Coil: 2020 FIRST-HALF RESULTS
October 28 2020 - 12:45PM
Coil: 2020 FIRST-HALF RESULTS
2020 FIRST-HALF RESULTS
- Business resilience as a result of a diversified
product mix
- Results down in a business climate deeply disrupted by
the health crisis
- Strong balance sheet with net debt at 30% of
equity
- Solid fundamentals to weather the current crisis
successfully
COIL, world leader in aluminium anodising,
announces its 2020 first-half results.
v Half-year
highlights
In the totally unprecedented context of the
current health crisis, COIL recorded sales of €11.7 million in the
first half of 2020, a fall of only of 3% compared to the same
period in 2019. This change in sales results from two contradictory
trends.
On the one hand, on a negative note, Tolling
Sales (73% of half-year sales) were down 19% due to the fall in
demand from European rolling mills and distributors, who were
compelled to downsize their business in the face of destocking and
to revise their short-term forecasts downwards in order to cope
with the consequences of the Covid-19 pandemic.
On the other hand, on a positive note, Package
Sales including metal (27% of half-year sales) grew by 97%,
confirming the importance of the recent marketing and commercial
actions undertaken by COIL to introduce new high-end products,
diversify its end markets and expand its direct sales under the
ALOXIDE® brand throughout the world.
COIL succeeded in maintaining production at its
two production sites in Germany and Belgium throughout the first
half of the year, implementing strict health measures and rapidly
reorganising its production capacity to maximise the variability of
production costs. Nevertheless, given the large decrease in sales
of the Tolling Business, it was inevitable that profitability would
be impacted.
In order to protect itself against a very
uncertain situation, the Company has taken advantage of all
government aid programmes to defer certain tax payments and loan
repayments.
v Results
Given the fixed cost structure of the business,
the decline in sales and change in the product mix inevitably led
to a fall in the operating performance of the business.
EBITDA was close to break-even, down €2.2M from
the previous year, mainly due to the decline in gross margin and
the increase in other operating expenses. After amortisation and
depreciation, which remained virtually stable at €1.8m, operating
profit amounted to €(1.9)M.
Net income before tax was €(2.1)M; it includes
an improved financial result of €(0.2)M.
Net income for the first half of 2020 was €2.1M,
compared with a near break-even result for the first half of
2019.
v Summary income
statement
M€ |
HY1 2020 |
HY1 2019 |
Sales |
11.69 |
12.09 |
EBITDA 1 |
(0.05) |
2.23 |
% of sales |
(0.5%) |
18.5% |
Operating profit |
(1.86) |
0.34 |
% of sales |
(15.9%) |
2.9% |
Income before tax |
(2.06) |
(0.00) |
Net income |
(2.07) |
(0.03) |
% of sales |
(17.7%) |
(0.3%) |
v Review
In view of the half-year results, equity at 30th
June 2020 amounted to €28.3M, down €2.1M compared with 31st
December 2019. Net financial debt at 30th June 2020 was €8.5M, a
comparable level to that at 31st December 2019; it represented 30%
of equity, compared with 28% at 31st December 2019 and 36% at 30th
June 2019.
v Outlook
2020 third-quarter sales (€5.3M) were down 50%
compared with the previous year due to the sharp slowdown in
markets, particularly in Europe. However, it should be noted that
the third quarter of 2019 was unusually strong, with major
deliveries of Package Sales in China. Sales for the first nine
months of the 2020 financial year amounted to €17M, down 25%
compared with the same period last year.
The fourth quarter of the year is expected to be
much more favourable. If subcontracting sales continue to suffer
from the impact of the health crisis on the business of European
rolling mill customers and distributors, Package Sales will be much
stronger due to significant new projects in Asia.
In this context, given the lack of visibility on
the recovery in demand for subcontracting, COIL expects sales of
around €24M for the full financial year 2020. Despite a very
uncertain economic environment, the Company is nonetheless
confident in its long-term development prospects thanks to a unique
range of premium anodised products, an optimised industrial
organisation and a growing commercial presence throughout the
world.
v Additional
information
The financial statements were approved by the Board of Directors
on 28th October 2020. They can be found on the Company's financial
website (http://investors.coil.be).
v Agenda
2020 annual sales will be published on 28th January 2021 after
the close of trading.
About
COIL
COIL is the world's leading anodiser in the
building and industrial sectors and trades under the ALOXIDEÒ brand
name.
Anodising is an electrochemical process which
develops a natural, protective oxide layer on the surface of
aluminium and can be coloured in a range of UV-proof finishes. It
gives the metal excellent resistance to corrosion and/or reinforces
its functional qualities. Anodising preserves all the natural and
ecological properties of aluminium; it retains its high rigidity
and excellent strength-to-weight ratio, its non-magnetic
properties, its exceptional resistance to corrosion. The metal
remains totally and repeatedly recyclable through simple
re-melting. Anodised aluminium is used in a wide variety of
industries and applications: architecture, design, manufacturing
and the automotive sector. COIL deploys an industrial
model that creates value by leveraging its unique know-how, its
operational excellence, the quality of its investments and the
expertise of its people. COIL has around 130 employees in Belgium
and Germany and generated a turnover of around €30 million in
2019.
Listed on Euronext Growth Paris | Isin:
BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit
www.aloxide.com
Contact
COILTim Hutton | Chief Executive
Officertim.hutton@coil.be | Tel. : +32 (0)11 88 01 88 |
CALYPTUSCyril Combe cyril.combe@calyptus.net |
Tel. : +33 (0)1 53 65 68 68 |
1 EBITDA = operating profit + depreciation, amortisation and
provisions
- COIL pressrelease28oct2020_EN
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