In the Group’s interim report for the first quarter of 2018 released on 3 May 2018, Schouw & Co. stated a full-year EBITDA guidance in the DKK 1,665-1,805 million range. The first guidance was supported by the fact that the second quarter progressed as expected with a growth in revenue of 10% and a growth in EBITDA of 12%.

Meanwhile, our analysis of the expectations for the second half year has revealed two isolated issues:

  • Already in 2017, competition in the Norwegian market for fish feed was intensified when production capacity in the market grew; nevertheless, during the summer of 2018, negotiations on important feed contracts have proven more tough than expected. As a consequence, BioMar has not contracted as much volume of sales in Norway during the second half year of 2018 as expected.
  • Several of the customers that Fibertex Personal Care serve from Malaysia are currently experiencing unexpected tough competition. As a result, a fall in demand from a number of larger customers must be expected because of the competitive disadvantage in their own market, thus lowering the guidance for the second half year. At the same time, sale of printed products in Asia is developing at a slower pace than first expected.

Apart from the isolated challenges that BioMar in Norway and Fibertex Personal Care in Malaysia are experiencing, and which will reduce the full-year EBITDA guidance with about DKK 60 million and DKK 40 million, respectively, the Group maintains its overall guidance.

Hence, Schouw & Co. now expects full-year EBITDA for 2018 in the DKK 1,580-1,700 million range. In comparison, 2017 full-year EBITDA amounted to DKK 1,568 million.

According to plan, Schouw & Co. will release its interim report for the second quarter of 2018 on 17 August 2018.

Aktieselskabet Schouw & Co.

Jørn Ankær Thomsen, Chairman
Jens Bjerg Sørensen, President

Questions relating to the above should be directed to Jens Bjerg Sørensen, President, on telephone number +45 8611 2222.

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