TROAX: INTERIM REPORT JANUARY – MARCH 2018
Hillerstorp 2ndof May 2018, 12.30 CET
JANUARY – MARCH 2018
- Order intake increased by 5 per cent to 40,3 (38,5) MEUR. Adjusted for currency the increase was 8 per cent.
- Sales increased by 1 per cent to 36,7 (36,3) MEUR. Adjusted for currency and the IFRS 15 adjustment the increase was 6 per cent.
- Operating profit decreased to 6,5 (6,6) MEUR.
- Operating margin decreased to 17,7 (18,2) per cent.
- Financial net was -0,3 (-1,1) MEUR.
- Profit after tax increased to 4,6 (4,0) MEUR.
- Earnings per share increased to 0,23 (0,20) EUR.
Troax started 2018 with an organic growth (excluding currency impact) of around 8% which is close to the historical average. We have during the first quarter of 2018, similarly to Q4 2017, noted a lower activity from customers within the automotive sector. During the quarter, we have again received several important orders from customers within automation, warehouse and property. The US based company Folding Guard that was acquired in late 2016 is generally following their plans. The market in the US has during the first quarter been somewhat reserved. Price on steel has gone up, especially in the US, and the Group has therefore adjusted pricing to reflect the higher cost for steel purchases. Our assessment for this quarter is that the market has grown only marginally. The indication is that the order books of our customers are well filled but that the market growth has planned out on a high level. The growth has been strong in Continental Europe while North America and New markets have performed below expectations. The situation in the UK seems to be stabilizing after a negative development over the last few periods, 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 company Folding Guard is progressing. The focus to realize the growth synergies from the acquisition remains strong and is expected to deliver positive effects during the year. We see continued good opportunities to take market share for both brands in the important market of North America. During the second half of 2018 we will start-up production of Troax products in our Chicago factory.
Sales increased in the quarter by 6 per cent compared with the same period last year (including currency the increase is 1 per cent). The progress has been positive especially in Continental Europe.
The result for the quarter is on the same level as last year. The result is now impacted by the increasing marketing activities for both mature and new markets after having focused more on the integration of Folding Guard in 2017.
The operating result was 6,5 (6,6) MEUR, which corresponds to a profit margin of 17,7 per cent to be compared with 18,2 per cent last year. 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 amounts to 4,6 MEUR for the quarter compared to 4,0 MEUR last year. The increase is mainly related to lower interest costs.
The earnings per share for the fourth quarter are 0,23 EUR to be compared with 0,20 EUR in the same quarter of 2017.
Working Capital is on the same level as previous quarter and we have a continued positive cash flow in the quarter which is at the same level as last year. The key figure of our net debt in comparison with EBITDA is now 1,5 which clearly is below our target for the Group. The production capacity in our main factory in Hillerstorp will be increased at the end of the year through an investment of approximately 5 MEUR where most of this investment will impact the cash flow in 2018.
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 2nd of May 2018 at 17:00 CET. The conference will be held in English.
For more information, please refer to https://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 2nd of May 2018.
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 2017 Troax net sales amounted to around 152 MEUR and the number of employees amounted to abtou 670 persons. The Company’s head office is located in Hillerstorp, Sweden.