Half-year results 2018 - 31/08/2018

Press releaseEtex reports a like-for-like growth in revenue of 3.4% and a 2.0% REBITDA decrease for the first half of the year. The REBITDA margin is slightly down at 14.3%. Net profit is up 31.2% year-on-year.

Mixed performance with growth offset by severe weather conditions in Europe and input prices

Comment from Paul Van Oyen, CEO of Etex: “In a first half of the year marked by adverse winter conditions in some European countries, I’m glad to report that Etex has recorded a revenue growth year-on-year. However, the REBITDA was significantly impacted by price pressure on some markets. In the second half of the year, we will take adequate measures to control costs. Our net profit has grown more than 30% year-on-year thanks to reduced financial charges. Based on current market conditions, we still expect a modest growth in revenue and an increase in net profit for the full year of 2018.”

Slight REBITDA decrease despite revenue growth

For the first six months of the year, Etex reports a revenue of EUR 1.453 billion, a like-for-like (same currency exchange rates and scope) increase of 3.4% year-on-year. Including the impact of the currency exchange rates and the change of scope, revenue is up 2.8%. This good performance is mainly driven by our Etex Building Performance, Etex Façade and Etex Industry divisions. The revenue of Etex Roofing is slightly down year-on-year, due to a poor German market as well as severe winter weather conditions in the UK, France and Spain. The positive scope impact (+2.8%) is mainly attributable to the acquisition of the Spanish manufacturer of gypsum products Pladur at the end of last year; it was more than offset by adverse currency exchange rates (-3.4%), mainly a stronger British pound, Nigerian naira and Argentine peso.

The recurring operating cash flow (REBITDA) reached EUR 207 million, a like-for-like decrease of 2.0% year-on-year, or 1.8% when including currency exchange rates and scope. The revenue growth did not translate into a REBITDA improvement, the latter being impacted by pressure on prices in specific markets, and some unfavourable raw materials price evolutions. This was partially offset by higher margins at Etex Industry. The REBITDA margin stands at 14.3%, slightly down compared to the first half of 2017 (14.9%).

Etex’s net profit reached EUR 88 million in the first half of 2018, up 31.2% on H1 2017. This increase is mainly attributable to significantly lower net financial charges.

In line with the seasonality of the working capital, the net financial debt increased from EUR 633 million at the end of 2017 to EUR 719 million at the end of June 2018. The net financial debt/REBITDA ratio at the end of June 2018 is stable at 1.7.

Revenue by division

Etex Building Performance registered a like-for-like top-line growth of 6.6%, mainly attributable to the strong performance of plasterboard activities in Europe – especially in the UK, France and Central Europe – but also in Latin America, with business picking up in Brazil despite an adverse economic environment.

Etex Roofing revenue is down 3.3% like-for-like. This is mainly due to severe winter conditions at the beginning of the year, especially in the UK, Spain and France. This was partially offset by a good performance recorded in the Dutch agricultural corrugated sheets market, notably thanks to government incentives. The business performed well in Central and Eastern Europe, Spain, Portugal and Argentina, yet to a lesser extent.

The revenue of our Etex Façade division is up year-on-year, +3.7% like-for-like, mainly thanks to good performance in the UK, Southern and Eastern Europe, the US, Australia, Argentina and Chile, and despite lower revenue in other European countries, China and Colombia.

Finally, Etex Industry registered a like-for-like revenue growth of 7.7%. A decrease in project revenue in Spain and a slower half-year in Japan and Russia were largely offset by solid revenue growth in Germany, the Asia-Pacific region, the Middle East, the US and India.


Key figures for H1 2018

EUR million June 2017
June 2018 Var. (%) Like-for-like var. (%) Var. at  
scope (%)
Revenue 1,414 1,453 2.8% 3.4% 0.0%
Recurring operating cash flow (REBITDA) 211 207 -1.8% -2.0% -6.0%
     % revenue 14.9% 14.3%      
Recurring operating income (REBIT) 134 130 -3.0% -3.0% -7.4%
     % revenue 9.4% 8.9%      
Non-recurring items -9 -12      
Operating cash flow (EBITDA)
202 195 -3.5%    
Operating income (EBIT) 125 117 -5.8%    
     % revenue 8.8% 8.1%      
Profit for the period 67 88 31.2%    
     Group share 64 85
     Non-controlling interest 3 2      
Working capital 433 448      
Net financial debt 681 719      
Capital expenditure 29 49      

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