CAREL Group’s Board of Directors approved the consolidated results as at 30 June 2019: consolidated revenues of € 166.9 million, growth of 20.3% compared to the first six months of 2018.
Financial Highlights
- Consolidated revenues of € 166.9 million, growth of 20.3% compared to the first six months of 2018 (+19.3% based on constant exchange rates). Based on the same scope of consolidation, growth reached 7.3%, with revenues of € 148.9 million.
- Consolidated EBITDA of € 33.7 million (20.2% of revenues for the period), +39.4% compared to the first six months of 2018;
- Consolidated net income of € 19.0 million, +21.7% over the net income in the first six months of 2018);
- Negative consolidated net financial position of € 76.1 million.
Group CEO Statement
Francesco Nalini, Group Chief Executive Officer, stated: “The revenues registered in the first six months of 2019 mark a 20.3% increase over the same period in 2018 with an acceleration compared to the first quarter of this year, which reported a 19.5% growth. All geographic areas and the expansion in the scope of consolidation through the two companies acquired last December (Hygromatik and Recuperator) contributed to these performances; profitability also improved compared to the first quarter of this year: the Ebitda margin went from 19.6% as at 31 March 2019 to 20.2% in the half, mainly thanks to the effect of operating leverage. The results obtained are particularly important given the presence of an unfavourable global economic scenario and they demonstrate the resilience and solid balance of the Group’s business portfolio”.
Revenues
Revenues amounted to € 166.9 million, compared to € 138.8 million as at 30 June 2018, marking an increase of +20.3%.
This performance, an acceleration with respect to that recorded in the first quarter of the year, benefitted from a favourable trend in all geographic areas (EMEA, Asia Pacific, North America and South America) and in all segments (HVAC and Refrigeration), thanks to the combination of cross-selling and up-selling initiatives with customers already acquired, based on the continuous technological progress of the solutions offered by the Group and thanks to the activities of the sales force in searching for new business opportunities. This was augmented by the contribution of Hygromatik and Recuperator, the two companies acquired in December 2018, amounting to roughly € 18.1 million. The positive exchange effect was limited to around € 1.4 million.
The geographical area which registered the biggest increase in percentage terms was North America, which, by contrast, in the first quarter had been hampered by logistics problems linked to the saturation of the plant located in Pennsylvania. These inconveniences were resolved with the completion of the productive-logistics expansion project, which enabled a recovery in the significant backlog and, therefore, led to growth in revenues of close to 30%. Also the EMEA region (Europe, Middle-East, Africa) reported double-digit growth, thanks to both the contribution of the newly acquired companies above, and the continuous technological innovation and sales strengthening activities. Significant performances were recorded in APAC (Asia Pacific), with growth approaching 10%, despite greater volatility, mainly as a result of the introduction of duties on trade between the United States and China. It is important to note the completion of the new Chinese plant in the city of Suzhou, which trebles the dimensions of the previous one, which was unveiled on 16 July. Lastly, the results in the South America region also improved, despite a major critical political and economic situation, which is affecting the continent.
As regards the individual business areas, the significant growth in HVAC benefitted once more from the entry into the scope of consolidation of Hygromatik and Recuperator, while the performances recorded in the Refrigeration sector are mainly due to organic growth.
Business outlook
The results registered as at 30 June 2019 signal further organic growth in revenues both compared to the same period of 2018 and the first quarter of this year; this is augmented by the contribution from the change in the scope of consolidation thanks to the acquisitions concluded at the end of 2018 (Hygromatik and Recuperator). These performances are particularly noteworthy if we take into account that they were registered in the presence of major signs of a slowdown in the global economy. In the absence of further downturns in the international scenario, the constant implementation of the company’s strategic guidelines should lead, at the end of the year, to growth and profitability results close to the ones posted as at 30 June 2019.
