COIL: LOWER RESULTS IN 2022 DUE TO ECONOMIC FACTORS AND EXCEPTIONAL
CHARGES
LOWER RESULTS IN 2022
DUE TO ECONOMIC FACTORS AND EXCEPTIONAL
CHARGES
- Sales of €26.7M (+6%) impacted by
sharply fluctuating distributor
demand in the Tolling Activity. The Project
Business was strong in Europe
- EBITDA of €2.9M, down to 10.9% of
Sales due to the change in product mix and
overall inflation in operating costs
- Net income down to
€(3.0)M mainly due to the
recognition of an impairment loss on the goodwill
without impact on cash position of the
company.
- Net financial debt contained at 26% of equity
at 31 December 2022
- Expected recovery in the second half of
2023
Brussels, 28 April 2023 (17.45) - COIL, world
leader in aluminium anodising, has released its annual results for
the 2022 financial year.
- Significant events of the
financial year
In a very uncertain macro-economic environment,
with the return of high inflation and the outbreak of war in
Ukraine and Russia, COIL's activities in 2022 were strongly
influenced by volatility in the aluminium flat rolled products
business in Europe.
The temporary shortage of metal caused by the
post-COVID19 recovery resulted in exceptionally long delivery times
from rolling mills, which led distributors to overstock and
triggered a very sharp rise in aluminium prices. The aluminium
price peaked in Q2. Then, with the reduction in supply times, the
price fell very sharply, leading distributors to reduce their
stocks to more normal levels.
In this context, the Company's Tolling Sales
(77% of 2022 sales) evolved according to the imbalance between
supply and demand. After a solid first half (+18.5%), they fell
sharply in the second half (-13.2%) due to the full impact of the
slowdown in demand from distributors. Over the year as a whole,
Tolling Sales nonetheless grew by 2%.
Package Sales, which include metal (23% of 2022
sales), recovered strongly during the year (+19%). This recovery
was due to the sustained development of sales in Europe, with
significant deliveries, which compensated for the lack of orders in
Russia and sluggish invoicing in Asia. The Company expects the
Asian markets to recover in 2023 with the reopening of borders and
the delivery of several new projects.
The shift in the product mix towards Package
Sales and the significant increases in energy and raw material
costs significantly impacted the Gross Margin and results, despite
price increases implemented by the Company during the year to
tackle inflation.
The Company rationalised its resources and
consolidated its production on a limited number of lines by
focusing its operations on its Landen site in Belgium and its
high-efficiency line 6 in Germany.
At the same time, the Company boosted its
investments to improve its energy efficiency. In partnership with
local renewable energy operators, the Company commissioned a
photovoltaic park at its Bernburg site in Germany in October 2022,
which provides 20% of the electricity consumed by the site at
competitive costs.
Sales for the 2022 financial year increased by
6% compared to the previous year and amounted to €26.7M.
Despite the increase in revenue, the EBITDA
decreased by - €3.4M to €2.9M, or 10.9% of sales compared to 24.8%
in 2021. This change is mainly explained by i) the decrease in
gross margin due to the change in the product mix and the strong
increase in variable production costs, in particular those related
to energy and raw materials, and ii) the increase in operating
expenses, in particular, with arise in payroll costs.
Income from ordinary operations is close to
break-even at €(0.1)M, compared with a profit of €2.8M in 2021.
Operating profit came to a loss of €(2.6)M. In
2022, it is impacted by non-current charges of €2.5 million due to
an unrealized loss on the goodwill of continuous anodising assets.
This recognition of the impairment loss is the result of a change
in market conditions and the application of certain IFRS accounting
standards1. It should be noted that this impairment loss
does not have any impact on the cash position of the company.
The net result is a loss of €(3.0)M. It includes
financial charges of €0.3M, compared with €0.6M in 2021.
|
(€M) |
2022 |
2021 |
Variation |
|
Sales |
26.7 |
25.2 |
+ 6 % |
|
Tolling Sales |
20.6 |
20.1 |
+ 2 % |
|
Package Sales2 |
5.9 |
5.1 |
+ 18 % |
|
EBITDA |
2.9 |
6.3 |
- €3.4 M |
|
% of sales |
10.9% |
24.8% |
|
|
Income from ordinary operations |
(0.1) |
2.8 |
-
€2.9
M |
|
% of sales |
(0.4)% |
11.1% |
|
|
Operating result |
(2.6) |
2.8 |
- €5.4 M |
|
% of sales |
(9.9)% |
11.1% |
|
|
Pre-tax result |
(2.9) |
2.2 |
- €5.1 M |
|
Net result |
(3.0) |
2.1 |
- €5.0 M |
|
% of sales |
(11.2)% |
8.1% |
|
Shareholders' equity stood at €23.6M at 31
December 2022, down €5.6M on 31 December 2021, owing to the year's
loss (-€3.0M) and the interim dividend paid in September 2022
(-€2.8M). Net financial debt at 31 December 2022 was €6.1M (+€2.2M
compared to 2021) and remained at acceptable levels, representing
26% of equity, compared to 13% at 31 December 2021.
- 2023 first-quarter sales
and outlook
The first quarter of 2023 followed the trend
observed at the end of 2022. Quarterly sales amounted to €6.4M,
down 3.2% compared with the first quarter of 2022. Package Sales
maintained their growth momentum with sales (€1.7M) up +37.3%,
while Tolling Sales continued to suffer from the destocking by
metal distributors, particularly against a high comparison base
(€4.7M; -12.3%).
In an uncertain global economic environment,
COIL maintains a cautious approach to 2023 and anticipates lower
demand for tolling services in the first half compared to the
previous year, as distributors continue to consume their stocks and
stronger competition emerges in the European continuous anodising
market.
In the short term, the Company has taken steps
to limit the impact of the slowdown on margins in tolling
activities by increasing its prices in line with inflation,
continuing to optimise its variable cost base and supporting the
commercial development of its Package offers.
Energy prices have fallen in 2023, but the
outlook remains uncertain. The company’s electro-chemical process
means a high energy consumption. The Company is looking to render
energy prices variable in its tolling business.
The Company continues to seek partnerships to
replace its fossil fuel consumption with competitive renewable
energy sources, with the aim of achieving carbon neutrality at the
Bernburg site. After the commissioning of a photovoltaic park in
2022, the Company is in discussions with a sector operator to
purchase green energy for 30% of the energy consumption in Germany.
A similar action plan is under consideration in Belgium. These
actions will contribute to achieving significant savings in the
long term as well as increasing consumption of energy from green
resources.
Investments made over the last few years and the
flexibility of its industrial plant will enable it to react
efficiently to market improvements from the second half of
2023.
In the medium to long term, the Company is
confident in its development prospects by capitalising on its broad
portfolio of premium, sustainable and low carbon footprint products
to increase the potential of its business.
The financial statements were approved by the
Board of Directors on 27 April 2023. They are included in the 2022
consolidated annual accounts available on the Company's financial
website (http://investors.coil.be).
|
|
Annual General Meeting |
|
|
First half 2023 sales |
|
|
First half 2023 results and half-year financial report |
About COIL
COIL is the world's leading anodiser in the
building and industrial sectors and trades under the ALOXIDE brand
name.
Anodising is an electrochemical process
(electrolysis) which develops a natural, protective oxide layer on
the surface of aluminium and can be coloured in a range of UV-proof
finishes. It gives the metal excellent resistance to corrosion
and/or reinforces its functional qualities. Anodising preserves all
the natural and ecological properties of aluminium; it retains its
high rigidity and excellent strength-to-weight ratio, its
non-magnetic properties, its exceptional resistance to corrosion.
The metal remains totally and repeatedly recyclable through simple
re-melting. Anodised aluminium is used in a wide variety of
industries and applications: architecture, design, manufacturing
and the automotive sector.
COIL deploys an industrial model that creates
value by leveraging its unique know-how, its operational
excellence, the quality of its investments and the expertise of its
people. COIL has around 120 employees in Belgium and Germany and
generated a turnover of €26,5 million in 2022.
Listed on Euronext Growth Paris | Isin:
BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit
www.aloxide.com
Contact
|
COILTim Hutton | Chief Executive
Officertim.hutton@coil.be | Tel.: +32 (0)11 88 01 88 |
CALYPTUSCyril Combe cyril.combe@calyptus.net |
Tel.: +33 (0)1 53 65 68 68 |
1 The recognition of this unrealised impairment loss results
from the application of the IAS36 standard. This standard
prescribes that an entity is obliged to reduce the asset value (in
casu, the goodwill value related to the continuous anodising unit)
to ensure that the asset is carried at no more than its recoverable
amount. Such reduction qualifies as an impairment loss, which does
not have any impact on the cash position of the company.2 Anodising
and metal included.
- COILpressrelease28april2023_EN
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