30.08.2018
Befesa S.A. LU1704650164
DGAP-News: Befesa continues earnings growth in Q2 2018 in line with annual guidance
DGAP-News: Befesa S.A. / Key word(s): Half Year Results
Befesa continues earnings growth in Q2 2018 in line with annual guidance
30.08.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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Befesa continues earnings growth in Q2 2018 in line with annual guidance
* Strong steel dust volume development at record levels up 14.4% from H1
2017
* Adjusted EBITDA grew by 6.8% to EUR44.3m in Q2 (H1: +6.9% to EUR88.9m);
* adjusted EBIT grew by 7.9% to EUR37.0m in Q2 (H1: +7.5% to EUR74.3m)
* EPS significantly improved to EUR0.68 in Q2 (H1: EUR1.32)
* Extended zinc hedges to cover H1 2021 at EUR2,230/t
* Growth initiatives being implemented and on track
Luxembourg, 30 August 2018 - Befesa S.A. ("Befesa"), the European market
leader for steel dust and aluminium salt slags recycling services, achieved
another quarter of YoY earnings growth and continued delivery of growth
targets. The main drivers behind this earnings growth were the increased
volume of steel dust treated, largely originating from Befesa's South Korean
operations, alongside favourable average zinc and aluminium alloy prices
during Q2.
Revenues in Q2 2018 decreased by 7.3% to EUR187.0m compared to the same
period in 2017. This decrease was due to accounting amendments implemented
January 1, 2018, decreasing revenue by EUR29m. Adjusted EBITDA grew by 6.8%
to EUR44.3m and adjusted EBIT grew by 7.9% to EUR37.0m compared to Q2 2017.
Accordingly, Befesa's Q2 2018 adjusted EBITDA margin increased to 23.7%, up
3.1 percentage points and adjusted EBIT margin grew to 19.8%, up 2.8
percentage points compared to the same period in 2017.
Overall revenues for H1 2018 were up by 2.1% to EUR382.4m compared to H1
2017.Adjusted EBITDA grew 6.9% to EUR88.9m and adjusted EBIT rose 7.5% to
EUR74.3m compared to the first half of 2017. Correspondingly, margins also
improved over last year, with adjusted EBITDA margin and EBIT margin both
increasing by 1.0 percentage point to 23.2% and 19.4% respectively.
In Q2 2018, net profit increased by 101% to EUR24.8m, bringing earnings per
share (EPS) to EUR0.68 in the quarter. For H1, cumulated net income
increased by 55.4% to EUR44.8m representing H1 2018 EPS of EUR1.32. This was
largely driven by a decrease in financial expenses by approximately 60%
under the new capital structure in place since December 7, 2017. Operating
cash flow in Q2 2018 was EUR26.8m and cash on hand at the end of the quarter
amounted to EUR104.4m after having distributed the annual dividend for 2017
of EUR0.73 per share or EUR25m during the quarter.
Javier Molina, CEO of Befesa, commented: "Despite the challenging
macro-economic market dynamics that we are seeing recently in many areas of
the markets where we operate, we have delivered another strong quarter of
earnings growth, with steel dust volumes increasing according to our
expectations. The H1 2018 results are in line with the guidance we provided
at the beginning of the year of single digit earnings growth and we are
focusing on our organic growth initiatives. With our efficient capital
structure and financial expenses reduced to less than half, full year 2018
Net Income and EPS will be significantly higher compared to 2017."
Key figures
in EURm Q2 2017 Q2 2018 Change H1 2017 H1 2018 Change
Revenues 201.6 187.0 -7.3 % 374.4 382.4 2.1%
Adj. EBITDA 41.5 44.3 6.8% 83.1 88.9 6.9%
Adj. EBIT 34.3 37.0 7.9% 69.1 74.3 7.5%
in EURm Q2 2017 Q2 2018 Change H1 2017 H1 2018 Change
Financial expenses 12.4 5.1 -58.9% 24.7 10.1 -59.1%
Operating cash flow 3.9 26.8 >100% 32.4 36.7 13.2%
EPS (in EUR) (0.01) 0.68 - (0.01) 1.32 -
Webcasts
Befesa will host a webcast on its second quarter results at 9am CEST on 30
August 2018. Further details, a replay and other events are available on the
company's website: www.befesa.com
About Befesa
Befesa is a leading international provider of critical environmental
regulated services to the steel and aluminium industries with facilities
located in Germany, Spain, Sweden, France and the UK, as well as in Turkey
and South Korea. Through its two business units, Steel Dust and Aluminium
Salt Slags recycling services, Befesa manages and recycles more than 1,300kt
of residues annually, with a production of more than 600kt of new materials,
which Befesa reintroduces in the market, reducing the consumption of natural
resources. Further information can be found on the company's website:
www.befesa.com
Investor Relations
Rafael Pérez
Email: [email protected]
Befesa Management Services GmbH
Balcke-Dürr-Allee 1
40882 Ratingen, Deutschland (Germany)
Phone: +49 2102 1001 0
Media Relations
Maximilian Karpf
Email: [email protected]
Phone: +44 7970 716 953
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30.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Befesa S.A.
46 Boulevard Grande-Duchesse Charlotte
1330 Luxembourg
Luxemburg
E-mail: [email protected]
Internet: www.befesa.com
ISIN: LU1704650164
WKN: A2H5Z1
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart, Tradegate Exchange; London
End of News DGAP News Service
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718943 30.08.2018
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