PR Newswire/Les Echos/
PRESS RELEASE 4 MARCH 2015
STABLE PROFIT FROM CONTINUING OPERATIONS AND SIGNIFICANT INCREASE IN CASH FLOW
IN 2014
Consolidated data 2014 2013 2013 % change
(EUR millions) Actual Restated Published Actual/Restated
Sales 981.7 922.8 996.8 +6.4%
Current operating result 149.7 144.3 150.6 +3.7%
Net profit of continuing
operations 91.9 92.4 ND -0.6%
Net profit of operations
held for sale or
distribution(1) (53.8) 8.4 ND NS
Consolidated net profit 38.1 100.8 101.2 NS
cash flow 148.4 132.1 145.0 +12.3%
(1) Net profit of operations held for sale or distribution corresponds to the
contribution of entities previously included in the Somfy Participations
portfolio, excluding FAAC.
Note: The demerger of the Group's two divisions, Somfy Activities and Somfy
Participations, announced in May and finalised in December 2014, has led to the
reclassification of the net profit of Somfy Participations, excluding FAAC, to
a single line called "Net profit of operations held for sale or distribution"
pursuant to ifrs 5, with retroactive effect from 1 January 2013. As such, 2013
restated financial statements have been prepared on the same reclassification
basis to provide two comparable financial years.
/ SALES
Group sales were EUR981.7 million for the financial year just ended, an
increase of 6.4% on a restated basis and 4.8% on a like-for-like basis.
The strongest increases were recorded in Central and Eastern Europe, as well as
in Southern Europe and Northern Europe, reflecting the recovery in the Iberian
Peninsula, Benelux, the UK and Scandinavia.
Significant increases were also recorded in Germany, Asia-Pacific, despite the
slowdown in growth and the postponement of projects in China, and in the
Americas, in spite of the dip noted during the year due to the deteriorating
situation in Brazil and a high level of baseline in the US.
Only France ended the financial year on a negative note, as a result of the
sluggish economic environment and a weak property sector.
/ RESULTS
The Group's current operating result was EUR149.7 million for the financial
year, an increase of 3.7% on a restated basis, and represented 15.3% of sales.
The recorded increase is attributable to sales growth and a sustained industrial
margin. It also reflected contained cost increases despite the integration of
recently-acquired companies and ongoing strategic investment (innovation, sales
force and marketing).
Consolidated net profit totalled EUR38.1 million, adversely impacted by a
non-recurring operational expense of EUR23.9 million, corresponding to goodwill
impairment(2), and the net loss of EUR53.8 million from operations held for sale
or distribution, primarily attributable to the holding company discount applied
to assets transferred to Edify, in accordance with the independent expert's
valuation.
Net profit of continuing operations remained stable at EUR91.9 million and cash
flow grew by 12.3% compared with the 2013 restated amount to EUR148.4 million.
(2) Goodwill impairment concerns BFT, Garen Automação and Giga.
/ FINANCIAL STRUCTURE
Shareholder's equity declined from EUR929.8 million to EUR570.4 million during
the financial year and the net cash surplus(3) of EUR94.2 million turned into
net financial debt of EUR199.9 million, EUR120.5 million after deducting the
debenture loan granted to CIAT(4).
The changes noted are closely related to movements associated with the demerger.
They do not compromise the strength of the balance sheet, as testified by the
gearing ratio(5), which equates to 35.0% based on published figures and 21.1%
after restatement for the aforementioned debenture loan receivable.
/ DISTRIBUTION
The Management Board will propose the payment of a dividend of EUR5.2 per share
at the Annual General Meeting called to approve the annual financial statements,
identical to the dividend paid for the previous year.
/ OUTLOOK
The slowdown noted at the end of the previous financial year, notably in France,
is set to continue over the first six months of the current year, mainly due to
the impact of the unfavourable base effect. It should only be partly offset by
the recovery noted in Northern and Southern Europe and renewed competitiveness
related to the decline of the Euro.
Against this backdrop, efficiency improvement plans will be maintained, with the
investment effort primarily directed at innovation. The entry of Somfy to the
Board of Directors of Thread, a connected home platform initiated by Nest,
represents an additional step towards connectivity of the Group's devices.
At the end of February, the tri-annual industry trade show was held in
Stuttgart, Germany (R&T 2015). The numerous innovations presented by Somfy,
which are the result of the investment effort MADE over the last few years, were
very favourably received by industry players. They will enable the Group to
consolidate its positions and conquer new markets over the coming years.
(3) Net cash surplus/(net financial debt) corresponds to the difference between
financial debt and cash and cash equivalents.
(4) The loan granted to CIAT was repaid in January 2015 as part of the sale of
the equity investment in the entity for a total of EUR117 million (disposal
price of EUR38 million excluding costs and EUR79 million repayment of the
debenture loan).
(5) The gearing ratio corresponds to the ratio of net financial debt to
shareholders' equity.
/ CORPORATE PROFILE
Somfy Group is the global leader in opening and closing automation for both
residential and commercial buildings (blinds, shutters, gates, garage doors,
curtains, etc.).
/ DISCLAIMER
The Supervisory Board has reviewed the audited annual financial statements of
the Company and its subsidiaries.
The Statutory Auditors' report and detailed annual financial statements will be
issued at a later stage and will be available on the Company's website.
/ CONTACTS
Somfy
Pierre Ribeiro / Tel: +33 4 50 40 48 49
Jean-Michel Jaud / Tel: +33 4 50 96 70 65
Shan
François-Xavier Dupont/ Tel: +33 1 44 50 58 74
/ NEXT COMMUNICATION
Publication of first quarter sales: 22 April 2015 (after close of trading)
/ DETAILED RESULTS
Consolidated data 2014 2013
(EUR millions) Actual* Restated**
Sales 981.7 922.8
ebitda 186.7 178.3
Current operating result 149.7 144.3
Non-recurring operating income and expenses (23.9) (11.3)
Operating profit 125.9 133.1
Financial income and expenses (6.3) (4.6)
Profit before tax 119.6 128.4
Income tax (27.3) (36.1)
Share of profit/(loss) of equity-accounted companies (0.4) 0.1
Net profit of continuing operations 91.9 92.4
Net profit of operations held for sale or distribution*/** (53.8) 8.4
Consolidated net profit 38.1 100.8
Attributable to : - Minority interests 0.1 1.3
- Group share 38.0 99.5
* Somfy Participations' equity investments in Sirem and Zurflüh-Feller are not
included in the Group's actual scope of consolidation for 2014. They have been
excluded pursuant to IFRS 5. Their contribution is included in the net profit
of operations held for sale or distribution.
** Somfy Participations' equity investments in Sirem and Zurflüh-Feller are not
included in the Group's restated scope of consolidation for 2013. They have been
deducted in the interests of comparability. Their contribution is included in
the net profit of operations held for sale or distribution. The 2013 financial
statements have also been restated following the allocation of the acquisition
cost of Giga and Garen Automação.
/ CONDENSED BALANCE SHEET
Consolidated data 2014 2013
(EUR millions) Actual Restated*
Equity 570.4 929.8
Working capital (10.4) 199.8
Net non-current assets 612.0 878.4
Working capital requirements 126.6 101.8
Net assets held for sale 90.4 0.0
Net financial debt 199.9 (94.2)
* The 2013 financial statements have been restated following the allocation of
the acquisition cost of Giga and Garen Automação.
somfy-groupe.com
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