RHI Magnesita N.V.
(“RHI Magnesita” or the “Company” or “Group”)
2018 Full Year Results
Strong organic growth, continued synergy delivery and rapid deleveraging
RHI Magnesita today announces its 2018 full year results for the year ended 31 December 2018 (“2018” or “the Year”).
See below the highlights of the year. To access the full release please follow the link, here.
Highlights1
(€m unless stated otherwise)
|
|
2018 Adjusted2 |
2017 Adjusted2 pro-forma3 constant currency |
Variance
|
|
Revenue |
3,081.4 |
2,549.6 |
+21% |
|
Adjusted EBITA |
428.1 |
235.9 |
+81% |
|
Adjusted EBITA margin |
13.9% |
9.3% |
+460bps |
|
Adjusted EPS |
€5.31 |
n/a |
n/a |
|
Net debt |
638.9 |
750.8 |
-15% |
|
Net debt to adjusted EBITDA |
1.2x |
1.9x |
-0.7x |
|
|
2018 Reported |
2017 Reported4 |
|
Revenue |
3,081.4 |
1,950.1 |
|
EBITA |
427.2 |
78.9 |
|
Profit before tax |
246.0 |
(5.9) |
|
EPS |
€3.52 |
(€0.43) |
1 A full table of reported and pro-forma results is provided on page 18
2 Adjusted measures are alternative performance measures excluding impairments, amortisation of acquisition intangibles and exceptional items to enable an understanding of the underlying performance of the business. Full details of the APMs can be found on page 17
3 Whilst the merger became effective on 27 October 2017, the pro-forma results were prepared as if the Group had existed since 1 January 2017. Full details on page 18
4 As reported in 2018 Annual Report following purchasing price allocation (“PPA”) and other reclassifications
5 Working capital as a percentage of last three months annualised revenue
6 Calculated using adjusted earnings per share
Commenting on the results, Chief Executive Officer, Stefan Borgas said:
“This was our first full financial year as a new company and I am delighted by the significant amount that we have achieved. Underpinned by the strength of the markets in which we operate, we have reported very strong financial results, successfully delivered on our integration plans and benefitted from the synergies of the combination.
More broadly, we continue to navigate well the challenges of the integration process and have set the business on the right path to support its ongoing strategic development.
Whilst some uncertainties exist in the macroeconomic outlook for 2019, robust customer markets in the medium term (albeit with some uncertainty in the short term) and positive trends in raw material pricing support our expectation to deliver modest organic revenue growth, with improved operating margins from 2018 levels, driven by continued synergy generation and further optimisation initiatives, in addition to further growth potential from acquisitions.”
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
For further enquiries, please contact:
RHI Magnesita N.V.:
Guy Marks, Head of Investor Relations
+44 7741 73068
Conference call
The Company will host a presentation for analysts and investors at the offices of Peel Hunt LLP, Moor House, 120 London Wall, EC2Y 5ET at 8:30am (GMT) on Wednesday 27 March 2019 to discuss the results. The presentation will also be available via webcast and conference call. The webcast can be accessed using the following link: https://www.investis-live.com/rhimagnesita/5c6c1ea4f562761200e15694/rhgs. A replay will be available on the same link shortly after event.
Conference call participant dial-in numbers are as follows:
UK: 020 3936 2999
All other locations: +44 20 3936 2999
Access code: 471643
The Company’s 2018 Annual Report has been published and is available to view on the website at: https://ir.rhimagnesita.com/. In compliance with Listing Rule 9.6.1, a copy will also be submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM.
This announcement also contains as appendices additional information for the purposes of compliance with DTR 6.3.5 (1) of the UK Disclosure and Transparency Rules. The information below is extracted, in full unedited text, from the Annual Report 2018. Page numbers and cross references in the extracted information refer to page numbers and cross-references in the Annual Report. This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report 2018.
About RHI Magnesita
RHI Magnesita is the leading global supplier of high-grade refractory products, systems and solutions which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves customers in nearly all countries around the world. The Company has a high level of geographic diversification with more than 14,000 employees in 35 main production sites and more than 70 sales offices around the world. RHI Magnesita intends to leverage its global leadership in terms of revenue, scale, product portfolio and diversified geographic presence to target strategically those countries and regions benefitting from more dynamic economic growth prospects.
Its shares have a premium listing on the London Stock Exchange (symbol: RHIM) and are a constituent of the FTSE 250 index. For more information please visit: www.rhimagnesita.com