Auriga Industries A/S, Harboøre, Denmark, 2013-03-15 07:59 CET (GLOBE NEWSWIRE) --
Company announcement no. 2/2013
March 15, 2013
HIGHLIGHTS IN 2012
For the period January 1 - December 31, 2012
(Comparative figures for the same period last year are shown in brackets)
Expectations met – further progress expected
In line with the outlook, Auriga posted revenue of DKKm 6,263 in 2012, corresponding to organic growth of 10%. The operating profit was improved, EBITDA was up 36% at DKKm 672, and EBIT increased 58% to DKKm 502 before the non-recurring expense of DKKm 95 in connection with the arbitration case. Both working capital and net interest-bearing debt have improved, and a positive free cash flow of DKKm 309 was realized, which is better than expected. The outlook for 2013 is of continued positive growth with expected revenue of up towards DKK 6.8 billion and an improved EBITDA margin of approx. 12%.
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In 2012, the agrochemical industry was favored by high crop prices, which is encouraging growers to protect their crops through the use of crop protection products.
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In Q4, the organic growth was 14% and for the full year 10% CER. In Q4, the revenue increased by 11% to DKKm 1,457 (DKKm 1,315), while the revenue for the full year totaled DKKm 6,263 (DKKm 5,723) corresponding to an increase of 9%.
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The gross margin increased in 2012 by 2.5 percentage points to 29.6% (27.1%), as a result of an improved product mix. For FY 2012 as a whole, an EBITDA margin of 10.7% (8.7%) was realized, and an EBIT margin of 8.0% (5.6%) calculated before the non-recurring expense item of DKKm 95 due to the arbitration award.
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Financing costs declined in Q4 to DKKm 39 (DKKm 60) and for the FY to DKKm 215 (DKKm 240) after lower foreign currency exchange adjustments compared to 2011. For Q4, the group posted a loss before tax of DKKm -86 (DKKm -15) due to the non-recurring expense, while a profit of DKKm 174 (DKKm 79) was posted for the FY 2012, representing more than a twofold increase.
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The working capital was improved further in Q4, with a cash flow from operating activities of DKKm 347 (DKKm 336). For FY 2012, a cash flow from operating activities of DKKm 513 (DKKm 207) was realized together with a free cash flow of DKKm 309 (DKKm -86).
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The group’s net interest-bearing debt (NIBD) was reduced by DKKm 303 to DKKm 1,883 (DKKm 2,186) at the end of the year. The debt reduction can primarily be ascribed to improved earnings and working capital, including new financing instruments, and the divestment of Auriga’s property in Taastrup. The debt burden (NIBD/EBITDA) was reduced to 3.3 from 4.4 at the end of 2011.
- The Board of Directors proposes to the annual general meeting on April 16, 2013, that no dividend be paid for 2012. The reason is a wish to reduce the company’s gearing to an acceptable level considering the market conditions of the industry, thereby ensuring the future development opportunities.
OUTLOOK 2013
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Based on the assumption that the market conditions remain positive, Auriga expects a positive growth with progress in earnings and value creation in 2013. Continued positive developments within the strategic focus areas are to bring the company closer to realizing the strategic objectives defined for the post-2013 period.
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In Q1 2013, a local company in Switzerland with revenue exceeding DKKm 100 was divested which will contribute with a profit for accounting purposes of just below DKKm 40 and a net interestbearing debt reduction of more than DKKm 100.
- In 2013, Auriga expects further positive growth of approx. 10%, with revenue of up towards DKK 6.8 billion and an EBITDA margin of approx. 12%. Continued focus will be on improving the working capital to realize a positive free cash flow despite maintaining the investment level within product development and production plants.
President & CEO Kurt Pedersen Kaalund comments on the development in 2012:
We are executing a strategic plan designed to improve profitability. We are focused on ensuring the right balance between continued profitable growth, improved efficiency, reduced working capital and positive debt developments.
PRESENTATION OF THE FINANCIAL RESULTS - AUDIOCAST AND CONFERENCE CALL
President & CEO Kurt Pedersen Kaalund, Senior Vice President, Finance & Support, Jesper Barslund Jacobsen, CFO in Cheminova, and Vice President Jens Ole Jensen will present the financial highlights at a conference call for institutional investors and analysts today, March 15, 2013, at 10:00 am CET.
The presentation including Q&A session and conference call will be conducted in English. The presentation will be transmitted as audiocast 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 9:55 am (CET) on tel.:
- Denmark: (+45) 70 25 67 00
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International: +44 208 817 9311
Conference call participants are kindly asked to provide the passcode 5489 8843.
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
