Interim Management Statement
Rettig Group today announces the following Interim Management Statement for the period from 1 January to 22 October 2015. Unless otherwise stated, figures refer to nine months ended 30 September 2015 and the corresponding period last year. All figures of this statement are unaudited.
Financial highlights January-September 2015
- Turnover declined by 6% to EUR 664 million (704)
- EBITDA grew by 4% to EUR 102 million (98)
- EBIT improved by 31% to EUR 48 million (37)
- Net result improved by 131% to EUR 27 million (12)
- Free cash flow declined by 97% to EUR 1 million (28)
- Net debt reduced by 6% to EUR 296 million (315)
During July-September 2015 turnover declined by 5% to EUR 236 million (248), EBITDA improved by 12% to EUR 40 million (35), EBITDA-margin improved to 16.8% (14.3), EBIT improved by 61% to EUR 22 million (13), net result improved by 147% to EUR 12 million (5) and free cash flow declined by 12% to EUR 26 million (29) compared to the same period last year.
During the first nine months of 2015 demand continued generally weak in all three business areas. With the exception of the Metals&Mining segment, Nordkalk suffered from weak demand in all its customer segments. Finland, Nordkalk’s largest market, was particularly weak during the period. The decline in turnover of Bore was mainly due to the smaller fleet compared to the year before.
EBITDA continued to improve as a result of continued efficiency improvement measures and reduced costs in all three business areas. The EBITDA-margin improved from 13.9% to 15.3%. In addition to the improved EBITDA, lower depreciation and non-recurring costs supported the strong EBIT performance. Net result improved supported by the strong result of Alandia during the first half of the year and restructuring of Bore’s operations.
Free cashflow from the three business areas remained on a generally good level during the nine month period. However, purchase of Alandia shares had a negative impact on total free cash flow of Rettig Group compared to the same period last year.
During the period Rettig Group established its own in-house investment operations through Anchor Oy Ab and provided EUR 40 million as capital for the operations. This had a further negative impact on total free cash flow. The purpose of the investment operations, which support Rettig Group’s Value for generations mission, is to further enhance risk diversification and support liquidity of Rettig Group assets.
Key events since 1 July 2015
The Swedish government decided in August to designate new and expanded Natura 2000 sites on Gotland including the Bunge Ducker land areas where Nordkalk is planning its new quarry operations. Nordkalk is currently assessing the consequences of the government decision and its next steps in the process.
The Land and Environment Court granted permit and set the conditions for the planned Bunge quarry in June 2014, but the ruling was appealed to the Land and Environment Court of Appeal. Court proceedings in the Land and Environment Court of Appeal, set to take place in April 2015, were postponed pending the government decision, but are now due to resume.
Unchanged outlook for 2015
The business environment will remain challenging in 2015 as the economic growth in Europe is forecast to continue as weak. We expect to improve our profitability through continued focus on the implementation of our strategy.
Financial calendar 2016
Rettig Group will publish its annual report for 2015, including its full year financial result, on 3 March 2016. The January-March Interim Management Statement will be published on 21 April 2016, January-June interim report on 25 August 2016 and January-September Interim Management Statement on 20 October 2016.
For further information go to www.rettig.fi or contact:
Josefina Tallqvist, Rettig Group, Director, Corporate Communication and Investor Relations
Tel: +358 40 7455276, email: email@example.com
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. The insurance company Alandia is an associated company of Rettig Group. In 2014, Rettig Group’s turnover was about EUR 933 million and the group had about 4,100 employees in 25 countries.