BOARD OF DIRECTORS OF ELICA S.p.A. APPROVES Q3 2016 RESULTS
Consolidated results Q3 2016 (July-September 2016)Revenue: Euro 105.5 million (Euro 105.1 million in 2015);
Normalised EBITDA1: Euro 8.7 million (Euro 9.1 million in 2015);
EBITDA: Euro 7.1 million (Euro 8.8 million in 2015);
Normalised EBIT: Euro 4.0 million (Euro 4.7 million in 2015);
EBIT: Euro 2.3 million (Euro 4.4 million in 2015);
Net Profit: Euro 0.7 million (Euro 2.1 million in 2015);
Net Financial Debt: Euro 62.5 million, compared to Euro 53.0 million at December 31, 2015 and Euro 62.2 million at September 30, 2015.
Consolidated results 9M 2016 (January-September 2016)Revenue: Euro 321.0 million (Euro 308.3 million in 2015), up 4.1%;
Normalised EBITDA2: Euro 25.0 million (Euro 23.5 million in 2015), up 6.6%;
EBITDA: Euro 23.2 million (Euro 22.2 million in 2015), up 4.6%;
Normalised EBIT: Euro 11.2 million (Euro 10.5 million in 2015), up 6.7%;
EBIT: Euro 9.4 million (Euro 9.3 million in 2015), up 1.9%;
Net Profit: Euro 3.5 million (Euro 3.7 million in 2015), contraction of 6.2%; 2016 Performance Objectives updated
Milan, November 14, 2016 - The Board of Directors of Elica S.p.A., the parent of a Group that is the leading manufacturer of kitchen range hoods, has approved today in Milan the 2016 Third Quarter results, prepared in accordance with IFRS.
Consolidated revenues - Q3 2016
In the third quarter of 2016, Elica Group consolidated revenue amounted to Euro 105.5 million, substantially stable (+0.3%) on the same period of 2015. Global range hood demand improved 1.5%3 in Q3 2016, developing on growth in the previous quarter, principally thanks to the recovery of the Asian4 market (+1.2% on Q3 2015) and more vibrant demand in
1 See breakdown in Definitions and Reconciliations paragraph
2 See breakdown in Definitions and Reconciliations paragraph
3 Global range hood market volumes calculated by the Company.
4 Concerning "Other Countries" demand - principally the Asian markets.
Western Europe (+1.5%) and North America (+5.0%). The Latin American market was stable, reporting a slight contraction of 0.6% on the same period of 2015.
Cooking segment revenue was up 2.0% on Q3 2015, principally following improved own brand product sales (+12.6%) which initially emerged in the first part of the year; in particular, Elica brand product revenue was up 24.4% on Q3 2015, thanks to the brand focused strategy and development of the distribution structure. Third party brand sales contracted 5.2% due to market developments impacting the main OEM clients5.
The Motor segment in Q3 2016 reported a 9.9% revenue contraction - relating in particular to the heating and white goods segments.
Analysing revenue by the principal markets6, Europe remained stable, despite unfavourable currency developments, while Asian7 sales grew 9.6%, although impacted by the poor performance of the Chinese subsidiary. Revenue in the Americas contracted 7.3%.
For completeness, the breakdown of consolidated revenues by geographic location of the Group companies is reported below.
In Euro thousands | Europe | Americas | Asia and the Rest of World | Unallocated items and eliminations | Consolidated | |||||
Q3 16 | Q3 15 | Q3 16 | Q3 15 | Q3 16 | Q3 15 | Q3 16 | Q3 15 | Q3 16 | Q3 15 | |
Segment revenue: | ||||||||||
Third parties | 75,928 | 74,959 | 15,935 | 18,039 | 13,592 | 12,124 | 20 | 5 | 105,475 | 105,127 |
Inter-segment | 3,515 | 3,576 | 11 | 5 | 1,572 | 610 | (5,098) | (4,192) | - | - |
Total revenue | 79,444 | 78,535 | 15,946 | 18,045 | 15,164 | 12,734 | (5,078) | (4,187) | 105,475 | 105,127 |
In Euro thousands | Europe | Americas | Asia and the Rest of World | Unallocated items and eliminations | Consolidated | |||||
9M 16 | 9M 15 | 9M 16 | 9M 15 | 9M 16 | 9M 15 | 9M 16 | 9M 15 | 9M 16 | 9M 15 | |
Segment revenue: | ||||||||||
Third parties | 237,353 | 226,208 | 48,340 | 48,515 | 35,301 | 33,560 | 41 | 56 | 321,035 | 308,339 |
Inter-segment | 9,663 | 10,695 | 12 | 14 | 4,634 | 1,780 | (14,309) | (12,489) | - | - |
Total revenue | 247,016 | 236,903 | 48,352 | 48,529 | 39,935 | 35,340 | (14,268) | (12,433) | 321,035 | 308,339 |
Profitability - Q3 2016
Normalised EBITDA8 of Euro 8.7 million (8.3% of Revenue) slightly reduced (-4.0%) on the same period of 2015 (Euro 9.1 million). Procurement and productivity programme efficiencies, together with the generation of a slight profit on the basis of currency movements, were offset by higher overhead costs related to the major own brand focus and the development of the production structure. The combined effect of overall volumes and the price-mix on the margin was substantially in line with Q3 2015.
Q3 2016 EBITDA of Euro 7.1 million compared to Euro 8.8 million for Q3 2015 and was significantly impacted by costs for the agreement reached with the outgoing Chief Executive Officer totalling Euro 1.7 million.
Normalised EBIT9 totalled Euro 4.0 million, compared to Euro 4.7 million for the same period of 2015, reducing 14.5% - in line with the business dynamics outlined above. EBIT was Euro 2.3 million, compared to Euro 4.4 million in 2015.
5 Original Equipment Manufacturer
6 Data concerns sales revenues by geographic area and therefore does not refer to the breakdown by operating segment according to the various Group company locations.
7 Concerning revenue in "Other Countries" - principally the Asian markets.
8 See breakdown in Definitions and Reconciliations paragraph
Net financial charges as a percentage of revenue of 0.8% in Q3 2016 was in line with Q3 2015.
The Normalised Net Profit10 for the period of Euro 1.9 million contracted 18.6% on Euro 2.3 million for the same period of 2015. The Net Profit amounted to Euro 0.7 million (Euro 2.1 million in Q3 2016).
In Euro thousands | Q3 16 | % rev. | Q3 15 | % rev. | 16 Vs 15 % |
Revenue | 105,475 | 105,127 | 0.3% | ||
Normalised EBITDA | 8,748 | 8.3% | 9,110 | 8.7% | (4.0%) |
EBITDA | 7,052 | 6.7% | 8,816 | 8.4% | (20.0%) |
Normalised EBIT | 4,014 | 3.8% | 4,694 | 4.5% | (14.5%) |
EBIT | 2,318 | 2.2% | 4,400 | 4.2% | (47.3%) |
Net financial charges | (816) | (0.8%) | (803) | (0.8%) | 1.6% |
Income taxes | (837) | (0.8%) | (1,469) | (1.4%) | (43.0%) |
Normalised Profit for the period | 1,894 | 1.8% | 2,326 | 2.2% | (18.6%) |
Profit for the period | 665 | 0.6% | 2,128 | 2.0% | (68.8%) |
Attributable to the owners of the Parent | 454 | 0.4% | 1,973 | 1.9% | (77.0%) |
Attributable to the owners of the Parent - Normalised | 1,683 | 1.6% | 2,171 | 2.1% | (22.5%) |
Basic earnings per share on continuing operations and discontinued operations (Euro/cents) | 0.73 | 3.18 | (77.0%) | ||
Diluted earnings per share on continuing operations and discontinued operations (Euro/cents) | 0.73 | 3.18 | (77.0%) |
In Euro thousands | 9M 16 | % rev. | 9M 15 | % rev. | 16 Vs 15 % |
Revenue | 321,035 | 308,339 | 4.1% | ||
Normalised EBITDA | 25,011 | 7.8% | 23,464 | 7.6% | 6.6% |
EBITDA | 23,243 | 7.2% | 22,228 | 7.2% | 4.6% |
Normalised EBIT | 11,217 | 3.5% | 10,509 | 3.4% | 6.7% |
EBIT | 9,449 | 2.9% | 9,273 | 3.0% | 1.9% |
Net financial charges | (2,329) | (0.7%) | (1,855) | (0.6%) | 25.6% |
Income taxes | (3,609) | (1.1%) | (3,675) | (1.2%) | (1.8%) |
Normalised Profit for the period | 5,278 | 1.6% | 5,085 | 1.6% | 3.8% |
Profit for the period | 3,511 | 1.1% | 3,743 | 1.2% | (6.2%) |
Attributable to the owners of the Parent - Normalised | 4,828 | 1.5% | 4,686 | 1.5% | 3.0% |
Attributable to the owners of the Parent | 3,061 | 1.0% | 3,344 | 1.1% | (8.5%) |
Basic earnings per share on continuing operations and | |||||
discontinued operations (Euro/cents) | 4.93 | 5.39 | (8.5%) | ||
Diluted earnings per share on continuing operations and | |||||
discontinued operations (Euro/cents) | 4.93 | 5.39 | (8.5%) |
For the normalisation of the figures in the table, see the Definitions and Reconciliations paragraph
Statement of Financial Position
The Net Financial Debt at September 30, 2016 of Euro 62.5 million increased on Euro 53.0 million at December 31, 2015,
although was in line with Euro 62.2 million at September 30, 2015 and business seasonality.
In Euro thousands | Sep 30, 16 | Dec 31, 15 | Sep 30, 15 |
Cash and cash equivalents | 32,973 | 34,463 | 32,496 |
Finance leases and other lenders | (7) | (9) | (10) |
Bank loans and borrowings | (36,683) | (44,048) | (37,144) |
Non-current loans and borrowings | (36,690) | (44,057) | (37,154) |
Finance leases and other lenders | (12) | (6) | (9) |
Bank loans and borrowings | (58,782) | (43,405) | (57,547) |
Current loans and borrowings | (58,794) | (43,411) | (57,556) |
Net Financial Debt | (62,511) | (53,005) | (62,214) |
Managerial Working Capital on annualised revenue of 6.9% is significantly lower than 8.6% at September 30, 2015 and a further improvement on 7.5% at December 31, 2015. This stems from the company's continually effective focus on optimising financial resource allocation since the beginning of the year.
Other Receivables and Other Payables reduced on December 31, 2015, principally due to the use of the Provision for the 2013- 2015 Long-Term Incentive Plan in the first half of 2016.
In Euro thousands | Sep 30, 16 | Dec 31, 15 | Sep 30, 15 |
Trade receivables | 68,838 | 68,504 | 71,087 |
Inventories | 69,384 | 62,701 | 66,166 |
Trade payables | (108,549) | (99,474) | (102,086) |
Managerial Working Capital | 29,673 | 31,731 | 35,167 |
as a % of annualised revenue | 6.9% | 7.5% | 8.6% |
Other net receivables/payables | (9,223) | (14,061) | (11,453) |
Net Working Capital | 20,450 | 17,670 | 23,714 |
as a % of annualised revenue | 4.8% | 4.2% | 5.8% |
Cash Flows
In Q3 2016, Investments in new product development, in the testing and research Laboratory and in expanding production capacity absorbed additional cash flows of Euro 2.3 million.
Elica S.p.A. published this content on 14 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 14 November 2016 10:12:04 UTC.
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