Coil: 2019 ANNUAL RESULTS
April 29 2020 - 11:45AM
Coil: 2019 ANNUAL RESULTS
- Sales up by 18% over 2018
- EBITDA/Sales improved to 21.0% (2018:
16.5%)
- Net profit of €1.0 million (2018: € 0.1),
- Net financial debt reduced to 28% shareholders' equity,
compared to 44% in 2018
COIL, world leader in aluminium anodising, has
released its annual results for the 2019 financial year.
v
Significant events of the financial year
COIL recorded a strong commercial performance in
2019 with sales of €29.8 million, up by 18% compared to 2018. An
increase in Package Sales (where the Company sells metal plus
anodising directly to the end-customer), of +244% offset a fall in
Tolling Anodising (-8%) due to a shortage of anodising quality
aluminium in the early part of the year. This produced a
significant shift in the Company’s product mix and Gross
Margin.
On an industrial level, COIL has continued to
optimise its resources with the ramp up of its two new production
facilities. Continuous anodising Line 6 in Germany, (with its
unrivalled quality, dimensional capacity and range of treatments)
gradually absorbed the production of Line 3 in Belgium, which was
mothballed at the end of September, after 34 years of service. This
closure eliminated duplication of certain costs in Q4. It has also
allowed more resources to be allocated to the strategic development
of the new vertical anodising line in Belgium, which allows
“just-in-time” production of small batches in a wide range of
finishes and sizes.
v
Results
The shift in business mix from tolling to
package had a negative impact on Gross Margin but a very positive
effect on sales. The Company continued to bear 9 months of
non-productive costs of commissioning the two new production lines.
Notwithstanding with increased sales and better control of
operating expenses, the Company was able to report a 50% increase
in EBITDA to €6.3 million, equivalent to 21.0% of Sales (2018:
16.5%).
After an increase in Depreciation of €0.4
million, Operating Profit improved in 2019 to €2.1 million (7.1% of
sales), compared to €0.4 million in 2018.
Interest expense (- €1.0 million) was down €0.6
million compared to 2018 after taking into account exceptional
expenses related to the restructuring of the Company's financial
debt, including transitional financial expenses and penalties for
early repayment of bank debt.
After tax of €0.1 million, Net Profit was € 1.0
million, representing a Net Margin of 3.3%.
v
Summary income statement
|
2019 |
2018 |
Variation |
Sales |
29.8 |
25.2 |
+ 18 % |
EBITDA |
6.3 |
4.2 |
+ 50 % |
%
of sales |
21.0% |
16.5% |
|
Operating result |
2.1 |
0.4 |
+ 1.7 M€ |
%
of sales |
7.1% |
1.6% |
|
Pre-tax result |
1.1 |
0.0 |
+ 1.1 M€ |
Net result |
1.0 |
0.1 |
+ 0.9 M€ |
% of sales |
3.3% |
0.3% |
|
v
Review
Shareholder equity stood at €30.4 million, up by
€0.9 million compared to 31 December 2018. Net financial debt at 31
December 2019 amounted to € 8.4 million, down by € 4.5 million
compared to 31 December 2018, and represents 28% of shareholders'
equity, a ratio that has improved significantly compared to the
previous year (44%).
It should be noted that the Company refinanced
part of its bank debt in Germany, by entering into a new €4.2
million long term loan on 30th December 2019, repayable over 8
years. This loan replaced two lines of credit for a similar amount
granted on 30 June 2019 but increased the average maturity of the
Company's debt.
v
2020 first-quarter sales and outlook
Sales for the first quarter of 2020 amounted to
€5.6 million, up by 3.5% compared to the first quarter of 2019.
While packaged offers show continued strong growth (+123%), tolling
activities for rolling mills and distributors in Europe slowed
(-9%) during the period.
In the context of the Covid-19 epidemic, COIL
quickly adapted its organisational structure by taking all
necessary measures to ensure the safety of its staff. Since the
beginning of the crisis, the Company has continued to sell,
manufacture and deliver in normal conditions. However, based on its
experience of the 2008/9 economic crisis, the Company has
anticipated a potential slowdown in its business and restructured
its production capacity in Belgium and Germany in order to make its
costs as variable as possible.
At this stage, it is impossible to anticipate
how the business will evolve for the rest of the year. The Chinese
market has largely recovered since the lifting of most
restrictions. The Company continues to receive new inquiries from
other Asian countries. In Europe, market recovery will depend on
the timing and effectiveness of relaxing of the confinement
measures. As a precaution, the Company has made use of all
government support programs in Belgium and Germany to defer, as far
as possible, its loan repayments and taxes.
Despite the current profound economic
uncertainties, the Company is confident in its long-term
development prospects thanks to a unique range of premium anodised
products, an optimised industrial organisation and a growing
commercial presence throughout the world. The launch of its new
website www.aloxide.com during the first quarter of 2020 highlights
its commitment to support the expansion of its direct sales under
its ALOXIDE® brand to a global customer base.
v
Additional information
The financial statements were approved by the
Board of Directors on 27 April 2020. They can be found on the
Company's financial website (http://investors.coil.be).
- 3 June 2020:
Annual General Meeting
- 29 July 2020:
2020 half-year sales
- 28 October 2020:
2020 half-year results
About
COIL
COIL is the world's leading anodiser in the
building and industrial sectors and trades under the ALOXIDEÒ brand
name.
Anodising is an electrochemical process which
develops a natural, protective oxide layer on the surface of
aluminium and can be coloured in a range of UV-proof finishes. It
gives the metal excellent resistance to corrosion and/or reinforces
its functional qualities. Anodising preserves all the natural and
ecological properties of aluminium; it retains its high rigidity
and excellent strength-to-weight ratio, its non-magnetic
properties, its exceptional resistance to corrosion. The metal
remains totally and repeatedly recyclable through simple
re-melting. Anodised aluminium is used in a wide variety of
industries and applications: architecture, design, manufacturing
and the automotive sector. COIL deploys an industrial
model that creates value by leveraging its unique know-how, its
operational excellence, the quality of its investments and the
expertise of its people. COIL has around 130 employees in Belgium
and Germany and generated a turnover of around €30 million in
2019.
Listed on Euronext Growth Paris | Isin:
BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit
www.aloxide.com
Contact
COILTim Hutton | Chief Executive
Officertim.hutton@coil.be | Tél. : +32 (0)11 88 01 88 |
CALYPTUSCyril Combe cyril.combe@calyptus.net |
Tél. : +33 (0)1 53 65 68 68 |
- COILpressrelease29april2020_EN_vdef
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