TROAX: INTERIM REPORT JANUARY – JUNE 2017
Hillerstorp 16th of August 2017, 12.30 CET
APRIL – JUNE 2017
- Order intake increased by 30 per cent to 39,8 (30,5) MEUR. Adjusted for acquisition and currency the increase was 17 per cent.
- Sales increased 40 per cent to 39,6 (28,3) MEUR. Adjusted for acquisition and currency the increase was 26 per cent.
- Operating profit increased to 8,2 (5,1) MEUR.
- Operating margin increased to 20,7 (18,0) per cent.
- Financial net was -3,4 (-0.9) MEUR of which -2,3 MEUR is related to a one-time cost related to the redemption of the bond.
- Profit after tax increased to 3,7 (3,1) MEUR.
- Earnings per share was 0,19 (0,16) EUR.
JANUARY – JUNE 2017
- Order intake increased by 31 per cent to 78,3 (59,6) MEUR. Adjusted for acquisition and currency the increase was 17 per cent.
- Sales increased 38 per cent to 75,9 (55,1) MEUR. Adjusted for acquisition and currency the increase was 22 per cent.
- Operating profit increased to 14,8 (9,8) MEUR.
- Operating margin increased to 19,5 (17,8) per cent.
- Financial net was -4,6 (-1,8) MEUR of which -2,3 MEUR is related to a one-time cost related to the redemption of the bond.
- Profit after tax increased to 7,7 (5,9) MEUR.
- Earnings per share was 0,39 (0,30) EUR.
Troax has developed well during the second quarter with an organic increase in orders of 17%, which clearly is above the historical growth average. We have received several important orders from customers within, automotive, warehouse and property, which shows that the Troax offering is strong. The newly acquired company in the USA, Folding Guard is following their plans and has a favorable trend in orders received. Our judgment is that the market development during the second Quarter has been positive for the Group. The growth has been especially strong in Continental Europe, and also new Markets have had a positive quarter. In the UK, we have during the second quarter seen some negative effects of a weaker willingness to invest at some customer groups, probably caused by the uncertainty related to Brexit etc. The orderbook at the end of the quarter continues on a good level.
The integration work of the acquired company (end of last year), Folding Guard is progressing well. During the second quarter, the Nashville warehouse has been closed and the distribution moved to Chicago. The focus on growth continues to be strong but is not expected to show any bigger impacts until 2018/19. We can again confirm that the acquisition has so far been well received by important customers in the US. We see good opportunities to strengthen the customer base, long term, for both brands in the important market of North America.
Sales invoiced increased in the quarter by 40 per cent compared with the same period last year (excluding acquisition and currency the increase is 26 per cent). The progress was positive in all markets. Totally, the Group has increased to an order intake level of approximately 138 MEUR on a rolling 12 month basis (including Folding Guard for the first two quarters of 2017).
The result has continued to improve during the quarter, mainly because of good sales volumes and the consequential good capacity utilization in our factories. During last year, we also had some one-time costs related to the inauguration of the new paint line which we do not have this year. The market investments are continuing per plan. This is at a lower level short term, as some internal resources have been dedicated to the integration of our American acquisition.
The operating result was 8,2 (5,1) MEUR, which corresponds to a profit margin of 20,7 per cent to be compared with 18,0 per cent last year. It should be noted that the consolidation of Folding Guard decreases the margin in percentage terms. We do however see clear possibilities to increase the margin also for Folding Guard long term. The Net result has also developed in a positive way, and amounts to 3,7 MEUR for the quarter (3,1 MEUR). In this comparison, we must consider that we have had a one-time financing cost of -2,3 MEUR related to the redemption of the bond in order to move over to ordinary bank financing. Barring any other eventualities, this change in the company’s financing structure will improve the finance net by 3,4 MEUR annually from now onwards.
The result per share after the first half year is 0,39 EUR to be compared with 0,30 EUR last year.
The Working Capital is on a similar level as the previous quarter. Work in Progress is on a continued high level, indicating that some important projects still are under implementation and hence still have not been invoiced. We have continued with good cash generation from operations during the quarter and the net debt is now 66,5 MEUR and the key figure of our interest-bearing loan in comparison with EBITDA is below our target for the Group.
Thomas Widstrand, President and CEO
Invitation to presentation of the second quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 16th of August 2017 at 16:00 CET. The conference will be held in English. For more information, please refer to http://www.troax.com/en/news.
This information is information that Troax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014 and the Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on 16th of August, 2017.
President and CEO
Troax Group AB
335 04 Hillerstorp
Tel 46 (0)370-82831
Troax is the leading global supplier of indoor perimeter protection (“metal-based mesh panel solutions”) for the market segments: Machine guarding, Warehouse partitioning and Property Protection. Troax develops high quality and innovative safety solutions to protect people, property and processes.
Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation with a strong sales force and efficient logistics setup, enabling local presence and short delivery times in 36 countries.
In 2016 Troax net sales amounted to 116 MEUR and the number of employees amounted to 600 persons. The Company’s head office is located in Hillerstorp, Sweden.