SOMFY SA (EPA:SO) - Somfy / Annual results for fiscal year 2017
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07/03/2018 17:45
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PRESS RELEASE
7 MARCH 2018
2017 ANNUAL RESULTS
SUSTAINED SALES GROWTH STABLE CURRENT OPERATING RESULT ON A LIKE-FOR-LIKE
BASIS
Consolidated data
(EUR millions) 2017 2016 % change
Sales 1,246.6 1,131.7 +10.1%
Current operating result 168.4 177.6 -5.2%
Net profit 157.7 143.3 +10.1%
Cash flow 208.1 181.7 +14.5%
Note: The 2016 financial statements have been restated following the allocation
of the goodwill of Myfox.
SALES
Sales increased by 10.1% over the financial year just ended to EUR1,246.6
million. They benefitted from a positive scope effect of EUR11.2 million and
suffered from a negative currency impact of EUR12.8 million.
Growth stood at 10.3% on a like-for-like basis over the financial year,
including 8.5% over the first half and 12.3% over the second, and followed an
increase of 10.2% over the course of the previous year. It reflects significant
growth in all business segments and locations(1).
The most noteworthy performances came from Asia-Pacific, America, France,
Eastern and Central Europe, and Northern Europe, all of which recorded
double-digit growth.
The trend was less impressive, but nevertheless remained definitively positive
within the two other major regions, Southern Europe and Germany.
(1) Germany, America, Asia-Pacific, Central and Eastern Europe, Northern
Europe, Southern Europe and France are the geographic regions used to monitor
sales. Their sales are calculated based on customer location and therefore the
destination of the sales.
The strong performance of these figures is testament to the growing interest of
consumers in different continents in motorised and connected solutions in the
home, and thereby validates the Group's choices and positioning (international
coverage, innovation, digital transformation, etc.).
RESULTS
Current operating result stood at EUR168.4 million over the financial year,
down 5.2%, and represented 13.5% of sales.
This decline resulted from factors that are both cyclical and structural,
namely gaining market share, the rise in the price of raw materials,
fluctuations in the main invoicing currencies and the integration of
recently-acquired companies (iHome Systems, Myfox).
On a like-for-like basis, current operating result would have been virtually
stable at EUR178.0 million, and as such would have represented 14.3% of
sales.
Consolidated net profit was EUR157.7 million, an increase of 10.1%. It takes
into account a negligible net non-recurring operating expense, a net financial
expense of EUR5.9 million, which mainly includes unrealised exchange
differences, and income tax of EUR3.1 million, a particularly low level due
notably to the recovery of the tax on dividends.
Excluding tax rebates, net profit would have been EUR135.4 million, and would
have fallen by 5.5%.
Ultimately, profitability remained at a very satisfactory level with a return
on capital invested (ROCE) of 19.7%(2).
FINANCIAL POSITION
The balance sheet was further strengthened.
The net cash surplus rose indeed from EUR15.5 million to EUR104.6 million(3)
year-on-year, an increase of EUR89.1 million, and shareholders' equity grew to
EUR770.7 million.
(2) Return on capital invested or employed (ROCE) is equal to the ratio between
the current operating result, after normative tax, and the sum of shareholders'
equity (with the effects of goodwill impairment being neutralized) and the net
financial debt.
(3) The net cash surplus corresponds to the difference between cash and cash
equivalents and financial liabilities. It takes into account both deferrals in
payments and earnout on acquisitions as well as liabilities related to put
options granted to holders of non-controlling interests.
DIVIDENDS
The Management Board will propose the payment of a dividend of EUR1.3 per share
at the Annual General Meeting, an increase of 6.6% compared with the adjusted
dividend paid last year(4).
OUTLOOK
The environment should remain favourable over the short term within the Group's
various business segments and regions, and thus lead to growth in sales over
the course of the current financial year in spite of the high comparison base.
Similarly, stabilisation or even a slight improvement in the current operating
margin(5) will be a possibility given the gradual decline in the factors
responsible for last year's erosion.
The current financial year will also be marked by the continued roll-out of the
new strategic plan (Believe & ACT) to allow the Group to strengthen its
foundation and fully capitalise on the significant potential represented by the
move towards the digitalisation of buildings, the motorisation of interior
products and the streamlining of energy consumption.
The development of completely open solutions, illustrated by the
interoperability agreements recently concluded with the brands Amazon Alexa,
Apple Homekit, Google Home, Legrand, Schneider Electric and the IFTTT platform,
testifies to the Group's desire to be a key player in the connected home and a
byword for comfort, environmental protection and security in the home.
CORPORATE PROFILE
Somfy Group is the global leader in opening and closing automation for both
residential and commercial buildings, and a key player in the connected home.
FINANCIAL STATEMENTS
The annual financial statements have been audited by the Statutory Auditors and
were reviewed by the Supervisory Board on 7 March 2018.
The Statutory Auditors' report and detailed financial statements will be
released on 19 April 2018 and will be available on the Company's website
(www.somfyfinance.com).
NOTE
The regions most exposed to current economic, geopolitical and monetary
uncertainties are Asia (China), Latin America (Brazil) and the Middle East
(Levant). In total, they represent approximately 10% of Group sales.
(4) The change has been restated for the share par value split carried out in
June 2017 (5 new shares for every share held).
(5) Current operating margin corresponds to current operating result as a
proportion of sales (COR/Sales).
Sales growth in the UK stood at 10.9% on a like-for-like basis over the
financial year just ended, in spite of the uncertain environment related to the
prospect of Brexit.
SHAREHOLDERS' AGENDA
Publication of first quarter sales: 19 April 2018 (after close of trading)
Annual General Meeting: 16 May 2018 (at the Company's registered office)
CONTACTS
Somfy:
Pierre Ribeiro: +33 (0)4 50 40 48 49 - Emilie Mathelin: +33 (0)4 50 96 71 01
Shan:
François-Xavier Dupont: +33 (0)1 44 50 58 74 -
Diane de Brisis: +33 (0)1 47 03 47 36
RESULTS
Consolidated data
(EUR millions) 2017 2016*
Sales 1,246.6 1,131.7
EBITDA 215.9 216.8
Current operating result 168.4 177.6
Non-recurring operating income and expenses (0.2) (0.2)
Operating result 168.2 177.4
Financial income and expenses (5.9) (2.1)
Profit before tax 162.3 175.3
Income tax (3.1) (31.3)
Share of profit/(loss) of equity-accounted
companies (1.5) (0.7)
Net profit 157.7 143.3
Attributable to: - Minority interests 2.2 (2.3)
- Group share 159.9 141.0
BALANCE SHEET
Consolidated data
(EUR millions) 2017 2016*
Equity 770.7 657.8
Working capital 308.6 215.7
Net non-current assets 324.1 307.6
Goodwill 196.8 200.4
Working capital requirements 171.7 164.3
Net financial surplus** 104.6 15.5
* The financial statements have been restated following the allocation of the
goodwill of Myfox.
** The net cash surplus corresponds to the difference between cash and cash
equivalents and financial liabilities.