EXEL INDUSTRIES :2016-2017 first-half results : resilient income
GlobeNewswire
PRESS RELEASE Paris, June 15, 2017
2016-2017 first-half results EXEL Industries: resilient income
First-half revenue of €352.7 million
Current operating income (current EBIT) of €15.1 million compared to €16.9 million
Improvement in operating working capital requirement (WCR) of €24.6 million (excluding corporate income tax)
Sale of RAM Environnement SAS.
2015-2016
2016-2017
2016-2017
Oct 15 - Mar 16
Oct 16-Mar 17
Oct 16-Mar 17
In € thousands
Constant scope*
Revenue
346.5
338.5
352.7
Current operating income
16.9
16.2
15.1
(Current EBIT) as a % of sales
4.9%
4.8%
4.3%
Pre-tax income
12.8
14.9
Net income
7.3
8.4
Headcount
3,618
3,463
*Constant scope : Excluding the ET Works first quarter as it is consolidated since January 2016
· Analysis of 2016-2017 first-half results
Resilient income
The decrease of "Agricultural Spraying" results has been offset by other EXEL Industries group activities. The Agricultural Spraying actually saw a sharp reduction in the French market and a slight decline in Europe whereas, at the same time, sales increased in the USA, Australia and the CIS countries.
Current operating income (current EBIT) was €15.1 million at current consolidation scope and €16.2 million at constant scope, i.e. excluding the ET Works first quarter. Current EBIT was €16.9 million over the same period in n-1 and it had benefited from the Macron Law`s positive effect on sales in France.
The sale of RAM Environnement SAS on February 28 did not significantly affect the financial statements.
Cash generation thanks to work to reduce the operating WCR
All of the EXEL Industries group teams have been working on the operational performance action plans in order to reduce the WCR. Comparing March 2016 to March 2017, operating WCR was reduced by €24.6 million as a result.
Over the 2016-2017 first half-year, investments were €9.6 million, representing around one third of planned full year investments.
Net income over the period was €8.4 million compared to €7.3 million last year.
Net financial debt at the end of March 2017 stood at €145.5 million compared to €181.1 million last year at the same time.
Audit Process
The Group Internal Audit Committee met on the afternoon of June 12, 2017. The Group Statutory Auditors reported to the Internal Audit Committee regarding their limited reviews of the financial statements of the major subsidiaries and the Group and had no reserve or comments with respect to the parent company and consolidated financial statements as at March 31, 2017. On these bases on June 13, 2017, the Board of Directors approved the EXEL Industries group half- year consolidated financial statements.
Change of fiscal year-end date.
The EXEL Industries Extraordinary Shareholders` Meeting of January 12, 2016 had approved a resolution that the company`s fiscal year should begin on October 1 of each year and end on September 30 of the following year. The first half of this fiscal year commenced on October 1, 2016, and ended March 31, 2017, whereas it previously used to finish at the end of February. All of the commentary is based on six months of activity comparing end-March 2016 to end-March 2017.
· Upcoming events
- Thursday July 20, 2017 after market closing: Third quarter 2016-2017 revenue. - Thursday October 26, 2017 after market closing: Fourth quarter 2016-2017 revenue. - Tuesday, December 19, 2017, before the market opens: 2016-2017 annual results.
· Outlook and Strategy
Guerric Ballu, CEO of EXEL Industries group, said:
"Over the first half of this fiscal year, EXEL Industries group has demonstrated its ability to withstand local crises. In effect, in France, the crisis in Agricultural Spraying is continuing with no real prospect of recovery before the end of our fiscal year. The Group`s internationalization and the development of our other activities (Sugar Beet Harvesters, Garden Spraying and Watering and Industrial Spraying) are offsetting the poor results of the Agricultural Spraying activity in France. Current operating income (current EBIT) stood at €15.1 million at the end of March 2017 compared to €16.9 million last year. This income, the efficiency of our supply chain and lower inventories and work-in-progress enable more cash to be generated and our debt to be reduced at the peak of the seasonality of our business.
The outlook for the Sugar Beet Harvesters activity is good this year with strong sales in Europe and our plants are operating at full capacity. The same goes for Garden Spraying and Watering which is benefiting from very favorable weather conditions and the implementation of new agreements with DIY stores in Europe. In the Industrial Spraying activity, the newly merged Sames Kremlin company is consolidating its position in distribution and pursuing its automotive projects such as, for example, Nissan in Sunderland, UK, and PSA in Vigo, Spain. Only the Agricultural Spraying activity is in decline.
The high degree of resilience shown by EXEL Industries group is related to the ability of our teams to adapt to cyclical and geographic changes, capitalizing on the increasingly international reach of our four activities. Our markets are enjoying long-term growth and our strategy is based on three areas of focus: internationalization, innovation and profitable, sustainable growth.
EXEL Industries
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014
2014/2015
2015/2016 12 months
Revenue in millions of euros
384.4
430.1
525.3
740.2
775.4
725.2
770,8
About EXEL Industries: :
EXEL Industries` main businesses are agricultural sprayers (world leader) and industrial spraying. The Group also competes in the consumer watering products market and in sugar beet harvesters (world leader). EXEL Industries is continually expanding its markets by means of constant innovation and an international strategy. EXEL Industries employs around 3,720 people spread over 29 countries on five continents.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: EXEL INDUSTRIES via GlobeNewswire HUG#2113311
