SOMFY SA (EPA:SO) - Somfy / Half-year results for fiscal year 2019
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10/09/2019 17:55
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PRESS RELEASE
10 SEPTEMBER 2019
2019 HALF-YEAR RESULTS AND FULL-YEAR OUTLOOK
Consolidated data at
end June (EUR millions) 2019 2018 Var.
Sales 615.1 586.1 +4.9%
Current operating result 114.9 104.0 +10.5%
Consolidated net profit 91.2 83.2 +9.6%
Cash flow 117.4 101.7 +15.5%
Note:
The change in real terms corresponds to the change at constant consolidation
method, and the change on a like-for-like basis corresponds to the change at
constant consolidation and accounting methods, consolidation scope and exchange
rates.
Disclaimer:
IFRS 16 - Leases, whose application was mandatory from 1 January 2019, was
applied for the first time to the financial statements for the half-year to 30
June 2019, using the simplified retrospective approach. Its main impacts are
detailed in the Appendix.
SALES
Group sales totalled EUR615.1 million for the first six months of the financial
year, an increase of 4.9% in real terms and 4.7% on a like-for-like basis. It
is in line with the trend seen in previous half-years and reflects the
continued mixed fortunes of the different geographic regions.
Significant growth was recorded in Northern Europe and Central & Eastern
Europe, a result of the momentum of local markets and the successful launches
of new products in recent months.
Significant growth was also posted in Germany, continuing the recovery seen at
the end of last year, as well as in Central & South America, China and Asia &
Pacific.
In contrast, mixed performances were recorded in other regions, such as France,
North America, Southern Europe and Africa & Middle East, for primarily
contextual reasons.
Sales(1) of the equity-accounted entity Dooya totalled EUR87.4 million, an
increase of 10.0% in real terms and 9.4% on a like-for-like basis.
RESULTS
The current operating result for the half-year stood at EUR114.9 million, up
10.5% in real terms, equating to 18.7% of sales compared with 17.7% over the
same period of the previous year. It was barely impacted by exchange rate
fluctuations, unlike the previous year, or by the new accounting rules for
leases (application of IFRS 16), and grew 9.2% on a like-for-like basis.
The improvement seen was due to sales growth, good management of sales prices,
optimisation of production costs (savings on purchases and productivity gains)
and tight control of operating expenses. It also reflects the stabilisation in
investments deemed strategic (digitalisation of structures, consolidation of
the sales force, etc.).
Consolidated net profit grew 9.6% to EUR91.2 million. This reflects a slightly
negative net financial expense, a slightly positive share of net profit from
associates and a proportionate increase in the tax expense.
FINANCIAL POSITION
Equity rose from EUR894.4 million to EUR939.6 million in the half-year, while
the net cash surplus(2) fell from EUR222.4 million to EUR174.7 million, mainly
due to a EUR50.1 million liability being recognised against capitalised leases
(as a result of the switch to IFRS 16).
This strong cash performance is explained by the sharp increase in cash flow,
partly due to the new method of recognising the aforementioned leases, and by
the limited increase in working capital requirements.
(1) The sales figures provided refer to the sales amounts generated with
customers outside the Group.
(2) The net cash surplus corresponds to the difference between cash and cash
equivalents and financial liabilities.
OUTLOOK
Current market data does not suggest significant changes in trends within the
different geographical regions over the coming months. Similarly, ongoing
projects and developments do not point to any reversal in the main expense
items over the second half of the year.
That is why the growth in sales over the financial year should be in the region
of the figure published at the end of June, and the current operating margin
rate should be slightly higher than that recorded last year, it being specified
that the improvement seen over the first six months cannot be extrapolated due
to the disparity between the half-years.
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 10
September 2019. 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
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: 17 October 2019 (after close of trading)
APPENDICES
SALES
Consolidated data (EUR millions) 2019 2018 Var.
June June Like-for-like
France 178.8 174.7 +2.3%
Germany 95.5 90.0 +6.1%
Northern Europe 73.4 63.5 +15.8%
Central & Eastern Europe 73.2 63.4 +15.7%
Southern Europe 64.7 64.0 +0.6%
North America 53.2 49.4 +1.0%
Africa & Middle East 31.8 38.3 -12.4%
Asia & Pacific (excluding China) 26.5 25.2 +3.5%
Central & South America 11.2 11.6 +5.0%
China 6.7 6.0 +10.5%
Total 615.1 586.1 +4.7%
Note: The country sales figures are calculated based on customer location and
therefore the destination of the sales.
RECONCILIATION OF CHANGES ON A LIKE-FOR-LIKE BASIS AND IN REAL TERMS
Current
operating
Sales result
Change on a like-for-like basis +4.7% +9.2%
Forex impact +0.2% +1.0%
Scope impact - -
Impact of IFRS 16 - +0.2%
Change in real terms +4.9% +10.5%
CONDENSED INCOME STATEMENT
2019 2018
Consolidated data (EUR millions) June June
Sales 615.1 586.1
EBITDA 142.2 123.2
Current operating result 114.9 104.0
Non-recurring operating items (0.7) (0.2)
Net financial expense (1.9) (2.5)
Income tax (22.5) (20.7)
Share of net profit from associates 1.3 0.0
Net profit from continuing operations 91.2 80.6
Net profit from operations treated in accordance with 0.0 2.6
IFRS 5 (Dooya)
Consolidated net profit 91.2 83.2
Attributable to Non-controlling interests 0.0 (0.1)
Attributable to Group share 91.2 83.3
CONDENSED BALANCE SHEET
2019 2018 2018
Consolidated data (EUR millions) June Dec. June
Equity 939.6 894.4 841.3
Goodwill 95.4 96.2 96.8
Net non-current assets 337.0 284.8 276.1
Investments in associates and joint 134.2 132.8 132.9
ventures
Working capital 455.3 420.2 371.3
Working capital requirements 225.6 186.1 234.9
Net financial surplus* 174.7 222.4 124.0
* The net cash surplus corresponds to the difference between cash and cash
equivalents and financial liabilities.
MAIN IMPACTS OF THE APPLICATION OF IFRS 16
Including
2019 IFRS 16
Consolidated data (EUR millions) June impacts
Income statement
Current operating result 114.9 0.2
Net financial expense (1.9) (0.6)
Consolidated net profit 91.2 (0.3)
Cash flow statement
Cash flow 117.4 6.3
Cost of net financial debt
(excluding non-cash items) 1.1 0.6
Net cash flow from financing and
capital activities (55.9) (6.8)
Net change in cash and cash equivalents 0.9 0.0
Balance sheet
Equity 939.6 (0.3)
Long-term borrowings 54.8 43.1
Net non-current assets 337.0 49.8
Working capital 455.3 (7.0)
Cash and cash equivalents
(including current portion of
financial liabilities) 229.7 (7.0)
Net financial surplus/(debt) 174.7 (50.1)