Aliaxis grows revenue to a record level in 2014

Transcription

1 PRESS RELEASE Aliaxis grows revenue to a record level in 2014 Aliaxis S.A Full year results Brussels, 27 March 2015 Aliaxis, a global leader in the manufacturing and distribution of plastic fluid handling systems, releases its 2014 full year results today. CEO Yves Mertens comments: Aliaxis grew its revenue to a record 2.7 billion in 2014, driven both by organic growth and by the acquisition of Vinidex in Australia. The past year also marked a significant step in the group s global strategic development. On 25 March 2015, the board of directors approved the submission of the consolidated 2014 annual accounts to the general meeting of shareholders that will be held on 27 May Highlights Revenue of 2.7 billion, an increase of 7.4% 1 Acquisition of Vinidex in Australia on 1 August 2014 Current EBITDA 2 of 317 million, an increase of 4.3% (11.8% margin on sales) Operating income (EBIT) of 196 million, compared to 194 million in 2013 Group s net profit of 101 million, compared to 108 million in 2013 Proposed gross dividend of 0.40 per share ( 0.30 net), an increase by 11.1% compared to gross dividend of 0.36 per share ( 0.27 net) in 2013 Trading review Aliaxis posted a strong revenue growth and a solid business performance in The upward trend experienced in the beginning of 2014 in Europe, mainly driven by the mild winter, was largely offset by a slowdown towards the middle of the year. Overall, Aliaxis faced difficult market conditions and flat domestic demand in most countries, with the improving UK economy as the main, positive exception. As an integral part of the realignment of its manufacturing footprint in electrofusion, the group is investing in its logistic capabilities in Mannheim (Germany) with a new, high-bay warehouse. Challenged by a weak start to the year following a harsh winter, Aliaxis managed to catch up sales in North America. Generally speaking, conditions were much more positive in the US than in Canada. While the group s performance was very good, it was down compared to the peak seen in previous periods. Heavy investments in capacity expansion at the group s production plant in Edmonton (western Canada) continued in 2014, enabling the group to extend its product range with the launch of new solutions tailored to the needs of an evolving market. 1 All comparisons are made relative to 2013, except where stated differently 2 Current EBITDA being EBITDA before non-recurring items

2 The industrial distribution business in the US benefitted from a very strong growth on the back of renewed manufacturing investments across the country. With the acquisition of E&S Technologies, the group expanded its high-purity product portfolio. In early 2015, Harrington Plastics added to this momentum by opening a new branch in Hartford (Connecticut). In South Africa a major restructuring program is ongoing with the goal to make long-term improvements and reposition Aliaxis as a leader in key market segments in southern Africa. Against a backdrop of variable country performances across Latin America, Aliaxis launched a number of initiatives aimed at both growth and efficiency. As a consequence, the group significantly improved its performance throughout the region in Aliaxis posted a solid performance in Asia, boosted by strong growth in India. To meet rapidly growing demand, production capacity has been significantly increased, while at the same time the group s product offering was expanded considerably. The introduction of numerous new products is being supported by extensive investments in marketing campaigns and in the group s sales capabilities throughout the Indian subcontinent. Australasia again performed well. While the New Zealand economy continued to do well, Australia experienced a more difficult year, with a very different picture across its various markets. On 1 August, Aliaxis completed the acquisition of Vinidex, Australia s leading manufacturer and supplier of thermoplastic pipe and fitting systems. This transaction marks an important milestone in the group s global development and geographic diversification. Australasia will soon account for one fifth of the group s global annual revenue. In 2014, Aliaxis continued to invest in R&D. The group opened a new state-of-the-art R&D centre at its Nicoll plant in Cholet (France). In India, the new Ashirvad Technology & Experience Centre is under construction and in Canada, resources are being relocated to significantly increase capacity. Cash flow generated by the operating activities has been invested in acquisitions ( 240 million excluding acquired debt) and in capital expenditure ( 143 million, representing 157% of depreciation and amortization). While the net financial debt increased to 626 million, the group maintains a solid financial structure. Financial review Financial results Aliaxis generated 2.7 billion in revenue in 2014, an increase of 7.4%. Excluding the effects of currency exchange rates, sales growth totalled 10.1%, of which 4.3% from organic growth, and 5.8% driven by changes in the scope of consolidation. Fluctuations in currency exchange rates however had a negative impact of -2.6%. On average, most of the currencies in which the group trades, weakened against the euro compared to the previous year. Nevertheless, the rapid drop of the euro towards the end of 2014 had a reverse effect on the balance sheet. The group s operating income (EBIT) totalled 196 million (2013: 194 million), which equates to an EBIT margin on sales of 7.3%, compared to 7.7% in the previous year. On a like-for-like 3 basis, EBIT grew 5.9%. The negative impact of currency movements amounted to -3.0% and changes in the scope of consolidation accounted for -2.0%. Although the inclusion into the scope of consolidation of Vinidex, for a period of five months, boosted the group s total revenue, it was dilutive to Aliaxis net result as Vinidex profit contribution for that period was more than offset by 11.6 million of one-off acquisition accounting entries and transaction costs. 3 Like-for-like being at constant exchange rate and excluding the impact of changes in scope of consolidation Aliaxis S.A. - Full year results /5

3 EBIT included the impact of 30.2 million (2013: 21.4 million) of non-recurring costs, mainly related to a number of industrial reorganization projects in Europe, Africa and Latin America, as well as transaction costs related to the Vinidex acquisition. Current EBIT 4 totalled 226 million (2013: 215 million). The net profit attributable to the group equity holders amounted to 101 million, compared to 108 million in the previous year Dividend The board of directors has proposed the general meeting of shareholders on 27 May 2015 to approve the distribution of a gross dividend of 0.40 per share. Pending approval by the general meeting of shareholders, this dividend will become payable as of 1 July Outlook Considering how current volatile oil prices are impacting raw material prices, consumer discretionary income and in some cases government revenues and expenditures, Aliaxis anticipates fluctuations in customer demand in Continuing movements in currency are also likely to have an ongoing influence on the group s results. Nevertheless, in 2015, Aliaxis foresees similar growth perspectives as in the previous year. Emerging markets will definitely outperform more mature markets, with the exception of the US which is in recovery mode. In Australasia, Vinidex will contribute to the group s result for a full reporting year and strengthen Aliaxis overall position in the region. On top of these perspectives, Aliaxis expects a positive impact from group initiatives on its trading performance. Major investments through capital expenditure, targeted acquisitions and a focus on innovation will continue to support the group s sustainable, profitable growth. Statement from the auditor The statutory auditor, KPMG Bedrijfsrevisoren Réviseurs d Entreprises, represented by Ludo Ruysen, has issued an unqualified audit opinion on the consolidated financial statements, and has confirmed that the accounting data reported in this press release do not include any inconsistencies with the IFRS consolidated financial statements. 4 Current EBIT being profit from operations before non-recurring items Aliaxis S.A. - Full year results /5

4 Consolidated income statement (in million) Change 1 Revenue 2, , % Current EBITDA % as % on sales 11.8% 12.1% Current EBIT % as % on sales 8.4% 8.6% Operating income (EBIT) % as % on sales 7.3% 7.7% Profit before income taxes % Net result % attributable to: - non-controlling interests group equity holders All comparisons are made relative to full year Current EBITDA being EBITDA before non-recurring items 3 Current EBIT being profit from operations (EBIT) before non-recurring items Earnings per share (in ) Basic earnings Diluted earnings Proposed gross dividend Aliaxis S.A. - Full year results /5

5 Consolidated financial position (in million) 31 Dec Dec Intangible assets Property, plant & equipment Investment properties Other assets Deferred tax assets Derivatives Employee benefits Non-current assets 1,870 1,518 Non-cash working capital TOTAL 2,392 1,962 Equity attributable to group equity holders 1,381 1,265 Non-controlling interests Total equity 1,439 1,317 Deferred tax liabilities Employee benefits Derivatives Other non-current liabilities Net financial debt TOTAL 2,392 1,962 About Aliaxis Aliaxis is a global leader in the manufacturing and distribution of plastic fluid handling systems, generating annual revenue of 2.7 billion. Present in over 40 countries with more than 100 manufacturing and commercial entities, the group totals 16,200 employees around the globe, serving customers in residential and commercial construction, as well as in industrial and public infrastructure applications. Aliaxis well-known brands such as Ashirvad, Durman, Friatec, IPEX, Nicoll and Vinidex have a strong identity and are firmly established in the geographic markets they serve. Thanks to the entrepreneurial spirit of its people, balanced with the strengths, knowhow and international reach of the group, Aliaxis continues to develop and improve its positions in key construction applications throughout the world. More on Contact Françoise VANTHEMSCHE Group communications director communications@aliaxis.com Aliaxis S.A. Avenue de Tervueren Bruxelles - Belgium Aliaxis S.A. - Full year results /5