The revenue increased 9% to DKKm 1,826 corresponding to 14% organic growth primarily driven by region Europe. A positive product mix improved the gross margin leading to an increase in EBITDA of 23% when adjusting for the Stähler Switzerland divestment in Q1 2013. The outlook for 2014 is maintained.
The organic growth of 14% was impacted by a negative currency development of 5 percentage points leading to a reported revenue increase of 9% to DKKm 1,826.
Growth was driven by region Europe that experienced an early start to the season shifting demand from Q2 to Q1 due to the mild European winter. However, a cold winter has delayed the season in North America.
The gross profit improved 11% to DKKm 561, corresponding to a gross margin increase of 0.5 percentage points to 30.7%, driven by higher sales of differentiated and proprietary products with higher margins.
When adjusting for the divestment of Stähler Switzerland in Q1 2013, EBITDA was up 23% corresponding to DKKm 49, but reported down 1% to DKKm 259. The EBITDA margin of 14.2% was up 1.6 percentage points when adjusting for the Stähler Switzerland divestment in Q1 last year, but down 1.4 percentage points reported.
The free cash flow of DKKm -384 was in line with Q1 last year when adjusting for the effects of the Stähler Switzerland divestment and higher factoring/securitization in Q1 last year.
The net working capital was reduced DKKm 153 to DKKm 2,490 primarily driven by increased payables, and the average working capital ratio improved 5.2 percentage points to 36.2%.
NIBD was reduced DKKm 151 to DKKm 1,962 compared to Q1 last year, leading to a reduction of NIBD/EBITDA to 2.4 compared to 3.2 at the end of Q1 last year.
Auriga maintains the outlook of an organic sales growth of 8-10% and a reported revenue growth of 3-5%, an EBITDA margin above 13% and a positive free cash flow.
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Auriga Industries A/S is the listed parent company of Cheminova A/S, which is the wholly owned operating company domiciled in Denmark. Cheminova is developing, producing and marketing crop protection products. All activities are carried out with due consideration for the environment and in compliance with ever higher sustainability standards. The products are sold in more than 100 countries, and 98% of sales are generated outside Denmark. In 2013, the group posted revenue of approx. DKK 6.6 billion and has more than 2,200 employees in a global organization with subsidiaries in 24 countries.
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