SERGE FERRARI : FIRST HALF 2017 REVENUES UP 4.7%

SergeFerrari Group (FR0011950682) designs, manufactures and distributes innovative flexible composite materials and is listed on Euronext Paris - Compartment C.

Saint Jean de Soudain, July 20, 2017

Revenues by region (unaudited)

(€000)
Q2 2017
Q2 2016
Change
H1 2017
H1 2016
Change


Southern Europe (SEUR)
16,002
16,648
-3.9%
30,522
31,553
-3.3%


Wide Europe (WEUR)
15,250
16,876
-9.6%
28,219
29,014
-2.7%


Rest of World (ROW)
10,996
10,851
+1.3%
19,764
20,864
-5.3%


Total flexible composite materials
42,248
44,375
-4.8%
78,504
81,431
-3.6%


Other products
5,926
1,825
ns
10,463
3,583
ns


Total revenues
48,174
46,200
+4.3%
88,967
85,014
+4.7%

Acquisition of Milton Ltd in the United Kingdom

In line with the SF2020 strategic plan, on April 28, 2017 Giofex Group Srl acquired Milton Ltd, a UK-based distributor of flexible composite materials. With a warehouse in Leicester and 6 employees, Milton Ltd posts annual revenues of around €1.2 million. This acquisition follows the January 2017 purchase of the FERRATEKS business, a Turkish distributor of composite materials.

Key analysis factors for the first half

Q2 2017 sales of flexible composite materials fell 5.8% in terms of volumes, following a particularly challenging performance in 2016 (up 6%). The change in sales includes a +0.7% price/mix effect and currency gains of 0.3%.

H1 revenues increased 4.7% to €89.0 million.

Sales of composite materials fell 3.6% (impacted by an 8.5% spike in 2016): H2 organic growth is expected to be stronger thanks to a less challenging performance in H2 2016 and the reorganization measures implemented.

Companies acquired since 2016 posted strong performances, with 10.5% growth versus the previous year. Giofex Group, FERRAMAT and Milton, grouped under “Other operations”, posted a total of €11 million for the period, including a €7.0 million net contribution to consolidated revenues. These companies are being integrated in accordance with the Group's development plan.

The price increases on raw materials specialties combined to non-recurring expenses will impact H1 2017 operating income for an estimated amount of € -2,5 million. Commercial costs, adjusted of non-recurring expenses, are now plateauing.

Outlook

The SF2020 plan, which combines organic growth and acquisitions, is being rolled out in line with the business plan adopted by the Group. 

Serge Ferrari thus confirms a step-up in sales in H2 2017.

Calendar

First half 2017 results: September 13, after market close

Find all Company details at www.sergeferrari.com.



 

SERGE FERRARI CONTACT

Philippe Brun

Chief Financial Officer

[email protected]

 

 

 
INVESTOR & PRESS CONTACT

Amalia Naveira/Marie-Claude Triquet

Actus Lyon

Tel.: 00 33 4 72 18 04 93

[email protected]/[email protected]

 

 

Source: Actusnews