FINANCIAL RESULTS FOR THE FIRST HALF YEAR 2020
Brussels, 24 September 2020 - Viohalco S.A. (Euronext Brussels: VIO, Athens Stock Exchange: BIO), hereafter "Viohalco" or "the Company", today announces its financial results for the first half year of 2020.
Resilient performance despite challenging market conditions
H1 2020 highlights
- Solid financial performance despite the COVID-19 outbreak;
- Consolidated revenue of EUR 1,875 million (H1 2019: EUR 2,216 million);
- Consolidated adjusted EBITDA (a-EBITDA) amounted to EUR 126 million (H1 2019: EUR 156 million), while consolidated EBITDA, which includes the effect of metal prices, stood at EUR 108 million (H1 2019: EUR 137 million).
- Swift action taken to ensure operational resilience throughout the COVID-19 pandemic, while ensuring the health and safety of companies' employees and other stakeholders;
- Investment programmes to drive operational efficiency improvements and leverage market opportunities remain on track across all segments.
Overview
During H1 2020, Viohalco's financial performance remained solid due to the resilience and swift response of the Viohalco companies to market developments, despite the profound impact of the COVID-19 pandemic on global markets throughout the period.
In the aluminium segment, Viohalco companies successfully maintained market share, despite the adverse effects of the pandemic, increased competition and the deterioration in metal prices which affected profitability.
The copper segment managed to increase market share and maintain profitability, against the broader adverse market conditions. Production facilities remained unaffected throughout the period and the segment was able to successfully capitalize on the reactivation of European markets, continuing to serve its long-standing business partners and also establishing new relationships.
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In the steel segment, demand and selling prices declined throughout H1 2020 as the COVID-19 pandemic added further challenges to an already difficult market environment. Accordingly, the segment adjusted production levels in an effort to manage costs. Furthermore, a decline in international spreads was recorded in SBQs, plates, wire rods and rebars, as a result of the intensive international competition, affecting the profitability of the segment.
Meanwhile, the cables segment saw steady growth in its projects business during H1 2020, reinforcing the segment's financial performance. As expected, the COVID-19 pandemic had a negative impact on the products business, the part of the segment which serves the construction sector, after a solid start in the first quarter of 2020. Despite the challenges experienced throughout the first half of the year, the cables segment recorded high capacity utilisation rates across all production units.
Global energy markets experienced difficult conditions during the first half of 2020, as the steep decline in oil and gas prices was coupled with the postponement or cancellation of many projects due to the pandemic. That said, Corinth Pipeworks was only mildly affected, supported by a strong order backlog and swift reaction to new conditions ensuring uninterrupted production.
Finally, in the real estate segment, the COVID-19 pandemic and the associated lockdown measures significantly affected the hospitality and retail sectors during H1 2020. In addition, measures imposed by the Greek government, reducing rents between March and June 2020, compounded these challenges. Nevertheless, the diversity of the real estate segment's portfolio, the financial strength of tenants and effective asset management enabled the segment to avoid arrears in rent or service charge in the period.
Financial overview
Summary consolidated statement of profit or loss
Amounts in EUR thousands | H1 2020 | H1 2019 | |
Revenue | 1,875,389 | 2,216,242 | |
Gross profit | 152,414 | 176,543 | |
EBITDA* | 107,751 | 137,460 | |
a-EBITDA* | 126,306 | 155,990 | |
EBIT* | 41,598 | 68,350 | |
a-EBIT* | 60,153 | 86,881 | |
Net finance cost | -46,717 | -51,063 | |
Profit/ Loss (-) | before tax | -7,474 | 17,282 |
Profit/ Loss (-) | for the period | -15,257 | 3,761 |
Profit / Loss (-) attributable to owners of the Company | -17,474 | 462 | |
*APM definitions have been slightly changed compared to 31/12/2019. For further details refer to Appendix.
Viohalco's consolidated revenue for H1 2020 decreased by 15% year-on-year to EUR 1,875 million (H1 2019: EUR 2,216 million), mainly due to the decrease in metal prices during the months March-May, at the peak of the COVID-19 pandemic.
Consolidated a-EBITDA decreased by 19% to EUR 126 million in H1 2020 (H1 2019: EUR 156 million).
Net finance cost decreased to EUR 47 million (H1 2019: EUR 51 million), mainly as a result of credit spread reductions implemented gradually across all Viohalco companies in recent years.
Viohalco's consolidated loss before income tax for the period amounted to EUR 7 million, compared to profit of EUR 17 million in H1 2019, affected by the decline in metal prices and the global slowdown due to the pandemic, especially in the aluminium and steel segments.
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Summary consolidated statement of financial position
Amounts in EUR thousands | 30/6/2020 | 31/12/2019 |
Fixed & intangible assets | 2,197,908 | 2,152,103 |
Other non-current assets | 70,030 | 67,296 |
Non-current assets | 2,267,937 | 2,219,399 |
Inventory | 1,033,500 | 1,060,009 |
Trade and other receivables (inc. contract assets) | 598,585 | 559,919 |
Cash and cash equivalents | 147,316 | 214,499 |
Other current assets | 9,936 | 9,084 |
Current assets | 1,789,337 | 1,843,511 |
Total assets | 4,057,274 | 4,062,910 |
Equity | 1,300,785 | 1,335,073 |
Loans and borrowings | 961,899 | 943,522 |
Other non-current liabilities | 221,417 | 212,302 |
Non-current liabilities | 1,183,316 | 1,155,824 |
Loans and borrowings | 851,788 | 830,455 |
Trade and other payables (inc. contract liabilities) | 673,197 | 710,957 |
Other current liabilities | 48,188 | 30,600 |
Current liabilities | 1,573,173 | 1,572,012 |
Total equity and liabilities | 4,057,274 | 4,062,910 |
Capital expenditure for the period amounted to EUR 124 million (H1 2019: EUR 123 million), largely driven by the completion of investment in the four-stand tandem aluminium hot finishing mill, while depreciation and amortization for the period reached EUR 68 million.
Working capital remained almost at the same levels as in year-end 2019.
Viohalco companies' net debt increased to EUR 1,721 million (2019: EUR 1,613 million).
Performance by business segment
Amounts in EUR | Revenue | EBITDA | a-EBITDA | EBIT | EBT | ||||||||||||||||||||||
thousands | |||||||||||||||||||||||||||
Segments | H1 2020 | H1 2029 | H1 2020 | H1 2029 | H1 2020 | H1 2019 | H1 2020 | H1 2019 | H1 2020 | H1 2019 | |||||||||||||||||
Aluminium | 565,857 | 683,658 | 39,396 | 57,928 | 41,508 | 61,758 | 12,351 | 32,471 | 4,922 | 24,270 | |||||||||||||||||
Copper | 530,673 | 554,939 | 17,746 | 22,322 | 26,898 | 26,727 | 10,478 | 15,226 | 1,080 | 7,137 | |||||||||||||||||
Steel | 345,082 | 449,232 | 5,516 | 18,132 | 11,146 | 25,550 | -10,348 | -1,273 | -23,597 | -16,260 | |||||||||||||||||
Cables | 268,160 | 294,241 | 32,868 | 25,720 | 35,124 | 28,466 | 25,585 | 17,838 | 14,268 | 6,325 | |||||||||||||||||
Steel pipes | 134,923 | 195,458 | 7,674 | 13,171 | 7,674 | 13,316 | 3,338 | 8,208 | -2,074 | 2,265 | |||||||||||||||||
Real estate | 6,270 | 4,248 | 3,754 | 2,885 | 3,754 | 2,885 | 1,264 | 673 | -196 | -628 | |||||||||||||||||
Other | 24,424 | 34,466 | 798 | -2,699 | 201 | -2,711 | -1,069 | -4,794 | -1,878 | -5,827 | |||||||||||||||||
activities | |||||||||||||||||||||||||||
Total | 1,875,389 | 2,216,242 | 107,751 | 137,460 | 126,306 | 155,990 | 41,598 | 68,350 | -7,474 | 17,282 |
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Viohalco SA published this content on 24 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2020 16:24:03 UTC