Frigoglass (Results 4Q/FY 2014): Manos Chatzidakis
Frigoglass announced an improved set of operating results in Q4 (+84%) and a net loss of €6.2 million compared to the adjusted net loss (adjusted for restructuring charges) of €15.4 million in 4Q13. In specifics:
¡ Fourth quarter consolidated sales were marginally higher year-on-year at €127.5 million. Glass business had a strong year, with sales growth accelerating every single quarter. In Q4, sales in Glass grew 34% year-on-year. In contrast, Cool Operations’ sales were 10% lower year-on-year in the quarter, mainly driven by reduced sales in Russia due to challenging market conditions. The 15% sales decline in the full-year was mainly driven by the economic conditions in Russia and Ukraine, the fire incident in India, the discontinuation of loss-making sales in the US and the impact of the strike in South Africa.
¡ Gross profit (excl. depreciation) increased by 25% to €29.9 million in the quarter, resulting in a gross margin improvement of 450 basis points year-on-year to 23.5%. Fourth quarter EBITDA increased to €20.5 million, from €11.1 million in 4Q13, with the respective margin substantially improving to 16.1%. EBITDA margin was positively impacted by a €3.1 million insurance reimbursement of the business interruption following the Indian fire incident in April. For the full-year, we improved our EBITDA margin by 70 bps to 12.9%, despite lower year-on-year sales.
¡ Operating Profit (EBIT) improved to €11.9 million in the quarter, from €2.7 million last year, despite a 3% year-on-year increase in depreciation charges to €8.6 million. Net finance costs were €10.1 million, up 4% year-on-year driven by higher foreign exchange losses mainly due to the sharp devaluation of the Russian ruble, more than offsetting the benefits from lower average debt year-on-year and a modest reduction in the effective interest rate for the quarter. Net loss settled in Q4 at €6.2 million, compared to the adjusted net loss (adjusted for restructuring charges) of €15.4 million in 4Q13.
¡ Fourth quarter capital expenditure was €10.2 million, compared to €12.4m. Capex for the full-year was €28.7 million, compared to €24.9 million in 2013, reflecting investments on technology and innovation. Net trade working capital declined by 11% year-on-year to €125.3 million mainly on reduced inventory levels. Free cash flow reached €22.5 million at December-end 2014, an improvement of €6.1m versus last year, driven by lower working capital requirements. Net debt of €234.3 million was unchanged compared to the end of 2013.
|EBITDA Mrg||12,2%||12,9%||+70 bps||8,7%||16,1%||+733 bps|
|Net Mrg||-5,9%||-11,6%||-571 bps||-25,6%||-4,9%||+2.069 bps|