions and Reconciliations

Statement of Financial Position

The Net Financial Position at March 31, 2019 was Euro 67.4 million (Euro 73.0 million in Q1 2018), compared to Euro 56.3 million at December 31, 2018.

In Euro thousands

Mar 31, 19

Jan 1, 19 (*)

Dec 31, 18

Mar 31, 18

Cash and cash equivalents

26.229

35.612

35.612

30.417

Bank loans and borrowings - (current)

-43.107

-37.792

-37.792

-59.377

Bank loans and borrowings - (non-current)

-50.492

-54.102

-54.102

-44.016

-33

Net Financial Position

-67.370

-56.282

-56.282

-73.009

Assets for derivatives (current)

596

513

513

206

Liabilities for derivatives (current)

-681

-1.737

-1.737

-330

Liabilities for derivatives (non-current)

-161

-120

-120

-175

Net Financial Position - Including Derivatives Effect

-67.615

-57.626

-57.626

-73.307

Finance lease payables as per IFRS16 - (current)

-2.706

-2.947

n/a

n/a

Finance lease payables as per IFRS 16 - (non-current)

-8.185

-8.403

n/a

n/a

Net Financial Position - Including Derivatives Effect and IFRS 16 Impact

-78.506

-68.976

n/a

-73.307

(*) see paragraph on the application of IFRS 16 Leases in Definitions and Reconciliations

Managerial Working Capital on annualised revenue was 4.2% in the first quarter of 2019 (4.5% in the same period of the previous year).

In Euro thousands

Mar 31, 19

Dec 31, 18

Trade receivables

60,919

51,192

Inventories

80,454

76,196

Trade payables

-108,937

-109,916

Managerial Working Capital

32,436

17,472

% annualised revenue

7.00%

3.70%

Other net receivables/payables

-12,659

-10,801

as a % of annualised revenue

-2.70%

-2.30%

Net Working Capital

19,777

6,672

% annualised revenue

4.20%

1.40%

Significant events in the period and subsequent events

On January 30, 2019, in accordance with Article 2.6.2, paragraph 1, letter b) of the Regulations of the Markets Organised and Managed by Borsa Italiana S.p.A., Elica S.p.A. published the Financial Calendar for the year 2019.

On February 12, 2019, the Board of Directors of Elica S.p.A. approved the additional periodic disclosure for the fourth quarter of 2018, prepared according to IFRS and the 2018 preliminary consolidated results.

On February 27, 2019, Elica S.p.A. announced the reaching - together with the subsidiary Elica GmbH - of a settlement with the company Exklusiv-Hauben Gutmann GmbH ("Gutmann") in insolvency, with its administrators and with its sole shareholder Manuel Fernandez Salgado, to whom the company was sold in August 2017. The agreement was approved by the creditors committee of the Gutmann insolvency and the Administrator of the insolvency and is binding upon the parties. The Board of Directors of Elica S.p.A., in consideration of the opportunity to establish mutual positions on the insolvency declaration of Exklusiv- Hauben Gutmann GmbH and to mitigate the main risks associated with the claims advanced and the disputes threatened against Elica S.p.A and Elica GmbH, assessed the proposal as being in the interest of the company and mandated the Chief Executive Officer to conclude a possible agreement. Within the overall framework of the agreement and in settlement of the mutual rights and claims, Elica S.p.A. shall recognise to Gutmann Euro 2.6 million (with an overall adjustment effect on the EBITDA of Elica S.p.A. of Euro 3.4 million, including the write-down of Euro 0.8 million of the original receivable of Euro 2.5 million of Elica S.p.A. from Manuel Fernandez Salgado), of which Euro 800 thousand to be paid within three weeks from the agreement's conclusion, Euro 1.7 million through the transfer to Gutmann of Elica S.p.A.'s receivable from Manuel Fernandez Salgado for the transfer of the shares of Gutmann and a further Euro 100 thousand to be fully offset against that to be paid by Gutmann for the retransfer of the "Gutmann" brands acquired by Elica S.p.A. in 2017 (with an overall adjustment effect on the EBIT of Elica S.p.A. of Euro 1.1

million, deriving from the write-down of the Gutmann brands recognised to the statement of financial position of Elica S.p.A.). Manuel Fernandez Salgado shall remain liable to pay to Elica S.p.A. the residual amount of Euro 800 thousand, due for the transfer of the Gutmann shares. This obligation will be settled by paying Elica S.p.A. the amount of Euro 200 thousand by February 28, 2020, in settlement of his entire debt position. For completeness, Elica S.p.A. in addition agrees to settle the guarantee provided in 2015 in favour of the company owning the property leased by Gutmann of Euro 1.65 million, which has already been provisioned in the company's accounts, and to settle the amounts regarding the trade payables arising in favour of Gutmann GmbH after the sale of the company and prior to its declaration of insolvency, related to ordinary operations and amounting to approx. Euro 0.5 million, currently prudently blocked by Elica S.p.A.. Elica S.p.A. therefore updated the 2018 result adjustments. Elica S.p.A., following the opening of the preliminary insolvency proceedings, partially wrote-down the trade receivable - for an amount of Euro 4.0 million - recognised when communicating its H1 2018 results. Subsequently, during the 2018 Fourth Quarter a further write-down of Euro 2.8 million was made to cover the insolvency risks of the German company regarding the trade receivable of Elica S.p.A. in view of its continuing insolvency. The agreement concluded therefore had an additional adjustment impact for Elica S.p.A. of Euro 4.5 million (with an overall effect of Euro 3.4 million on EBITDA and an additional Euro 1.1 million on EBIT, as previously stated) concerning financial year 2018 and in settlement of the respective positions, of which Euro 0.8 million with cash effect in 2019. This transaction definitively concludes all disputes between the two companies, excluding further impacts on future accounts.

On March 7, 2019, the Board of Directors of Elica S.p.A. approved the 2018 consolidated results at December 31, 2018 and the statutory financial statements at December 31, 2018, prepared in accordance with IFRS, in addition to the Directors' Report.

On April 18, 2019, the Shareholders' Meeting of Elica S.p.A. met in ordinary session and approved the following matters on the agenda:

Statutory Financial statements at December 31, 2018 of Elica S.p.A.: Directors' Report; Board of Statutory Auditors' Report; Non-Financial Report, Independent Auditors' Report. The Shareholders' Meeting also noted the consolidated results for 2018.

2019-2025Phantom Stock & Voluntary Co-investment Plan:The Shareholders' Meeting also approved the 2019-2025Phantom stock option incentive plan (the "2019-2025Phantom Stock & Voluntary Co-investmentPlan") according to the terms and conditions of the Disclosure Document, in addition to the granting to the Board of Directors of Elica S.p.A., with express power to sub-delegate,the broadest powers necessary for full and complete execution of the plan. In this regard it is noted that:

a)the potential Beneficiaries of the stated plan are identified directors and employees of Elica S.p.A. and/or its subsidiaries, whose features are outlined in the Disclosure Document according to the means established by paragraph 1, Schedule 7, by Annex 3A of the Issuers' Regulation, whose names are not communicated today and will be provided subsequently, where available, during the implementation of the plan, according to the means established by Article 84-bis,paragraph 5, letter a) of the Issuers' Regulation; b) the financial instruments on which this incentive plan is based are phantom stocks or "units", virtually representing an ordinary share of Elica S.p.A., whose value they trace over time and with a monetary payment; c) the 2019-2025Phantom Stock & Voluntary Co-investmentPlan is proposed for the following purposes: i) to guarantee the alignment of the interests of management with those of the Shareholders; ii) to maintain the focus of key managers on company objectives; iii) to support the retention of key employees over the long term.

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Elica S.p.A. published this content on 07 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 May 2019 13:07:06 UTC