First half 2014 results
Steady growth and improved profitability across all business divisions
Revenues: €2,191 million
Operating margin: 3.0%
* First half 2014 revenues up 13.4% to €2,191 million, with growth across all
divisions.
* EBITA up 19% to €65.5 million, thus outperforming revenue growth.
Operational margin up 3%.
* Announcement of a strategic Logistics and Transport acquisition in the US
Norbert Dentressangle's CEOHervé Montjotin commented on the results for the
first half of 2014: "The first half of 2014 took place ina European economic
environment, which was boosted by growth in the UK economy and recovery in
Spain. Against this backdropand despite flat activity in France, Norbert
Dentressangle capitalised on its ever expanding global footprint and its
positioning within buoyant sectors. Not only did we achieve revenue growth of
13.4% compared to the first half of 2013, but - and this is more important - we
generated EBITA growth of over 19% for the same period. Our three business
lines, Logistics, Transport and Air & Sea, are all well on course in terms of
growth and profitability, in accordance with our expectations. Norbert
Dentressangle is a group built on firm foundations and satisfies all the
assetsfor successful consolidation of its new strategic acquisition in the US."
€m H1 2014 H1 2013 Change
(Audited financial H1 2014 v H1 2013
statements)
Revenues 2,191 1,932 +13.4%
EBITDA* 119.2 112.1 +6.3%
EBITA (operating income 65.5 55.1 +19%
before goodwill impairment)
EBITA margin (%) 3.0% 2.9%
Net income Group share 24.4 24.5 -1%
* Operating income before depreciation, impairment and provision charges/
write-backs
Revenues: Growth across all business divisions
With Europe enjoying a brighter economic climate, Norbert Dentressangle posted
first half 2014 consolidated revenues of €2,191 million, up 13.4% compared to
the same period last year. At constant exchange rates and consolidation scope,
like-for-like growth compared to first half 2013 amounted to 5.8%.
The share of revenues generated outside France amounted to 61%, while the UK,
the second largest contributor to Group revenues, accounted for nearly 30% of
total sales for the period.
First half H1 2014 H1 2013 Change Like-for-like
change
revenues
(€m)
Transport 1,067 1,010 +5.6% +4.1%
Logistics 1,068 897 +19.2% +8.4%
Air & Sea 96 64 +50.5% -2.5%
Inter-division (41) (38) - -
Consolidated total 2,191 1,932 +13.4% +5.8%
Second quarter Q2 2014 Q2 2013 Change Like-for-like
revenues change
(€m)
Transport 539 510 +5.7% +4.0%
Logistics 546 461 +18.6% +8.4%
Air & Sea 48 31 +53.5% +3.5%
Inter-division (21) (19) - -
Consolidated total 1,113 983 +13.2% +6.0%
* The Transport division posted first half 2014 revenues of €1,067 million,
up 5.6% from the same period in 2013 and up 4.1% like for like. Revenue
growth was primarily driven by the division's added value service
offerings: "Contract distribution" (Red Inside) and domestic and European
pallet distribution (Red Europe). The outlook is strong after the renewal
of key customer contracts during the first half. During the period, Norbert
Dentressangle reinforced its positioning in the niche UK bulk tanker
transport market with the acquisition of Hopkinson, a company with annual
revenues of around £4 million.
* The Logistics division capitalised on the growth foundations laid in 2013
and on its positioning within particularly buoyant sectors, posting
revenues of €1,068 million, up 19.2% from the first half of 2013 based on
reported data and up 8.4% like for like. In Italy and Spain, the
consolidation of the Fiege business boosted sales performance in these
countries. During the period Norbert Dentressangle signed an offer to
purchase nine French warehouses from MGF, a subsidiary of the G7 Group. The
warehouses, located mainly in the Paris region, northern France and near
the cities of Lyon, Toulouse and Marseilles, cover a total warehousing area
of 174,000m². Specialising in logistics services for the mass retail, FMCG,
textile and industrial goods sectors, the nine warehouses employ 272 people
and generate annual revenues of around €26 million, representing 5% growth
for the Logistics business in France. Four of these warehouses had been
consolidated by the end of the first half.
* The Air & Sea division, established in 2010, posted first half revenues of
€96 million, up 50.5% from first half 2013 due to the consolidation of the
Daher business.
EBITA growth outperforms revenue growth
EBITA (operating income before goodwill impairment) came to €65.5 million, up
19% from first half 2013. This produced an operating margin of 3.0% compared to
2.9% in the previous period.
The underlying operating margin rose by 22% from 3.1% in H1 2013 to 3.3% in H1
2014.
* The Transport activities posted operating income of €26.9 million, up from
€23.8 million in H1 2013. The operating margin was 2.6%, compared to 2.4%
in H1 2013. The increased profitability reflects sustained high business
volumes in pallet distribution and the improvement in the profitability of
the full load business due to the brighter economic climate and the success
of the cost-cutting campaigns led by the various departments.
* TheLogistics activities posted operating income of €37.7 million, up 19%
from €31.8 million in the first half of 2013. The division's operating
margin of 3.5% is similar to the previous year's figure. The Group's
European markets registered satisfactory performances, with the exception
of Belgium. Results in Russia were in line with expectations.
* The Air & Sea activities achieved an operating margin of nearly 1% for the
first half of 2014 after turning in an operating loss of €0.6 million in H1
2013. The former Daher business operations performed well in France and
particularly in Russia. Business in China returned to growth.
Net income came in at €24.4 million, down 1% from €24.5 million in H1 2013 due
to the impact of higher financial costs and increased tax.
A strong, reinforced financial structure
Group net borrowings at 30 June 2014 amounted to €551 million, down from €565
million at the end of the previous first half.
Consolidated net assets group share rose from €537 million at June 30 2013 to €
579 million at the end of first half 2014.
The gearing (95%) and leverage (net debt/EBITDA - 2.1x) ratios improved from
the end of first half 2013 and are well below the values stipulated by the bank
covenants.
Strategic Logistics and Transport acquisition in the US
Norbert Dentressangle today announces the signing of a heads of agreement with
the Oak Hill Capital Partners Fund to purchase the entire equity of Jacobson, a
US logistics and transport firm.
Subject to its approval by the US antitrust authorities, this acquisition will
increase Norbert Dentressangle's revenues by 15% and give the Group a key
position (€600 million) on the very important US supply chain market.
The transaction, due to be finalised in mid-September 2014, will be EPS
accretive from the first year.
A press release regarding the transaction has been published today.
Outlook
Given the income and revenue growth reported by the Group with the current
consolidation scope, the fact that the second half is always stronger than the
first half, and the Group's long-standing experience of acquisitions, Norbert
Dentressangle is well placed with regard to the successful consolidation of
Jacobson in the US once the transaction has been finalised.
Next releases:
Closing of US Jacobson acquisition: Mid-September
3rd quarter 2014 revenues: 23 Oct. 2014 (after market close)
About Norbert Dentressangle:
Norbert Dentressangle is an international transport, logistics and freight
forwarding company, with annual turnover of €4 billion in 2013. Norbert
Dentressangle develops high added value solutions in its three sectors, across
Europe, America and Asia, and places sustainable development at the heart of
all its activities. It is established in 26 countries, employs 37,700 people
and generates 60% of its turnover outside France. Norbert Dentressangle whose
CEO is Hervé Montjotin is listed on the CAC Small & CAC All Tradable.
NYSE Euronext Paris (category B) / NYSE Euronext London, Code GND - Isin
FR0000052870
www.norbert-dentressangle.com