Organic growth of 7% led to reported revenue up 3% to DKKm 1,907 and EBITDA up 14% to DKKm 305 in Q2 2014. Improved product mix lifted the gross margin to 33.5%. Average working capital improved to 36.0%. Outlook 2014 maintained except for impact of higher key currency rates on reported revenue.
The organic growth was 7% and with a negative currency effect of 4 percentage points, the reported revenue increased 3% to DKKm 1,907 in Q2 2014.
The first six months showed organic growth of 10%, lifting the reported revenue 6% to above DKK 3.7 billion.
Sales growth in Q2 2014 was driven by strong results in International and Latin America. Europe delivered in line with Q2 last year, which was all time high, while North America suffered from the delayed season.
The gross profit was up 10% to DKKm 639, corresponding to a gross margin increase of 2.2 percentage points to 33.5%, driven by higher sales of differentiated and proprietary products with higher margins combined with the effect from the region mix.
EBITDA was up 14% to DKKm 305 corresponding to an EBITDA margin of 16.0%, up 1.5 percentage points compared to Q2 last year.
Lower use of factoring and higher working capital led to a free cash flow decreasing DKKm 300 to DKKm -72.
The average working capital ratio improved 4.1 percentage points to 36.0% despite an increase in the end of Q2 net working capital to DKKm 2,693 or 40% of revenue.
NIBD/EBITDA was reduced to 2.4 from 2.8 despite an increase in NIBD of DKKm 177 to DKKm 2,052. The NIBD increase was partially due to reduced use of factoring/securitization.
ROIC by normalized tax rate increased 0.7 percentage points to 10.7%, reflecting that Auriga is on track for increased value creation.
The outlook is maintained except for the impact of higher key currency rates on reported revenue. This leads to outlook of an organic sales growth of 8-10%, and, due to the higher key currency rates, a reported revenue growth of 4-6% against previously expected 3-5%, an EBITDA margin above 13% and a positive free cash flow.
Conference call and audiocast
Thursday, August 14, 2014 at 10.00 CET
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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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