First half-year results 2013
Norbert Dentressangle maintains controlled development plans
Turnover: €1,932m
Operating margin: 2.9%
- Turnover stable in the first half-year 2013 at €1,932m, sustained by strong
growth in the Logistics activity, which counteracted the downturn in
Transport and Freight Forwarding activities
- Operating profit before goodwill at €55.1m, down 14%, primarily as a result
of one-off charges linked to measures taken by Transport to adapt to the
weakened market conditions
- Strict financial controls maintained with disciplined balance sheet ratios,
fine-tuning of the WCR and continuing efforts to reduce Group debt
- Continuing transformation with targeted acquisitions and a major international
partnership: the logistics activities of the Fiege Group in Italy and the Iberian
peninsula, the Freight Forwarding activities of Daher in France and Russia and
the setting-up of a chilled logistics joint venture with Danone in Russia
Commenting on the results for the first half-year 2013, Hervé
Montjotin, Chief Executive Officer of Norbert Dentressangle, said: "Norbert
Dentressangle's teams have been working hard during this first half-year to
remain on our development course despite very different situations in each of
the businesses. In Transport, the order of the day was to adapt to a sluggish
economic climate, particularly for our industrial clients in France. The
action we have taken has affected our operating profitability over the first
half-year but we are now seeing the first positive effects on the second
half-year. Logistics is maintaining solid growth with a good level of
profitability that is allowing us to expand the business outside Europe.
Finally, as a result of our acquisition of Daher's Freight Forwarding
operations, our Freight Forwarding business will reach a size that will allow
Norbert Dentressangle to become a significant player in the sector and ensure
a strong, efficient and profitable business platform. Based on current market
conditions, the seasonal nature of the Group's results, with a second
half-year traditionally stronger than the first, and our solid foundations, we
remain confident about our prospects".
In millions of euros 1st 1st half-year 1st half-year
half-year 2012 Variation 2012
(Audited accounts) 2013 re-stated** S1 13/ S1 12 published
Turnover 1,932 1,934 -0.1% 1,934
EBITDA* 112.1 118.1 -5.1% 118.1
Operating profit before 55.1 64.0 -14% 64.3
goodwill (EBITA)
EBITA margin (%) 2.9% 3.3% 3.3%
Consolidated net profit 24.5 27.4 -10% 29.9
*: operating profit before allowances/reversals linked to
amortisation, depreciation or provisions.
**: with consideration for the IAS 19R standard relating to social
obligations.
Turnover: Maintaining the level of activity
In what is still a difficult economic climate in Europe, Norbert
Dentressangle's consolidated turnover in the first half-year 2013 was €1,932m,
stable compared to the same period in 2012. The exchange rate impact over the
period was down 1%. On a like-for-like business basis, organic growth was
-0.5% compared to the first half-year 2012.
Business outside France was 58% of total turnover this half-year,
with Great Britain, the second biggest contributor to Group turnover,
accounting for over 30% of total sales during the first six months of 2013. .
First half-year S1 2013 S1 2012 Variation Like for like basis
Turnover
in millions of euros
Transport 1,010 1,041 -3.0% -2.4%
Logistics 897 862 +4.0% +2.5%
Freight forwarding 64 68 -6.2% -14.2%
Inter-divisions* (38) (37) - -
Consolidated total 1,932 1,934 -0.1% -0.5%
Second Quarter Q2 2013 Q2 2012 Variation Like for like basis
Turnover
in millions of euros
Transport 510 519 -1.8% -1.0%
Logistics 461 440 +4.6% +2.7%
Freight forwarding 31 36 -13.1% -19.1%
Inter-divisions* (19) (20) - -
Consolidated total 983 976 +0.8% +0.3%
* Including turnover for the Dagenham site in the UK (sold in early
October 2012)
- Transport, with turnover of €1,010 m at 30 June 2013, down 3%
compared to the same period in 2012, turned in a contrasting performance
depending on the sector: pallet network activities performed well, while
full-load transport, more exposed to the difficult industrial sector climate,
is suffering from a more sluggish than anticipated economic situation in
France. The volume/price effect of -0.3% recorded in H1 demonstrates a good
sales momentum in spite of the economic climate.
- Logistics maintains its growth with a turnover of €897m, 4% up on 2012 in
published data and 2.5% up on a like for like basis. These figures demonstrate
Norbert Dentressangle's ability to roll out its Logistics offer to a
diversified base of high profile, market leading clients. The sales
performance achieved in the major markets - France, the United Kingdom, Italy
and the Netherlands - over the half-year will ensure sustained growth in
Logistics over the second half-year and beyond. The Logistics activity is
currently developing outside Europe with, in particular, the creation of a
joint venture in Russia with Danone to develop chilled logistics and transport
in this high growth-potential region.
- Over the first half-year 2013, Freight Forwarding, which was launched in 2010,
achieved a turnover of €64 m, a downturn of 6.2% compared to the same period
in 2012.
Operating profitability: lower, due mainly to the effect of one-off
charges in the transport activity.
Operating profit before goodwill was €55.1m, 14% down on the first
half-year 2012, giving an operating margin of 2.9% compared to 3.3% over the
same period the previous year. This reduction in operating profitability,
which suffers from an unfavourable basis for comparison with the first
half-year 2012, is mainly explained by one-off restructuring charges linked to
adjustment measures introduced in the Transport activity.
The underlying operating margin benefits from the introduction of
the Competitiveness and Employment Tax Credit (CICE), worth €5.6 m over the
half-year and stands at 3.1% compared to 3.3% in the first half-year 2012.
- Transport achieved an operating profit of €23.8m compared to €31.7m in the
first half-year 2012. The operating margin is at 2.4% compared to 3.0% over
the same period in 2012. This fall in profitability demonstrates the Transport
teams' ability to react immediately by introducing measures to address the
unfavourable economic conditions. The first positive effects of these operating
efficiency initiatives will be seen during the next half-year.
- Logistics' operating profit was €31.8m compared to €30.8m in the first half-year
2012, an increase of 3%. The operating margin for the business remains stable at
3.6% compared to the first half-year 2012. All the Group's major logistics
markets are performing well - France, the United Kingdom, Italy, the
Netherlands -, supporting the new, high-potential growth areas outside
Europe. ; The turnaround plan for the activities acquired from Nova
Natie in Antwerp is still on going.
- Freight Forwarding remains close to break-even with an operating
loss of €0.6m at 30 June 2013.
Net profit for the first half-year 2013 was €24.5m compared to
€27.4m (re-stated to incorporate the introduction of the IAS 19R standard for
social obligations) over the same period in 2012, a reduction of 10%.
A robust, strengthened financial structure
The Group's net financial debt at 30 June 2013 was €565m compared
to €698m over the same period in the previous year, an improvement of over
€130m resulting from a limited level of CAPEX over the early part of the year
and cash flow generation of nearly €120m as a result of rigorous management of
the working capital requirement.
Consolidated net equity, at €543m, has been re-stated and takes
account of the implementation of the IAS 19R standard from 01/01/13 taking
account of the pension fund deficits in the accounts statement.
With Gearing ratios (104%) and Net Debt / EBITDA (2.4x) improving
compared to the same period last year and largely below bank covenants, the
Group continues to strengthen its financial structure in a period that
requires caution, rigour and sound management, but also the capacity to grasp
any opportunities for external growth.
Since 4 July, Norbert Dentressangle shares are also now traded on
NYSE Euronext London in addition to NYSE Euronext Paris with the clear aim of
diversifying its shareholder base and increasing its visibility among major
British investors and institutions.
Pursuing targeted external growth
In line with its international development and transformation
strategy, Norbert Dentressangle has completed a number of targeted,
complementary acquisitions over this half-year:
- The acquisition, on 27 May, of the logistics activities of Fiege
in Italy, Spain and Portugal, with turnover valued at approximately €130m,
will strengthen the Group's leadership in the Logistics sector in Southern
Europe and broaden its client portfolio in sectors such as consumer goods,
retail, health and pharmacy. The operation enables Norbert Dentressangle to
double in size in Italy to become the 4th biggest logistics operator in the
country.
- The signature, on 16 July, of an agreement to acquire the freight forwarding
activities of the Daher Group in France and Russia, covers a total
of 287 employees with turnover of €80m in 2012. The operation should be
completed during the third Quarter and is subject to the approval of the
French competition authorities. With this operation, Norbert Dentressangle is
adding to its global international freight forwarding offer and reaching an
initial level of consolidation for the business - launched in early 2010 -
with an annual turnover of nearly €220m. The incorporated activities will then
immediately contribute towards improving Freight Forwarding profitability. The
addition of the eight Daher Group agencies in France will also enable Norbert
Dentressangle to immediately reach a significant size in its domestic market.
Outlook
Faced with a sluggish, uncertain economic climate, Norbert
Dentressangle will continue to rely on rigorous management and the reactivity
of its operational teams to keep its profitability up to a level comparable
with that achieved over the last few years.
The slight improvement in the Group's key activity indicators seen
in the second quarter of 2013, the initial results of the measures taken in
transport and the favourable seasonal nature of its results marked by a second
half-year traditionally stronger than the first, all suggest that we can look
forward to a better outlook for the next half-year.
As a result of the sound financial situation at the end of this
half-year - one which will continue to improve during the second half-year,
the Group has the resources to pursue its development both inside and outside
Europe.
Next publication: Turnover for the third quarter 2013: 23 Oct. 2013
after marketclose.
About Norbert Dentressangle:
Norbert Dentressangle is an international transport, logistics and
freight forwarding company, with in 2012, €3.9 billion turnover of which 59%
outside France, 32,500 people and a presence in 26 countries. Norbert
Dentressangle develops high added value solutions in its three sectors, across
Europe, America and Asia, and places sustainable development at the heart of
all its activities. Norbert Dentressangle, which is listed on the CAC Small &
CAC All Tradable, is headed by Hervé Montjotin.
NYSE Euronext Paris (Category B) / NYSE Euronext London, GND, Code:
ISIN FR0000052870
www.norbert-dentressangle.com
Contacts:
Norbert Dentressangle
Communication Senior Vice-President
Thierry LEDUC - Tel.: +33 4 72 83 66 00
Email: thierry.leduc@norbert-dentressangle.com
Publicis
Press Relations
Nathalie BELLOC - Tel.: +33 1 44 43 77 12
Email: nathalie.belloc@dialog.publicis.fr