DGAP-News: Braas Monier Building Group S.A. / Key word(s): Interim Report
Braas Monier with solid start into the year based on growing European tile volumes
- European tile volumes increased in Q1 2016 by approx. 5% (like-for-like 3.5%)
- Chimneys & Energy Systems with comparable like-for-like revenue growth
- Q1 2016 revenues of EUR 249.9 million marginally down 0.5% (like-for-like up 0.6%) due to negative currency effects and difficult quarter in Asia
- Operating EBITDA grew in Q1 by 5.1% to EUR 18.0 million (like-for-like 7.2%)
- Successful acquisition of Danish components company J.A. Plastindustri S/A
- Launch of new tile with 'Aerlox' technology, a concrete tile up to 40% lighter
- Full-year guidance confirmed, revenues expected to grow by 2-3% on a like-for-like basis with additional 2-3% growth stemming from recent M&A activities
Luxembourg, 3 May 2016. The first quarter 2016 has shown a solid start into the year for Braas Monier. The Company's European tile volumes grew by 3.5% on a like-for-like basis, continuing the positive trend that started in the second quarter of 2015. In particular Western Europe and Central, Northern & Eastern Europe contributed to this volume increase, where France and Germany started adding to the growth momentum of the UK and Poland, which was already visible in 2015. Similar growth rates were also reported by the Group's Chimneys & Energy Systems business. This positive development had only been masked by negative currency effects across the Group as well as persisting volume declines in Asia.
'In countries with growing volumes we have benefitted from our high operational leverage. In markets with a more challenging environment, we have reacted quickly and vigorously. Additional volumes together with sizeable cost improvements have led to a 7% like-for-like increase in Operating EBITDA', says Pierre-Marie De Leener, CEO and Chairman of the Board of Directors of Braas Monier Building Group.
Stable revenue development with positive momentum in Europe
Recent acquisitions such as J.A. Plastindustri in Denmark (consolidated as of January 2016), Ceprano Coperture in Italy (consolidated as of December 2015) and Golden Clay Industries in Malaysia (consolidated as of October 2015), had a positive effect on revenues of EUR 5.2 million or 2.1%.
Like-for-like, i.e. excluding foreign exchange effects and recent acquisitions, revenues in the first three months of 2016 were up by 0.6%.This positive underlying development was driven by tile volumes in Europe, which increased by 3.5% on a like-for-like basis, the fourth consecutive quarterly growth. Volumes in Asia & Africa suffered from the economic slowdown particularly in China as well as from a high comparable basis in Malaysia, where Q1 2015 had strongly profited from pull-forward effects ahead of the VAT introduction in April 2015.
Average selling prices were almost flat in the first quarter 2016, with generally positive price developments being offset during the first three months by mix effects .
The components business showed a solid performance in the first quarter 2016 with a particularly strong development in Germany. The KPI for European components, which measures the amount of component revenues per square metre roofing tiles sold, reached EUR 2.72 per square metre in the first quarter of 2016. Negative currency effects and the first time inclusion of Ceprano Coperture impacted the KPI by approximately EUR -0.06 per square metre and EUR -0.02 per square metre, respectively. On a comparable basis the KPI thus reached the level of last year's quarter (EUR 2.80 per square metre).
Positive volume development in Europe became visible in the Chimneys & Energy Systems business as well, resulting in a revenue growth of 1.5% (like-for-like 3.8%) in this reporting segment.
Operating EBITDA growth based on high operating leverage and cost improvements
Due to the swing in the non-operating result of EUR 8.5 million, EBIT of EUR -7.8 million in the first quarter 2016 fell short of previous year's levels (EUR -0.8 million). The net financial result amounted to EUR -10.8 million in the first three month of 2016 and was therefore largely unchanged compared to the first quarter 2015 (EUR -10.0 million). Lower interest payments were more than offset by a negative delta of exchange gains and losses and valuation effects relating to embedded derivatives of, in total, EUR 1.6 million.
Applying a consolidated effective tax rate for the Group of 32.4% (Q1 2015: 32.2%), the net income for the period amounted to EUR -12.6 million (Q1 2015: EUR -7.3 million). Divided by the number of shares outstanding at 31 March 2016 (39,166,667), the net income per share for the first quarter 2016 amounted to EUR -0.32 (Q1 2015: EUR -0.19).
Seasonally typical cash flows with slight improvement of financial leverage
Adjusted free cash flow in the first quarter 2016 amounted to EUR -94.0 million, before one-time effects of EUR 21.3 million, which foremost related to the acquisition of J.A. Plastindustri (EUR 19.7 million). Other adjustments included changes in the management, post-merger integration costs and strategic growth projects such as 'WrapTec' and 'Aerlox'. In the first quarter 2015, we generated an adjusted free cash flow of EUR -87.7 million before one-time effects of EUR 30.9 million (including EUR 25.3 million net for the acquisition of Cobert and dispositions).
Net debt at the end of Q1 2016 stood at EUR 452.7 million, maintaining the level of Q1 2015 (EUR 454.3 million). Pension liabilities, accrued interest, capitalised fees and liabilities related to earn-out clauses are not part of the Company's Net debt definition. Operating EBITDA of the last twelve months reached EUR 197.6 million in Q1 2016. Hence, Net debt to Operating EBITDA (LTM) improved from 2.4 times in March 2015 to 2.3 times in March 2016. Operating EBITDA (LTM) in relation to net interest expense improved to 7.1 times at the end of the quarter (5.7 times at year-end Q1 2015).
Successful execution of M&A strategy
Launch of new concrete tile with 'Aerlox' technology
Other building materials such as metal and fibre cement are typically used on houses with a light building and roof structure, thus being unable to carry the weight of standard tiles. Also here the light tile with 'Aerlox' technology enables Braas Monier to enter additional market segments that had been out of reach for tile makers in the past.
Positive outlook for 2016 confirmed
'With the acquisition of J.A. Plastindustri, we have continued to add further growth potential to our Company, especially in the attractive components business. It has been our fifth bolt-on acquisition since January 2015, demonstrating our ability to execute on our value-accretive M&A strategy. Real product innovations, such as the new concrete tile with 'Aerlox' technology, enable us to further differentiate from the competition in our efforts to achieve above-market growth via our 'Top Line Growth' programme. The solid start into the year, our sound operational performance and further organic and anorganic growth potential make us confident to reach our revenue and earnings targets set for 2016 and to maintain our strong cash flow profile', summarised Pierre-Marie De Leener, CEO of Braas Monier Building Group.
Key financial figures
For the full Interim Management Statement and further information on the Group, please visit our website at www.braas-monier.com > Investor Relations > Financial Statements & Presentations.
About Braas Monier
|Company:||Braas Monier Building Group S.A.|
|4, rue Lou Hemmer|
|Grand Duchy of Luxembourg|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|