Jacquet Metal Service: First Half 2017 Results

Regulatory News:

JACQUET METAL SERVICE (Paris:JCQ):

On September 6, 2017 the Board of Directors chaired by Éric Jacquet examined the consolidated financial statements for the period ended June 30, 2017, which were subject to a limited review by the Statutory Auditors.

⁽¹⁾ Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.

First half 2017 sales and earnings

Group sales amounted to €911 million, +8.5% compared to first half 2016, including the following effects:
> Volumes sold: -1.8% (Q2: -5.2%);
> Price: +10.3% (Q2: +12.1%).

Gross margin amounted to €236 million or 25.9% of sales (Q2: 25.6%) versus 23.3% in H1 2016.

EBITDA came to €60.7 million (Q2: €29.5 million), amounting to 6.7% of sales versus 2.9% in H1 2016.

Operating income before non-recurring items amounted to €50.1 million (5.5% of sales) compared to €14.1 million (1.7% of sales) in H1 2016.

Net income (Group share) amounted to €27.7 million (3% of sales) versus €2.3 million (0.3% of sales) in H1 2016.

Financial position

The Group generated operating cash flow of €48 million during H1 2017. As of June 30, 2017, operating working capital amounted to €389 million, including inventories of €387 million, and represented 23.4% of sales, stable compared to year end of 2016.

As of June 30, 2017, Group net debt stood at €172 million, compared with shareholders’ equity of €313 million, resulting in a net debt to equity ratio of 55% (69% as of December 31, 2016).

First half 2017 earnings by division

⁽¹⁾ Non-division operations contributed €3.4 million to Q2 2017 EBITDA and €4.0 million to H1 2017 EBITDA.
⁽²⁾ Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.

Jacquet - Abraservice
This division comprises the Jacquet and Abraservice brands, respectively specialized in the distribution of stainless steel and wear-resistant quarto plates. Jacquet and Abraservice have separate sales networks. The division generated 72% of its business in Europe and 18% in North America.

Sales amounted to €195.9 million, +15.9% from €169.1 million in H1 2016: volumes sold +2.6% (Q2: + 2.8%), price +13.3% (Q2: + 13.3%).

The gross margin rate rose 1.4 percentage points to 30.9% of sales, while gross margin came to €60.5 million compared to €49.9 million in H1 2016.

EBITDA amounted to €13.5 million (Q2: €6.4 million), representing 6.9% of sales, compared to €4.6 million (2.7% of sales) in H1 2016.

Stappert
This division specializes in the distribution of long stainless steel products in Europe. It generated 41% of its sales in Germany, the largest European market.

Sales amounted to €240.6 million, +11% from €216.7 million in H1 2016: volumes sold -5.3% (Q2: -10.7%), prices +16.3% (Q2: +18.2%).

The gross margin rate rose 3 percentage points to 23.3% of sales, while the gross margin came to €56.1 million versus €44.1 million in H1 2016.

EBITDA amounted to €16.7 million (Q2: €7 million), representing 6.9% of sales, compared to €6.7 million (3.1% of sales) in H1 2016.

IMS group
IMS group specializes in the distribution of engineering steels, mostly in the form of long products. The division generated 47% of its sales in Germany, the largest European market.

Sales amounted to €472.7 million, +4.2% from €453.8 million in H1 2016: volumes -2.3% (Q2: -5.6%), prices +6.4% (Q2: +8.8%).

The gross margin rate rose 2.8 percentage points to 24.7% of sales, while the gross margin came to €116.7 million versus €99.3 million in H1 2016.

EBITDA amounted to €26.5 million (Q2: €12.6 million), representing 5.6% of sales, compared to €9.4 million (2.1% of sales) in H1 2016. S+B Distribution contributed €10.2 million (3.8% of sales) to EBITDA, compared to €1 million in H1 2016.

Key financial information

Results

⁽¹⁾ Adjusted for non-recurring items. The activity report includes a definition of non-IFRS financial indicators and explains the methods used to calculate them.

Balance sheet

Cash flow

The half-year report may be downloaded from: www.jacquetmetalservice.com.
Q3 2017 results: Wednesday, November 15, 2017 after close of trading

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