Net sales at € 131.2 million - € 119.2 million in the first quarter 2017
EBITDA at € 17.3 million (€ 18.1 million adjusted) - € 17.3 million in the first quarter 2017
EBIT at € 13.7 million - € 14.2 million in the first quarter 2017
Consolidated net income at € 11.2 million - € 9.2 million in the first quarter 2017
Net negative financial position at € 139.7 million (of which € 23.6 million of debts for future commitments relating to the purchase of residual minority interests), compared to € 125.3 million at December 31, 2017.
Bagnolo in Piano (RE), 15 May 2018 – The Board of Directors of Emak S.p.A. (MTA, STAR), parent company of one of world major groups working in the sectors of outdoor power equipment, pumps and water jetting, and of the related components and accessories, has approved the results for the first quarter 2018.
CONSOLIDATED RESULTS FOR THE FIRST QUARTER 2018
Emak Group achieved in the first quarter consolidated revenues of € 131.2 million, compared to € 119.2 million of the same period of last year, an increase of 10%. The increase is due for 15.3% (equal to € 18.3 million) to the change in the scope of consolidation, to the negative exchange rate effect of 2.3% and to an organic decline of 3%.
EBITDA (*) reached € 17.3 million, in line with the value of the same period 2017. Excluding the non-ordinary charges incurred by the Group during the first quarter, the figure would have been € 18.1 million. The contribution brought by the change in the scope of consolidation amounts to € 3.4 million. On a like-for-like basis, the result was negatively impacted by the decrease in sales volumes recorded following the delayed start of the season, which led to a decline in demand on the gardening market.
EBIT amounted to € 13.7 million, in spite of € 14.2 million of the same period of last year.
Net profit for the first quarter 2018 is € 11.2 million, compared to € 9.2 million of the same period of 2017, an increase of 20.9%. The result benefited from a capital gain and lower tax rate compared to the first quarter of last year.
Free cash flow from operations (*) is € 12.3 million, in line with the first quarter 2017.
Investments in tangible and intangible assets made during the first quarter 2018 amount to € 3.3 million.
Consolidated net equity at March 31, 2018 is € 197.9 million compared to € 187.5 million at December 31, 2017.
Net negative financial position stands at € 139.7 million (of which € 23.6 million of debts for future commitments relating to the purchase of residual minority interests) at March 31, 2018, compared to € 100.9 million at March 31, 2017 and € 125.3 million at December 31, 2017.
Outlook
The element that most characterized the first quarter is the delayed start of the season due to anomalous meteorological conditions both in Europe and in North America.
Only from mid-April the activities related to gardening began, with an immediate reflection on the order-entry higher than the same period of 2017. The integration of the recent acquisition of Lavorwash with the associated synergies is proceeding satisfactorily. Initiatives to support business development are in line with value creation plans.
(*) Alternative performance indicators
The following are the criteria used for the construction of key performance indicators that management considers necessary to the monitoring Group.
- EBITDA: calculated by adding the items "Operating result" plus "Amortization, depreciation and impairment losses".
- EBITDA adjusted (EBITDA before non-ordinary expenses): isobtained by deducting at EBITDA the impact of charges and income for litigation, expenses related to M&A transaction, headcount reorganization and restructuring charges.
- Free cash flow from operations: calculated by adding the items "Net profit" plus "Amortization, depreciation and impairment losses".
The highlights from the consolidated accounts of the Group at March 31, 2018 are attached to the present press release.
Pursuant to the law, the interim report at March 31, 2018 and this press release are available to the public at the Company’s registered office, on the company website www.emakgroup.it, in the "Investor Relations" section and on the storage mechanism eMarket Storage (www.emarketstorage.it).
Aimone Burani, the executive responsible for the preparation of the corporate accounting documents, declares and certifies in accordance with article 154 bis, paragraph 2, of the Consolidated Finance Act, that the financial statements contained in the present press release correspond to the underlying accounting documents, records and accounting entries.
For additional information:
Mr. Andrea La Fata
Investor Relation Office
Phone (+39) 0522 956332; Fax (+39) 0522 959227
alafata@emak.it; www.emakgroup.it
Emak Group develops, produces and distributes a wide range of products in three business areas: (i) outdoor power equipment, which includes products for gardening, forestry and agriculture such as trimmers, lawn mowers, garden tractors, chain saws, tillers, rotary tiller;(ii) pumps and high pressure water jetting including products (a) for agriculture as centrifugal and diaphragm pumps for spraying and weeding; (b) for industry, including industrial pumps, high and high pressure systems and urban cleaning equipment; (c)for cleaning, as professional and semiprofessional high pressure washsers, floor scrubbers and vacuum cleaners; (iii) components and accessories for the abovementioned sectors, the most representative of which are line and heads for trimmers, accessories for chain saws (i.e. sharpeners), guns, nozzles and valves for high pressure washers and agricultural applications, precision farming (sensors and computers). In 2017 Emak Group realized a total turnover of € 422.1 million
Highlights of the consolidated financial statement broken down by operating segment for the first quarter 2018
Emak Group– Consolidated income statement and comprehensive income statement
Emak Group – Consolidated statement of financial position
Emak Group – Consolidated net financial position
