Q1 2017 Results: Good start to the year
- Net sales up 6.1% year-on-year at €612m, including organic growth of 2.8%(1)
- Robust organic growth in EMEA (up 7.0%)(1) and a good start to the year for the CIS, APAC and Latin America segment (up 2.0%)(1)
- Adjusted EBITDA(2) up 14.6% at €52m versus €45m in Q1 2016
- Adjusted EBITDA margin up 62 bps to 8.4% (versus 7.8% in Q1 2016)
Net sales at constant scope of consolidation and exchange rates advanced 2.8% in Q1 2017. The EMEA segment delivered an excellent performance in the quarter (up 7.0%), while the Sports segment continued to enjoy good momentum (up 3.6%). The CIS, APAC and Latin America segment started the year well, posting 2.0% organic growth. In North America, like-for-like(1) sales were down 2.1%, penalized by a high comparison basis.
Reported sales were up 6.1% on Q1 2016. Exchange rates accounted for 3.3% sales growth, as the positive impact of a stronger ruble (partly countered by a selective promotions strategy) and gains in the US dollar against the euro more than offset weakness in pound sterling. The February 2017 acquisition of AlternaScapes had a negligible scope impact.
Adjusted EBITDA was 14.6% higher at €52m versus €45m in Q1 2016. The adjusted EBITDA margin gained 62 bps year-on-year at 8.4%. The CIS, APAC and Latin America segment posted strong adjusted EBITDA growth. For the Group as a whole, the continuous improvement measures helped unlock further productivity gains of €8m. As expected however, raw material prices had a €2m negative impact on adjusted EBITDA.
Commenting on these results, Michel Giannuzzi, CEO, said:
“We have made a good start to the year. The performance of our EMEA segment confirms our solid positions in several countries. I am pleased to note the steadily improving situation in CIS countries. Only North America was down, affected by tough prior-year comparatives. Despite the rise in raw material prices, margin growth shows the strength of our productivity efforts under our World Class Manufacturing Program.”
(1) Organic growth: at constant scope of consolidation and exchange rates (note that in the CIS segment, price increases implemented to offset currency fluctuations are not included in organic growth, which only reflects changes in volumes and the product mix). See the definition of alternative performance indicators at the end of this press release.
(2) Adjusted EBITDA: adjustments include expenses relating to restructuring, acquisitions and certain other non-recurring items. See the definition of alternative performance indicators at the end of this press release.
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