Auriga Industries A/S, Harboøre, Denmark, 2012-05-23 07:59 CEST (GLOBE NEWSWIRE) --
Company announcement no. 7/2012
May 23, 2012
HIGHLIGHTS IN Q1 2012
For the first three months 2012 (unaudited)
(Comparative figures for the same period last year are shown in brackets)
Satisfactory start to the year
Continued positive market developments with a good and early start to the season have supported positive growth for the group. Auriga has seen a satisfactory start to 2012 with progress on all defined objectives and strategic focus areas. Revenue was up 16% in Q1 2012, while the contribution ratio increased to 29.5%. The cost ratio was reduced by 1.0 percentage point, and the EBITDA margin was up at 11.6%. Continued focus on improving working capital has resulted in lower debt compared to the end of Q1 2011. The outlook for 2012 remains unchanged.
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Auriga’s revenue increased in Q1 2012 by 16% to DKK 1,610 million (DKK 1,393 million). The impact from foreign exchange rate developments was marginal. Realised selling prices increased by an average of 3% relative to the prior-year period.
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The contribution ratio is up 1.7 percentage points at 29.5% (27.8%), primarily due to an improved product mix, while positive price developments compensated for higher raw material and energy costs. The average fixed capacity costs were reduced to 17.4% (18.4%) of revenue.
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The operating profit before depreciation and amortisation (EBITDA) increased to DKK 187 million (DKK 124 million), corresponding to an EBITDA margin of 11.6% (8.9%). Operating profit (EBIT) was up DKK 68 million at DKK 148 million (DKK 80 million), while profit before tax doubled to DKK 100 million (DKK 46 million).
- The working capital was reduced, which has improved the cash flow from operating activities to DKK -187 million against DKK -467 million for the prior-year period. Net interest-bearing debt (NIBD) amounted to DKK 2,444 million (DKK 2,478 million), while the debt burden (NIBD/EBITDA) was reduced to 4.4 (5.1).
OUTLOOK 2012
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The good start to the season is attributable to climatic conditions and a positive outlook in the agricultural sector. Farmers are thus expected to increase the acreage used for growing important crops such as corn, soybeans and wheat as crop prices remain high. The industry therefore still expects to achieve growth of up to 5% for the year as a whole based on volume growth and price increases.
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Auriga still expects growth corresponding at least to market growth. During the year, i.a. new fungicides containing azoxystrobin will be introduced in a number of markets, while market penetration will continue for products introduced in recent years. Earnings will be improved through improved contribution ratios and a lower cost ratio.
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Continued working capital improvements, positive cash flows and reduced debt will increase the return on the invested capital and reduce the debt burden.
- Auriga maintains the previously announced outlook for 2012 of revenue of approx. DKK 6,000 million with an earnings margin (EBITDA) of approx. 10% and an operating profit (EBIT) in the level of DKK 350-450 million.
President & CEO Kurt Pedersen Kaalund comments on the development in Q1:
We have succeeded in making the most of the good market conditions and report growth and increased earnings without burdening the business with increased working capital and debt. Our focus this year is on improving results and reducing debt. We are pleased with the good start to the year and continue the targeted efforts.
PRESENTATION OF THE FINANCIAL RESULTS - WEBCAST AND CONFERENCE CALL
President & CEO Kurt Pedersen Kaalund, Vice President Jens Ole Jensen and Senior Vice President, Finance & Support, Jesper Barslund Jacobsen, CFO in Cheminova, will present the financial highlights at a meeting for institutional investors and analysts today, May 23, 2012, at 9:30 am CET.
The presentation including Q&A session and conference call will be conducted in English. The presentation will be transmitted as webcast on the website, where the related presentation will be available approx. 30 minutes beforehand. An indexed version of the presentation will be available on www.auriga.dk (Danish website) and www.auriga-industries.com (English website) afterwards.
Participants in the conference call are kindly requested to call in before 9:25 am (CET) on tel.:
- DK: (+45) 32 71 47 67
- International: (+44) 207 509 5139
MORE INFORMATION CONCERNING THE FINANCIAL STATEMENTS
Kurt Pedersen Kaalund, President & CEO
Tel. +45 40 80 99 01
Jens Ole Jensen, Vice President
Tel. +45 40 80 99 40
Investor Relations
Tel. +45 70 10 70 30 - investor@auriga.dk
