PRESS RELEASE
BOARD OF DIRECTORS OF ELICA S.p.A. APPROVES HALF-YEAR REPORT AT JUNE 30, 2017 CONSOLIDATED REVENUES UP 12.6% OWN BRAND GROWTH OF 21.0%Consolidated Results H1 2017 (January-June 2017)
- Revenue: Euro 242.8 million, up 12.6%;
- Adjusted EBITDA1: Euro 18.4 million, up 13.0%;
- Adjusted EBIT2: Euro 7.9 million, up 10.1%;
- Net Profit: Euro 1.2 million, compared to Euro 2.8 million in H1 2016;
- Net Financial Debt: Euro 70.6 million, increasing on Euro 60.8 million at December 31, 2016 and Euro 61.9 million at June 30, 2016, principally due to increased investment and in line with business development.
Implementation of the measures announced in the three-year strategic plan generated in the first half of 2017 stronger than forecast consolidated revenue across all business areas and all main regions, driven by increased own brand sales.
Focus on the own brand distribution network supported Elica brand penetration both in Europe and globally. The increased overheads incurred in the period for these targeted measures, for brand promotion and for restructuring, impacted the margin and have laid the foundation for increased operational leverage going forward.
Consolidated revenues - H1 2017 In the first half of 2017 Elica Group consolidated revenue amounted to Euro 242.8 million - an increase of 12.6% on the same period of the previous year and of 11.2% at like-for-like exchange rates. The general market improved overall, with global kitchen hood demand up 2.0% in the first half of 2017. This mainly reflects the Asian market recovery (+1.3% in the first half of 2017), thanks also to the recovering Chinese market and improving Eastern European demand, featuring Turkish market growth, together with the continued rise of the North American market (+5.0% in the first half of 2017). The growth, stemming from both business segments, was driven by own brand product sales (up 21.0%) and particularly the Elica brand which saw exceptional growth of over 40% in H1 2017. This follows the implementation of strategic policies under the Strategic Plan communicated in May 2017, resulting in dedicated investment and spending.1 See Definitions and Reconciliations paragraph
2 See Definitions and Reconciliations paragraph
Analysing revenues by the principal markets, EMEA3 saw growth of 11.4%, with product sales in the Americas up 11.9% and in Asia over 20%, while the Chinese subsidiary reported revenue in line with H1 2016.For completeness, the breakdown of consolidated revenues by geographic location of the Group companies is reported below.
Europe | Americas | Asia and the Rest of World | Unallocated items and eliminations | Consolidated | ||||||
In Euro thousands | H1 17 H1 | 16 | H1 17 | H1 16 | H1 17 | H1 16 | H1 17 | H1 16 | H1 17 | H1 16 |
Segment revenue: | ||||||||||
Third parties | 180,085 | 161,424 | 36,023 | 32,405 | 26,695 | 21,709 | (5) | 21 | 242,798 | 215,560 |
Inter-segment | 7,333 | 6,148 | 106 | 1 | 2,718 | 3,062 | (10,157) | (9,211) | - | - |
Total revenue | 187,418 | 167,572 | 36,130 | 32,406 | 29,413 | 24,772 | (10,162) | (9,190) | 242,798 | 215,560 |
In Euro thousands
H1 17 % revenue H1 16 % revenue 17 Vs 16 %Revenue | 242,798 | 215,560 | 12.6% | ||
Adjusted EBITDA* | 18,372 | 7.6% | 16,263 | 7.5% | 13.0% |
EBITDA | 17,122 | 7.1% | 16,191 | 7.5% | 5.8% |
Adjusted EBIT* | 7,930 | 3.3% | 7,203 | 3.3% | 10.1% |
EBIT | 6,680 | 2.8% | 7,131 | 3.3% | (6.3%) |
Net financial charges | (2,662) | (1.1%) | (1,513) | (0.7%) | 75.9% |
Income taxes | (2,822) | (1.2%) | (2,772) | (1.3%) | 1.8% |
Profit from continuing operations | 1,196 | 0.5% | 2,846 | 1.3% | (58.0%) |
Adjusted Profit* | 2,138 | 0.9% | 3,384 | 1.6% | (36.8%) |
Profit | 1,196 | 0.5% | 2,846 | 1.3% | (58.0%) |
Profit attribut. to the owners of the Parent - Adjusted* | 1,852 | 0.8% | 3,145 | 1.5% | (41.1%) |
3 Europe, Middle East, Africa and CIS.
4 See Definitions and Reconciliations
5 See Definitions and Reconciliations
Profit attributable to the owners of the Parent | 910 | 0.4% | 2,607 | 1.2% | (65.1%) |
Basic earnings per share on continuing operations and discontinued operations (Euro/cents) | 1.47 | 4.20 | (65.0%) | ||
Diluted earnings per share on continuing operations and discontinued operations (Euro/cents) | 1.47 | 4.20 | (65.0%) | ||
(*) For the adjustment items, see the Definitions and Reconciliations |
The earnings per share for H1 2017 and H1 2016 were calculated by dividing the Profit attributable to the owners of the Parent from continuing and discontinued operations by the number of outstanding shares at the respective reporting dates.
Statement of Financial Position The Net Financial Debt at June 30, 2017 of Euro 70.6 million increased on Euro 60.8 million at December 31, 2016 and compares to Euro 61.9 million at June 30, 2016, principally due to increased investment and in line with business development.June 30, 17 | Dec 31, 16 | June 30, 16 | |
In Euro thousands | |||
Cash and cash equivalents | 28,976 | 31,998 | 36,335 |
Finance leases and other lenders | (23) | (21) | (12) |
Bank loans and borrowings | (55,958) | (59,004) | (58,301) |
Current loans and borrowings | (55,981) | (59,025) | (58,313) |
Finance leases and other lenders | (5) | (6) | (8) |
Bank loans and borrowings | (43,619) | (33,718) | (39,864) |
Non-current loans and borrowings | (43,624) | (33,724) | (39,872) |
Net Financial Debt | (70,629) | (60,751) | (61,850) |
June 30, 17 | Dec 31, 16 | June 30, 16 | |
In Euro thousands | |||
Trade receivables | 83,700 | 70,561 | 75,017 |
Inventories | 76,190 | 67,732 | 65,984 |
Trade payables | (126,838) | (114,831) | (110,207) |
Managerial Working Capital | 33,052 | 23,462 | 30,794 |
% annualised revenue | 6.8% | 5.3% | 7.1% |
Other net receivables/payables | (14,714) | (11,755) | (8,656) |
Net Working Capital | 18,338 | 11,708 | 22,138 |
% annualised revenue | 3.8% | 2.7% | 5.1% |
Consideration for the 30% holding in the Chinese subsidiary is CNY 15 million (Euro 1,907,863 at the ECB6 exchange rate of July 24, 2017), to be paid in cash utilising available company resources. For completion of the transfer of shares, formal steps are required, including the issue by the competent authorities of the new "business license" and approval of the transfer by MOFCOM7. The company does not expect any significant impacts from the operation on the 2017-2019 Objectives announced to the market on May 15, 2017.
The Group continues extensive monitoring of demand dynamics across all markets in execution of the three-year Strategic Plan launched in 2017.
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The Half-Year Report at June 30, 2017 and the Auditors' Report on the 2017 Condensed Consolidated Half-Year Financial Statements were filed and made available to those requesting at the registered office of the Company, on the storage mechanism 1Info at www.1info.it and on the Company website http://corporation.elica.com Investor Relations/Accounts and Reports section. In addition, the Financial Presentation on the H1 2017 consolidated results will also be available from today on the Company website http://corporation.elica.com in the Investor Relations/Presentation section.
Statement pursuant to Article 154-bis, paragraph two, of the Consolidated Finance ActThe Corporate Financial Reporting Manager, Mr. Alessandro Carloni, declares, pursuant to Article 154-bis, second paragraph of Legs. Decree No. 58/98, that this press release corresponds to the underlying accounting documents, records and accounting entries.
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The Elica Group has been present in the cooker hood market since the 1970's, is chaired by Francesco Casoli and led by Antonio Recinella and today is the world leader in terms of units sold. It is also a European leader in the design, manufacture and sale of motors for central heating boilers. With over 3,600 employees and an annual output of over 19 million units, the Elica Group has eight plants, including in Italy, Poland, Mexico, Germany, India and China. With many years' experience in the sector, Elica has combined meticulous care in design, judicious choice of material and cutting edge technology guaranteeing maximum efficiency and reducing consumption making the Elica Group the prominent market figure it is today. The Group has revolutionised the traditional image of the kitchen cooker hood: it is no longer seen as simple accessory but as a design object which improves the quality of life.
6 European Central Bank
7 Ministry Of Commerce, People's Republic Of China
Elica S.p.A. published this content on 28 August 2017 and is solely responsible for the information contained herein.
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