Auriga Industries A/S, Harboøre, Denmark, 2013-08-22 08:01 CEST (GLOBE NEWSWIRE) --
Company announcement no. 11/2013
August 22, 2013
HIGHLIGHTS IN Q2 2013
Unaudited - Comparative figures for the prior-year period in brackets
Continued satisfactory growth in Q2
Auriga posted revenue of DKKm 1,851 for Q2, corresponding to organic growth of 12%. Gross margin developed positively and EBITDA increased to DKKm 268. A free cash flow of DKKm 228 and improved working capital contributed to reducing net interest-bearing debt and strengthening the cash reserves. The previously announced outlook for 2013 is maintained.
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Organic growth for Q2 and H1 2013 was 12%. Revenue increased by 7% to DKKm 1,851 (DKKm 1,727) in Q2 and in H1 by 6% to DKKm 3,521 (DKKm 3,337) due to increased volumes and implemented price increases. The divestment of Stähler Switzerland had a negative impact on revenue of DKKm 31 in Q2 and of DKKm 109 in H1. The lower exchange rates for especially BRL and INR reduced revenue in Q2 by DKKm 40 and by DKKm 81 for H1.
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Gross margin in Q2 is normally high totaling 31.3% (30.8%). The improvement compared to 2012 is a result of higher sales prices and an improved product mix. Fixed costs amounted to 19.4% (19.3%) of revenue as a result of increasing development activity.
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Earnings improved in Q2 and EBITDA increased to DKKm 268 (DKKm 250), while EBIT was DKKm 224 (DKKm 208). For H1, EBITDA was DKKm 529 (DKKm 437) corresponding to an EBITDA margin of 15.0% (13.1%), while EBIT was DKKm 432 (DKKm 356) corresponding to an EBIT margin of 12.3% (10.7%).
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Financing costs declined to DKKm 59 (DKKm 75) in Q2, thus resulting in a profit before tax for the group of DKKm 167 (DKKm 133) for Q2 and of DKKm 338 (DKKm 233) for H1.
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The working capital was further improved in Q2 with the cash flow from operating activities amounting to DKKm 308 (DKKm 345) and the free cash flow totaling DKKm 228 (DKKm 368). For H1, a cash flow from operating activities of DKKm 100 (DKKm 158) was realized, while the free cash flow was DKKm 14 (DKKm 112). The divestment of Stähler Switzerland has resulted in a net improvement of cash flows and reduced net interest- earing debt by DKKm 76 for H1.
- Net interest-bearing debt (NIBD) was reduced by DKKm 174 to DKKm 1,875 (DKKm 2,049) in Q2, while the debt burden (NIBD/EBITDA) was reduced to 2.8 (3.1).
OUTLOOK 2013
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It is assumed that the market conditions in H2 will continue to be positive with a healthy end to the season in the northern hemisphere in addition to continued high crop prices, which raises expectations for a good season in i.a. Latin America where large parts of the sales will happen towards the very end of the calendar year.
- Auriga maintains the previously announced outlook for 2013 of growth of approx. 10%, with revenue of up towards DKK 6.8 billion and an EBITDA margin of approx. 12%. Focus remains on improving working capital to realize a positive free cash flow despite maintaining the investment level in product development and production plants.
| DKKm |
Q2 2013 |
Q2 2012 |
H1 2013 | H1 2012 |
FY 2012 |
| Revenue | 1,851 | 1,727 | 3,521 | 3,337 | 6,263 |
| Growth | 7.3% | 9.7% | 5.5% | 12.4% | 9.4% |
| Gross profit | 580 | 532 | 1,084 | 1,007 | 1,853 |
| Contribution margin | 31.3% | 30.8% | 30.8% | 30.2% | 29.6% |
| EBITDA before special items* | 268 | 250 | 529 | 437 | 672 |
| EBITDA margin before special items* | 14.5% | 14.5% | 15.0% | 13.1% | 10.7% |
| Profit before tax | 167 | 133 | 338 | 233 | 174 |
| Cash flow from operating activities | 308 | 345 | 100 | 158 | 513 |
| Free cash flow | 228 | 368 | 14 | 112 | 309 |
| Net interest-bearing debt | 1,875 | 2,049 | 1,883 | ||
* EBITDA for FY 2012 calculated before special items of DKKm 95 resulting from the arbitration case.
President & CEO Kurt Pedersen Kaalund comments on the developments in Q2:
”I am pleased that we delivered continued top and bottom-line growth enabling us to reduce debts. Our Q2 results reflect our focus and drive to actively manage our portfolio and generate momentum across the company, thereby expanding margins, growing sales and cash flows, leading to increased earnings and value creation. The progress achieved so far confirms that we are right on track to fulfilling the long-term strategic objectives set out for the period after 2013.”
PRESENTATION OF THE FINANCIAL RESULTS - AUDIOCAST AND CONFERENCE CALL
President & CEO Kurt Pedersen Kaalund and Senior Vice President, Finance & Support, Jesper Barslund Jacobsen, CFO in Cheminova, will present the financial highlights by audiocast for institutional investors and analysts today, August 22, 2013, at 10:00 am CET.
The presentation including Q&A session and conference call will be conducted in English. The presentation will be transmitted on the website, where the related presentation will be available approx. 30 minutes beforehand. An indexed version of the presentation will be available on www.auriga.dk (Danish website) and www.auriga-industries.com (English website) afterwards.
Participants in the conference call are kindly requested to call in before 9:55 am (CET) on tel.:
- DK: (+45) 70 25 67 00
- International: (+44) 208 817 9311
Pass code: 7449 1996
MORE INFORMATION CONCERNING THE FINANCIAL STATEMENTS
Kurt Pedersen Kaalund, President & CEO
Tel. +45 40 80 99 01
Jesper Barslund Jacobsen, CFO Cheminova
Tel. +45 40 80 99 02
Investor Relations
Tel. +45 70 10 70 30 - investor@auriga.dk
