Result as of June 30th, 2015  

The results of the first half of 2015 show growth in revenues and profitability underpinned by the performance in the Premium segment, the strong price/mix improvement and efficiency gains.

Results highlights

  • Premium volumes at +10%, in line with 2015 guidance, in particular in APac, LatAm, MEAI and Russia. Premium reached a total weight of 59% of Consumer revenues, an improvement of over 3 percentage points compared with the first half of 2014;
  • Revenue growth of +6.4% (+3.2% at the organic level) to €3,173.7 million, in line with full-year targets, sustained by the positive performance of the Consumer business (revenues +10.2%, +5.4% at the organic level) while the Industrial business (revenues -5.8%, -5.0% at the organic level) was impacted by the market decline in LatAm;
  • Positive performance of the price/mix component (+3.5%), substantially in line with 2015 guidance; in the Consumer business, the price/mix (+4.4%) grew thanks to an increasing exposure high-end products and the Repl. channel and price increases in Russia and LatAm; in the Industrial business the price/mix (+0.7%) recorded a progressive improvement (+1.3% in 2Q) as a result of price increases in LatAm in the second quarter;
  • The positive performance of Consumer volumes (+1.3%) counter-balanced the decline of the Industrial ones (-5.7%) due to the weakness of the LatAm truck and agro markets; overall volumes were stable in 1H;
  • The achievement of efficiencies of €45.8 million (51% of the FY goal of €90 million) in the context of the 4-year efficiency plan (2014-2017) of €350 million announced in November of 2013 (efficiencies realized in 2014 totaled €92 million);
  • EBIT growth of +4.8% YoY at €446.6 million. EBIT margin at 14.1%, substantially stable compared with 14.3% of 1H 2014;
  • Net profit of continuing operations at €211.4 million (+10.0% compared with €192.1 million in 1H 2014);
  • Strong cash generation in 2Q 2015: €212.4 million before dividends and Steelcord cash-in; Net financial position is therefore €1,664.4 million (€1,732.9 million on 31 March 2015).

Over the course of 2015 a further improvement of the Consumer business is expected – thanks to the positive performance of the Premium segment – which will compensate for the weakness of the Industrial business in emerging markets. 2015 targets are confirmed in terms of:

  • EBIT equal to ~€930 million after restructuring charges of ~€30 million (previous estimate €40 million);
  • Investments <€400 million;
  • Cash generation before dividends ≥€300 million before Steelcord disposal;
  • Net financial position at ~€850 million.

2015 Targets

Last revised: 07 Aug 2015