Financial Statement Release
Free for publishing 28.02.2019, hour 12:00
FORCHEM OYJ’S Q4.2018 BONDHOLDER REPORT
Q4 has been operatively very similar to the previous quarters and there has been no major changes compared to our expectations. Group’s revenue for Q4 is € 34,7 million and operating profit € 2,5 million. Group’s year-to-date revenue is € 126,3 million (€ 126,6 million in 2017) and operating profit € 16,2 million (€ 19,7 million in 2017).
Forchem’s profitability at EBITDA-level is 17 % for whole year 2018 (20 % in 2017) and 11 % for Q4 (18 % in Q4/2017). Group´s operating profit and especially profitability at EBITDA-level for Q4 has clearly decreased compared to the previous quarters and Q4/2017. The main reasons for the decline are cyclicality in sales mix, production break in December and significant unplanned additional logistic costs. Furthermore, also margins have kept slightly shrinking due to the increase in CTO prices.
Demand on CTO has generally increased. The major reason to the increased demand is the current CTO classification and taxation that directs CTO to the production of biodiesel. Increased demand together with relatively high crude oil and especially CO2 emission prices (compared to previous years) will increase group’s raw material prices. Hence according to our estimates, Forchem’s CTO cost will increase in 2019 compared to 2018 which will put more pressure on our end product prices. The demand for Forchem’s products is expected to continue to be robust.
Furthermore, Forchem continues to develop the business by new innovations and value-added products. One example of this work is Progres® animal feed innovation which is an outcome of the years of research made by Forchem together with the animal feed supplier Hankkija Ltd. Several clinical animal trials have showed that the patented product can improve animal well-being and it has a potential to replace antibiotics in animal feed. Commercialization phase of the product is ongoing.
This release is a summary of Forchem Oyj’s bondholder report concerning Q4/2018. The report is based on the terms and the conditions of the bond. The whole report including the tables is attached to this release and it is available at www.forchem.com/investor_area.
The complete Financial Statements will be published on 30 April 2019.
For more information:
Forchem Oyj
Henrik Lindegrén, CFO, p. +358 44 032 1075, henrik.lindegren@forchem.com
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