Press release
Boulogne-Billancourt, 13 September 2017
Improved operating performances in the first-half of 2017
- EBITDA up 2.1% to €43 million; EBITDA margin grew by 0.3 points to 3.6%
- Gross margin up 3.5% in the dynamic Packaging and Visual Communication sectors, which now accounts for 34% of Antalis' consolidated gross margin (up 2 points)
- €34 million reduction in net debt compared with 30 June 2016
Confirmation of full-year 2017 forecasts
Commenting on the half-year results, Hervé Poncin, Antalis' ceo said: “Antalis recorded solid operational performances and improved its profitability over the first six months of the year, thanks notably to an enhanced gross margin rate in the Packaging and Visual Communication sectors and cost reductions. Based on the second-half outlook, we confirm our full-year profitability targets."
Consolidated income statement
The Board of Directors of Antalis have approved the FINANCIAL statements for the first six months of the year.
| (€ millions) | H1 2017 | H1 2016 | Change |
| Sales | 1,205.2 | 1,256.4 | - 4.1% |
| Gross margin | 294.9 | 304.5 | - 3.2% |
| EBITDA | 42.8 | 41.9 | + 2.1% |
| EBITDA margin (as a % of sales) | 3.6% | 3.3% | +0.3 points |
| Current operating income | 34.4 (1) | 29.7 | + 15.8% |
| Operating margin (as a % of sales) | 2.9% | 2.4% | +0.5 points |
| Net income (loss) attributable to owners | 7.1 | 8.9 | - |
| Diluted earnings (loss) per share (€) | 0.10 | 0.13 | - |
| Average number of shares after dilution | 70,962,900 | 71,000,000 | - |
- Including a €2.3 million gain arising on a change to a Swiss pension plan.
In the context of a more positive economic environment – with the exception of the UK –, sales came in at €1,205 million, down 4.1% on H1 2016 (and down 2.1% at constant exchange rates). This reflects the slight decline in Paper volumes and an unfavourable forex impact amounting to €25 million (mainly attributable to sterling).
The Packaging and Visual Communication sectors recorded good growth in their gross margin and these businesses continued to increase their contribution to Antalis' consolidated gross margin; this now stands at 34%, up 2 points year on year. The acquisitions completed in late 2016 in each of the Group's three business sectors added €13 million to H1 2017 sales.
EBITDA grew by 2.1% to €43 million. Antalis benefited from an enhanced product mix and the positive impact of lower overheads driven by greater flexibility in the supply chain, which helped to absorb the impact of lower volumes in Papers. The negative FX impact on H1 EBITDA amounted to €1 million.
Current operating income rose 15.8% to €34 million and included a €2 million gain arising on a change to a Swiss pension plan.
Antalis recognised €10 million in non-recurring expenses, mainly for costs related to the IPO and refinancing.
After deducting net finance costs and taxes, net income was €7 million for the period, compared with net income of €9 million for the six months to 30 June 2016.
Thanks to efficient working capital management, Antalis reduced its debt by €34 million: from €303 million at 30 June 2016 to €269 million at 30 June 2017. Antalis' net debt/EBITDA ratio came out at 3.00 (3.26 at 30 June 2016).
In July 2017, Antalis initiated the process of refinancing its credit facilities which are secured through 31 December 2018, and a planned issue of high-yield notes was withdrawn due to market conditions. The Group is actively looking at various different refinancing solutions.
Key figures by geography
| (in € millions) | H1 2017 | H1 2016 | Change |
| Sales | |||
| Main European Geographies | 611.1 | 653.3 | -6.5% |
| Rest of Europe | 481.6 | 498.9 | -3.5% |
| Rest of the World | 112.5 | 104.2 | +8.0% |
| TOTAL | 1,205.2 | 1 256.4 | -4.1% |
| EBITDA | |||
| Main European Geographies | 21.7 | 22.8 | -4.8% |
| Rest of Europe | 17.3 | 15.8 | +9.5% |
| Rest of the World | 3.8 | 3.3 | +15.2 % |
| TOTAL | 42.8 | 41.9 | +2.1 % |
The Main European Geographies generated sales of €611 million, down 6.5% year-on year (down 1.2% at constant exchange rates), principally due to an unfavourable forex impact (mainly on sterling). UK & Ireland reported sales of €314 million (down 10.0%), Germany & Austria €158 million (down 0.3%) and France €139 million (down 4.7%). EBITDA for the Main European Geographies dropped 4.8% to €22 million, mainly attributable to the depreciation in sterling over the period. EBITDA margin improved by 0.1 point year on year at 3.6%.
Sales for the Rest of Europe declined by 3.5% year-on-year to €482 million (down 3.7% at constant exchange rates). EBITDA grew by 9.5% to €17 million and EBITDA margin grew by 0.4 points to 3.6%.
Sales for the Rest of the World grew by 8.0% in H1 2017 to €113 million (down 0.2% at constant exchange rates) due to a highly favourable FX impact (on the rand, peso, and real). EBITDA improved by 15.2% year-on-year, to €4 million and EBITDA margin rose by 0.2 points to 3.4%.
Key figures by business sector
| Sales | Gross margin | Gross margin/Sales | |||||||
| (in € millions) | H1 2017 | H1 2016 | Change | H1 2017 | H1 2016 | Change | H1 2017 | H1 2016 | Change |
| Paper | 848.0 | 901.6 | -5.9% | 194.0 | 207.0 | -6.3% | 22.9% | 23.0% | -0.1 points |
| Packaging | 245.6 | 243.5 | +0.9% | 69.1 | 66.6 | +3.8% | 28.1% | 27.4% | +0.7 points |
| Visual Communication | 111.6 | 111.3 | +0.3% | 31.8 | 30.9 | +2.9% | 28.5% | 27.8% | +0.7 points |
| TOTAL | 1,205.2 | 1,256.4 | - 4.1% | 294.9 | 304.5 | - 3.2% | 24.5% | 24.2% | +0.3 points |
The Papers sector reported sales of €848 million, down 5.9% on H1 2016. Antalis recorded an increase in business in Q2, particularly in countries that were holding elections, as well as higher selling prices in the copier and uncoated paper segments.
Sales in the Packaging sector rose by 0.9% to €246 million; gross margin increased by 3.8% and now accounts for 23% of Antalis' consolidated gross margin (+ 1 point).
Sales in the Visual Communication business sector rose by 0.3% to €111 million; gross margin increased by 2.9% and now accounts for 11% of Antalis' consolidated gross margin (+ 1 point).
Outlook
In the light of its first-half 2017 performance, Antalis confirms the forecasts set out on the occasion of its stock exchange listing on 12 June 2017:
- Low single-digit decrease in sales (before acquisitions and at constant exchange rates) compared with the sales achieved for FY 2016.
- EBITDA margin between 3.4% and 3.8%.
Financial disclosures
Net debt / EBITDA = 3.00 (criteria: ≤ 3.30)
Current operating income/net interest expense = 4.61 (criteria: ≥ 2.35)
A presentation of first-half 2017 results is available on the Antalis website at: www.antalis.com
About Antalis
Antalis (Euronext Paris: ANTA) is the European leader and the global leader (outside of the United States) in B2B distribution of Papers and Packaging solutions and one of Europe's top three distributors of Visual Communication solutions.
In 2016, the Group reported sales of €2.5 billion and employed 5,600 people serving almost 130,000 customers, companies and printers in 43 countries.
Through its 118 distribution centres, Antalis makes more than 14,000 deliveries per day worldwide and it distributed 1.5 million tons of paper in 2016.
Contact us
Analysts & Investors
Xavier Roy-Contancin
+33 (0)1 58 04 21 90
Communication
Sylvie Noqué
+33 (0)1 58 04 21 90
www.antalis.com
Image Sept
Claire Doligez
Priscille Reneaume
+33 (0)1 53 70 74 25
cdoligez@image7.fr
preneaume@image7.fr
Appendices
Interim consolidated statement of financial position
Assets
| (€ millions) | 30.06.2017 | 31.12.2016 |
| Non-current assets | ||
| Goodwill | 146.9 | 149.8 |
| Other intangible assets | 40.4 | 42.7 |
| Property, plant and equipment | 40.9 | 48.8 |
| Non-current financial assets | 3.4 | 2.9 |
| Deferred tax assets | 5.7 | 8.0 |
| Other non-current assets | 18.7 | 19.0 |
| Total non-current assets | 256.0 | 271.2 |
| Current assets | ||
| Inventories | 208.6 | 207.8 |
| Trade receivables | 402.6 | 411.4 |
| Other receivables | 98.2 | 88.1 |
| Current financial assets | 4.4 | 1.3 |
| Cash and cash equivalents | 88.8 | 134.2 |
| Total current assets | 802.6 | 842.8 |
| TOTAL ASSETS | 1,058.6 | 1,114.0 |
Equity and liabilities
| (€ millions) | 30.06.2017 | 31.12.2016 |
| Total equity | ||
| Share capital | 213.0 | 639.0 |
| Additional paid-in capital | 50.9 | 50.9 |
| Cumulative translation adjustment | (62.4) | (52.1) |
| Retained earnings and other consolidated reserves | (69.2) | (496.5) |
| Shareholders' equity | 132.3 | 141.3 |
| Non-controlling interests | 0.5 | 0.6 |
| TOTAL EQUITY | 132.8 | 141.9 |
| Non-current liabilities | ||
| Provisions | 59.1 | 70.5 |
| Long-term debt | 195.6 | 235.0 |
| Deferred tax liabilities | 0.3 | 0.6 |
| Total non-current liabilities | 255.0 | 306.1 |
| Current liabilities | ||
| Provisions | 8.3 | 11.3 |
| Short-term debt | 161.8 | 153.5 |
| Trade payables | 313.8 | 321.9 |
| Other payables | 186.9 | 179.3 |
| Total current liabilities | 670.8 | 666.0 |
| TOTAL EQUITY AND LIABILITIES | 1,058.6 | 1,114.0 |
Interim consolidated income statement
| For the six months ended, 30 June | |||
| (€ millions) | 2017 | 2016 | |
| Sales | 1,205.2 | 1,256.4 | |
| Gross margin | 294.9 | 304.5 | |
| Personnel expenses | (139.5) | (147.8) | |
| Other administration and marketing expenses | (121.0) | (127.0) | |
| Current operating income | 34.4 | 29.7 | |
| Other operating income | 6.6 | 0.1 | |
| Other operating expenses | (16.7) | (8.5) | |
| Other operating income and expenses, net | (10.1) | (8.4) | |
| Operating income (loss) | 24.3 | 21.3 | |
| Cost of net debt | (12.2) | (11.6) | |
| Other financial income and expenses, net | (1.2) | (1.4) | |
| Net financial income (expense) | (13.4) | (13.0) | |
| Income tax benefit (expense) | (3.8) | 0.6 | |
| NET INCOME (LOSS) | 7.1 | 8.9 | |
| Attributable to: | |||
| Antalis shareholders | 7.0 | 8.9 | |
| - Non-controlling interests | 0.1 | - | |
| Earnings per share | |||
| - Weighted average number of shares outstanding | 70,692,900 | 71,000,000 | |
| - Diluted number of shares | 70,692,900 | 71,000,000 | |
| Basic earnings (loss) per share (in €) | |||
| - Consolidated earnings (loss) per share | 0.10 | 0.13 | |
| Diluted earnings (loss) per share (in €) | |||
| - Consolidated diluted earnings (loss) per share | 0.10 | 0.13 | |
Interim consolidated statement of cash flows
| For the six months ended, 30 June | ||
| (€ millions) | 2017 | 2016 |
| Cash flows from operating activities | ||
| Operating income (loss) | 24.3 | 21.3 |
| Elimination of non-cash and non-operating income and expenses: | ||
| Depreciation, amortisation and provisions (except on current assets), net | 3.3 | 6.7 |
| Disposal gains and losses | (6.6) | - |
| Gross operating cash flow | 21.0 | 28.0 |
| Income taxes paid | (2.2) | (2.7) |
| Change in operating working capital | (10.4) | (67.9) |
| Change in loans and guarantee deposits | (3.7) | (0.3) |
| Net cash from (used in) operating activities (i) | 4.7 | (42.9) |
| Cash flows from investing activities | ||
| Expenditure on acquisitions of property, plant and equipment and intangible assets | (6.5) | (8.3) |
| Proceeds from disposals of property, plant and equipment and intangible assets | 11.3 | 0.5 |
| Proceeds from disposals of financial assets | 0.5 | 0.6 |
| Impact of changes in scope of consolidation | (3.5) | - |
| Net cash from (used in) investing activities (ii) | 1.8 | (7.2) |
| Cash flows from financing activities | ||
| Net change in borrowings and debt | (30.9) | 27.2 |
| Net interest paid | (11.1) | (11.8) |
| Distribution of dividends | (8.0) | (4.0) |
| Net cash from (used in) financing activities (iii) | (50.0) | 11.4 |
| Effects of fluctuations in foreign exchange rates (iv) | (2.1) | (3.0) |
| CHANGE IN CASH AND CASH EQUIVALENTS (i+ii+iii+iv) | (45.6) | (41.7) |
| Net cash and cash equivalents at start of period | 131.5 | 136.4 |
| Net cash and cash equivalents at end of period | 85.9 | 94.7 |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (45.6) | (41.7) |
| Analysis of net cash and cash equivalents at end of period | ||
| Cash and cash equivalents | 88.8 | 97.7 |
| Short-term bank borrowings and overdrafts | (2.9) | (3.0) |
| Net cash and cash equivalents at end of period | 85.9 | 94.7 |
