PRESS RELEASE 7/28/2016 HY1 2016 Results
  • Strong foundation of profitability
  • Group structuring and transformation

"2016 is the third year of our Ambition 2020 strategic plan. At the end of this first half year, we are in the final stages of organizing the four business units created as a result of our external growth over the past two years. Our hard work, which will ultimately pay off, gives us more impetus than ever to step up innovation deployment for each of our clients around the world. This industrial approach is our signature and is expected to further improve our results in 2017."

Olivier Salaun, Chairman and CEO

Consolidated data

in €million

HY1 2016*

HY1 2015

Variation

Revenues

193.3

168.0

+15.1%

Earnings before interest, taxes, and amortization (EBITA)

14.0

16.4

-14.5%

In % of revenues

7.2%

9.7%

Consolidated net income

7.7

11.3

-32.0%

* Topline activities as of 2/1/2016

Consolidated revenues from the first half year totalled €193.3 million, up 15% over HY1 2015 (vs.

€158.0 million like for like).

This is largely thanks to acquisitions initiated under the Ambition 2020 plan, including Topline Products, which contributed €26.7 million, and Plastibell, which added €9.7 million (2 months). The share of international revenues, although temporarily diluted by Plastibell, stayed above 61%, reflecting the group's solid positioning.

EBITDA (earnings before interest, taxes, depreciation, and amortization) held firm at June 30, 2016, at €25.0 million, or 12.9% of consolidated revenues (vs. €26.3 million, or 15.6% at June 30, 2015) despite the impact of Topline Products, whose EBITDA was lower than the historical €2.5 million (9.3% of revenues).

The group's earnings before interest, taxes, and goodwill amortization (EBITA) of €14.0 million vs. €16.4 million reflects, as expected, the surge in structural investments for organic growth.

The financial results, including carrying charges and exchange fees for financial transactions, are sound. Net financial charges linked to finance costs represent an average 2016 cost of 2.4% of the average debt for HY1 2016.

Consolidated net income for the period was €7.7 million.

The operating working capital requirement remained under control at €89.0 million, as a result of the group's integration of Topline Products and a seasonal effect in HY1 to prepare for the summer.

Group equity capital was €127.1 million at June 30, 2016, and net debt was €118.6 million. The gearing ratio (net financial debt/net position) was 93%, and the leverage ratio (net financial debt/pro forma EBITDA) was 2.4x below bank ratios.

Given today's macroeconomic uncertainty, the group will continue its transformation with a view to improving agility and performance and boosting innovation in its four markets in line with its strategic plan.

Thanks to this new foundation, the group anticipates EBITA growth as soon as 2017.

Next release:

Q3 2016 revenues on October 10, 2016

PSB INDUSTRIES is an innovation-driven industrial group with leadership positions in packaging and specialty chemicals. In 2015 the group reported revenues of €329.3 million, including more than 60% from international revenues. The group has production plants in France, the United States, Poland, Japan, and Mexico.

PSB Industries SA published this content on 04 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 August 2016 14:55:03 UTC.

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