IMCD with 26% Operating EBITA Growth in first nine Months of 2018, benefits from Acquisitions in North America
Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported on the performance in the first nine months of 2018. Gross Profit grew by 25% to EUR 389.7 mn (+30% on a constant currency basis) and Operating EBITA 26% to EUR 156.6 mn (+32% on a constant currency basis) . This resulted in Cash Earnings per Share (i.e. before amortisation) of EUR 1.97, an increase of 23% when compared with result for the first nine months of 2017. Free cash flow decreased by 6%, from EUR 115.5 mn in the same period of 2017 to EUR 109.0 mn, as the higher operating EBITA was offset by higher working capital investments required to support sales growth.
The (geographical) operating segments showed a mixed picture. EMEA (defined as Europe, Turkey and Africa) posted revenues of EUR 927.7 mn (up 6% as reported or 8% on a constant currency basis). Operating EBITA in the region grew from EUR 87.9 mn to EUR 100.5 mn, up 11% as reported and 13 % when adjusted for currency effects. Asia-Pacific generated revenues of EUR 248.1 mn (up from EUR 236.7 mn, or +5% as reported, +13% in constant currency). Operating EBITA in that region came in at EUR 23.4 mn, which compares with EUR 21.0 mn in first nine months 2017, up 12% as reported and 21% when adjusted for currency effects. In the Americas, the effect of acquisitions completed during the periods under review (i.e. Bosco Industries in July 2017, L.V. Lomas in September 2017 and E.T. Horn in July 2018) was significant. Revenues were EUR 578.7 mn, up from EUR 302.7 mn or +91% as reported (or +108% adjusted for currency effects) in the same period of 2017. Operating EBITA was EUR 48 mn, up 77% from the EUR 26.0 mn in the previous year (a growth of 92% at constant currency).
Structural cost increased, resulting in a Operating EBITA for the “holding companies” (i.e. the head office in Rotterdam and regional head offices in Sinagpore and New Jersey, United States of America) of EUR -13.3 mn (compared to EUR -11.1 mn in the first nine months 2017).
The original press release can be accessed via the link below:
Source: IMCD press release
HGE / DCG – 07.09.2018