×

EXEL INDUSTRIES :2015-2016 Full Year Results Results devoted to future growth

Paris, December 20, 2016

2015-2016 Full Year Results
Results devoted to future growth

  • €819.3 million revenue over 13 months.
  • €59.3 million current operating income (current EBIT) over 13 months equal to 7.2% of revenue.
  • €90 million invested including strategic acquisition in USA (ET Works) and in real estate in preparation for plant extensions.
  • Issue of a €30 million EuroPP private placement over 6 years and 7 years

In € million2014-2015 (12 months) Sept 14-Aug 152015-2016 (12 months) Oct 15-Sept 162015-2016 (13 months) Sept 15-Sept 16
Revenue725.2 770.9 819.3
Current operating income (EBIT)50.9 57.4 59.3
(Current EBIT) as a % of sales7.0%7.4%7.2%
Pre-tax income43.6 50.5 51.4
Net income31.6 33.3 34.2
Workforce3,677 3,721 3,721

· Analysis of 2015-2016 results

Overall increase in income

The 2015-2016 fiscal year comprises 13 months following the change in the end of year date from August to September. EXEL Industries Group acquired ET Works in the USA in January 2016.
On this basis, revenue was €819.3 million, and the current operating income (EBIT) was €59.5 million or 7.2% of revenue.

On a 12-month basis from October to September, revenue was €770.9 million with an operating profit of €57.4 million or 7.4%. Excluding the US acquisition, revenue was slightly lower compared to the previous fiscal year but profitability was up from 7.0% to 8.2%.

The reduction in sales from the sugar beet harvesters business was offset by industrial precision spraying solutions sales, the effect of the "Macron Act" on sales of agricultural precision sprayers in France and also an increase in sales in Russia, Ukraine and Australia.
The cost reduction plans drawn up last year have enabled us to improve the Group's profitability.

Cash generation devoted to future growth

2015-2016 constantETW: Impact including acquisition Real estate investment2015-2016 Current
Operating cash flow97.4 97.4
Taxes paid-18.0 -18.0
Investments-12.3-62.3-15.7-90.3
Financial elements (finance costs, dividend, exchange rate)-18.0 -18.0
Change in NFD49.1-62.3-15.7-28.9

Operations generated €97.4 million compared to €65 million last year, thanks to increased profitability and better WCR management. Investment costs stood at €28 million, including €15.7 million for real estate acquisitions in preparation for future plant extensions.

In January, EXEL Industries Group carried out a strategic acquisition in the agricultural precision spraying solutions market in the USA with the purchase of ET Works, which had an impact of €62.3 million on Group debt.

In April 2016, the Group issued a €30 million EuroPP private placement over 6 years and 7 years.

Net financial debt (NFD) at the end of September 2016 stood at €103.6 million.

Gearing (ratio of net financial debt to shareholders' equity) increased from 26.8% to 34.7%, with longer debt maturities.

Net income - Dividends

Tax payable represents 33.3% of pre-tax income, versus 31% last year.

Consequently, net income came in at €34.2 million, versus €31.6 million in the previous year. Given the expected difficult climate for French agricultural plants in 2016-2017, the Annual General Meeting on February 9, 2016 will be asked to approve a dividend of €1.07 per share, which is stable compared to last year.

Audit process

On December 12, 13 and 14, 2016, all EXEL Industries Group subsidiaries held their Annual General Meetings and approved their annual financial statements, which were audited and certified by their respective Statutory Auditors.
The Group Internal Audit Committee met on the afternoon of December 14, 2016.
The Board of Directors of December 15, 2016, approved the financial statements, statutory and consolidated accounts as at September 30 2016. Audit procedures on statutory and consolidated accounts have been done, and an audit opinion without reserve in on-going.

· Outlook and Strategy

Guerric Ballu, CEO of EXEL Industries Group, said:

"EXEL Industries Group achieved €819.3 million of revenue over 13 months, and our net income continues to grow, thanks to our action plan to reduce WCR and our cost improvement plans implemented in the previous fiscal year.

To further our long-term growth, we have devoted a large part of this income to real estate and property investments at our manufacturing sites in Germany, the Netherlands and Denmark. With the acquisition of ET Works in the USA in January 2016, we have taken a significant position in the US agricultural self-propelled sprayer market, which is the largest market in the world. This is in line with our strategy for an international presence in all of our markets.
We are continuing with our active policy of innovation and this year we will again be launching many new products in all of EXEL Industries's areas of activity.

2016 harvests were not good in France and cereal prices have stabilized below €170/metric ton. French farmers will have little financial capacity to invest in agricultural equipment in 2017. Our French plants have been affected. They have already taken measures to modify the amount of production working time and restructuring activities are going to be implemented. However, our international growth means that less than 20% of the Group's revenue is exposed to the French agricultural market.
In Europe and the rest of the world, the situation has not declined to such an extent. In Russia and Ukraine, there is even a positive trend. The launch of the "Rubicon" self-propelled sprayer manufactured in France has been very successful in Australia.

In the sugar beet harvesting business, the increase in planted areas in Western Europe and the replacement of the ageing fleet in Russia and Ukraine allow us to predict growth in sales in the 2016-2017 fiscal year.

In the garden spraying and watering business, Hozelock will continue its international growth, particularly in Europe through its partnerships with Carrefour and Kingfisher.

To step up our growth in the industrial precision spraying solutions business, our Kremlin Rexson and Sames Technologies subsidiaries are going to merge, creating a global player.

Against a background of political and financial turbulence and erratic weather patterns, EXEL Industries Group is relying on its four business activities, its entrepreneurial spirit and its flexible organization. These are the assets that will allow us to grow and develop.

· Upcoming events

- Tuesday January 24, 2017 after market closing: 2016-2017 first quarter revenue.
- February 9, 2017: Annual General Meeting of Shareholders with a proposed dividend of €1.07 per share.
- Thursday April 20, 2017 after market closing: 2016-2017 second quarter revenue.

EXEL Industries2009/20102010/20112011/20122012/20132013/20142014/20152015/2016 13 months
Revenue in millions of euros384.4430.1525.3740.2775.4725.2819.3

About EXEL Industries:

EXEL Industries' main businesses are agricultural sprayers (world leader) and industrial spraying. The Group also competes in the consumer watering products market and in sugar beet harvesters (world leader). EXEL Industries is continually expanding its markets by means of constant innovation and an international strategy. EXEL Industries employs around 3,720 people in 29 countries on five continents.

NYSE-Euronext Paris, SRD Long, CAC Mid&Small 190
EnterNext© PEA-PME 150 index (Ticker EXE/ISIN FR0004527638)

The SFAF presentation is available at www.exel-industries.com.
This press release will be available in French and in English.

YOUR CONTACTS

Guerric Ballu Sylvain Rousseau
Group Chief Executive Office Group Chief Financial Officer/Investor Relations
Group Chief Financial Officer/Investor Relations
@Gu3rric Sylvain.Rousseau@exel-industries.com
Tel.: + 33 (0)1 71 70 49 50


Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/c2b57520-116d-47ff-9989-42bbc4f3b54c

Source:Exel Industries