Jacquet Metal Service: Third Quarter 2017 Earnings

Regulatory News:

JACQUET METAL SERVICE (Paris:JCQ):

On November 14, 2017 the Board of Directors chaired by Éric Jacquet examined the consolidated financial statements for the period ended September 30, 2017.

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.

Sales and earnings for the period ended September 30, 2017

Group sales amounted to €1,323 million, +8.6% compared to September 30, 2016 (Q3: +8.8%), including the following effects:

> Volumes sold -0.7% (Q3: +1,9%),
> Price: +9.3% (Q3: +6.9%).

Gross margin amounted to €335.2 million, representing 25.3% of sales (Q3: 24.1%) compared to 23.9% as of September 30, 2016.

Operating expenses excluding non recurring items have been controlled: +1.3% compared to September 30, 2016 (Q3: -1.1%).

EBITDA came to €82.8 million (Q3: €22.1 million), amounting to 6.3% of sales compared to €40.1 million (3.3% of sales) as of September 30, 2016.

Operating income before non-recurring items amounted to €66.7 million (5% of sales) and net income (Group share) amounted to €37.1 million (2.8% of sales) compared to €25.7 and €7.8 million as of September 30, 2016 respectively.

Financial position

As of September 30, 2017, operating working capital amounted to €394 million, including inventories of €389 million, and represented 23.3% of sales, stable compared to the 2016 year-end and June 30, 2017. Operating cash flow generated by the Group since the beginning of the year amounted to €58 million (compared to €33 million as of September 30, 2016) and capital expenditure amounted to €20 million.

Group net debt stood at €189 million, compared to shareholders’ equity of €322 million, resulting in a net debt to equity ratio (gearing) of 59% (69% as of December 31, 2016).

Earnings as of September 30, 2017 by division

¹ Non-division operations contributed €3.6 million to Q3 2017 EBITDA, and €7.6 million as of September 30, 2017.
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 specializes in the distribution of stainless steel and wear-resistant quarto plates. JACQUET and Abraservice have separate sales networks. The division generates 74% of its sales in Europe and 18% in North America.

Sales amounted to €286.6 million compared to €246.5 million as of September 30, 2016, an increase by +16.3%: Volumes sold rose +6.6% (Q3: +15.8%), prices rose +9.7% (Q3: +1.3%).

The gross margin rate rose 0.3 percentage point to 30.3% of sales (Q3: 29.1%) and came to €86.8 million compared to €74 million as of September 30, 2016.

EBITDA amounted to €17.7 million (Q3: €4.2 million), representing 6.2% of sales, compared to €7.6 million (3.1% of sales) as of September 30, 2016.

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

Sales amounted to €351.7 million, +9.8% from €320.3 million as of September 30, 2016, an increase by +9.8% : Volumes sold decreased by -3.6% (Q3: +0.1%), prices rose +13.4% (Q3: +7.2%).

The gross margin rate rose 1.1 percentage point to 22.6% of sales (Q3: 20.9%), while the gross margin came to €79.3 million compared to €68.7 million as of September 30, 2016.

EBITDA amounted to €22.2 million (Q3: €5.5 million), representing 6.3% of sales, compared to €13.2 million as of September 30, 2016 (4.1% of sales).

IMS group This division specializes in the distribution of engineering steels, mostly in the form of long products. It generates 48% of its sales in Germany, the largest European market.

Sales amounted to €681.2 million compared to €650.9 million as of September 30, 2016, an increase by +4.6%: Volumes sold decreased by -2.5% (Q3: -3.2%), prices increased +7.2% (Q3: +8.9%).

The gross margin rate rose 2 percentage points to 24.2% of sales (Q3: 23%), while the gross margin came to €164.6 million compared to €144.5 million as of September 30, 2016.

EBITDA amounted to €35.3 million (Q3: €8.8 million), representing 5.2% of sales, compared to €13.8 million (2.1% of sales) as of September 30, 2016. S+B Distribution (the distribution activity acquired from Schmolz+Bickenbach group in July 2015) contributed €13.7 million (3.5% of sales) to EBITDA, compared to €2.1 million as of September 30, 2016.

The activity report may be downloaded from: www.jacquetmetalservice.com.
2017 Full year results: March 7, 2018 after close of trading

Jacquet Metal Service is a European leader in the distribution of specialty steels. The Group operates and develops a portfolio of four brands: JACQUET (stainless steel quarto plates), Stappert (long stainless steel products), Abraservice (wear-resistant quarto plates) and IMS group (engineering steels). Jacquet Metal Service employs 3 317 people and has a network of 109 distribution centers across 26 countries spanning Europe, China and North America.

Compartment B
ISIN : FR0000033904
Reuters : JCQ.PA
Bloomberg : JCQ FP

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