SOMFY SA (EPA:SO) - Somfy / Results for fiscal year 2019
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04/03/2020 17:45
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PRESS RELEASE
4 MARCH 2020
2019 ANNUAL RESULTS
16% INCREASE IN NET PROFIT
Consolidated data to 31 December
(EUR millions) 2019 2018 Change
Sales 1,200.2 1,126.7 +6.5%
Current operating result 204.8 177.8 +15.2%
Consolidated net profit 163.2 140.4 +16.3%
Cash flow 220.1 178.6 +23.3%
Note: IFRS 16 - Leases, whose application was mandatory from 1 January 2019,
was applied for the first time to the financial statements for the 2019
financial year, using the simplified retrospective approach. Its main impacts
are detailed in the Appendix.
SALES
Group sales were EUR1,200.2 million over the year just ended, an increase of
6.1% on a like- for-like basis, including 4.7% in the first half-year and 7.5%
in the second, and of 6.5% in real terms.
This expansion follows several years of steady growth and reflects progress
within all geographical regions, with the exception of Africa & the Middle
East, for contextual reasons. It attests to the growing interest of all types
of consumers in motorised and connected solutions for the home, due to the need
for comfort and safety and the growing awareness of energy and environmental
issues.
The most noteworthy growth was recorded in Central & Eastern Europe, as a
result of excellent performances in Poland, Hungary and the Czech Republic, as
well as Northern Europe.
Significant increases were also posted in China, France and Germany, as well as
in Central & South America and North America, thanks to a sharp upturn over the
last quarter, particularly in Brazil and the United States. Growth was however
more modest in Asia-Pacific (excluding China) and Southern Europe.
In contrast, the trend remained negative in Africa & the Middle East, although
it improved significantly over the second half-year.
Sales of the now equity-accounted Chinese subsidiary Dooya totalled EUR187.5
million over the financial year, an increase of 9.3% in real terms and 8.2% on
a like-for-like basis.
RESULTS
Current operating result stood at EUR204.8 million over the financial year, up
15.2% in real terms, and represented 17.1% of sales, compared with 15.8% in the
previous year. It benefited from a positive impact of EUR3.1 million from
changes in exchange rates and EUR0.4 million from the application of the new
lease recognition rule (IFRS 16).
This improvement was due to both high sales, particularly during the second
half-year, and a modest increase in structure costs, as a result of the
normalisation of "strategic" expenditure following a period of substantial
investment.
Consolidated net profit grew 16.3% to EUR163.2 million. It includes a net
non-current operating expense of EUR3.2 million, a positive contribution from
associates of EUR3.8 million and an income tax charge of EUR37.2 million.
Reflecting these solid results, return on capital employed (ROCE) was 22.2%
(23.7% restated for the impact of IFRS 16), compared with 20.4% in the previous
year.
FINANCIAL POSITION
Group equity rose from EUR894.4 million to EUR1,012.8 million over the
financial year, while the net financial surplus rose from EUR222.4 million to
EUR310.5 million, despite the recognition of financial liabilities of EUR48.3
million following the application of IFRS 16 to leases.
The hike in net financial surplus was due to the increase in cash flow and the
decline in working capital requirements.
DIVIDEND
The Management Board will propose the payment of a dividend of EUR1.55 per
share at the next Annual General Meeting, an increase of 10.7% compared with
the dividend paid last year.
OUTLOOK
The ongoing changes in the building sector, due to the energy transition,
digitalisation and changes to society have led the Group to review its
organisation and to announce, in January 2020, the appointment of a new
Executive Committee, a consequence of which was the merger of the three
existing activities into a single unit and the re-segmentation of the nine
geographic regions into two major sales territories.
This restructuring, guided by a long-term projection named Ambition 2030, will
help improve the efficiency of operating processes, thanks in particular to a
streamlined organisational structure as well as greater customer proximity and
a better allocation of resources. It will also serve as a platform for defining
and implementing the strategic plan over the coming years.
Investment will continue to enable the Group to strengthen its positioning and
competitive advantage within its core business, and will specifically focus on
product innovation, optimising information systems with the roll-out of the new
integrated management software package (SAP ERP), and the digitalisation of
ranges and operations.
The policy of openness and partnerships will be pursued in parallel, and will
continue to fit in with the same strategy of collaborating with complementary
partners and accessing new ecosystems that are compatible with the
international standard Zigbee 3.0 (1) , thereby positioning the Group as an
undisputed leader in the world of the connected home.
CORPORATE PROFILE
Founded in 1969 in the Arve Valley, in the Haute-Savoie region of France, and
now operating in 58 countries, Somfy is the preferred partner for window and
door automation and a pioneer in the connected home. The Group is constantly
innovating to guarantee comfort, wellbeing and safety in the home and is
committed to promoting sustainable development.
DISCLAIMER
The Group was not adversely affected by Brexit in 2019 and does not expect to
be in 2020. It could however be impacted by Coronavirus in 2020, notably in
China, where it achieves 1.2% of its consolidated sales, i.e. EUR14.9 million,
with its Somfy brand, and where its equity-accounted subsidiary Dooya achieves
47.7% of its own sales,
i.e. EUR89.4 million (base 2019).
(1) The radio protocol Zigbee 3.0, the leading standard for the connected home,
has more than 400 partners, including Amazon, Apple, Google, Philips, Samsung
and Somfy. It facilitates convergence and interoperability between each of
these manufacturers' products.
The annual financial statements have been audited by the Statutory Auditors and
were reviewed by the Supervisory Board on 4 March 2020.
The Statutory Auditors' reports, which are in the process of being issued, and
detailed financial statements will be released on 16 April 2020 and will be
available on the Company's website (www.somfyfinance.com).
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 first quarter sales: 21 April 2020 (after close of trading)
Annual General Meeting: 13 May 2020, at the Company's registered office
GLOSSARY
Sales: The sales figures refer to the sales amounts generated with customers
outside the Group. They are calculated based on customer location and therefore
the destination of the sales.
Change in real terms: The change in real terms corresponds to the change at
actual consolidation method and scope, and actual exchange rates.
Change on a like-for-like basis: The change on a like-for-like basis
corresponds to the change at constant consolidation method and scope, and
constant exchange rates.
Geographic regions: Africa & the Middle East, Germany, Central & South America,
North America, Asia-Pacific, China, Central & Eastern Europe, Northern Europe,
Southern Europe, and France are the geographic regions used to analyse and
monitor sales.
Return on capital employed: The return on capital employed is equal to the
ratio between current operating result less normative tax, and total
shareholders' equity, after offsetting the impact of goodwill impairment, and
net financial debt.
Net financial surplus: The net financial surplus corresponds to the difference
between cash and cash equivalents and financial liabilities.
APPENDICES
SALES
Consolidated data (EUR millions)
2019 2018 Change Change
Real terms Like-for-like
France 341.5 324.5 +5.3% +5.2%
Germany 186.5 178.3 +4.6% +4.6%
Central & Eastern Europe 152.3 131.5 +15.8% +15.3%
Northern Europe 134.9 120.5 +12.0% +12.1%
Southern Europe 121.9 119.2 +2.3% +1.7%
North America 103.0 93.6 +10.0% +4.5%
Africa & Middle East 64.2 67.2 -4.4% -2.5%
Asia-Pacific (excl. China) 57.6 54.8 +5.0% +3.0%
Central & South America 23.3 23.3 +0.3% +6.7%
China 14.9 13.7 +8.6% +6.8%
Total 1,200.2 1,126.7 +6.5% +6.1%
CONDENSED INCOME STATEMENT
Consolidated data (EUR millions)
2019 2018
Sales 1,200.2 1,126.7
EBITDA 262.4 218.0
Current operating result 204.8 177.8
Non-recurring operating items (3.2) (7.7)
Net financial expense (5.1) (4.3)
Income tax (37.2) (29.5)
Share of net profit from
associates 3.8 1.4
Net profit from continuing
operations 163.2 137.7
Net profit from operations
treated in accordance
with IFRS 5 (Dooya) 0.0 2.6
Consolidated net profit 163.2 140.4
Attributable to Non-controlling
interests 0.0 0.1
Attributable to Group share 163.2 140.5
RECONCILIATION OF CHANGES ON A LIKE-FOR-LIKE BASIS AND IN REAL TERMS
Sales Current operating
result
Change on a like-for-like basis +6.1% +13.2%
Forex impact +0.4% +1.7%
Scope impact - -
Impact of IFRS 16 - +0.2%
Change in real terms 6.5% +15.2%
CONDENSED BALANCE SHEET
Consolidated data
(EUR millions) 2019 2018
Equity 1,012.8 894.4
Goodwill 95.6 96.2
Net non-current assets 340.7 136.5
Investments in associates and
joint ventures 284.8 132.8
Working capital 515.6 420.2
Working capital requirements 159.8 186.1
Net financial surplus 310.5 222.4
MAIN IMPACTS OF THE APPLICATION OF IFRS 16
Consolidated data (EUR millions) 2019 Including
IFRS 16
impacts
Income statement
EBITDA 262.4 14.1
Current operating result 204.8 0.4
Net financial expense (5.1) (1.1)
Consolidated net profit 163.2 (0.7)
Cash flow statement
Cash flow 220.1 13.0
Cost of net financial debt
(excluding non-cash items) 2.0 1.1
Net cash flow from financing and
capital activities (65.5) (14.1)
Net change in cash and cash
equivalents 132.8 0.0
Balance sheet
Equity 1,012.8 (0.7)
Long-term borrowings 45.0 36.3
Net non-current assets 340.7 47.6
Working capital 515.6 (12.0)
Cash and cash equivalents
(including current portion of
financial liabilities) 355.8 (12.0)
Net financial surplus 310.5 (48.3)