Auriga Industries A/S, Harboøre, Denmark, 2011-05-26 07:59 CEST (GLOBE NEWSWIRE) --
Company announcement no. 6/2011
May 26, 2011
HIGHLIGHTS FOR Q1 2011
Satisfactory progress on objectives and focus areas
Continued transformation of the product portfolio and a more normal beginning of the year than in 2010 resulted in a satisfactory growth in revenue and earnings. After continued strong growth from new products, consolidated revenue was up 14% with an improvement in the contribution ratio to 26.7% (22.5%). Operating profit before amortisation and depreciation (EBITDA) was up at DKK 124 million (DKK 48 million), while an operating profit (EBIT) of DKK 80 million (DKK 3 million) was posted. The average working capital was improved, and the debt burden (NIBD/EBITDA) was reduced to 5.1 (27.1). The results were as expected, and Auriga maintains the outlook for the year.
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Revenue for Q1 2011 totalled DKK 1,393 million (DKK 1,218 million), up 14% when measured in Danish kroner and 12% in local currencies. New products account for an increasing share of revenue, while glyphosate sales are declining, as expected.
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Operating profit before amortisation and depreciation (EBITDA) was up at DKK 124 million (DKK 48 million), corresponding to an EBITDA margin of 8.9% (4.0%). Operating profit (EBIT) totalled DKK 80 million (DKK 3 million), while a profit before tax of DKK 46 million (DKK -15 million) was posted.
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Capacity costs were DKK 298 million (DKK 274 million) and are impacted by non-recurring severance payments, higher activity levels and increasing foreign exchange rates.
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The average working capital has been reduced, and cash flow from operating activities was DKK -467 million (DKK -503 million), constituting an improvement on the prior-year period.
OUTLOOK 2011
The market for crop protection products is still expected to grow in 2011 despite climatic challenges in some markets.
Auriga maintains the outlook announced of revenue of approx. DKK 5,800 million, an EBITDA margin of 8-10% and EBIT in the range of DKK 300-400 million as well as an improved cash flow from operating activities relative to 2010.
The outlook is based on current foreign exchange rates. However, the parent’s expected net USD exposure for the financial year has also been hedged at DKK 5.85, and its net exposure in other important currencies such as GBP, AUD and CAD has been hedged. The group’s results are dependent on developments in the agricultural sector, and on climatic, economic and market conditions, including the possibilities for registrations and reregistrations.
President & CEO Kurt Pedersen Kaalund comments on the development in Q1:
Improved revenue and earnings were achieved in Q1 through positive developments within all three strategic focus areas. Growth of 14% and the continued transformation of the product portfolio contribute to a clear improvement in contribution ratio. Further efficiency improvements and strict cost control have led to considerable growth in earnings. Working capital has been improved and the debt burden reduced.
PRESENTATION OF THE FINANCIAL HIGHLIGHTS - CONFERENCE CALL
President & CEO Kurt Pedersen Kaalund and Vice President Jens Ole Jensen will present the financial highlights at a conference call for analysts and institutional investors today, May 26, 2011, at 11 am (CET). Presentation and conference call will be conducted in English. The presentation will be transmitted on the website, where the related presentation will be available approx. 30 minutes beforehand. An indexed version of the presentation incl. Q&A session will be available on www.auriga.dk (Danish website) and www.auriga-industries.com (English website) afterwards.
Participants in the teleconference are kindly requested to call in before 10:55 am (CET) on tel.:
- DK: (+45) 32 71 47 67
- UK: (+44) 207 509 5139
- US: (+1) 718 354 1226
- International: (+44) 207 509 5139
MORE INFORMATION ABOUT THE FINANCIAL STATEMENTS
Kurt Pedersen Kaalund, President & CEO
Jens Ole Jensen, Vice President
Tel. +45 70 10 70 30 - investor@auriga.dk
