IMCD with 10% EBITDA Growth in first nine Months of 2017 driven by Acquisitions
Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported on the performance in the first nine months of 2017. Gross Profit grew by 11% to EUR 317.9 mn (+11% on a constant currency basis) and Operating EBITDA 10% to EUR 123.8 mn (+10 % on a constant currency basis) . This resulted in Cash Earnings per Share (i.e. before amortisation) of EUR 1.60, an increase of 8% when compared with the EUR 1.48 for the first nine months of 2016.
Revenue was EUR 1’411.3 mn, an increase of 8% compared to the same period in 2016. Growth of the existing business amounted to 3%, the first time inclusion of acquired companies contributed 5% points. For the Gross Profit growth of 11%, the split was 6% from existing business, 5% from acquistions.
For Operating EBITDA growth, no detailed breakdown regarding the growth of the existing business and the contribtion from acquisitions was provided. Operating EBITDA in percent of revenue increased from 8.6% to 8.8%.
Cash flow increased from EUR 104.0 mn to EUR 115.5 mn. Net Debt as per 30. September was EUR 507.1 mn (up from EUR 397.6 mn as per 31. December 2016). The main driver for this increase is the acquisition of L.V. Lomas (2016 revenues CAD 383 mn) in North America at the end of August 2017, financed by a mix of available cash and existing bank facilities.
From a geographical perspective, the results were somewhat uneven. Operating EBITDA in EMEA (i.e. Europe, Turkey and Africa) grew 13% to EUR 87.9 mn (based on Revenues up 8% to EUR 871.9 mn). These figures include the results of Neuvendis SpA based in Milano, as of the acquisition date 28. June 2017. Asia Pacific was flat at EUR 21.0 mn versus EUR 20.8 mn for the Operating EBITDA during the same period in 2016 (with Revenues also flat at EUR 237.6 mn). In the Americas (i.e United States, Canada, Brazil and Puerto Rico), where the business of Bossco Industries Inc. was added effective 03. July 2017 and that of L.V. Lomas effective 31. August 2017, Operating EBITDA increased by 4% to EUR 26.0 mn on the basis of an increase in Revenues by 15% to 302.7 mn.
According to a statement from Piet van der Slikke, CEO, the results were in line with what the company reported for the earlier quarters of 2017. Based on the performance in the first nine months and continued strong fundamentals of the business, IMCD expect further Operating EBITDA growth in 2017.
Source: IMCD press release
HGE / DCG – 08.11.2017