Coil: 2023 FIRST-HALF RESULTS
2023 FIRST-HALF RESULTS
- Sales at €11.8M (down 15.4%), affected by the
contraction of the tolling business in a challenging economic
climate.
- Current operating income down by €(1.4)M due to lower
sales and inflation in operating costs
- Non-recurring income of €1.5M relating to exceptional
write-backs of depreciation and provisions in respect of investment
subsidies in Germany
- Minor net income loss of €(0.1)M
- Net debt under control at 27% of equity at 30 June
2023
- Market recovery expected in 2024
COIL, world leader in aluminium anodising, has
released its results for the first half of the 2023 financial
year.
The first half of 2023 was marked by a sharp
slowdown in global growth, high inflation and rising interest
rates. Like all industrial sectors, the Company's activities were
heavily impacted by these difficult macroeconomic conditions.
During the period, tolling activities (79% of
2023 half-year sales) were adversely affected by i) metal
distributors' conservative expectations of market trends, based on
a sharp fall in the LME aluminium price, which led them to keep
their inventories at minimum levels, and ii) the emergence of a
competitor in the European continuous anodising market. Against
this backdrop, tolling sales declined by -20.6% compared with an
unfavourable basis of comparison in the first half of 2022, which
had grown by +18.5% driven by the post-COVID19 economic
recovery.
Package sales, which include metal, (21% of
first-half 2023 sales) recorded solid growth of +11.1%, driven
mainly by the development of sales in Europe, with major deliveries
made during the period for top-of-the-range architectural projects.
Meanwhile, the Company strengthened its pipeline of prospects in
Asia, which will lead to new orders in 2024.
The Company has done its utmost to limit the
impact of the slowdown in tolling activities, by raising its prices
in line with inflation and by adapting its investments and
production capacity to the lower level of demand. Nevertheless, the
impact of a sharp fall in sales on the Company's results was
significant since variable costs represent only around 36% of
sales.
On the positive side, half-year results were
positively impacted by €1.5M of exceptional items (exceptional
write-back of depreciation on investment subsidies in Germany and
write-back of provisions for interest due in the event of repayment
of these subsidies). These items follow the audit carried out this
summer by the German authorities (Landesförderinstitut
Sachsen-Anhalt) in connection with the subsidies paid for the
construction of the Bernburg plant -the examination of the award
certificates having revealed that the requirements of the award
notice dated 2 May 2012 had been met.
Overall, in a difficult economic climate, the
Company managed to record a net income close to breakeven, while
continuing to post a solid balance sheet at 30 June 2023.
Sales for the first half of 2023 came to €11.8M,
down €2.2M on the high basis of comparison in the first half of
2022.
EBITDA fell by €2.5M to break even. This was
mainly due to (i) a lower gross margin, reflecting lower sales,
changes in the product mix and higher variable production costs,
and (ii) higher operating expenses in an inflationary
environment.
The contraction in volumes in tolling activities
weighed significantly on recurring operating income, which fell by
€2.4M to a loss of €(1.4)M, compared with a profit of €1.1M in the
first half of 2022.
Operating profit was €0.7M, including €0.7M of
non-recurring items relating to an exceptional write-back of
depreciation on investment subsidies in Germany, which had no
impact on the Company's cash position.
Net income fell by €0.1M. It includes
exceptional financial income of €0.7M, relating to a reversal of
provisions for interest due in the event of repayment of the
subsidies in Germany.
- Simplified income
statement
|
(€M) |
2023 H1(6 months) |
2022 H1(6 months) |
Variation |
2022(12 months) |
|
Sales |
11.79 |
13.95 |
- 15.4 % |
26.7 |
|
Tolling sales |
9.28 |
11.68 |
- 20.6 % |
20.6 |
|
Package sales1 |
2.52 |
2.27 |
+ 11.1 % |
5.9 |
|
EBITDA |
0.01 |
2.52 |
- 2.5 M€ |
2.9 |
|
% of sales |
0.1% |
18.1% |
|
10.9% |
|
Recurring operating profit |
(1.40) |
1.01 |
- 2.4 M€ |
(0.1) |
|
% of sales |
(11.9)% |
7.2% |
|
(0.4)% |
|
Operating profit |
(0.66) |
1.01 |
- 1.7 M€ |
(2.6) |
|
% of sales |
(5.6)% |
7.2% |
|
(9.9)% |
|
Income before tax |
(0.10) |
0.85 |
- 1.0 M€ |
(2.9) |
|
Net income |
(0.11) |
0.80 |
- 0.9 M€ |
(3.0) |
|
% of sales |
(0.9)% |
5.7% |
|
(11.2)% |
After taking into account profit for the
half-year, shareholders' equity at 30 June 2023 was €23.5M, down
€0.1M on 31 December 2022. Net financial debt at 30 June 2023 was
€6.3M (up €0.1M on the end of 2022) and remained at a reasonable
level, representing 27% of equity, compared with 26% at 31 December
2022.
Sales for the third quarter of 2023 came to
€5.3M, down 21.5% year-on-year. Over the first 9 months of the
year, sales came to €17.1M, down by -17.4% on the same period last
year, with tolling sales (€13.5M) down 18.8% and package sales
(€3.6M) down 11.7%.
In a difficult economic climate, the Company is
maintaining a cautious approach and does not anticipate a recovery
in demand for tolling services before the end of the financial
year. The Company is taking steps to limit the impact of this
slowdown on its results by supporting the commercial development of
its package sales and by maximising the flexibility of its
industrial facilities.
The Company is confident in its long-term
development prospects, and is capitalising on its broad portfolio
of premium, sustainable products with a lower carbon footprint to
prepare for the expected upturn in its markets from 2024
onwards.
The financial statements were approved by the
Board of Directors on 31 October 2023. They are included in the
half-yearly financial report for 2023 available on the Company's
financial website. (http://investors.coil.be).
2023 annual sales figures will be published on 2
February 2024 after the close of trading.
About COIL
COIL is the world's leading anodiser in the
building and industrial sectors and trades under the ALOXIDE brand
name.
Anodising is an electrochemical process
(electrolysis) which develops a natural, protective oxide layer on
the surface of aluminium and can be coloured in a range of UV-proof
finishes. It gives the metal excellent resistance to corrosion
and/or reinforces its functional qualities. Anodising preserves all
the natural and ecological properties of aluminium; it retains its
high rigidity and excellent strength-to-weight ratio, its
non-magnetic properties, its exceptional resistance to corrosion.
The metal remains totally and repeatedly recyclable through simple
re-melting. Anodised aluminium is used in a wide variety of
industries and applications: architecture, design, manufacturing
and the automotive sector.
COIL deploys an industrial model that creates
value by leveraging its unique know-how, its operational
excellence, the quality of its investments and the expertise of its
people. COIL has around 110 employees in Belgium and Germany and
generated a turnover of €26,5 million in 2022.
Listed on Euronext Growth Paris | Isin:
BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit
www.aloxide.com
Contact
|
COILTim Hutton | Chief Executive Officer
tim.hutton@coil.be | Tél. : +32 (0)11 88 01 88 |
CALYPTUSCyril Combe cyril.combe@calyptus.net |
Tél. : +33 (0)1 53 65 68 68 |
1 Anodising and metal included.
- COILpressrelease31oct2023_EN_def
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