Rotterdam, The Netherlands (9 May 2018) - IMCD N.V. ("IMCD" or "Company"), a leading distributor of speciality chemicals and food ingredients, today announces its first three months 2018 results.
· Gross profit growth of 21% to EUR 128.3 million (+27% on a constant currency basis)
· Operating EBITA increase of 17% to EUR 49.9 million (+23% on a constant currency basis)
· Net result before amortisation and non-recurring items increase of 19% to EUR 35.1 million (+25% on a constant currency basis)
· Cash earnings per share increased by 20% to EUR 0.67
Piet van der Slikke, CEO: "We are very pleased with IMCD's results this first quarter. All regions contributed with double digit growth of operating result (forex adjusted). Organic growth was strong, in particular in EMEA and the Americas. We are also pleased with the performance of the businesses that we acquired in 2017 (of which LV Lomas was the most significant) and we make good progress with their integration. We continue to be optimistic that 2018 will be another year of growth."
Jan. 1 - March 312018 Jan. 1 - March 31 2017 Change Change Fx adj. change
Revenue 566.3 469.7 96.6 21% 27%
Gross profit 128.3 106.4 21.9 21% 27%
Gross profit in % of revenue 22.7% 22.7% 0.0%
Operating EBITA1 49.9 42.7 7.2 17% 23%
Operating EBITA in % of revenue 8.8% 9.1% (0.3%)
Conversion margin2 38.9% 40.1% (1.2%)
Net result before amortisation / non-recurring
items 35.1 29.4 5.7 19% 25%
Free cash flow3 32.4 43.3 (10.9) (25%)
Cash conversion margin4 63.5% 98.6% (35.2%)
Earnings per share (weighted) 0.52 0.42 0.10 24% 29%
Cash earnings per share (weighted)5 0.67 0.56 0.11 20% 25%
Number of full time employees end of period 2,273 1,874 399 21%
1 Result from operating activities before amortisation of intangibles and non-recurring items
2 Operating EBITA in percentage of Gross profit
3 Operating EBITDA excluding non-cash share based payment expenses, plus/less changes in working capital, less capital expenditures
4 Free cash flow in percentage of Operating EBITDA
5 Result for the year before amortisation (net of tax)
In the first three months of 2018, revenue was EUR 566.3 million, an increase of 21% compared to the same
period in 2017. On a constant currency basis, the increase in revenue was 27%, consisting of organic growth
(10%) and the impact of the first time inclusion of acquired companies (17%). All regions contributed to the
Gross profit, defined as revenue less cost of materials and inbound logistics, increased from EUR 106.4 million
to EUR 128.3 million in 2018, an increase of 21% compared to the first three months of 2017. On a constant
currency basis, gross profit growth was 27%, consisting of organic growth of 12% and growth as a result of the
first time inclusion of acquisitions of 15%.
Despite the impact of the first time inclusion of acquired companies, changes in local market circumstances,
currency exchange rate movements and the usual fluctuations in the product mix, gross profit in % of revenue
remained stable at 22.7%.
In the first three months of 2018 operating EBITA was EUR 49.9 million, an increase of 17% compared to the
first three months of 2017. On a constant currency basis the increase is 23%.
The growth in operating EBITA was a combination of organic growth, the first time inclusion of companies
acquired in 2017 and a negative impact of currency exchange differences. The operating EBITA in % of
revenue decreased from 9.1% in the first three months of 2017 to 8.8% in 2018.
The conversion margin, defined as operating EBITA as a percentage of gross profit, decreased by 1.2%-point
from 40.1% in the first three months of 2017 to 38.9% in 2018.
Cash flow and capital expenditure
Compared to the first three months of 2017, free cash flow decreased by 25%, from EUR 43.3 million to
EUR 32.4 million. The cash conversion margin, defined as free cash flow as a percentage of operating
EBITDA, was 63.5% compared to 98.6% in the first three months of 2017. The decrease of free cash flow and
cash conversion margin in 2018 was the result of higher operating EBITDA, offset by higher working capital
The investment in working capital (sum of inventories, trade and other receivables minus trade and other
payables) in the first three months of 2018 was EUR 18.0 million compared to EUR 0.5 million in the first three
months of 2017. Working capital investments were primarily driven by the strong business activities in the first
three months of 2018, partly offset by the weakening of non-EUR currencies.
Capital expenditure was EUR 1.2 million in 2018 compared to EUR 0.6 million in the first three months of 2017
and mainly relates to investments in the ICT infrastructure, office furniture and technical and office equipment.
As at 31 March 2018, net debt was EUR 469.6 million compared to EUR 490.0 million at year end 2017. The
leverage ratio (net debt/operating EBITDA ratio including full year impact of acquisitions) as at the end of
March 2018 was 2.6 times EBITDA (31 December 2017: 2.8). Calculated on the basis of the definitions used in the IMCD loan documentation, the leverage ratio at the end of March 2018 was 2.6 times EBITDA
(31 December 2017: 2.7) which is well below the required maximum of 3.5.
In March 2018, IMCD successfully placed an EUR 300 million unrated corporate bond with institutional
investors. This seven-year senior unsecured bond, maturing in March 2025, has a fixed coupon of 2.5% and
an issue price of 99.481%. The bond is listed on the Luxemburg Stock Exchange MTF market. The proceeds
of the bond issue have been used to repay outstanding EUR 193 million term loans and part of the existing
Early April 2018, IMCD discontinued its EUR 300 million revolving credit facility and entered into a new 5-year
syndicated EUR 400 million multi-currency revolving facility. This new revolving facility has a lower interest
margin (1.30% margin on Euribor early April 2018 compared to 1.60% for the previous revolver) and a fixed
leverage covenant of 3.75 (previously: 3.50) with an acquisition spike of 4.25 (previously: 4.00).
The transaction costs related to these refinancings (EUR 2.9 million) and previous refinancings are amortised
over the expected lifetime of the loans. The amortisation charges expected for 2018 amount to EUR 5.5 million
(2017: EUR 1.6 million) including EUR 4.6 million (non-cash) accelerated amortisation of transaction costs
related to the repaid term loans and revolving facilities to be expensed in the second quarter of 2018.
This refinancing will improve terms and conditions of IMCD's financing structure, extends the maturity profile
and provides further flexibility with appropriate leverage levels to support future business development.
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IMCD - Resolutions Annual General Meeting 9 May 2018
ROTTERDAM, The Netherlands (9 May 2018) - At the Annual General Meeting of IMCD N.V. (IMCD) held on 9 May 2018 all resolutions on the agenda were passed. Piet van der Slikke (CEO) and Hans Kooijmans (CFO) were reappointed as members of the Management Board for another term of four years. The financial statements for the year 2017 were adopted and the dividend proposal of EUR 0.62 per share in cash was approved. The dividend calendar is as follows:
11 May 2018 Ex-dividend date
14 May 2018 Record date
15 May 2018 Payment date
Further resolutions included the reappointment of the Supervisory Board members Michèl Plantevin and Arjan Kaaks (respectively Chairman of the Supervisory Board and Chairman of the Audit Committee). Stephan Nanninga was appointed as member of the Supervisory Board for a first term of four years.
Deloitte Accountants B.V. was reappointed as external auditor for the years 2019 and 2020. Details of the Annual General Meeting are available at IMCD's corporate website www.imcdgroup.com/investors