Cembre

BOARD APPROVES THE INTERIM REPORT AT SEPTEMBER 30, 2018

CEMBRE (A STAR LISTED COMPANY): in the first nine months of 2018 consolidated turnover grew by 10.0%
Net financial position at September 30, 2018 amounted to a surplus of €4.1 million

14/11/2018

(Brescia, 14th November 2018, h 01:25 pm)
 
  • Consolidated sales for the first nine months of 2018 grew by 10.0% worldwide, with sales to Italian market and sales to other markets up respectively by 8.9% and 10.7% 
  • Capital expenditure in tangible assets for the first nine months of 2018 amounted to €12.3 million
  • Sales for the first ten months of 2018 grew by 11.5%, while the net financial position at October 31st amounted to a surplus of €4.5 million

 

(€’000)

First nine months 2018

Sales margin

First nine months 2017

Sales margin

% change

3rd Qtr. 2018

Sales margin

3rd Qtr. 2017

Sales margin

% change

 

 

%

 

%

 

 

 

 

 

 

Sales

107,270

100

97,555

100

10.0%

33,975

100

30,959

100

9.7%

 

 

 

 

 

 

 

 

 

 

 

Gross operating profit (Ebitda)

26,695

24.9

25,292

25.9

5.5%

7,836

23.1

7,956

25.7

-1.5%

 

 

 

 

 

 

 

 

 

 

 

Operating profit (Ebit)

21,507

20.0

20,564

21.1

4.6%

6,015

17.7

6,337

20.5

-5.1%

 

 

 

 

 

 

 

 

 

 

 

Profit before taxes

21,536

20.1

20,182

20.7

6.7%

6,115

18.0

5,960

19.3

2.6%

 

 

 

 

 

 

 

 

 

 

 

Net profit

16,606

15.5

14,416

14.8

15.2%

4,907

14.4

4,266

13.8

15.0%

 

 

 

 

 

 

 

 

 

 

 

Net financial position

4,111

 

20,363

 

 

 

 

 

 

 

 

Brescia, November 14, 2018 - The Board of Directors of Cembre Spa – a company listed in the STAR segment of the Milan Stock Exchange 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 3rd Quarter of 2018.

 

Consolidated sales for the first nine months of 2018 grew by 10.0% on the corresponding period in 2017, up from €97.6 million to €107.3 million. In the 3rd Quarter of 2018, consolidated revenues grew by 9.7% on the 3rd Quarter of 2017 from €31.0 million to €34.0 million.

 

In the first nine months of 2018, 41.4% of Group sales were represented by Italy (as compared with 41.8% in the first nine months of 2017), 43.1% by the rest of Europe (42.0% in the first nine months of 2017), and the remaining 15.5% by the rest of the World (16.2% in the first nine months of 2017).

Consolidated domestic sales grew in the period by 8.9% while exports grew by 10.7%.

Sales of newly acquired IKUMA KG for the five months since its acquisition (May 1-Sept. 30, 2018) amounted to €3.5 million; net of this contribution consolidated sales increased by 6.4% on the corresponding period in 2018. On May 3rd, 2018, effective May 1st, 2018, wholly‐owned German subsidiary Cembre GmbH acquired in fact the entire capital stock of IKUMA GmbH & Co. KG a company active on the German market in the electrical equipment sector.

Profit for the first nine months of 2017 had been positively affected by the €502 thousand capital gain reported in 2017 by Spanish subsidiary Cembre España S.L.U. on the sale of the industrial building located in Coslada (Madrid) formerly hosting the subsidiary’s operations; the capital gain is classified in the Income Statement under other non-recurrent income.

 

Consolidated gross operating profit (Ebitda) for the first nine months of 2018 amounted to €26.7 million, corresponding to a 24.9% margin on sales, up 5.5% from €25.3 million in the first nine months of 2017, representing a 25.9% margin on sales. The cost of goods sold as a percentage of sales declined slightly in the period while personnel costs as a percentage of sales were stable despite the increase in the average number of employees from 684 in the first nine months of 2017 to 747 in the corresponding period in 2018 (of which 18 are IKUMA KG’s employees).

Gross operating profit for the 3rd Quarter of 2018 declined by 1.5% on the 3rd Quarter of 2017.

 

Consolidated operating profit (Ebit) for the first nine months of 2018 amounted to €21.5 million, corresponding to a 20.0% margin on sales, up 4.6% on €20.6 million in the first nine months of 2017, when it represented a 21.1% margin on sales.

Consolidated operating profit for the 3rd Quarter of 2018 amounted to €6.0, representing a 17.7% margin on sales, down 5.1% on €6.3 million in the corresponding period in the previous year that represented a 20.5% margin on sales.

 

Consolidated profit before taxes for the first nine months of 2018 amounted to €21.5 million, representing a 20.1% margin on sales, up 6.7% on the profit before taxes reported in the first nine months of 2017, amounting to €20.2 million and corresponding to a 20.7% margin on sales.

Profit before taxes for the 3rd Quarter of 2018 amounts to €6.1 million, corresponding to a 18.0% margin on sales, up 2.6% on €6.0 million in the 3rd Quarter of 2017, when it amounted to a 19.3% margin on sales.

 

Consolidated net profit for the first nine months of 2018 amounted to €16.6 million, representing a 15.5% margin on sales, up 15.2% on €14.4 million in the first nine months of 2017, when it represented a 14.8% margin on sales.

Net profit for the 3rd Quarter of 2018 amounted to €4.9 million, representing a 14.4% margin on sales, up 15.0% on €4.3 million in the 3rd Quarter of 2017, when it represented a 13.8% margin on sales. The decrease in the effective income tax rate descended from the application of “Patent Box Regime”, whose positive effect on the first nine months of 2018 amounted to €0.9 million. The agreement with tax authorities for the application of this tax regime was signed December 22, 2017, and thus it is not included in the net profit of the first nine months of 2017.

 

In the 1st nine months of 2018, non-recurrent costs connected with the acquisition of IKUMA amounted to €383 thousand while in the corresponding period in 2017 net profit had been positively affected by the €502 thousand capital gain reported in 2017 by Spanish subsidiary Cembre España S.L.U. on the sale of the industrial building located in Coslada (Madrid) formerly hosting the subsidiary’s operations, and costs for the acquisition of IKUMA had amounted to €52 thousand. Net of these non-recurring components results would have been as follows:

(€’000)

First nine months 2018

%

First nine months 2017

%

Change

Sales

107,270

100.0%

97,555

100.0%

10.0%

Gross Operating Profit

27,078

25.2%

24,842

25.5%

9.0%

Net Operating Profit

21,890

20.4%

20,114

20.6%

8.8%

Profit Before Taxes

21,919

20.4%

19,732

20.2%

11.1%

 

The consolidated net financial position at September 30, 2018 amounted to a surplus of €4.1 million, down on December 31, 2017, when it amounted to a surplus of €20.3 million after the payment by the parent company of €13.3 million in dividends, capital investment amounting to €12.3 million and the payment of €8.3 million on the acquisition of IKUMA. The consolidated net financial position at September 30, 2017 amounted to a surplus of €20.4 million.

 

Capital investments in the first nine months of 2018 amounted to €12.3 million in property, plant and equipment, and €3.0 million in intangible assets, as compared with a total capital investment of €9.3 million in the corresponding period in 2017. The increase in intangible assets includes the value of IKUMA AG’s customer list, assessed at €2.0 million, and the IKUMA trademark, accounting for €0.5 million. In addition to the above €4.6 million were recorded as goodwill upon the acquisition of IKUMA.

 

“Cembre’s sales growth strengthened in October with turnover for the first ten months of the year increasing by 11.5% on the corresponding period in 2017. Net of the contribution of newly acquired company IKUMA, the growth in sales for the first ten months of the year would have been equal to 7.5%. We expect therefore to close 2018 reporting a significant increase in turnover and margins over the previous year” commented the 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 six subsidiaries: five trading companies (two in Germany and one in France, Spain and the United States respectively) and one manufacturing and a trading subsidiaries (Cembre Ltd. in Birmingham, U.K.), for a total workforce of 747 as of September 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:

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

For further information please visit the Investor Relation section in the www.cembre.com site.

 

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 September 30, 2018

 

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 before depreciation, amortization and write-downs, cash flow from financial activities and taxes.

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

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

 

The present Interim Report for the 3rd Quarter of 2018 has not been audited.

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Cembre Via Serenissima, 9 - 25135 Brescia - ITALY
© Copyright 2018 Cembre S.p.A.

CODICE FISCALE – P.IVA: 00541390175
ISCRIZIONE AL REGISTRO DELLE IMPRESE: n. 00541390175 Brescia
CAPITALE SOCIALE: € 8.840.000 i.v.