COIL: 2020 ANNUAL RESULTS
2020
ANNUAL RESULTS
COIL, world leader in aluminium anodising, has
released its annual results for the 2020 financial year.
- Significant events of the
financial year
In 2020, the Covid-19 pandemic had unprecedented
consequences on the global economic situation, and the profound
disruption of market demand had an impact on the Company's
business, which recorded sales of €23M, down 23% year-on-year.
Throughout the year, subcontracting services
were affected by the downturn in the European distribution market,
with extended destocking by distributors in response to economic
uncertainties. The architectural projects market remained strong
and Package Sales, including metal sales to end customers,
consolidated at a historically high level compared to a record year
in 2019, despite the postponement to the first quarter of 2021 of a
delivery to China for €0.9M, given the saturated supply chain
between Europe and Asia.
At the operational level, the Company has
undertaken, since the beginning of the crisis, a vigorous action
plan implementing reinforced sanitary measures and rapidly
reorganising its production capacity in order to maximise the
variability of its costs. In Germany, the Company optimised its
industrial resources with the closure, as of March, of line 5 in
order to reduce its variable costs and focus its production on the
high-yield line 6. In Belgium, the Company continued to operate
with lines 1 and 2, line 3 being dormant since last year.
In this context, the decline in demand,
particularly in the European distribution market, and the
subsequent reductions in productivity affected the annual results.
In order to protect itself from the uncertain situation, the
Company has resorted to various governmental aid programmes,
including the deferral of loan repayments and economic lay-offs in
Germany and Belgium1.
Operating expenses were overall kept under
control thanks to the fast reorganisation of industrial capacities
in Belgium and Germany. Nevertheless, given the Company's high
fixed cost structure, the contraction in activity and the shift in
the product mix in favour of Package Sales inevitably led to a
decline in profitability indicators.
EBITDA thus fell by €5.2M to €1.0M, or 4.4% of
sales compared with 21.0% in 2019. This change is mainly explained
by a decrease in gross margin and an increase in other operating
expenses including non-recurring items related to management
remuneration and bonuses. After a €0.3M decrease in provisions and
depreciation, operating profit stood at €(2.9)M.
Net income came to €(3.3)M, down €4.2M compared
to 2019. It includes, in particular, a financial result which
improved by €0.7M compared to 2019.
(€M) |
2020 |
2019 |
Change |
Sales |
23.0 |
29.8 |
- 6.8 €M |
EBITDA |
1.0 |
6.3 |
- 5.3 €M |
% of sales |
4.4% |
21.0% |
|
Operating result |
(2.9) |
2.1 |
- 4.9 €M |
% of sales |
(12.5)% |
7.1% |
|
Pre-tax result |
(3.2) |
1.1 |
- 4.3 €M |
Net result |
(3.3) |
1.0 |
- 4.2 €M |
% of sales |
(14.1)% |
3.3% |
|
Based on the year's results, shareholders'
equity stood at €27.1M, down €3.3M compared to 31 December 2019.
Net financial debt at 31 December 2020 was €8.6M, a level
comparable to the previous year, and represented 32% of equity,
compared with 28% at 31 December 2019 and 44% at 31 December
2018.
- 2021
first-quarter sales and outlook
Sales for the first quarter of 2021 amounted to
€5.9M, up 4.6% compared to the first quarter of 2020. Package Sales
(€1.7m) increased by 45%, while sales from subcontracting services
remained low (€4.2M; -6%).
After a prolonged period of de-stocking, the
upturn in demand in the construction sector was accompanied by a
significant restocking in the European distribution market. This
has resulted in a temporary shortage of capacity for the production
of flat rolled aluminium in Europe with extended delivery times. As
the automotive and can stock markets - the two largest markets for
aluminium in Europe - are just-in-time markets, the production of
anodising quality aluminium has been temporarily slowed down. As a
result, the Company is currently unable to take advantage of the
positive underlying demand trend. The market for architectural
projects remains strong in Europe, but more uncertain in Asia due
to longer delivery times.
Notwithstanding the difficult market situation
in 2021, the Company continues to invest in the long-term
development of its business. The Company has launched a major
initiative with a local company to develop a major solar panel
installation on its site in Bernburg. When combined with long term
purchasing of new sources of green energy, the Company expects its
German production site to become carbon neutral in 2022 and to
achieve significant savings in electricity costs.
With a flexible and efficient manufacturing
system, a growing geographical footprint and a strong financial
position, the Company remains confident in its development
prospects and is capitalising on its broad portfolio of premium,
sustainable and low-carbon products to further strengthen its
global leadership.
The financial statements were approved by the
Board of Directors on 29 April 2021. They can be found on the
Company's financial website (http://investors.coil.be).
- 2 June 2021:
Annual General Meeting
- 28 July 2021:
2021 half-year sales
- 29 October
2021: 2021 half-year results
About COIL
COIL is the world's leading anodiser in the
building and industrial sectors and trades under the ALOXIDE 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
€30M 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 | Tél. : +32 (0)11 88 01 88 |
CALYPTUSCyril Combe cyril.combe@calyptus.net |
Tél. : +33 (0)1 53 65 68 68 |
1 It should be recalled that, economic lay-offs in Belgium fall
under a government support programme established many years ago, as
opposed to the German scheme, which was set up in the context of
the pandemic and due to expire in December 2021.
- COILpressrelease30april2021_EN
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