Jacquet Metal Service: Third Quarter 2017 Earnings

9 months

SAINT-PRIEST, France--()--Regulatory News:

Jacquet Metal Service (Paris:JCQ):

> Sales

 

€1,323 m

 

(+8.6% vs. September 30, 2016)

> Doubled EBITDA

€83 m

(6.3% of sales)

On November 14, 2017 the Board of Directors chaired by Éric Jacquet examined the consolidated financial statements for the period ended September 30, 2017.

€m   Q3 2017   Q3 2016   30.09.17

9 months

  30.09.16

9 months

Sales   412.5   379.2   1 323.2   1 218.8
Gross margin   99.2   95.2   335.2   290.8
% of sales   24.1%   25.1%   25.3%   23.9%
EBITDA 1   22.1   15.9   82.8   40.1
% of sales   5.4%   4.2%   6.3%   3.3%
Operating income before non-recurring items 1   16.6   11.7   66.7   25.7
% of sales   4.0%   3.1%   5.0%   2.1%
Operating income   16.8   12.1   66.0   26.6
Net income (Group share)   9.4   5.4   37.1   7.8

1 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.

Sales and earnings for the period ended September 30, 2017

Group sales amounted to €1,323 million, +8.6% compared to September 30, 2016 (Q3: +8.8%), including the following effects:

> Volumes sold -0.7% (Q3: +1,9%),
> Price: +9.3% (Q3: +6.9%).

Gross margin amounted to €335.2 million, representing 25.3% of sales (Q3: 24.1%) compared to 23.9% as of September 30, 2016.

Operating expenses excluding non recurring items have been controlled: +1.3% compared to September 30, 2016 (Q3: -1.1%).

EBITDA came to €82.8 million (Q3: €22.1 million), amounting to 6.3% of sales compared to €40.1 million (3.3% of sales) as of September 30, 2016.

Operating income before non-recurring items amounted to €66.7 million (5% of sales) and net income (Group share) amounted to €37.1 million (2.8% of sales) compared to €25.7 and €7.8 million as of September 30, 2016 respectively.

Financial position

As of September 30, 2017, operating working capital amounted to €394 million, including inventories of €389 million, and represented 23.3% of sales, stable compared to the 2016 year-end and June 30, 2017. Operating cash flow generated by the Group since the beginning of the year amounted to €58 million (compared to €33 million as of September 30, 2016) and capital expenditure amounted to €20 million.

Group net debt stood at €189 million, compared to shareholders’ equity of €322 million, resulting in a net debt to equity ratio (gearing) of 59% (69% as of December 31, 2016).

Earnings as of September 30, 2017 by division

 

 

€m

 

JACQUET
ABRASERVICE

 

STAPPERT

 

IMS group

Stainless steel and wear-
resistant quarto plates

 

Stainless steel
long products

 

Engineering

steels

  Q3 2017   30.09.17

9 months

  Q3 2017   30.09.17

9 months

  Q3 2017   30.09.17

9 months

Sales   90.6   286.6   111.1   351.7   208.5   681.2
Change vs 2016   17.1%   16.3%   7.3%   9.8%   5.8%   4.6%
Price effect 1.3%   9.7%   7.2%   13.4%   8.9%   7.2%
Volume effect   15.8%   6.6%   0.1%   -3.6%   -3.2%   -2.5%
EBITDA 1 2   4.2   17.7   5.5   22.2   8.8   35.3
% of sales   4.6%   6.2%   4.9%   6.3%   4.2%   5.2%
Operating income before non-recurring items 2   2.0   10.9   4.9   20.7   6.9   29.5
% of sales   2.2%   3.8%   4.4%   5.9%   3.3%   4.3%

1 Non-division operations contributed €3.6 million to Q3 2017 EBITDA, and €7.6 million as of September 30, 2017.
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 This division specializes in the distribution of stainless steel and wear-resistant quarto plates. JACQUET and Abraservice have separate sales networks. The division generates 74% of its sales in Europe and 18% in North America.

Sales amounted to €286.6 million compared to €246.5 million as of September 30, 2016, an increase by +16.3%: Volumes sold rose +6.6% (Q3: +15.8%), prices rose +9.7% (Q3: +1.3%).

The gross margin rate rose 0.3 percentage point to 30.3% of sales (Q3: 29.1%) and came to €86.8 million compared to €74 million as of September 30, 2016.

EBITDA amounted to €17.7 million (Q3: €4.2 million), representing 6.2% of sales, compared to €7.6 million (3.1% of sales) as of September 30, 2016.

STAPPERT This division specializes in the distribution of long stainless steel products in Europe. It generates 41% of its sales in Germany, the largest European market.

Sales amounted to €351.7 million, +9.8% from €320.3 million as of September 30, 2016, an increase by +9.8% : Volumes sold decreased by -3.6% (Q3: +0.1%), prices rose +13.4% (Q3: +7.2%).

The gross margin rate rose 1.1 percentage point to 22.6% of sales (Q3: 20.9%), while the gross margin came to €79.3 million compared to €68.7 million as of September 30, 2016.

EBITDA amounted to €22.2 million (Q3: €5.5 million), representing 6.3% of sales, compared to €13.2 million as of September 30, 2016 (4.1% of sales).

IMS group This division specializes in the distribution of engineering steels, mostly in the form of long products. It generates 48% of its sales in Germany, the largest European market.

Sales amounted to €681.2 million compared to €650.9 million as of September 30, 2016, an increase by +4.6%: Volumes sold decreased by -2.5% (Q3: -3.2%), prices increased +7.2% (Q3: +8.9%).

The gross margin rate rose 2 percentage points to 24.2% of sales (Q3: 23%), while the gross margin came to €164.6 million compared to €144.5 million as of September 30, 2016.

EBITDA amounted to €35.3 million (Q3: €8.8 million), representing 5.2% of sales, compared to €13.8 million (2.1% of sales) as of September 30, 2016. S+B Distribution (the distribution activity acquired from Schmolz+Bickenbach group in July 2015) contributed €13.7 million (3.5% of sales) to EBITDA, compared to €2.1 million as of September 30, 2016.

Key financial information

 

Income statement

 
€m   30.09.17

9 months

 

30.09.16
9 months

 

Sales   1,323.2   1,218.8
Gross margin   335.2   290.8
% of sales   25.3%   23.9%
EBITDA 1   82.8   40.1
% of sales   6.3%   3.3%
Operating income before non-recurring items 1   66.7   25.7
% of sales   5.0%   2.1%
Operating income   66.0   26.6
Net income (Group share)   37.1   7.8
1 Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.
Balance sheet  
€m   30.09.17   31.12.16
Goodwill   68.4   68.5
Net non-current assets   151.6   147.6
Net inventory   389.4   376.2
Net trade receivables   209.6   171.3
Other assets   87.9   91.7
Cash   66.0   73.0
Total assets   972.8   928.3
Shareholders’ equity   322.1   296.5
Provisions (including provisions for employee benefit obligations)   104.5   112.3
Trade payables   205.1   176.4
Borrowings   258.9   281.2
Other liabilities   82.1   61.8
Total equity and liabilities   972.8   928.3

Cash flow

€m   30.09.17

9 months

  31.12.16

12 months

Operating cash flow before change in working capital   67.2   45.3
Change in working capital   (8.8)   (2.2)
Cash flow from operating activities   58.4   43.1
Capital expenditure   (20.2)   (18.3)
Asset disposals   0.9   1.2
Dividends paid to shareholders of Jacquet Metal Service SA   (11.8)   (9.5)
Interest paid   (7.5)   (9.6)
Other movements   (4.0)   1.3
Change in net debt   15.8   8.3
         

Net debt brought forward

 

205.3

 

213.5

Net debt carried forward

 

189.5

 

205.3

The activity report may be downloaded from: www.jacquetmetalservice.com.
2017 Full year results: March 7, 2018 after close of trading

Jacquet Metal Service is a European leader in the distribution of specialty steels. The Group operates and develops a portfolio of four brands: JACQUET (stainless steel quarto plates), Stappert (long stainless steel products), Abraservice (wear-resistant quarto plates) and IMS group (engineering steels). Jacquet Metal Service employs 3 317 people and has a network of 109 distribution centers across 26 countries spanning Europe, China and North America.

Compartment B
ISIN : FR0000033904
Reuters : JCQ.PA
Bloomberg : JCQ FP

Contacts

Jacquet Metal Service
Thierry Philippe
comfi@jacquetmetals.com
or
NewCap - Investor relations
Julien Perez, Tel. : +33 1 44 71 94 94
jacquetmetalservice@newcap.fr

Contacts

Jacquet Metal Service
Thierry Philippe
comfi@jacquetmetals.com
or
NewCap - Investor relations
Julien Perez, Tel. : +33 1 44 71 94 94
jacquetmetalservice@newcap.fr