Cembre

Board approves Interim Report on the 1st half of 2018

Cembre (STAR): consolidated sales up 10.1% in the 1st Half of 2018

11/09/2018

(Brescia, 11th September 2018, h 11:19 am)

  • In the 1st Half of 2018 sales on Italian market grew by 11.7% while sales to other markets increased by 8.8% on the corresponding period in 2017
  • Capital expenditure for the 1st Half of 2018 amounted to €7.4 million
  • Sales for the first eight months of the year were up by 11.2% on the corresponding period in 2017
Consolidated figures

1st Half

 

1st Half

 

 

Full year

 

(€’000)

2018

Sales margin %

2017

Sales margin %

Change

2017

Sales margin %

Sales

73,295

100

66,596

100

10.1%

132,637

100

Gross operating profit

18,859

25.7

17,336

26.0

8.8%

33,434

25.2

Operating profit

15,492

21.1

14,227

21.4

8.9%

27,036

20.4

Pre-tax profit

15,421

21.0

14,222

21.4

8.4%

26,575

20.0

Net profit

11,699

16.0

10,150

15.2

15.3%

22,727

17.1

Net financial position

3,977

 

14,583

 

 

20,232

 

Brescia, September 11, 2018 – The Board of Directors of Cembre Spa – a STAR listed company and one of the largest European manufacturers of electrical connectors and tools for their installation – chaired by its Chairman and Managing Director Giovanni Rosani, approved at today’s meeting the Report on the 1st Half of 2018.

 

In the first six months of 2018, the Group reported consolidated sales of €73.3 million, up 10.1% on €66.6 million in the corresponding period in 2017.

In the 1st Half of 2018, sales to Italian market amounted to €31.3 million, up 11.7% on the 1st Half of 2017, while sales outside Italy amounted to €41.9 million, up 8.8%. A total of 42.8% of Group sales were represented by Italy (as compared with 42.1% in the 1st Half of 2017), 41.9% by the rest of Europe (42.1% in the 1st Half of 2017), and the remaining 15.3% by the rest of the World (15.8% in the 1st Half of 2017). Sales of newly acquired company IKUMA KG for the 1st Half of 2018 amounted to €1.4 million. Net of the effect of these, consolidated sales of the Group would have increased by 7.9%. On May 3rd in fact the German subsidiary acquired, effective May 1, 2018, the entire capital stock of IKUMA KG, a company operating in the German electrical supplies market.

 

Consolidated gross operating profit for the 1st Half of 2018 amounted to €18.9 million, representing a 25.7% margin on sales, up 8.8% on the corresponding period in 2017 when it amounted to €17.3 million, representing a 26.0% margin on sales.

In the period the cost of goods sold and personnel costs as a percentage of sales declined despite the increase in the average number of employees from 680 to 747.

 

Consolidated operating profit for the period amounted to €15.5 million, representing a 21.1% margin on sales, up 8.9% on €14.2 million in the 1st Half of 2017, when it represented a 21.4% margin on sales.

 

Consolidated profit before taxes amounted to €15.4 million, representing a 21.0% margin on sales, up 8.4% on €14.2 million in the 1st Half of 2017, when it represented a 21.4% margin on sales.

 

Net profit for the first six months of 2018 amounted to €11.7 million, up 15.3% on €10.2 million in the 1st Half of 2017. The margin on sales amounted to 16.0%, as compared with 15.2% in the 1st Half of 2017. The reduction in the tax rate is due to the application starting in 2017 of the Patent Box tax regime that resulting in a benefit for the 1st Half of 2018 of €0.6 million. In the 1st Half of 2017 no tax benefit relating to the Patent Box regime was recorded as the agreement with Tax Authorities for the application of the tax regime was underwritten on December 22, 2017.

 

In the 1st Half of 2018 nonrecurring costs for the acquisition of IKUMA amounted to €421 thousand. Eliminating the effect of this negative component, profit margins for the period would have amounted to a:

  • gross operating profit of €19.3 million, representing a 26.3% margin on sales, up 11.2% on the corresponding period in 2017;
  • operating profit of €15.9 million, representing a 21.7% margin on sales, up 11.9% on the 1st Half of 2017;
  • pre-tax profit of €15.8 million, representing a 21.6% margin on sales, up 11.4% on the 1st Half of 2017.

 

Capital expenditure in the 1st Half of 2018 amounted to €7.4 million and consisted primarily in investments in plant and equipment. In the 1st Half of 2017 capital expenditure amounted to €6.7 million. The increase in property, plant and equipment includes €2.0 million relating to IKUMA’s customer list and €0.5 million relating to the IKUMA trademark, in line with the allocation of the acquisition price to individual assets of IKUMA.

 

The consolidated net financial position at June 30, 2018 amounted to a surplus of €4.0 million, down from December 31, 2017 when it amounted to a surplus of €20.3 million. In the 1st Half of 2018 the Company paid out €13.3 million in dividends, made capital investments amounting to €7.4 million and acquired German company IKUMA KG for €8.3 million. At June 30, 2017, the net financial position was equal to €14.6 million.

 

“The steady increase in turnover– up 10.1% on the corresponding period in 2017 – registered in the 1st Half of the year and strengthened in July and August, saw an overall growth in sales for the first eight months of the year equal to 11.2% on the corresponding period in 2017. This result, obtained also with the contribution, in terms of sales, of the acquisition of German company IKUMA KG, makes Cembre confident of closing the year reporting a consistent increase in turnover and margins over 2017 – commented Cembre’s Chairman and Managing Director Giovanni Rosani.

 

* * * *

Cembre designs, manufactures and distributes electrical connectors and cable accessories. It enjoys a leadership position in Italy and significant market shares in the rest of Europe. It is also the world's largest producer of connector installation tools (mechanical, pneumatic and hydraulic) and tools for cable shearing. The products it has developed for connection to the rail and for other railway applications are used by the main companies in this sector round the world. Cembre owes its success to an insistence on innovative, high-quality products, a broad and thorough collection, and an extensive distribution network both in Italy and abroad.

Founded in Brescia in 1969, the Cembre Group is now a full-fledged international force. Along with the parent company in Brescia it has seven subsidiaries: five trading companies (two in Germany, one in France, Spain and the United States respectively) and a manufacturing and trading subsidiary (Cembre Ltd., based in Birmingham, U.K), for a total workforce of 759 as of June 30, 2018. Since 1990 its products have been certified by Lloyd's Register Quality Assurance for the design and production of accessories for cables, electrical connectors and tools for their installation.

Cembre has been listed on the Italian Stock Exchange since December 15, 1997, and on the STAR section since September 24, 2001.

 

Contacts:

Cembre S.p.A. - Claudio Bornati      +39 030 36921    claudio.bornati@cembre.com

Further information is available on the Company’s institutional site www.cembre.com

 

The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document results, books and accounting records.

 

Attachments - Financial Statements at June 30, 2018:

  • Consolidated Balance Sheet
  • Consolidated Comprehensive Income Statement
  • Consolidated Statement of Cash Flows

 

In the present document use is made of “alternative performance indicators” which are not provided for under European IFRS, and whose significance and content are illustrated below (in line with the guidelines contained in ESMA/2015/1415 published on October 5, 2015):

 

Gross Operating Profit (EBITDA): defined as the difference between sales revenues and costs for materials, of services received, and the net balance of operating income and charges. It represents the profit achieved before amortization, financial flows and taxes.

Operating Profit (EBIT): defined as the difference between the Gross Operating Profit and the value of depreciation, amortization and write-downs. It represents the profit before financial flows and taxes.

Net Financial Position: it represents the algebraic sum of cash and cash equivalents, financial receivables and current and non-current financial debt.

 

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Cembre Via Serenissima, 9 - 25135 Brescia - ITALY
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CODICE FISCALE – P.IVA: 00541390175
ISCRIZIONE AL REGISTRO DELLE IMPRESE: n. 00541390175 Brescia
CAPITALE SOCIALE: € 8.840.000 i.v.