Results of the first half of 2020-2021
May 20 2021 - 11:45AM
Results of the first half of 2020-2021
Derichebourg on the frontlines of the
recovery, exceptional performance in the first half:
Half-year recurring EBITDA up 88.8% at
€172.6 million
Net profit up 229% at €73.6
million
The Board meeting of May 20, 2021, chaired by
Mr. Daniel Derichebourg, approved the half-year financial
statements at March 31, 2021. During the meeting, the Chairman and
CEO expressed his satisfaction with the results of the Group’s
various business lines, and more particularly those of the
Environmental Services division, which benefited from the early
effects of the recovery in global economic activity and the
successful integration of the businesses acquired last year in
Spain.
Revenue: €1.65 billion in the first half
Revenue amounted to €1.65 billion, up 26.7% year
on year. The increase was attributable chiefly to Environmental
Services (up 42%), dampened by the slight decline in Multiservices
revenue (down 3%) compared with the first half of last year.
(in thousand tons) |
3/31/2021 |
3/31/2020 |
Change |
|
|
|
|
Ferrous metals |
1,998.3 |
1,654.8 |
20.8% |
Non-ferrous metals |
322.1 |
297.7 |
8.2% |
Total volumes |
2,320.4 |
1,952.5 |
18.8% |
|
|
|
|
(in millions of euros) |
3/31/2021 |
3/31/2020 |
Change |
|
|
|
|
Ferrous metals |
578.7 |
361.0 |
60.3% |
Non-ferrous metals |
505.6 |
368.7 |
37.1% |
Services |
135.9 |
128.0 |
6.2% |
Environmental Services revenue |
1,220.3 |
857.6 |
42.3% |
Multiservices revenue |
429.2 |
444.4 |
(3.4%) |
Holding company revenue |
0.5 |
0.4 |
27.0% |
Total half-year revenue, Derichebourg Group |
1,649.9 |
1,302.3 |
26.7% |
Environmental Services
The volume of ferrous scrap metals sold
increased by 20.8% (up 14% at constant scope) due to:
- a favorable comparison base, deliveries having been low in the
first quarter of fiscal 2019-2020
- sustained and growing demand for ferrous metals, including from
blast furnaces, as they help reduce their CO2 emissions
- robust demand from Turkish steel mills throughout the past
half-year, keeping volumes and selling prices up
- the late resumption of activity at some of the blast furnaces
shut down during the first wave of the health crisis last year,
which created shortages of certain products, and, for those where
this is possible, prompted a shift in demand toward steel from
electrical mills.
The volume of non-ferrous metals sold increased by 8.2% (at
constant scope, down 10%, due to a marked decline in the American
subsidiary).
Prices of ferrous and non-ferrous metals were
significantly higher than in the first half of last year, resulting
in a 42% increase in Environmental Services revenue.
Multiservices
The increase in revenue in the waste management
business lines (18% in France,16% in Spain-Portugal) was not
sufficient to fully offset the decline in jobs related to
aeronautics (declines of 39% in outsourced services and 61% in
specialized temporary work), meaning that revenue for the half-year
was down 3%.
Recurring EBITDA1
The Group’s main business lines saw their
recurring EBITDA improve year on year. Thanks to improved margins
in the Environmental Services division, the Group’s recurring
EBITDA rose by 88.8% (or €81.2 million) to €172.6 million. It
represents 10.5% of revenue.
The recurring EBITDA of the Environmental
Services division was €153.3 million, up 116.7% (or €82.5 million)
compared with last year. It represents 12.6% of revenue. The
factors behind the improvement are an increase in ferrous metal
volumes, higher prices for ferrous and non-ferrous metals, tight
control of the various expense items and improved results in
household waste collection activities in Canada.
The recurring EBITDA of the Multiservices
division increased by 7.7% to €24 million thanks to the improvement
in the profitability of the waste management businesses and the
resilience of outsourced aeronautical services despite the
challenging economic climate.
The Group’s recurring EBITDA over 12 rolling
months amounted to €262 million, with no adjustment for the impact
of the period from April to May 2020, which was heavily impacted by
the first period of lockdown.
Recurring operating profit
(loss)2
After taking into account €60.4 million in
depreciation and amortization over the half-year, recurring
operating profit amounted to €112.3 million, up 236.6% compared
with the first half of last year.
Operating Profit (loss)
There were few non-recurring items in the first
half other than a gain of €2.9 million following a reversal of a
provision for litigation at Derichebourg Multiservices and
Derichebourg Propreté that had become irrelevant.
Operating profit amounted to €115.5 million, up
175.9% compared with the same period last year.
Net profit (loss) attributable to the
shareholders of the consolidating entity
The net profit attributable to shareholders was
€73.6 million, up 229% compared with the first half of last
year.
Outlook
The Group expects the favorable conditions for
the recycling business that prevailed in the first half to continue
in the second, with a high price environment for raw materials.
Demand for steel is strong in China: on May 1,
2021, China abolished import duties on steel and ferrous
metals.
The Group plans to continue its investment
policy and at the end of the half-year or the beginning of fiscal
2021-2022 is to:
- Increase its WEEE (waste electrical and electronic equipment)
processing capacity in France
- Increase its lead ingot production capacity
The pre-notification file relating to the
prospective acquisition of Ecore is currently being reviewed by the
competent antitrust authorities.
Growth in revenue from services activities
(utilities and multiservices) is also expected.
INCOME STATEMENT
(in millions of euros) |
3/31/2021 |
3/31/2020 |
Change |
|
|
|
|
Revenue |
1,649.9 |
1,302.3 |
26.7% |
of which Environmental Services |
1,220.3 |
857.6 |
42.3% |
of which Multiservices |
429.2 |
444.4 |
(3.4%) |
|
|
|
|
Recurring EBITDA |
172.6 |
91.5 |
88.8% |
of which Environmental Services |
153.3 |
70.7 |
116.7% |
of which Multiservices |
24.0 |
22.3 |
7.7% |
|
|
|
|
Recurring operating profit (loss) |
112.3 |
33.4 |
236.6% |
of which Environmental Services |
107.1 |
26.6 |
302.4% |
of which Multiservices |
11.6 |
9.7 |
19.1% |
|
|
|
|
Non-current items, net |
3.2 |
8.5 |
(62.4%) |
|
|
|
|
Operating Profit (loss) |
115.5 |
41.9 |
175.9% |
|
|
|
|
Net financial expenses |
(7.2) |
(5.7) |
26.0% |
Other financial items |
0.6 |
(0.3) |
(292.7%) |
|
|
|
|
Profit (loss) before tax |
108.9 |
35.9 |
203.7% |
|
|
|
|
Income tax |
(33.4) |
(13.1) |
156.0% |
Share of profit (loss) of associates and joint ventures |
(0.8) |
0.2 |
(413.4%) |
Net profit (loss) attributable to non-controlling interests |
(1.1) |
(0.7) |
66.6% |
|
|
|
|
Net profit (loss) attributable to
shareholders |
73.6 |
22.4 |
228.8% |
BALANCE SHEET
(in millions of euros) |
3/31/2021 |
9/30/2020 |
Change (%) |
Goodwill |
261.1 |
261.1 |
|
Intangible assets |
6.7 |
7.5 |
|
Property, plant and equipment |
496.9 |
497.7 |
|
Right-of-use assets |
202.8 |
190.2 |
|
Financial assets |
10.3 |
10.0 |
|
Equity interests in associates and joint ventures |
11.8 |
12.6 |
|
Deferred taxes |
32.4 |
31.1 |
|
Total non-current assets |
1,022.0 |
1,010.1 |
1.2% |
Inventories |
136.7 |
105.3 |
|
Trade receivables |
399.6 |
309.9 |
|
Tax receivables |
4.6 |
4.1 |
|
Other assets |
90.4 |
68.3 |
|
Financial assets |
20.0 |
15.4 |
|
Cash and cash equivalents |
403.7 |
361.9 |
|
Financial instruments |
1.4 |
0.0 |
|
Total current assets |
1,056.4 |
865.0 |
22.1% |
Total non-current assets and groups of assets |
0.0 |
0.0 |
|
Total assets |
2,078.3 |
1,875.1 |
10.8% |
(in millions of euros) |
3/31/2021 |
9/30/2020 |
Change (%) |
Group shareholders’ equity |
596.3 |
521.6 |
|
Non-controlling interests |
3.4 |
2.6 |
|
Total shareholders’ equity |
599.7 |
524.2 |
14.4% |
Loans and financial debts |
541.5 |
572.2 |
|
Provision for pensions and similar benefits |
52.0 |
50.8 |
|
Other provisions |
32.8 |
33.4 |
|
Deferred taxes |
22.6 |
23.2 |
|
Other liabilities |
4.5 |
3.2 |
|
Total non-current liabilities |
653.4 |
682.6 |
(4.3%) |
Loans and financial debts |
182.9 |
130.9 |
|
Provisions |
2.6 |
4.6 |
|
Trade payables |
346.0 |
254.5 |
|
Tax payables |
27.1 |
4.7 |
|
Other liabilities |
264.8 |
271.2 |
|
Financial instruments |
1.9 |
2.3 |
|
Total current liabilities |
825.3 |
668.2 |
|
Total liabilities related to a group of assets held for
sale |
0.0 |
0.0 |
23.5% |
Total liabilities |
2,078.3 |
1,875.1 |
10.8% |
CHANGE IN NET FINANCIAL DEBT FROM SEPTEMBER 30, 2020 TO
MARCH 31, 2021
Net financial debt at September 30, 2020 |
341.1 |
Recurring
EBITDA |
(172.6) |
Investments |
59.0 |
Net financial
expenses |
7.2 |
Corporate income
taxes |
12.9 |
Others |
2.9 |
Subtotal |
250.4 |
Change in working
capital requirement |
52.8 |
New IFRS 16
right-of-use assets |
17.4 |
Net financial debt at March 31, 2021 |
320.7 |
1 Recurring EBITDA = Recurring operating profit (loss) + net
depreciation and amortization on tangible and intangible assets,
and right-of-use assets
2 Recurring operating profit (loss) = Operating profit (loss)
+/- non-recurring items
- Results of the first half of 2020-2021
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