MARFIN INVESTMENT GROUP FINANCIAL RESULTS: 9M 2014

Transcription

1 MARFIN INVESTMENT GROUP FINANCIAL RESULTS: 9M % increase in comparable operating profit (EBITDA) from business operations 1 : 73.9m profit vs. 39.7m in 9M 2013 Comparable consolidated 9M 2014 revenues increased by 11m y-o-y (i.e. 1.2%) to 936.3m, despite protracted challenging economic and market conditions in the majority of Greece s business sectors. Reported consolidated revenues of 925.6m, marginally increased vs. 9M 2013, despite that the latter results did not include the impact related to the legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector (implemented in December 2013). Comparable consolidated EBITDA from business operations increased 86% y-o-y to 73.9m profit, vs 39.7m a year ago. Subsidiaries VIVARTIA, ATTICA and HYGEIA (excluding the impact from the claw back and rebate mechanisms) have successfully improved their performance compared to 9M Reported consolidated EBITDA increased 33% to 63.7m profit, vs. 47.7m a year ago. Consolidated net loss, after tax and minorities, of 68.1m, compared to a relevant bottom-line loss of 129.8m in 9M Net Asset Value (NAV) on at 1,061m, corresponding to 1.13 per share. Cash balances, including restricted cash, of 152.3m at group and 53.6m at parent company level. Consolidated gross debt declined by 85m vs The gradual completion of the Group s debt restructuring/refinancing efforts, improves the debt capital structure in favour of long-term liabilities (account for 48% of consolidated gross debt vs. 26% on ). Execution of the strategic agreement between MIG and Piraeus Bank, with the latter becoming a shareholder with 17.8% stake in MIG. 1 Comparable EBITDA from business operations is defined as Group reported EBITDA excluding holding companies and non-recurring items; includes the charge from the claw back and rebate mechanisms 1

2 KEY EVENTS AND HIGHLIGHTS OF 9Μ 2014: VIVARTIA Sales 432.6m 446.2m FMCG (Dairy & Frozen) 296.8m 323.5m Food Services (FSE) 138.9m 126.9m EBITDA 8.9m 22.1m FMCG (Dairy & Frozen) 3.9m 15.6m Food Services (FSE) 5.0m 6.6m Net Income after minorities (45.6)m (20.9)m Another strong performance with reported group sales increasing 3% y-o-y (like-for-like, excluding discontinued POS and operations, sales increased 7% y-o-y). Revenue growth was registered across the group s three business segments. Group EBITDA more than doubled y-o-y ( 22.1m profit vs 8.9m a year ago), reflecting the revenue growth as well as the operating leverage benefits (COGS flat y-o-y and SG&A -1% y-o-y). Dairy: sales increased 5% y-o-y, despite 4.8% y-o-y decline in the Greek Dairy market revenues, resulting in market share gains (total Greek milk market: 25.8% share in 9M 2014 vs. 25.5% in 9M 2013). EBITDA turned profitable ( 7.1m profit vs 1.0m loss in 9M 2013), thanks to the aforesaid revenue increase as well as significant and structural efficiency improvements (e.g. lower returns/spoils of products and higher capacity utilisation). Innovative product launches in value accretive segments (e.g. premium milk and yogurt, milk cakes for children) and improvements to the existing portfolio mix have been the most important winning factors. Moreover, initial results from yogurt exports in Italy (Granarolo partnership) show very strong consumer acceptance, resulting in 7.9% market share (or 17.4% market share of handlers) in July 2014 within 4 months since launch (April 2014). Frozen Foods: reported 31% annual sales growth vs. 2.5% y-o-y growth for the total Greek market. Note that as of Vivartia consolidated M. Arabatzis SA under the equity method as an associate (due to the adoption of the new standards for consolidation IFRS 10, IFRS 11, IFRS 12), while as of it consolidates fully the relevant company, since Vivartia retains the majority of the BoD seats in the company. The division retained its undisputed market leadership in frozen vegetables (62.3% in 9M 2014) and its leading position among branded products in frozen dough (22.8% market share in 9M 2014). This validates the effectiveness of the strategy of increasing brand awareness and penetration (especially in frozen vegetables), expanding into value accretive sub-segments as well as improving price competitiveness. Food Services (FSE): registered 9% y-o-y revenue decline, on account of the prolonged challenging market conditions in Greece (declining consumption). Nevertheless, FSE likefor-like revenues, after excluding discontinued POS and operations, increased 4% y-o-y. 2

3 Moreover, the Travel related business (airport, vessels and national road motorist service stations) registered 10% y-o-y increase in revenues. The ongoing cost cutting efforts, the significant EBITDA margin improvement of all FSE brands, the improved performance at Goody s Burger House (the new concept of Goody s currently being rolled out with 28 POS, with the average ticket standing 15% higher vs. the balance chain) and the addition of the international POS supported the significant 31% y-o-y increase at the EBITDA level. ATTICA GROUP Sales 214.8m 213.7m EBITDA 32.4m 36.2m Net Income after minorities 4.2m 6.1m Key feature of 9M 2014 performance is the revenue increase in the domestic (Greek) market registering expanding operating profit margins, which was offset by the decline in the Adriatic Sea turnover. All in, consolidated sales registered a marginal decline of 0.5% y-o-y to 213.7m. Operating leverage and improved efficiency (COGS -2% y-o-y and SG&A -11% y-o-y), supported 12% y-o-y increase to group EBITDA ( 36.2m vs. 32.4m in 9M 2013). Consolidated net profit after tax registered a significant 47% y-o-y increase to 6.1m. As regards Attica s traffic volumes (data derived from the Greek Port Authorities; y-o-y vs 9M 2013): Domestic market routes (9 vessels): o Passengers: +8.8% o Private vehicles: +6.0% o freight units: +4.5% o Sailings: +5.7% Adriatic Sea routes (4 vessels, Patra-Igoumenitsa-Ancona and Patra-Igoumenitsa- Bari): o Passengers: -2.6% o Private vehicles: -1.7% o freight units: -9.6% o Sailings: -1.8% In September 2014, Attica completed the comprehensive, long-term refinancing of its entire debt, as well as the agreement for 75m investment from funds managed by Fortress Investment Group. 3

4 In October 2014, Attica sold its Ro-Pax vessel Blue Star Ithaki to the Government of Canada for 31.2m in cash. The transaction is expected to generate a c 4m capital gain, which will be booked in Q The vessel was delivered to the buyer on Attica continuously assesses a series of actions for further cost containment and working capital management, aimed at strengthening its liquidity. Additionally, Attica examines plans for deployment in new routes and evaluates alternative fleet deployment combinations. HYGEIA GROUP Sales (comparable*) 169.8m 174.5m Claw back & rebate 0.0m (10.7)m Sales (reported) 169.8m 163.8m EBITDA (reported) 14.7m 10.0m EBITDA (comparable*) 14.7m 20.7m Net Income after minorities (11.1)m (11.3)m * Comparable figures exclude the impact from claw back & rebate mechanisms 9M 2014 comparable sales (before the charge related to the legal obligation to implement the automatic claw back and rebate mechanisms 2 in the healthcare sector) registered 2.8% y-o-y increase ( 174.5m vs m). 9M 2014 comparable EBITDA (before the claw back and rebate charge) registered a significant 41% y-o-y increase to 20.7m, with the relevant margin expanding to 11.9% vs. 8.7% in 9M In May 2014, announced the issuance of a 42m bond loan for the subsidiary maternity hospital Mitera (5-year maturity), aimed at refinancing an existing obligation. Consequently, the equivalent amount of debt was reclassified from short-term to longterm liabilities. With this issue, Hygeia Group successfully completed the refinancing of the largest part of its outstanding debt obligations. SINGULARLOGIC Sales 36.1m 36.3m EBITDA 0.1m 2.0m Net Income after minorities (5.8)m (2.9)m 9M 2014 revenues remained unchanged vs. 9M 2013, despite prolonged challenging market conditions (declining IT spending, particularly among SMEs and significant delays in public sector projects). 2 Ministry of Health decisions as stipulated in Article 100 of Greek Law 4172/2013 4

5 EBITDA registered a significant increase ( 2.0m vs. 0.1m in 9M 2013), reflecting positive revenue mix effects and continued cost optimization (COGS -6% y-o-y). Moreover, EBIT turned marginally profitable ( 0.1m vs. 1.6m loss in 9M 2013), reflecting the significant operating leverage benefits. In April 2014, PCS (a subsidiary of SingularLogic) undertook the contractual obligation to roll out a custody project for Co-operative Bank, one of Kenya s largest banks (USD2.7bn assets in 2013). This is the second project in Kenya for PCS, following the assigned project for the Custody Department operations of Equity Bank. In May 2014, SingularLogic was assigned the collection, processing and broadcasting of the municipal (325 municipalities) & regional (13 regions) as well as the European Parliament (EP) elections in Greece. SingularLogic has been the country s elections manager since In June 2014, SingularLogic implemented for and behalf of Vodafone Albania a new innovative campaign management system. The system started its operation in 2013, aimed at increasing Vodafone Albania subscribers ARPU. FLIGHT AMBULANCE INTERNATIONAL (FAI) Sales 57.0m 59.9m EBITDA 10.8m 9.5m Net Income after minorities 3.9m 1.4m 9M 2014 sales registered a healthy 5% y-o-y increase, while operating leverage benefits supported the 9% y-o-y increase in gross profit. 9M 2014 reported EBITDA was adversely impacted (12% y-o-y decline) by 1.9m negative fair value adjustment of assets. In February 2014, the expanded by 3,000m 2 FBO Facility Hangar 7 at Nuremberg International Airport (EDDN) commenced operations. The total usable space of 9,000m 2 (including 600m 2 of workshops) represents one of the largest FBOs in the German General Aviation sector. SUNCE BLUESUN Sales 33.9m 32.7m EBITDA 12.4m 11.8m Net Income after minorities 6.4m 6.1m 9M 2014 RevPAR amounted to 51.7 registering a healthy 5% y-o-y increase. In 9M 2014, the number of guests increased 8.9% y-o-y vs. 9M 2013, while the average length of stay stood at 5.9 days vs. 6.4 days in 9M

6 In 9M 2014, Sunce s market share in Split and Dalmatia (based on total number of overnights in hotels and apartment hotels) stood at 5.4% vs. 5.7% in 9M ROBNE KUCE BEOGRAD (RKB) Sales 2.7m 3.3m EBITDA (1.2)m 0.0m Net Income after minorities (12.4)m (13.6)m On , RKB s total leased area was approximately 62,500m 2 vs. approximately 56,800m 2 on On , RKB had leased 30% of its total portfolio vs. 27% on In the short-to-medium term, RKB s priorities shall be (a) to concentrate in the commercial properties in Belgrade (so as to generate higher rental income), (b) to disinvest from certain properties and (c) to create a solid client base, consisting of international, anchor tenants, so as to further improve its financial performance. 6

7 INCOME STATEMENT (in m) THE GROUP 30/09/ /09/2013 (Restated) Sales before Rebate and Claw-back Rebate and Claw-back Sales Cost of sales Gross profit Administrative expenses Distribution expenses Other operating income & expenses Profit /(loss) before taxes, financing and investment activities Other financial results Financial expenses Financial income Income from dividends Share in net result of companies accounted for by the equity method Profit/(loss) before income tax Income tax Profit/(loss) after tax for the period from continuing operations Net profit/(loss) from discontinued operations Profit/(loss) for the period Attributable to: Owners of the parent company Owners of the parent from continuing operations Owners of the parent from discontinued operations Non-controlling interests Non-controlling interests from continuing operations Non-controlling interests from discontinued operations EBITDA from continuing operations INCOME STATEMENT (in m) ΤΗΕ COMPANY 30/09/ /09/2013 (Restated) Profit/(Loss) from investments in subsidiaries & Ιnvestment Portfolio Profit/(Loss) from financial assets at fair value through profit or loss Other income Total operating income Fees and other expenses to third parties Wages, salaries and social security costs Depreciation Other operating expenses Total operating expenses Income from cash and cash equivalent Interest and similar expenses Profit/(loss) before tax Income tax Profit/(loss) after tax for the period

8 STATEMENT OF FINANCIAL POSITION (in m) THE GROUP 30/09/ /12/2013 (Restated) Tangible & Intangible assets 1, ,861.1 Goodwill Investments in associates Investment portfolio Property investments Trading & financial instruments through P&L Cash, cash equivalents and restricted cash Other current & non-current assets Assets held for sale Total assets 3, ,283.6 Total shareholders equity Non-controlling interests Total equity Long term borrowings Short term borrowings ,374.9 Other current & non-current liabilities Liabilities related to Assets held for sale Total liabilities 2, ,560.8 Total equity & liabilities 3, ,283.6 THE COMPANY 30/09/ /12/2013 (Restated) Tangible & Intangible assets Investment in subsidiaries 1, ,474.0 Investments in associates Investment portfolio Trading & financial instruments through P&L Cash, cash equivalents and restricted cash Other current & non-current assets Total assets 1, ,668.3 Total shareholders equity 1, ,112.8 Total equity 1, ,112.8 Long term borrowings Short term borrowings Other current & non-current liabilities Total liabilities Total equity & liabilities 1, ,

9 About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and in Southeast Europe (SEE). The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional investment vehicles lacking MIG s regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit. MIG in its current structure has been listed on the Athens Stock Exchange since July Its portfolio includes leading companies in sectors across the SEE region, grouped into Food & Beverages, Healthcare, IT & Telecoms, Transportation & Shipping, Real Estate, Tourism & Leisure. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in SEE; Attica Group, a leading passenger ferry operator in the Eastern Mediterranean; Hygeia Group, a prominent integrated private hospitals and clinics group, with the leading general hospital facilities and maternity clinics in Greece; SingularLogic, the leading IT operator in Greece; Flight Ambulance International (FAI) a top-5 global fixed-wing medical evacuation company; Skyserv Handling a leading ground handling services provider in Greece; Sunce (Bluesun) a leading hospitality and leisure group in Croatia; and Robne Kuce Beograd (RKB), owner of the largest commercial real-estate portfolio in Serbia. 9