Auriga Industries A/S, Harboøre, Denmark, 2013-11-13 13:06 CET (GLOBE NEWSWIRE) --
Company announcement no. 14/2013
November 13, 2013
HIGHLIGHTS IN Q3 2013 Unaudited. Figures in brackets and other comparisons are for the prior-year period unless otherwise stated.
Continued progress in Q3
Organic growth of 22% was achieved in Q3 and 15% in the nine-month period. Revenue of DKKm 1,575 was achieved in the quarter. Gross margin improved and EBITDA was up at DKKm 159. Improved working capital and a free cash flow of DKKm 155 contributed to reducing net interest- earing debt. Outlook for FY 2013 is updated following the exchange rate developments. The Executive Board is changed and extended.
- The Board of Directors has today appointed Region Europe President Jaime Gómez-Arnau as CEO. Jaime Gómez-Arnau will replace Kurt Pedersen Kaalund who will leave his position as of today. As of December 1, 2013, René Schneider has been appointed CFO in Auriga and member of the Executive Board which is extended to two persons. Read more on page 3 in this announcement.
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The revenue increased by 7% to DKKm 1,575 (DKKm 1,469) in Q3 and by 6% to DKKm 5,096 (DKKm 4,806) for the nine-month period. Revenue was impacted by negative exchange rate fluctuations of DKKm 190 in Q3 and of DKKm 272 in the first nine months, the divestment of Stähler Switzerland by DKKm 20 in Q3 and DKKm 129 in the nine-month period in addition to lower insect pressure than usual towards season end in North America.
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The low exchange rates also put margins under pressure as the impact on local market prices is normally delayed. In spite of this, Auriga succeeded in increasing the gross margin to 28.7% (27.4%) in Q3 through continued improvement of the product portfolio. Capacity costs grew primarily as a result of increased planned selling and distribution costs.
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The period traditionally marks the lowest quarter on earnings due to seasonality, and with EBITDA of DKKm 159 (DKKm 121) and EBIT of DKKm 112 (DKKm 80) this is confirmed this year. For the first nine months, EBITDA was DKKm 688 (DKKm 558) corresponding to an EBITDA margin of 13.5% (11.6%), while EBIT totaled DKKm 544 (DKKm 436) corresponding to an EBIT margin of 10.7% (9.1%).
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The negative foreign currency translation adjustments resulted in an increase in financing costs in Q3 to DKKm 62 (DKKm 53). Profit before tax then came to DKKm 49 (DKKm 27) and totaled DKKm 387 (DKKm 260) for the first nine months of the year.
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A working capital reduction of DKKm 320 was achieved with cash flow from operating activities amounting to DKKm 209 (DKKm 8) and the free cash flow totaling DKKm 155 (DKKm -62). For the nine-month period, the cash flow from operating activities totaled DKKm 309 (DKKm 166), while the free cash flow was DKKm 169 (DKKm 50).
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Net interest-bearing debt was reduced by DKKm 365 to DKKm 1,744 (DKKm 2,109), while the debt burden (NIBD/EBITDA) improved to slightly below 2.5 (3.2).
OUTLOOK 2013
- Latin America saw a good start to the season, and the market for crop protection products is expected to grow in Q4.
- Assuming that market conditions remain positive and the season in Latin America will be good, higher than originally expected organic growth is also expected in Q4. As a consequence of the unfavourable developments in exchange rates, especially for BRL, INR and AUD, outlook of revenue in Danish kroner is adjusted to approx. DKK 6.5 billion compared to previously of up towards DKK 6.8 billion. Earnings outlook is specified to an EBITDA of approx. DKKm 800 against previously an EBITDA margin of approx. 12%, while the outlook for a positive free cash flow is maintained unchanged.
PRESENTATION - AUDIOCAST AND CONFERENCE CALL On November 13, 2013 at 14.00 CET with expected duration of approx. 1 hour. Call in on +45 70 25 67 00 or +44 208 817 9311 providing pass code 6738 8933. Indexed audiocast incl. Q&A will be available shortly after the end of the conference call on www.auriga.dk (Danish website) and www.auriga-industries.com (English website).
MORE INFORMATION
Auriga - Investor Relations Tel. +45 70 10 70 30 - investor@auriga.dk
