Jacquet Metal Service SA
First quarter 2019 results
Regulatory News:
Jacquet Metal Service SA (Paris:JCQ):
> Sales €482 million (-4.1% vs. Q1 2018)
> EBITDA €26.5 million (5.5% of sales)
> Net income (Group share) €11.4 million
On May 14, 2019 the Board of Directors, chaired by Éric Jacquet, approved the consolidated financial statements for the three months ended March 31, 2019.
€m | Q1 2019 | Q1 2018 | |||
Sales | 482.0 | 502.5 | |||
Gross margin | 112.1 | 126.0 | |||
% of sales | 23.3% | 25.1% | |||
EBITDA 1 2 | 26.5 | 34.5 | |||
% of sales | 5.5% | 6.9% | |||
Adjusted operating income 2 | 19.1 | 29.4 | |||
% of sales | 4% | 5.9% | |||
Operating income | 20.6 | 33.4 | |||
Net income (Group share) | 11.4 | 22.4 |
1 Q1 2019 EBITDA benefited from a positive €4.3 million impact relating to the application of IFRS 16 - Leases as from January 1, 2019.
2 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them and is available at
www.jacquetmetalservice.com.
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First quarter 2019 sales and earnings
In a changing market environment less favorable than last year, Q1 2019 sales and earnings were impacted by:
> good resilience in volumes sold by STAPPERT and JACQUET-Abraservice, +1.9% and +1.6% respectively from Q1 2018;
> low demand for engineering steels, particularly in Germany, with IMS group volumes down 10.3% from Q1 2018;
> a decline in selling prices (-1.7% versus Q4 2018) resulting in a corresponding decrease in gross margins and earnings.
Market conditions are not expected to change significantly during Q2 2019.
Sales amounted to €482 million, down 4.1% compared to Q1 2018, including the following effects:
> volumes sold: -4.6%;
> price: +3.1% versus Q1 2018 (-1.7% versus Q4 2018);
> scope: -2.6% (i.e. €-13 million in sales) following the disposal of non-strategic assets carried out in 2018.
Gross margin amounted to €112 million and represented 23.3% of sales, compared to 25.1% in Q1 2018.
At constant consolidation, operating expenses excluding non-recurring items amounted to €93 million, down 0.6% compared to Q1 2018.
EBITDA amounted to €26.5 million, or 5.5% of sales. It benefited from a positive €4.3 million impact relating to the application of IFRS 16 - Leases as of January 1, 2019. Adjusted for the impact of IFRS 16, EBITDA amounted to €22.2 million, i.e. 4.6% of sales, compared to 6.9% in Q1 2018.
Adjusted operating income amounted to €19.1 million (4% of sales) compared to €29.4 million (5.9% of sales) in Q1 2018. The application of IFRS 16 had no material impact on adjusted operating income.
Net income (Group share) amounted to €11.4 million (2.4% of sales) compared to €22.4 million (including €2.8 million gain on sales of assets) in Q1 2018 (4.5% of sales). The application of IFRS 16 had no material impact on net income.
Financial position
The Group generated operating cash flow of €+23.1 million during Q1 2019. As of March 31, 2019:
> operating working capital amounted to €452 million, including inventories of €473 million, and represented 24.5% of sales, compared to €447 million at 2018 year-end (including inventories of €493 million).
> net debt came to €179 million (debt to equity ratio 46.1%).
The application of IFRS 16 - Leases led to the recognition on the Group's balance sheet as of March 31, 2019 of:
> a "right of use" asset amounting to €97.6 million, €18 million of which was recorded under "net non-current assets" as of December 31, 2018, according to IAS 17;
> "Lease obligations" under liabilities amounting to €94.6 million, €15.1 million of which was recorded under "Borrowings" as of December 31, 2018, according to IAS 17.
Dividend
The Board of Directors will propose a dividend of €0.70 per share to the General Meeting of Shareholders on June 28, 2019.
Q1 2019 earnings by division excluding impacts of IFRS 16 |
|||||||
Stainless steel and |
Stainless steel long |
Engineering steels |
|||||
€m | Q1 2019 | Q1 2019 | Q1 2019 | ||||
Sales | 112.1 | 133.0 | 241.8 | ||||
Change vs 2018 | +7.7% | +3.0% | -9.9% | ||||
Price effect | +6.2% | +1.0% | +3.1% | ||||
Volume effect | +1.6% | +1.9% | -10.3% | ||||
Change in consolidation | — | — | -2.6% | ||||
EBITDA 1 2 | 8.3 | 5.0 | 7.4 | ||||
% of sales | 7.4% | 3.8% | 3.1% | ||||
Adjusted operating income 2 | 6.2 | 5.2 | 6.7 | ||||
% of sales | 5.5% | 3.9% | 2.8% |
1 Non-division operations contributed €1.4 million to Q1 2019 EBITDA.
2 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
JACQUET - Abraservice
specializes in the distribution of stain- less steel and wear-resistant quarto plates. JACQUET and Abraservice have separate sales networks. The division generates 74% of its business in Europe and 20% in North America.
Sales amounted to €112.1 million, up +7.7% from €104.1 million in Q1 2018:
> volumes: +1.6%;
> prices: +6.2%
(+1.3% compared to Q4 2018).
The gross margin amounted to €34.7 million (30.9% of sales) compared to €32.7 million (31.5% of sales) in Q1 2018.
EBITDA amounted to €8.3 million (7.4% of sales) compared to €7.5 mil- lion (7.2% of sales) in Q1 2018.
STAPPERT specializes in the dis- tribution of long stainless steel prod- ucts in Europe. The division generates 42% of its sales in Germany, the largest European market.
Sales amounted to €133 million, up
+3% from €129.2 million in Q1 2018:
> volumes: +1.9%;
> prices: +1%
(-3.9% compared to Q4 2018).
The gross margin amounted to €25 million (18.8% of sales) compared to €27.8 million (21.5% of sales) in Q1 2018.
EBITDA amounted to €5 million (3.8% of sales) compared to €7.3 million (5.7% of sales) in Q1 2018.
IMS group specializes in the distribution of engineering steels, mostly in the form of long products. The division generates 47% of its sales in Germany, the largest Euro- pean market.
Sales amounted to €241.8 million, down -9.9% from €268.4 million in Q1 2018:
> volumes: -10.3%;
> prices: +3.1%
(-2.0% compared to Q4 2018);
> change in consolidation: -2.6%.
The gross margin amounted to €52.4 million (21.7% of sales) compared to €63.9 million (23.8% of sales) in Q1 2018.
EBITDA amounted to €7.4 million (3.1% of sales) compared to €17.7 million (6.6% of sales) in Q1 2018 (€16.9 million or 6.5% at constant consolidation scope).
Financial information
Income statement |
|||||
€m |
Q1 2019 |
Q1 2018 |
|||
Sales | 482.0 | 502.5 | |||
Gross margin | 112.1 | 126.0 | |||
% of sales | 23.3% | 25.1% | |||
EBITDA 1 2 | 26.5 | 34.5 | |||
% of sales | 5.5% | 6.9% | |||
Adjusted operating income 2 | 19.1 | 29.4 | |||
% of sales | 4% | 5.9% | |||
Operating income | 20.6 | 33.4 | |||
Net income (Group share) | 11.4 | 22.4 |
1 Q1 2019 EBITDA benefited from a positive €4.3 million impact relating to the application of IFRS 16 - Leases as from January 1, 2019.
2 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them and is available at www.jacquetmetalservice.com.
Cash flow | |||||
€m | Q1 2019 | Q1 2018 | |||
Operating cash flow before change in working capital | 23.7 | 30.5 | |||
Change in working capital | (0.6) | (33.8) | |||
Cash flow from operating activities | 23.1 | (3.3) | |||
Capital expenditure | (5.6) | (5.3) | |||
Asset disposals | 0.2 | 4.1 | |||
Dividends paid to shareholder of Jacquet Metal Service SA | — | — | |||
Interest paid | (2.7) | (2.2) | |||
Other movements | 20.2 | (1.7) | |||
Change in net debt | 35.2 | (8.4) | |||
Net debt brought forward | 214.5 | 183.1 | |||
Net debt carried forward | 179.4 | 191.5 | |||
Balance sheet |
|||||
€m | 31.03.19 | 31.12.18 | |||
Goodwill | 68.3 | 68.3 | |||
Net non-current assets | 139.6 | 155.9 | |||
Right of use 1 | 97.6 | — | |||
Net inventory | 473.1 | 493.0 | |||
Net trade receivables | 227.7 | 182.4 | |||
Other assets | 93.8 | 100.2 | |||
Cash & cash equivalents | 141.4 | 119.4 | |||
Total assets | 1,241.6 | 1,119.0 | |||
Shareholders’ equity | 389.4 | 376.8 | |||
Provisions (including provisions for employee benefit obligations) | 93.7 | 96.2 | |||
Trade payables | 248.6 | 228.3 | |||
Borrowings | 324.7 | 337.8 | |||
Other liabilities | 90.6 | 80.0 | |||
Lease obligations 1 | 94.6 | — | |||
Total equity and liabilities | 1,241.6 | 1,119.0 | |||
1 Application of IFRS 16 - Leases as from January 1, 2019. |
Activity report available : www.jacquetmetalservice.com - H1 2019 results : September 18, 2019 after close of trading
Jacquet Metal Service is a European leader in the distribution of specialty steels. The Group operates and develops a portfolio which currently consists of four brands:
JACQUET stainless steel quarto plates - STAPPERT stainless steel long products - Abraservice wear-resistant quarto
plates - IMS group engineering steels. With a headcount of 3,291 employees, Jacquet Metal Service has a network of 111 distribution centers in 25 countries in Europe, China and North
America.
Compartment B
ISIN : FR0000033904
Reuters : JCQ.PA Bloomberg : JCQ FP
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