January-June 2020 30 July 2020 - January - June 2020 results - Viscofan
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January-June 2020
30 July 2020
January – June 2020 results 1
COVID-19 COMMITMENT
Ensuring the well-being of our workers and their families.
Protection protocols, including sanitation measures, social distance,
mandatory use of face masks, higher cleaning and disinfection works,
teleworking and increased communication.
Fulfill with our responsibility by ensuring the supply to our customers and
partners.
Productive and logistics activity to guarantee global supply to all our
customers. Global geographic offer. Product flexibility and supply.
Limit the spread of COVID-19 and its effects.
Protective material provided to the people that is fighting in the first line,
food donations to the most disadvantaged families in this crisis. Awareness
campaigns.
January – June 2020 results 2
1H20 and 2Q20
Growth in the main financial figures
% y-o-y % y-o-y
€ million 1H20 % y-o-y Like-for-like 1 2Q20 % y-o-y Like-for-like 1
Revenue 447.0 +9.1% +7.7% 224.9 +7.8% +8.1%
EBITDA 110.3 +18.7% +19.7% 58.3 +23.9% +26.7%
EBITDA margin 24.7% +2.0 p.p. +2.6 p.p. 25.9% +3.4 p.p. +4.1 p.p.
Operating profit 73.6 +28.2% 40.3 +37.3%
Profit before taxes 75.9 +32.1% 39.9 +38.2%
Taxes -18.6 +57.6% -9.9 +67.4%
Net profit 57.3 +25.5% 30.0 +30.7%
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2020 , the change in the scope of consolidation and non-recurring impacts.
January – June 2020 results 3
Higher revenue driven by volume growth, price/mix improvement and Nitta
Casings contribution
REVENUE 1H20. Growth contribution (€ million)
+9.1%
1H20 vs. 1H19
+13.6MN -8.0MN
+33.2MN -1.7MN
447.0
409.9 +8.1 p.p. -0.4 p.p. +3.3 p.p. -1.9 p.p.
Change in the
Like-for-like 1 Like-for-like 1
scope of Forex
casings co-generation
consolidation
1H19 1H20
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2020 , the change in the scope of consolidation and non-recurring impacts.
January – June 2020 results 4Growth in all reporting areas
REVENUE 1H20. Breakdown by geographical area1 (€ million) +9.1% +7.7%
GROUP
vs. 1H19 Like-for-like2
53.8% 31.4%
EUROPE AND NORTH
LATAM
ASICA PACIFIC AMERICA
14.8%
+5.3% +5.3% +17.7% +4.4% +6.2% +22.8%
vs. 1H19 Like-for-like2 vs. 1H19 Like-for-like2 vs. 1H19 Like-for-like2
240.3
228.2
140.4
119.3
62.4 66.3
1H19 1H20 1H19 1H20 1H19 1H20
1 Revenue per origin of sales.
2 Like-for-like: Excludes the impact of the different exchange rates in 2020, the change in the scope of consolidation and non-recurring impacts. January – June 2020 results 5Increased organic growth momentum in the second quarter …
REVENUE. Quarterly growth contribution
2Q20 +7.8% +8.1%
vs. 2Q19 Like-for-like1
+9.1 p.p.
+7.0 p.p.
+3.6 p.p. +3.1 p.p.
+0.2 p.p.
-0.4 p.p.
-1.0p.p.
-3.4 p.p.
Like-for-like 1 Like-for-like 1 Change in the scope of
casings co-generation consolidation Forex
1Q 2Q 1Q 2Q 1Q 2Q 1Q 2Q
1 Like-for-like: Excludes the impact of the different exchange rates in 2020, the change in the scope of consolidation and non-recurring impacts.
January – June 2020 results 6…leading to an all-time high in quarterly revenue
REVENUE. Viscofan Group (€ million) CASINGS SALES (€ million)
224.9 215.7
222.1 223.9 211.7 211.9
204.4
215.9 197.0
208.6 191.2
201.2
+9.5%
vs. 2Q19
1Q 2Q 3Q 4Q
+7.8% CO-GENERATION REVENUE (€ million)
vs. 2Q19
11.6 11.6 12.0
1Q 2Q 3Q 4Q 10.0 10.4 9.2
2019 2020
-20.5%
1Q vs.2T
2Q19 3Q 4Q
2019 2020
January – June 2020 results 7Operating results are boosted by revenue growth, high production capacity, efficiencies
and savings from the new technology
P&L 1H20. Year-on-year change
+28.2%
Increase in the cost of +4.7% excluding
collagen hides acquired companies
Decline in the auxiliary
raw materials cost
+19.7%
Savings and production
efficiencies
+18.7%
+12.3%
+9.1%
+7.7%
+5.1%
+3.3%
+1.5%
Revenue Revenue Cost of Personnel Other operating EBITDA EBITDA D&A EBIT
like-for-like1 consumption2 costs costs like-for-like1
1 Like-for-like: Excludes the impact of the different exchange rates in 2020, the change in the scope of consolidation and non-recurring impacts.
2 Cost of consumption = Net purchases +/- Change in inventories of finished and unfinished products.
January – June 2020 results 8Double digit growth in EBITDA, both in reported and in like-for-like terms
EBITDA 1H20. Growth contribution (€ million)
+18.7%
1H20 vs. 1H19
+18.7MN +0.5MN -3.7 MN
110.3
+1.9MN
92.9 Non-recurring 94.8
+19.7 p.p. +0.5 p.p. -3.8 p.p.
impact in 2Q19
(Strike in the Change in the
like-for-like 1 Forex
US) scope of
consolidation
+16.4%
1H19 1H19 1H20
reported recurring
1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2020 , the change in the scope of consolidation and non-recurring impacts.
January – June 2020 results 9Improving the profitability of our operations.
RECURRING1 EBITDA MARGIN (In %)
+ 0.6p.p. + 1.0p.p. + 2.5p.p. + 4.1p.p.
vs. 1Q19 Like-for-like 2 vs. 2Q19 Like-for-like 2
27.5%
25.9%
23.4% 23.8% 23.4% 23.5% 23.5%
22.8%
Like-for-like 2
2020
2019
1Q 2Q 3Q 4Q
1Recurring results. Exclude in 2019 non-recurring impacts in operating profit of +€2.9 million arising from the business combination from the acquisition of Nitta Casings Inc. (US) and Nitta Casings
Canada Inc. (in 4Q19), the impairment of goodwill for Nanopack Technology & Packaging S.L. (in 4Q19), and the impact of the strike in the U.S. (in 2Q19 and 3Q19).
2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2020, the change in the scope of consolidation and non-recurring impacts.
January – June 2020 results 10Main investment projects expected for the year may slowdown due to the COVID-19
evolution
CAPEX (€ million) CAPEX BREAKDOWN 2020e (€ million)
-34.1%
1H20 vs. 1H192
comparable
22.9
15.1
1H19 1H20
This figure includes €6 Mio investment in the collagen casings plant in the US.
January – June 2020 results 11Robust cash flow generation allows us to continue streghthening the balance
sheet while shareholders´remuneration is increased
NET BANK DEBT1 bridge (€ million)
+73.0
+42.5 -110.3 +5.4 +43.8
+44.5
Forex
and
others
Net bank
+29.2
Net bank Net bank
debt1 debt1 Shareholders´ debt1
Jun’19 Dec’19 remuneration2 Jun’20
+15.1
+17.4 Working
capital
Capex
EBITDA Tax paid
1 Net bank debt = Non-current bank borrowings + Current bank borrowings – Cash and equivalents.
2 Shareholders´remuneration: Includes €0.96 per share related to 2019 FY final dividend paid out in June 2020.
January – June 2020 results 12To wrap-up
• Covid-19: The commitment of the more than 4,900 people who make up Viscofan,
our solid production model, our global footprint and product portfolio allow us to
maintain an essential activity such as the production of casings for the food
industry.
• Growth in the main financial figures of the profit and loss account in the first half
of the year.
• A solid balance sheet together with a sound cash flow generation once the
transformation projects have already been implemented.
• The full year perspectives for growth announced in February are supported by
1H20 results.
January – June 2020 results 13Appendix. Alternative Performance Measures
The Alternative Performance Measures included in this report are
as follows:
• The EBITDA, or operating profit before depreciation and • Net bank debt: This is calculated as non-current borrowings
amortisation, is calculated excluding depreciation and plus current borrowings netted from cash and cash
amortisation costs from the operating profit. The EBITDA is a equivalents. Management considers net bank debt to be
measure that is commonly reported and widespread among relevant to shareholders and other stakeholders as it provides
analysts, investors and other stakeholders in the casing an analysis of the Group's solvency. However, net bank debt
industry. The Viscofan Group uses this measure to monitor should not be considered a substitute for gross bank debt in
the business' development and to establish operational and the consolidated balance sheet, nor other liability or asset
strategic objectives in Group companies. However, it is not a items that may affect the Group's solvency.
defined indicator in IFRS and, therefore, it may not be
compared with other similar indicators employed by other • Like-for-like revenue and EBITDA: This measure excludes the
companies in their reports. impact of exchange rate variations on the comparable
previous period and the non-recurring impacts of the business
• Cost of consumption: This is calculated as the net amount of in order to present a homogeneous comparison of the
supplies plus the change in finished and unfinished products. Viscofan Group's development. However, like-for-like revenue
Management monitors cost of consumption as one of the and EBITDA are not defined indicators in IFRS and, therefore,
main cost components for Viscofan. The weight of net they may not be compared with other similar indicators
revenue for this cost component on revenue or gross margin employed by other companies in their reports, nor may they
is also analysed to study the operating margin's development. be considered a substitute for the business development
However, it is not a defined indicator in IFRS and cost of indicators defined in IFRS.
consumption must not be considered a substitute for the
different items in the profit and loss account that comprise
them. Furthermore, it may not be compared with other
similar indicators employed by other companies in their
reports.
January – June 2020 results 14Appendix. Disclaimer
This document may include statements This circumstance must be taken into account
about intentions, expectations or forecasts mainly for all persons or entities that may have to
of the Company additional to the take decision, develop or spread opinions relative
mandatory financial reporting whose sole to values issued by the Company and particularly
purpose is to provide information more by analysts and investors that handle this
accurately about the perspectives of future document.
behaviours.
The financial statements contained in this
Such intentions, expectations or forecasts document have been prepared under International
do not constitute any guaranties of Financial Reporting Standards (IFRS). This financial
compliance and involve risks, uncertainties statements has not been audited and
and other relevant factors that could cause consequently is susceptible to potential future
actual developments and results to differ modifications.
materially from those states in such
forward-looking statements.
January – June 2020 results 15You can also read
