DGAP-News: Braas Monier Building Group S.A. / Key word(s): Quarterly / Interim Statement
Braas Monier in Q2 2016 with positive earnings development in an uneven environment
- Strong performance in selected markets such as Germany, Poland and South-Eastern Europe as well as first-time inclusion of newly acquired businesses mostly compensating for negative exchange rate effects and more challenging geographies
- Q2 2016 revenues of EUR 329.0 million down 1.8% (like-for-like -1.0%)
- Operating EBITDA growth of 2.4% to EUR 61.9 million in Q2 2016 (like-for-like 2.2%),
- Strong future cash flow profile further enhanced sizeably by successful refinancing in June
- Bolt-on M&A strategy continued with acquisitions in South Africa and the Netherlands
- Full-year revenues expected to grow by around 1% on a like-for-like basis, additionally around 3% growth stemming from recent acquisitions
Luxembourg, 3 August 2016. Braas Monier today published its results for the first half year and the second quarter 2016. 'Braas Monier has shown a solid operational, financial and strategic performance since the start of the year,' summarised Pierre-Marie De Leener, CEO and Chairman of the Board of Directors of Braas Monier Building Group. 'We have strengthened our Operating EBITDA, executed three further value-accretive acquisitions and with the very successful refinancing, we reduced our cash interest charge by more than EUR 10 million on an annualised basis. However, harsh weather conditions in wide parts of continental Europe in June and increased uncertainty around the UK referendum have not allowed for achieving our full revenue potential during the second quarter.'
Revenue development dampened by weak June
On a like-for-like basis, excluding these effects, revenues were 1.0% below the previous year's level due to lower volumes, particularly in Italy, China and Malaysia. From April to May 2016 European tile volumes grew on a like-for-like basis, continuing the positive trend of the first quarter (+3.5%), but declined in June, resulting in a marginal negative like-for-like development for the second quarter as a whole. While volumes in Asia & Africa still decreased in the second quarter of 2016, all countries showed an improving trend compared to the first three months of 2016, resulting in higher growth rates in South Africa and significantly less reductions in Malaysia. Average selling prices were slightly positive in the second quarter 2016.
The components business showed a solid performance in the first half year 2016 and a particularly strong performance in Germany. The KPI for European Components, which measures the amount of component revenues per square metre roof tiles sold, reached EUR 2.37 per square metre in the six months of 2016, exceeding the level of last year's period by 1.3%.
Revenues of the Chimneys & Energy Systems business were stable at previous year's level in the second quarter (Q2 2016: EUR 44.2 million vs. Q2 2015: EUR 44.0 million) with a flat volume and positive pricing development being offset by negative currency effects. On a like-for-like basis, revenues increased by 2.6% in the second quarter 2016.
Operating EBITDA increase backed by lower energy costs and strict cost management
The effect of lower volumes on Operating EBITDA was moderate during the second quarter of 2016, average selling prices showed a slightly positive development. Lower energy costs helped to improve the variable cost base, in particular in Germany and France. Improvements in fixed costs were especially realised in geographies with a challenging market environment, such as Italy and Asia & Africa.
The Net financial result in the second quarter 2016 amounted to EUR -38.3 million. The change of EUR -27.8 million compared to the second quarter 2015 (EUR -10.5 million) was driven by one-time costs related to the refinancing in June 2016, in particular the full amortisation effect stemming from transaction cost in relation with the former financing (EUR -15.0 million) and the close out of the interest rate swaps (EUR -14.3 million).
Applying a consolidated effective tax rate for the Group of 33.7% (Q2 2015: 32.2%), the Net income for the period amounted to EUR -11.0 million for the first half 2016 (H1 2015: EUR 9.7 million) and to EUR 1.6 million in the second quarter 2016 (Q2 2015: EUR 17.0 million). Divided by the number of shares outstanding at 30 June 2016 (39,166,667), the Net income per share for the second quarter 2016 amounted to EUR 0.04 (Q2 2015: EUR 0.43) and to EUR -0.28 for the first half 2016 (H1 2015: EUR 0.25).
Consistent bolt-on M&A strategy continued
In July 2016, Braas Monier acquired Ontop B.V., a well-established European manufacturer of stainless steel flue systems, with end-product applications ranging from industrial bakery ovens, diesel and gas engines, boilers, fire places and stoves. Ontop, headquartered in Middelburg, the Netherlands, serves the European market with one production location each in the Netherlands and Poland as well as a distribution centre in Germany and a sales office in France.
Launch of new concrete tile with 'Aerlox' technology
Industry experience in the Board of Directors strengthened
Positive outlook for 2016 adjusted
Based on these assumptions, Braas Monier expects like-for-like revenues to increase by around 1%. Average selling prices are expected to increase slightly to cover increasing input costs. On top, the first-time inclusion in full of acquisitions in Malaysia, Italy, Denmark, South Africa and the Netherlands is expected to generate of around 3% of revenue growth and approximately 4% in Operating EBITDA growth.
'Our strong components business provides a reliable platform for future growth and real innovations further enrich our product mix. Together with effective sales and marketing activities in all our countries, we are confident to provide value-adding products and services for our customers, allowing us to grow faster than the markets. Earnings are expected to benefit from our high operating leverage and our strict cost discipline', said Pierre-Marie De Leener, CEO and Chairman of the Board of Directors of Braas Monier Building Group. 'We believe that the solid performance of Braas Monier gives evidence to our ability to achieve these goals - even in tough markets.'
Key financial figures /
For the full Interim Financial 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|