TROAX: INTERIM REPORT JANUARY – SEPTEMBER 2017
Hillerstorp 6th of November 2017, 12.30 CET
JULY – SEPTEMBER 2017
- Order intake increased by 30 per cent to 35,3 (27,1) MEUR. Adjusted for acquisition and currency the increase was 15 per cent.
- Sales increased 22 per cent to 35,2 (28,8) MEUR. Adjusted for acquisition and currency the increase was 8 per cent.
- Operating profit increased to 7,5 (6,1) MEUR.
- Operating margin increased to 21,3 (21,2) per cent.
- Financial net was -0,3 (-1,0) MEUR, a decrease that is related to the redemption of the bond that took place in June 2017.
- Profit after tax increased to 5,3 (4,0) MEUR.
- Earnings per share was 0,27 (0,20) EUR.
JANUARY – SEPTEMBER 2017
- Order intake increased by 31 per cent to 113,6 (86,7) MEUR. Adjusted for acquisition and currency the increase was 16 per cent.
- Sales increased 32 per cent to 111,1 (83,9) MEUR. Adjusted for acquisition and currency the increase was 17 per cent.
- Operating profit increased to 22,3 (15,9) MEUR.
- Operating margin increased to 20,1 (19,0) per cent.
- Financial net was -4,9 (-2,8) 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 13,0 (9,9) MEUR.
- Earnings per share was 0,65 (0,50) EUR.
Troax had a continued good development during the third quarter 2017. The organic growth was 15 percent in orders received, which clearly is above the historical growth average. The growth was slightly lower towards the end of the quarter. The Group’s order levels on a 12-month rolling trend, is now 146 MEUR including 9 months turnover from Folding Guard. We have again 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 positive trend. Our judgment also for this quarter is that the market development has been positive for the Group. The growth has been especially strong in Continental Europe, and Nordic region, but also New markets have had a positive quarter. In the UK, we have again during the third quarter seen some negative effects of a weaker willingness to invest at some customer groups, probably caused by the uncertainty related to among others the Brexit issue. The orderbook at the end of the quarter is on a satisfying level.
The integration work of the acquired company (end of last year), Folding Guard is progressing well. The focus to realize the growth synergies from the acquisition remains strong, but are not expected to deliver any greater effects until 2018/2019. 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.
Invoiced sales increased in the quarter by 22 per cent compared with the same period last year (excluding acquisition and currency the increase is 8 per cent). The progress was positive in all markets, except UK.
The result has continued to improve during the quarter, mainly because of good sales volumes and the consequential good capacity utilization in our factories. The market investments are continuing per plan. This is at a lower level short term, as earlier informed, as some internal resources have been dedicated to the integration of our American acquisition.
The operating result was 7,5 (6,1) MEUR, which corresponds to a profit margin of 21,3 per cent to be compared with 21,2 per cent last year. It should be noted that the consolidation of Folding Guard still 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 5,3 MEUR for the quarter compared to 4,0 MEUR last year.
The result per share for the third quarter is 0,27 EUR and for the first nine months 0,65 EUR to be compared with 0,20 and 0,50 EUR respectively.
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 during the quarter and the net debt is now 60,7 MEUR and the key figure of our interest-bearing loan in comparison with EBITDA is now 1,7 which clearly 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 6th of November 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. The information was submitted for publication, through the agency of the contact person set out above, at 12:30 CET on the 6th of November 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.