Coil: 2018 FULL-YEAR EARNINGS
April 29 2019 - 11:45AM
Coil: 2018 FULL-YEAR EARNINGS
2018 FULL-YEAR EARNINGS
- 2018 complicated by high volatility on the markets and
the impact of non-recurring costs linked to the development of
industrial capabilities
- Improvement in results over the second half of 2018,
making it possible to close out the year with net income breaking
even
- Sound balance sheet, with net financial debt
representing 44% of shareholders’ equity
- Targeting an upturn in business in 2019 thanks to a
gradual return to a more standard environment
Brussels, April 29, 2019 (5:45pm) – COIL, the
world leader for aluminium anodising, is releasing its full-year
earnings for 2018.
Year’s key developments
From a commercial perspective, COIL’s revenues
of €25.2m are down 15% from 2017. The general environment was
dominated by the continued increase in economic uncertainty and
high volatility for demand on the end markets. In this context, the
anodising services business was penalised in particular i) by a
significant destocking trend within the distribution chain in the
first quarter due to major fluctuations in aluminium prices, and
ii) by a sharp decline in demand in the fourth quarter. Alongside
this, the packaged solutions business – for which the Company
covers both metal supplies and surface treatments for architectural
projects - was unexpectedly weak in Europe.
From an industrial perspective, COIL completed
its drive to strengthen its industrial facilities, with two new
production lines starting up:
- In Germany, a series of technical issues on the new Line 6
affected its automation, as well as its mechanical and
environmental facilities, delaying the transfer of production from
Line 3 in Belgium at the end of the year, which resulted in
significant non-recurring costs and higher production costs.
- In Belgium, the vertical anodising line was successfully
brought into service during the first quarter of 2018; however, as
this concerns a new extension of the continuous anodising business,
its contribution to revenues is not significant, as expected for a
year when it is starting up.
Earnings
Against a backdrop of a marked slowdown in
business and an increase in the cost structure linked to the
development of industrial capabilities, EBITDA is down €3.6m to
€4.2m, representing 16.5% of revenues. This primarily reflects the
recognition of: i/ non-recurring costs to bring the two new
production lines into service (€0.6m), ii/ the increase in payroll
costs (+€0.4m) linked to the recruitment of additional staff to
cover the launch of operations for Line 6 in Germany, and iii/ the
increase in other costs (+€0.5m) due to higher environmental taxes
and lower subsidies in Germany. These elements, recorded primarily
during the first half of the year, had less of an impact on EBITDA
for the second half of 2018, which represents 22.3% of revenues,
compared with 10.3% for the first half of 2018 and 25.5% for the
second half of 2017.
Depreciation (€3.7m) is up €0.9m and for the
first time includes Line 6 in Germany and the vertical anodising
line in Belgium. Operating income came to €0.4m, compared with
€4.9m in 2017. Adjusted for non-recurring costs for bringing the
two new production lines into service, restated operating income
represents €1.0m for 2018.
With financial expenses notably down to €0.2m,
net income came to €0.1m, compared with €4.2m in 2017.
Condensed income statement
€m |
2018 |
2017 |
Revenues |
25.2 |
29.7 |
EBITDA |
4.2 |
7.8 |
% of
revenues |
16.5% |
26.2% |
Operating
income |
0.4 |
4.9 |
% of
revenues |
1.6% |
16.7% |
Pre-tax
income |
0.0 |
4.3 |
Net income |
0.1 |
4.2 |
% of revenues |
0.3% |
14.1% |
Balance sheet
Shareholders' equity represents €29.5m, down
€2.8m from December 31, 2017, factoring in full-year earnings and
the dividend (€2.8m) paid out in September. Net financial debt
totalled €12.9m at December 31, 2018, down €0.1m from December 31,
2017, and represents 44% of equity, close to the previous year’s
level (40%).
Outlook
COIL is maintaining its cautious approach for
the first half of 2019, in line with the persistent global economic
uncertainties. Nevertheless, its optimised industrial organisation
will enable it to respond quickly to any improvement in demand. In
this environment, COIL expects the European distribution market to
be stable over the full year, with the vertical anodising business
developing and a significant upturn for the packaged solutions
business in Europe, Asia and North America.
Over the longer term, the Company is confident
about its prospects, capitalising on its outstanding anodised
product with unrivalled performance levels and an unprecedented
range of dimensions, textures and colours. COIL intends to
sustainably ramp up its leadership and build on the numerous
opportunities for development that exist around the world.
Additional information
The financial statements were approved by the
Board of Directors on April 26, 2019. They are included in the
consolidated annual accounts for 2018, available on the company's
financial site (http://investors.coil.be).
Next dates
- June 5, 2019
General
Meeting
- July 30, 2019
2019 first-half revenues
- October 29, 2019 2019 first-half
earnings
COIL is the world’s largest architectural and
industrial anodiser. Anodising is an electrochemical process
- electrolysis - that develops a natural and protective exterior
layer on aluminium that can be coloured, providing exceptional
corrosion protection and/or increased functionality for the metal.
Anodising preserves all the natural and ecological
properties of aluminium - it retains its high strength-to-weight
ratio, non-magnetic properties and exceptional corrosion resistance
without any impact on the total and repeated recyclability of the
metal. Anodised aluminium is used across a wide range of
architectural, designer, industrial and automotive applications.
|
Euronext Growth
Paris ISIN: BE0160342011 - ALCOI Reuters: ALCOI.PABloomberg:
ALCOI:FPwww.coil.be COILTim HuttonChief Executive
Officertim.hutton@coil.beTel: +32 (0)11 88 01 88
CALYPTUSCyril Combe cyril.combe@calyptus.netTel:
+33 (0)1 53 65 68 68 |
- COILpressrelease29april2019_E
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