PSB Industries : 27.07.2017 H1 financial results 2017 Download the PDF

PRESS RELEASE 27 JULY 2017 Results for the 1st half of 2017 Controlled financial performance and pursuit of the Group's restructuring Evolution of the Group's governance

Consolidated data (in millions of euro)	S1 2017	S1 2016	Change
Revenues	194.7	193.3	+0.7 %
Pre-goodwill operating profit (EBITA)	13.0	14.0	-6.8 %
As a % of revenues	6.7 %	7.2 %
Group share of net income	8.6	7.7	+11.6%

Consolidated revenues for the 1st half of 2017 amounted to €194.7 million, an increase of +0.7% compared to H1 2016. The temporary revenue downturn of -2.6% (like-for-like) mainly reflects the evolution and rationalisation of customer portfolios throughout our business units. 51% of the Group's revenues were achieved internationally including 27% in the Americas.

Earnings Before Interest Taxes Depreciation and Amortization (EBITA) for the Group, at €13.0 million compared with €14.0 million for the 1st half of 2016, includes the impact of post-acquisition restructuring. Topline (acquired on 1st February 2016) has diluted overall operating performance with current revenues of €31 million breaking even. In the same way, the reinforcement of the Healthcare & Industry business unit in terms of innovation, and in healthcare development, has diluted the BU's operating performance. In parallel, the Group's historical activities have continued to perform well in support of the Group's new operations and geographies despite unfavourable production and raw material costs. EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) amounted to €24.2 million at 30 June 2017(12.4% of consolidated revenues), compared with €25.0 million (12.9%) at 30 June 2016.

Net income has increased reflecting improvements in the cost of net debt and in foreign exchange. The consolidated tax rate, at 27.4%, has benefited from the Group's internationalisation and from non-recurring transactions. The Group's share of net income amounts to €8.6 million, an increase of 11.6% over the 1st half of 2016.

The Group's financial position has also continued to improve. The Group's share of equity amounted to

€137.1 million as at 30 June 2017. Its gearing ratio (net debt/equity) amounted to 69% (71% as at 31 December 2016) and its leverage ratio (net debt/EBITDA) to 1.99x (2x as at 31 December 2016), levels within the limits of the Group's bank covenants. The operating working capital requirement amounted at 30 June 2017 to €80.4 million, an increase of €6.1 million over the position at 31 December 2016, given the seasonality impact of the 1st half of the year.

Evolution of governance

The Board of Directors has made a change in the Group's governance with effect from 27 July 2017. After 5 years as CEO of PSB Industries, Olivier Salaun leaves the Group and François-Xavier Entremont has been appointed CEO. The Board of Directors expresses its thanks to Olivier Salaun for his commitment to leading the Group these last years.

Following the recent meeting of the Board of Directors, François-Xavier Entremont, the new CEO of PSB Industries, made the following statement:

"As a family shareholder of PSB Industries over several decades, and as a member of the Board of Directors since 2010, I am delighted to contribute to a new stage in the Group's development. Conscious of the strengths of PSB Industries, I know I can count on all our employees to accompany me in confronting the challenges of our various businesses with serenity. I also would like to thank Olivier Salaun for his action and wish him all the best for the pursuit of his projects".

Next date for your diary:

publication of revenues for the 3rd quarter of 2017 on 10 October 2017 after close of the market

PSB INDUSTRIES is an innovative industrial group and market leader for packaging and specialty chemicals.

In 2016 the Group achieved revenue of €377 million, of which more than 60% internationally, with production facilities in

France, the USA, Poland, Japan, China and Mexico.