- Sales€1,741 million(+ 9.6% vs. 2016)
- EBITDA€106.4 million(6.1% of sales)
- Net income (Group share)€46.2 million(2.7% of sales)
Regulatory News:
Jacquet Metal Service SA (Paris:JCQ):
On March 7, 2018 the Board of Directors, chaired by Éric Jacquet, examined the consolidated financial statements for the year ended December 31, 2017.
€m | Q4 2017 | Q4 2016 | 2017 | 2016 | ||||
Sales | 417.9 | 369.5 | 1,741.1 | 1,588.3 | ||||
Gross margin | 107.8 | 95.1 | 443.0 | 385.9 | ||||
% of sales | 25.8% | 25.7% | 25.4% | 24.3% | ||||
EBITDA1 | 23.6 | 14.5 | 106.4 | 54.7 | ||||
% of sales | 5.7% | 3.9% | 6.1% | 3.4% | ||||
Adjusted operating income1 | 17.5 | 7.8 | 84.2 | 33.5 | ||||
% of sales | 4.2% | 2.1% | 4.8% | 2.1% | ||||
Operating income 2 | 14.8 | 14.2 | 80.8 | 40.8 | ||||
Net income (Group share) ² | 9.1 | 8.3 | 46.2 | 16.0 |
1 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
2 2016 operating income and net income (Group share) include a non-recurring income of €6.4 million recorded in the fourth quarter and relating to the adjustment to the S+B Distribution acquisition price.
2017 Sales and earnings
Headlines
2017 was marked by:
- The positive impacts of measures to improve operating efficiency of S+B Distribution, which contributed €15.8 million to Group EBITDA in 2017 (versus €2.6 million in 2016 and a €6.2 million loss in 2015).
- 2017 sale prices +8.6% above 2016 sale prices, which were down 8% compared to 2015 sale prices.
- A +4.1% increase in volumes sold (excluding S+B Distribution).
In this context, all divisions improved their profitability. Accordingly, the Group's gross margin rose from 24.3% in 2016 to 25.4% in 2017, while EBITDA increased by 95% from €54.7 million in 2016 to €106.4 million in 2017.
Fourth quarter 2017
Group sales amounted to €418 million, +13.1% compared to Q4 2016, with the following effects:
- Volumes: +7.3%.
- Price: +5.8%. The price effect compared to Q3 2017 was +2.4%.
Group EBITDA came to €23.6 million (5.7% of sales) compared to €14.5 million (3.9% of sales) in Q4 2016.
Net income (Group share) amounted to €9.1 million compared to €8.3 million last year. Q4 2016 net income (Group share) includes a non-recurring income of €6.4 million relating to the adjustment to the S+B Distribution acquisition price.
Full-year results
Group sales amounted to €1,741 million, +9.6% compared to 2016, including the following effects:
- Volumes: +1% (+4.1% excluding S+B Distribution),
- Price: +8.6%.
Gross margin amounted to €443 million, representing 25.4% of sales (Q4: 25.8%) compared to 24.3% in 2016.
Operating expenses excluding non-recurring items amounted to €358.8 million in 2017, a 1.8% increase from €352.4 million in 2016 mainly due to the increase in Group sales and profit margins.
As a result, EBITDA came to €106.4 million (6.1% of sales) compared to €54.7 million (3.4% of sales) in 2016.
Net income (Group share) came to €46.2 million (2.7% of sales) compared to €16 million (1% of sales) in 2016.
Financial position at December 31, 2017
In 2017 the Group generated operating cash flow of €79.9 million (versus €43.1 million in 2016) and incurred capital expenditure of €31.9 million (versus €19.2 million in 2016).
As of December 31, 2017, operating working capital amounted to €383 million, including inventory of €418 mil- lion, and represented 22% of sales versus 23.4% at December 31, 2016. Group net debt stood at €183 million (€205 million at the end of 2016) compared to shareholders' equity of €332 million, resulting in a net debt to equity ratio of 55.2% compared to 69.2% at December 31, 2016.
In February 2018, the Group issued a Schuldscheindarlehen (private placement of debt instruments under German law) for €150 million. Maturing in April 2023 (repayable at maturity) and subject to improved financial conditions, this placement is intended to refinance the existing Schuldscheindarlehen (€88 million, maturing in October 2020) and to finance ongoing business and Group's development.
2017 Earnings by division
JACQUET Abraservice | STAPPERT Stainless steel long products | IMS group Engineering steels | ||||||||||
€m | Q4 2017 | 2017 | Q4 2017 | 2017 | Q4 2017 | 2017 | ||||||
Sales | 91.8 | 378.4 | 105.0 | 456.6 | 219.4 | 900.6 | ||||||
Change vs. 2016 | 19.2% | 17.0% | 9.8% | 9.8% | 12.1% | 6.4% | ||||||
Price effect | 4.2% | 8.9% | 7.4% | 12.1% | 5.4% | 6.9% | ||||||
Volume effect | 15.0% | 8.1% | 2.5% | -2.2% | 6.7% | -0.5% | ||||||
EBITDA 1 2 | 4.9 | 22.6 | 6.0 | 28.2 | 8.9 | 44.2 | ||||||
% of sales | 5.3% | 6.0% | 5.7% | 6.2% | 4.1% | 4.9% | ||||||
Adjusted operating income 2 | 2.9 | 13.7 | 4.9 | 25.6 | 6.8 | 36.3 | ||||||
% of sales | 3.1% | 3.6% | 4.7% | 5.6% | 3.1% | 4.0% |
1 Non-division operations contributed €3.9 million to Q4 2017 EBITDA and €11.4 million to 2017 EBITDA.
2 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
The JACQUET Abraservice division specializes in the distribution of stainless steel and wear-resistant quarto plates. JACQUET and Abraservice have separate sales networks. It generated 74% of its business in Europe and 18% in North America.
2017 sales amounted to €378.4 million, a 17% increase compared to 2016 (Q4: +19.2%), including the following effects:
- Volumes: +8.1% (Q4: +15%)
- Price: +8.9% (Q4: +4.2%).
The gross margin rate came to 30.4% (Q4: 30.8%), while gross margin came to €115.1 million compared to €99.6 million in 2016.
EBITDA came to €22.6 million (6% of sales) compared to €10.8 million (3.3% of sales) in 2016.
The STAPPERT division specializes in the distribution of long stainless steel products in Europe. It generated 41% of its sales in Germany, the largest European market.
Sales amounted to €456.6 million, a 9.8% increase from €415.8 million in 2016 (Q4: +9.8%), including the following effects:
- Volumes: -2.2% (Q4: +2.5%)
- Price: +12.1% (Q4: +7.4%).
The gross margin rate rose 1 percentage point to 22.7%, while gross margin came to €103.7 million compared to €90.2 million in 2016.
EBITDA came to €28.2 million (6.2% of sales) compared to €16.3 million (3.9% of sales) in 2016.
The IMS group division specializes in the distribution of engineering steels, mostly in the form of long products. It generated 48% of its sales in Germany, the largest European market.
Sales amounted to €900.6 million, a 6.4% increase compared to 2016 (Q4: +12.1%), including the following effects:
- Volumes: -0.5% (Q4: +6.7%)
- Price: +6.9% (Q4: +5.4%).
The gross margin rate rose 1.6 percentage point to 24.1% (Q4: 24.1%), while gross margin came to €217.5 million compared to €190.8 million in 2016.
EBITDA amounted to €44.2 million (4.9% of sales) compared to €18.3 million (2.2% of sales) in 2016. S+B Distribution (the distribution business purchased from the Schmolz+Bickenbach group in July 2015) contributed €15.8 million to EBITDA (3.1% of sales) versus €2.6 million in 2016 (0.5% of sales).
Key financial information | ||||
Income statement | ||||
€m | 2017 | 2016 | ||
Sales | 1,741.1 | 1,588.3 | ||
Gross margin | 443.0 | 385.9 | ||
% of sales | 25.4% | 24.3% | ||
EBITDA 1 | 106.4 | 54.7 | ||
% of sales | 6.1% | 3.4% | ||
Adjusted operating income 1 | 84.2 | 33.5 | ||
% of sales | 4.8% | 2.1% | ||
Operating income 2 | 80.8 | 40.8 | ||
Net income (Group share) ² | 46.2 | 16.0 |
1 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
2 2016 operating income and net income (Group share) include a non-recurring income of €6.4 million recorded in the fourth quarter and relating to the adjustment to the S+B Distribution acquisition price.
Balance sheet
€m | 31.12.17 | 31.12.16 | ||
Goodwill | 68.3 | 68.5 | ||
Net non-current assets | 156.2 | 147.6 | ||
Net inventory | 418.0 | 376.2 | ||
Net trade receivables | 189.3 | 171.3 | ||
Other assets | 94.0 | 91.7 | ||
Cash cash equivalents | 102.1 | 73.0 | ||
Total assets | 1,027.9 | 928.3 | ||
Shareholders' equity | 331.8 | 296.5 | ||
Provisions (including provisions for employee benefit obligations) | 106.5 | 112.3 | ||
Trade payables | 224.0 | 176.4 | ||
Total borrowings | 289.6 | 281.2 | ||
Other liabilities | 76.0 | 61.8 | ||
Total equity and liabilities | 1,027.9 | 928.3 |
Cash flow
€m | 2017 | 2016 | ||
Operating cash flow before change in working capital | 89.2 | 45.3 | ||
Change in working capital | (9.3) | (2.2) | ||
Cash flow from operating activities | 79.9 | 43.1 | ||
Capital expenditure | (31.9) | (19.2) | ||
Asset disposals | 1.0 | 1.2 | ||
Dividends paid to shareholders of Jacquet Metal Service SA | (11.8) | (9.5) | ||
Interest paid | (10.0) | (9.6) | ||
Other movements | (5.0) | 2.3 | ||
Change in net debt | 22.1 | 8.3 | ||
Net debt brought forward | 205.3 | 213.5 | ||
Net debt carried forward | 183.1 | 205.3 |
Activity report available: www.jacquetmetalservice.com.Q1 2018 release: Friday, May 4, 2018 before start of trading
Jacquet Metal Service is a European leader in the distribution of specialty steels. The Group operates and develops a portfolio currently comprising four brands: JACQUET (stainless steel quarto plates), STAPPERT (long stainless steel products), Abraservice (wear-resistant quarto plates) and IMS group (engineering steels).
With 3,329 employees, Jacquet Metal Service has a network of 110 distribution centers located in 25 countries in Europe, China and North America.
Compartment B
ISIN: FR0000033904
Reuters: JCQ.PA
Bloomberg JCQ FP
View source version on businesswire.com: http://www.businesswire.com/news/home/20180307005969/en/
Contacts:
Jacquet Metal Service
Thierry Philippe
Group CFO
comfi@jacquetmetals.com
or
NewCap - Investor relations
Julien Perez, T: +33 1 44 71 94 94
jacquetmetalservice@newcap.eu