Interim Management Statement: January-March 2017
Rettig Group today announces the following Interim Management Statement for the period from 1 January to 28 April 2017. Unless otherwise stated, the figures refer to 1 January to 31 March 2017 and the corresponding period last year. All figures are unaudited and according to International Financial Reporting Standards (IFRS).
- Turnover improved by 6% to EUR 243 million (229)
- EBITDA declined by 16% to EUR 26 million (31)
- EBIT declined by 18% to EUR 15 million (18)
- Profit from continuing operations improved by 14% to EUR 11 million (10)
- Net debt declined by 34% to EUR 234 million (352)
- Free cash flow declined by 68% to EUR -28 million (-17)
During the first three months of the year turnover improved thanks to both Rettig ICC and Nordkalk. Rettig ICC was supported by increased demand especially in the East, including China, whereas the Central European Agriculture, Environment and Construction segments supported turnover growth of Nordkalk. As a result of higher raw material prices Rettig ICC announced price increases, which in some markets resulted in increased turnover as customers built inventory ahead of the price increases. For Rettig ICC the full effect of those price increases are expected to affect EBITDA in the second half of the year. Besides increased turnover, continued tight cost control supported EBITDA performance of Nordkalk.
Total EBIT declined in line with EBITDA.
Despite weaker EBITDA and EBIT, profit from continuing operations improved thanks to a strong performance in the Financial Investments managed through Anchor and the eQ dividend. The AGM of eQ confirmed a dividend of EUR 0.35 per share and a return of capital of EUR 0.15 per share payable on 7 April 2017.
The year-on-year decline in net debt reflected the divestment of Bore in 2016. Although free cash flow declined, mainly impacted by the lower EBITDA and higher net working capital, it remained in line with expectations.
Key events of the period
During the first three months of 2017 Rettig Group refinanced the business through a tender offer of its outstanding notes maturing in June 2017 and through issuance of a new EUR 110 million bond. A new multicurrency revolving credit facility of EUR 100 million was also signed during the period.
Thomas Landell was appointed General Counsel of Rettig Group as Christian Ståhlberg is to take up a new assignment outside of the Group.
Matti Kuivalainen and Timo Vättö were elected new members of Rettig Group’s Board of Directors as Martin Granholm, Hans Sohlström and Christoffer Taxell were no longer available for re-election. Kuivalainen and Vättö have strong backgrounds in the European construction and the financial services industry respectively.
Unchanged outlook for 2017
We see some signs of modest economic growth and slightly higher demand in our main markets. Higher political uncertainty globally could impact the stability of the financial markets and demand for our products and services.
Financial calendar 2017
Rettig Group will publish the January-June 2017 interim financial report on 10 August 2017 and January-September 2017 Interim Management Statement on 19 October 2017.
For further information:
Josefina Tallqvist, Rettig Group, Director, Corporate Communication and Investor Relations
Tel: +358 40 7455276, email: firstname.lastname@example.org
Rettig Group is a Finnish family held investment company that creates value for generations through active and responsible ownership. Our investements include Rettig ICC (indoor climate comfort), Nordkalk (limestone), Alandia (insurance), eQ (asset management and corporate finance) and Anchor (financial investments). Through these businesses Rettig Group is active in about 28 countries globally and employs over 4,000 people.