SOMFY SA (EPA:SO) - Somfy / Half-year results for fiscal year 2018
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04/09/2018 17:55
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PRESS RELEASE
4 SEPTEMBER 2018
2018 HALF-YEAR RESULTS AND FULL-YEAR OUTLOOK
Consolidated data at end June
(EUR millions) 2018 2017 2017 Var.
Published Restated Published Restated
Sales 586.1 570.6 643.5 +2.7%
Current operating result 104.0 106.5 106.2 -2.3%
Net profit 83.2 83.5 84.0 -0.4%
Cash flow 101.7 106.5 109.0 -4.5%
Note: 2017 and 2018 figures have been restated in accordance with IFRS 5 for
comparison purposes following the change in the consolidation method of Dooya.
REMINDER
The Group has decided going forward to focus on its historical brand, Somfy,
and the related brands Asa, BFT and Simu, which are leading the way in
connected buildings, and to manage its Chinese subsidiary Dooya as an
autonomous entity, in partnership with the minority shareholder.
New governance rules have been adopted for this purpose, without involving any
changes to the capital structure, resulting in joint control over the
company.
Dooya exited the Group's full consolidation scope, in accordance with IFRS
standards, and is now consolidated under the equity method.
The 2017 and 2018 financial statements have been restated accordingly and the
main impacts have been summarised in the attached tables.
SALES
Group sales totalled EUR586.1 million for the first six months of 2018. This
represented an increase of 2.7% based on a comparable consolidation method,
i.e. excluding Dooya, and 5.2% based on a comparable consolidation method and
on a like-for-like basis.
The difference in growth recorded compared to previous half-years was due not
only to the high level of the comparison base, but also to less favourable
business conditions in certain
territories, notably the United States, as a result of the transitory
postponement attributable to the change in the main business partner's
inventory policy, and in the Middle East, as a result of instability in both
the economic and political environments.
The trend remained however highly positive in several regions, notably France,
despite the diminishing effect of tax incentives related to the energy
transition, and in Asia-Pacific (excluding China), Central & Eastern Europe,
and Central & South America.
RESULTS
Current operating result stood at EUR104.0 million over the first half-year,
down 2.3% on a comparable consolidation method and represented 17.7% of sales.
This decline was mainly due to a stronger euro in the face of major currencies.
Based on a comparable consolidation method and on a like-for-like basis,
current operating result totalled EUR112.6 million, an increase of 5.7%, and
stood at 18.8% of sales.
The change recorded reflects an increase in gross margin, resulting both from
the stabilisation of selling prices and the offsetting of increases in the
price of raw materials via productivity gains. It also reflects higher
operating costs due to stepped-up strategic investments (intensification of the
digitalisation process, strengthening of research and distribution teams,
etc.).
Net profit remained stable at EUR83.2 million, and was largely unaffected by
the change in Dooya's treatment. It takes into account non-recurring
operational and financial items of no material value, a small positive
contribution from activities treated according to IFRS 5 (Dooya) and a knock-on
increase in the tax rate as a result of the one-off nature of the tax reliefs
recorded last year.
FINANCIAL POSITION
The Group had a net cash surplus(1) of EUR104.6 million at the end of December
2017, compared to EUR124.0 million at the end of June 2018.
This improvement was due to the cash flow remaining at a high level, equating
to EUR101.7 million over the first half-year, and to the change in the
consolidation method of Dooya.
(1) The net cash surplus corresponds to the difference between cash and cash
equivalents and financial liabilities.
OUTLOOK
Market conditions should remain largely unchanged over the second part of the
financial year and lead, on a like-for-like basis, to an increase in sales
similar to that seen over the first half of the year.
The investment effort will be pursued in parallel, particularly in strategic
areas, and will therefore continue to impact results in similar proportions to
those seen over the first part of the year. Conversely, a lower currency impact
should be recorded if the euro maintains its current value against major
currencies.
CORPORATE PROFILE
Somfy is the global leader in automated opening and closing systems for both
residential and commercial buildings, and a key player in the connected home.
NOTE
The half-year financial statements were reviewed by the Supervisory Board on 4
September 2018. They may be accessed via the Company's website
(www.somfyfinance.com).
The limited audit review has been completed and the Statutory Auditors' report
has been issued.
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 -
Alexandre Daudin: +33 (0)1 44 50 51 76
SHAREHOLDERS' AGENDA
Publication of third quarter sales: 18 October 2018 (after close of trading)
APPENDICES
The income statement and cash flow statement previously published have been
restated in accordance with IFRS 5 for comparison purposes following the change
in Dooya's consolidation method (now equity accounted). Conversely, the balance
sheet has not been restated under this standard.
SALES
Consolidated data (EUR millions) 2018 2017 Var.
June June Like-for-like
France 174.7 163.3 +7.0%
Germany 90.0 87.9 +2.4%
Southern Europe 64.0 61.5 +4.9%
Northern Europe 63.5 61.2 +5.1%
Central & Eastern Europe 63.4 58.6 +9.6%
North America 49.4 54.0 +1.8%
Africa & Middle East 38.3 40.9 +0.9%
Asia-Pacific (excl. China) 25.2 24.9 +9.0%
Central & South America 11.6 11.7 +9.3%
China 6.0 6.6 -4.4%
Total 586.1 570.6 +5.2%
Note: The country sales figures are calculated based on customer location and
therefore the destination of the sales.
INCOME STATEMENT
Consolidated data (EUR millions) 2018 2017
June June
Sales 586.1 570.6
EBITDA 123.2 126.2
Current operating result 104.0 106.5
Non-recurring operating income
and expenses (0.2) (0.3)
Financial income and expenses (2.5) (4.7)
Income tax (20.7) (16.5)
Share of profit/(loss) of
equity-accounted companies 0.0 (0.2)
Net profit from operations
treated in accordance with
IFRS 5 (Dooya) 2.6 (1.2)
Consolidated net profit 83.2 83.5
Attributable to: - Minority
interests (0.1) (0.6)
- Group share 83.3 84.2
BALANCE SHEET
Consolidated data (EUR millions) 2018 2017 2017
June December June
Shareholders' equity 841.3 770.7 694.5
Working capital 371.3 308.6 244.3
Net non'current assets 276.1 323.2 312.6
Investments in associates and
joint ventures 132.9 0.9 1.6
Goodwill 96.8 196.8 197.6
Working capital requirements 234.9 171.7 219.6
Net cash surplus* (124.0) (104.6) 10.7
* Net financial debt/net cash surplus corresponds to the difference between
financial debt and cash and cash equivalents. It equates to a debt where it is
positive and a surplus where it is negative
MAJOR RESTATEMENTS FOLLOWING METHOD THE CHANGE IN DOOYA'S CONSOLIDATION
METHOD
Consolidated data (EUR millions) 2017 June Restate ments 2017 June
Restated Published
Sales 570.6 (72.9) 643.5
Current operating result 106.5 0.3 106.2
Net profit 83.5 (0.4) 84.0
Cash flow 106.5 (2.5) 109.0
Consolidated data (EUR millions) 2017 Dec.
Restated Restate ments 2017 Dec.
Published
Sales 1,089.4 (157.2) 1,246.6
Current operating result 174.7 6.3 168.4
Net profit 157.7 0 157.7
Cash flow 207.7 (0.4) 208.1