Cembre

Board of Directors approves the interim report on operations at September 30, 2019

CEMBRE (STAR): in the first nine months consolidated turnover grew by +2.8%
Net financial position at September 30, 2019 amounted to a surplus of €1.0 million

14/11/2019

(Brescia, 14th November 2019, h 12:38 am)

  • Sales in Italy down (-1.9%) in the first nine months while foreign sales grow (+6.2%)
  • Capital expenditure for the first nine months amounted to €8.1 million
  • As at October 31st, sales for the first ten months grew by 1.9%, while the net financial position amounted to a surplus of €1.3 million
 

(euro ‘000)

1/1-9/30 2019

Marg.%

1/1-9/30 2018

Marg.%

change

3rd Qtr. 2019

Marg.%

3rd Qtr. 2018

Marg.%

change

Revenues from sales

110,306

100

107,270

100

2.8%

33,428

100

33,975

100

-1.6%

Gross operating profit (Ebitda)

28,661

26.0

26,695

24.9

7.4%

7,749

23.2

7,836

23.1

-1.1%

Operating profit (Ebit)

21,374

19.4

21,507

20.0

-0.6%

5,207

15.6

6,015

17.7

-13.4%

Profit before taxes

21,239

19.3

21,536

20.1

-1.4%

5,206

15.6

6,115

18.0

-14.9%

Net Profit

16,633

15.1

16,606

15.5

0.2%

4,258

12.7

4,907

14.4

-13.2%

Net financial position

1,040

 

4,111

 

 

 

 

 

 

 

 

Brescia, November 14, 2019 - 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 in Brescia the Interim Report on Operations as at September 30, 2019.

 

Consolidated sales for the first nine months increased from €107.3 million in 2018 to €110.3 million in 2019, marking an increase of 2.8%. This increase is due in particular to the consolidation of the German company IKUMA Gmbh & Co. KG, acquired effective as of May 1, 2018, whose turnover in the first nine months of 2019 stood at €5.7 million; this company was included in the Group’s results for the first nine months of 2018, exclusively for the May-September period, for an amount of €3.5 million. Without the contribution of IKUMA, the increase in consolidated sales in the first nine months of 2019 would have been 0.8 per cent. In the 3rd quarter of 2019, consolidated revenues fell when compared to the third quarter of 2018, down from €34.0 million to €33.4 million, marking a drop of 1.6%.

 

More specifically, in the first nine months of 2019, 39.5% of Group sales were represented by Italy (as compared with 41.4% in the first nine months of 2018), 46.9% by the rest of Europe (43.1% in the first nine months of 2018), and the remaining 13.6% by the rest of the World (15.5% in the first nine months of 2018).

Therefore, the Cembre Group recorded a drop of 1.9% in turnover on the domestic market, while turnover on other markets rose by 6.2%.

 

Consolidated gross operating profit (Ebitda) for the first nine months of 2019 amounted to €28.7 million, corresponding to a 26.0% margin on sales, up 7.4% from €26.7 million reported in the first nine months of 2018, representing a 24.9% margin on sales. During the period, the incidence of the cost of sales fell, while the weight of the cost for services and personnel costs rose slightly. The average number of Group staff in the period went from 747 to 745, with an increase in employees from 687 to 709 and a decrease in temporary personnel.

The gross operating profit in the third quarter fell slightly compared to the third quarter of 2018 (-1.1%).

 

Consolidated operating profit (Ebit) amounted to €21.4 million, a 19.4% margin on sales, down 0.6% on €21.5 million in the first nine months of the previous year, when it represented a 20.0% margin on sales.

Operating profit for the third quarter of 2019 amounted to €5.2 million, a 15.6% margin on quarterly sales, down 13.4% on €6.0 million in the third quarter of 2018, when it represented a 17.7% margin on quarterly sales.

 

Consolidated profit before taxes for the first nine months of 2019 amounted to €21.2 million, representing a 19.3% margin on sales, down 1.4% on the profit before taxes reported in the first nine months of 2018, amounting to €21.5 million and corresponding to a 20.1% margin on sales.

Profit before taxes for the third quarter of 2019 amounted to €5.2 million, corresponding to a 15.6% margin on quarterly sales, down 14.9% on €6.1 million in the third quarter of 2018, when it amounted to a 18.0% margin on quarterly sales.

 

Consolidated net profit in the first nine months came to €16.6 million, corresponding to a 15.1% margin on sales, essentially unchanged compared to the figure of the first nine months of 2018. Net profit for the third quarter of 2019 fell by 13.2%, from €4.9 million, representing a 14.4% margin on sales, to €4.3 million, corresponding to a 12.7% margin on consolidated sales for the quarter.

 

Effective from January 1, 2019, the Group adopted the new IFRS 16 to account for leases and lease agreements. The application of this new standard involved an insignificant reduction in Group profit of €55 thousand (before taxes); for more details on the effects of the application of the aforementioned accounting standard, please refer to the Interim Report on Operations as at September 30, 2019.

 

The consolidated net financial position, which went from a positive balance of €7.5 million at December 31, 2018 to a positive value of €1.0 million at September 30, 2019, reflects the effects of the application of the new international accounting standard IFRS 16, which resulted in the recognition under non-current financial liabilities of €5.0 million and €1.4 million under current financial liabilities, as liabilities for leased assets, as well as the payment of dividends of €15 million by the Parent Company and capital expenditure of €8.1 million. At September 30, 2018, the net financial position was equal to a surplus of €4.1 million.

It should be noted that, net of the effects of the application of the new international accounting standard IFRS 16, the financial position at September 30, 2019 would have been positive and equal to €7.4 million.

 

Capital expenditure in the period amounted to €7.3 million in plant and equipment and €0.8 million in intangible assets, compared to investments of €15.4 million in the same period of 2018.

“The results of the first nine months of 2019 show growth in consolidated revenues (+2.8%), thanks to the positive contribution of the consolidation of IKUMA KG, acquired effective from May 1, 2018. Without this contribution, the increase in consolidated sales would have been 0.8%. The figures as at October 31, 2019 highlight the growth of 1.9% in consolidated revenues, while without IKUMA KG consolidation, organic growth would have been 0.3%.. Despite the situation of global uncertainty, the Cembre Group expects slight growth in the current year compared to 2018”, stated President 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. Cembre is one of the world’s leading manufacturers of tools (mechanical, pneumatic and hydraulic) for the installation of connectors and the shearing of cables. 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 fully-fledged international force. Along with the parent company in Brescia it has six subsidiaries: five trading companies (2 in Germany, 1 in France, Spain and the United States) and one manufacturing and trading subsidiary (Cembre Ltd., in Birmingham, U.K.), for a total workforce of 753 (figure updated as of September 30, 2019). 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         030/36921    claudio.bornati@cembre.com

Further information is available at Cembre’s institutional website www.cembre.comin the Investor Relations section.

 

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: Consolidated Financial Statements relating to the Interim Report on Operations as at September 30, 2019.

 

In this present press release, use is made of certain alternative performance indicators that are not envisaged in IFRS-EU accounting standards, and whose significance and content are illustrated below, in line with the ESMA/2015/1415 recommendation published on October 5, 2015:

Gross Operating Result (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 amortisation, cash flows and taxes.

Operating Result (EBIT): defined as the difference between the Gross Operating Result and the value of amortization/impairment. It represents the profit before cash flows and taxes.

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

 

This Interim Report on Operations has not been audited.

 

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Anmerkungen und rechtliche Informationen

Cembre Via Serenissima, 9 - 25135 Brescia - ITALY
© Copyright 2019 Cembre S.p.A.

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