Half year performance: Etex confirms its profitable growth - 31/08/2017

Press releaseEtex reports like-for-like growth of 3.9 % in sales and 5.4 % in Rebitda for the first half of the year. Rebitda reaches 211 million euro, achieving a 14.9 % margin compared to 14.6 % last year.

Half year results show like-for-like growth for sales and Rebitda

During the first six months of 2017, Etex recorded sales of 1.414 billion euro. This represents growth of 3.9 % on a like-for-like basis (same exchange rates, same scope). Taking the impact of scope and exchange rates into account, this represents a 4.5 % decline. The scope impact is mainly driven by the sale of the ceramic floor and wall tiles business in Latin America in September 2016.

The resulting recurring operating cash flow (Rebitda) is 211 million euro. This represents growth of 5.4 % on a like-for-like basis and a 2.4 % decrease with scope and exchange rate impacts taken into account. The Rebitda margin reached 14.9 %, up from 14.6 % at the end of June 2016.

The net financial debt decreased from 885 million euro at the end of June 2016 to 681 million euro at the end of June 2017. This significant reduction is mainly driven by the sale of the ceramic floor and wall tiles business in Latin America in September 2016. The net financial debt/Rebitda ratio decreased from 2.0 at the end of June 2016 to 1.6 at the end of June 2017.

Etex Building Performance registered top line growth compared to last year, with France, Poland, and the UK performing particularly well. Outside of Europe, South Africa is suffering from political instability whilst sales in Peru grew, thanks to a new housing concept that was successfully launched. Etex Façade enjoyed further growth in all regions and is the fastest-growing business. Etex Industry performed as planned, notwithstanding some capacity constraints which are being solved with ongoing capital expenditure. Italy and the Middle East performed well. The results of Etex Roofing are in line with last year, with difficult market conditions in Germany.

In July, an agreement was reached to make Etex the majority shareholder of Pladur, a Spanish manufacturer of gypsum products. The agreement – which is subject to customary closing conditions – provides for the sale of 35 % of the shares by current majority shareholder Coemac to Etex by the end of 2017, with an option for Coemac to transfer the remaining 24.31 % in 2020.

Paul Van Oyen, CEO of Etex, confirms the outlook for the year : “Based on current market conditions, a modest growth in sales, net profit and free cash flow is expected for 2017.”

  

Changes to the Board of Directors

In May 2017, J. Alfons Peeters, former CEO of the company, reached the age limit and therefore left the Board of Directors. At the same time, Etex welcomed Pierre Vareille as a board member.

For more information about Etex’s management and board, please click here.

  

Key Figures June 2017

In million euro June 2016
June 2017 % var % var
(like-for-like)
% var
scope
(like-for-like)
Revenue 1,480 1,414 -4.5% 3.9% 2.7%
Recurring operating cash flow (Rebitda) 216 211 -2.4% 5.4% 1.9%
     % revenue 14.6% 14.9%      
Recurring operating income (Rebit) 135 134 1.4% 8.2% 2.7%
     % revenue9 9.2% 9.4%      
Non-recurring items -16 -9      
Operating cash flow (Ebitda)
201 202 0.6%    
Operating income (Ebit) 119 125 4.2%    
     % revenue 8.1% 8.8%      
Profit for the year 55 67 20.8%    
     Group share 52 64 22.1%    
     Non-controlling interest 3 3      
Working capital (*) 460 433      
Net financial debt 885 681      
Capital expenditure 39 29      

(*) Excluding the favourable impact of 200 million euro of the non-recourse factoring programme by the end of June 2017 compared to 195 million euro by the end of June 2016.


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