Carel Reports Strong Growth In 2018

Date: 13 March 2019
Carel Reports Strong Growth In 2018

The Board of Directors of CAREL Industries approved the consolidated results for 2018:
· Consolidated revenues of EUR 280.22 million, up 9.7% compared with 2017 (+11.4% at constant exchange rates);
· Consolidated EBITDA equal to EUR 46.99 million (16.8% of revenues for the period), -6.7% compared with 2017;
· Consolidated adjusted EBITDA equal to EUR 55.21 million (19.7% of revenues for the period), +8.5% compared with 2017;
· Consolidated net result equal to EUR 30.75 million (-1.3% compared with the net result for 2017);
· Consolidated adjusted net result equal to EUR 37.52 million (+18.9% compared with 2017).

Group CEO Statement

Francesco Nalini, Group CEO, said: “2018 was a new milestone for CAREL which, in its forty fifth year of existence listed on the STAR segment of the Stock Exchange, with demand exceeding supply four times over in spite of the timing being when the market was unfavourable. In the light of this, the excellent results achieved in the year just ended take on even greater significance: growth in revenues has faded after the double digit figure (+9.7%) with profitability which, excluding several non-recurring entries mainly related to the above-mentioned listing, remains at the high levels of 2017 (adjusted EBITDA margin of 19.7%); net of the abovementioned entries, also net profit has reported a significant increase, equal to 18.9%. These performances benefit slightly from the contribution of the consolidation of Hygromatik and Recuperator, the two companies bought by the Group at the end of last year which are further proof of CAREL's commitment and ability to implement its strategic guidelines, including the growth through M&A activity. Lastly, it is worth pointing out how the operating results achieved were translated into significant cash generation through which we easily covered the important investments intended for the expansion of several of our production sites including those in China and North America. This will enable us to support the development of the Group in the years to come and, as always, the foundations of CAREL will be innovation, sustainability and customer care.


Revenue totalled EUR 280.22 million, compared with EUR 255.45 million as at 31 December 2017, a year-on-year percentage increase of +9.7%. The performance of several currencies in which the Group operates had a negative effect on this result, in particular the US dollar and the Brazilian real: at constant exchange rates the growth in Group revenue would have been 11.4%. This performance confirms the good balance and resilience of the Group's business portfolio as well as the effectiveness of the strategic decisions taken.
The sector which recorded the highest growth is refrigeration which, in absolute terms, reported an increase of around EUR 14 million (+15.5% compared with the same period of the previous year), related to Carel's capacity to exploit significant business opportunities thanks to innovative content of its products and a strong presence in all communication and sales channels. Added to this is the important contribution of the HVAC sector, whose positive change exceeded EUR 13 million (+8.3% compared with 2017) also due to the timely use of the leverage of up-selling and cross-selling partly made possible by the long-term relationship the Group enjoys with a large number of its customers. In addition to organic growth in HVAC there is the contribution from the above-mentioned acquisitions of Hygromatik and Recuperator.


The excellent performance recorded as at 31 December 2018 in terms of revenue and profitability are related to the implementation of the strategic guidelines that the Group has always followed and which will continue to direct its actions in future years: innovation, energy saving and a customer focused approach.
If there are no significant changes in the economic scenario and the sector, the Group estimates that it will be able to maintain development trends in line with previous years, consolidating growth and financial solidity. The important two-year investment plan, launched in 2018 and dedicated to the expansion of production capacity, will also contribute to the former; on the other hand, the excellent cash generation, which defined the year just ended will provide a basis for the latter.

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