Interim Management Statement
Rettig Group today announces the following Interim Management Statement for the period from 1 January to 23 April 2015. Unless otherwise stated, figures refer to three months ended 31 March 2015 and the corresponding period last year. All figures of this statement are unaudited.
- Turnover declined by 5.7% to EUR 211.8 million (224.5)
- EBITDA declined by 3.7% to EUR 28.8 million (29.9)
- EBIT improved by 4.8% to EUR 10.9 million (10.4)
- Net debt reduced by 8.6% to EUR 301.3 million (329.8)
- Free cash flow was down by 93.8% to EUR -34.5 million (-17.8)
While turnover declined in all three business areas in the first three months of 2015, Nordkalk and Bore were worst affected. For Nordkalk the mild Finnish winter led to weak demand for limestone-based products for agriculture and power plant flue gas cleaning. Bore’s turnover was lower due to the smaller fleet following divestment of the loss making Contract-of-Affreightment business segment. EBITDA of Rettig ICC developed positively while EBITDA of both Nordkalk and Bore declined. EBIT was supported by lower depreciation in all three business areas. Free cash flow was impacted by typical business seasonality and reflected EUR 14.5 million higher investments than last year. The investments related mainly to acquisition of shares in the insurance company Försäkringsaktiebolaget Alandia.
Key events of the period
Nordkalk was granted a renewed permit for the existing Klinthagen quarry on Gotland resulting in cancellation of redundancies of 35 employees on Gotland.
Rettig Group’s ownership in Alandia increased gradually from 17.0 per cent at the beginning of the year to 24.8 per cent.
Tomas von Rettig was appointed Deputy CEO of Rettig Capital and member of Rettig Group’s Board of Directors. In his new role focus is on financial and strategic industrial investments.
As part of its restructuring program, Bore decided to close its shore office in the Netherlands and concentrate all shore functions to Finland. Consequently Bore is in the process of re-flagging its two RoRo vessels currently under Dutch flag to Finnish flag. Twenty-four Dutch employees were affected by the change.
Nordkalk’s legal process regarding the planned Bunge quarry on Gotland was further delayed as the Land and Environment Court of Appeal on 10 April 2015 postponed the case until 31 August 2015 at latest pending a decision by the Swedish government regarding a proposal to expand the Natura 2000 network on northern Gotland. This would include the land areas reserved for Nordkalk’s planned Bunge quarry.
To enhance focus on set strategic actions, Nordkalk renewed its operating model and organisation as of April 2015.
Unchanged outlook for 2015
The business environment will remain challenging in 2015 as the economic growth in Europe is forecast to continue weak. We expect to improve our profitability through continued focus on the implementation of our strategy.
For further information please contact:
Josefina Tallqvist, Rettig Group, Director, Corporate Communication and Investor Relations
Tel: +358 40 7455276, email: email@example.com or www.rettig.fi
Rettig Group is a Finnish family business that creates value for generations through sustainable and long-term growth. We focus on leading market positions and more customer value with less environmental impact. Rettig Group's businesses are Rettig ICC - indoor climate comfort, Nordkalk - limestone-based products and Bore - RoRo shipping services. In 2014 total turnover was about EUR 933 million and the group had about 4,100 employees in 25 countries.