Sales: €1,365 million (-15.5% vs 2019)
EBITDA : €62 million (4.6% of sales) Net income (Group share): €11
million Operating cash-flow : €140 million
Regulatory News:
Solid 2020 performance in a challenging context
In a context of profound disruptions, JACQUET METALS (Paris:JCQ)
succeeded in adapting to its market conditions and achieved a good
overall performance.
Consolidated sales amounted to €1.4 billion, down 15.5%
from 2019 (Q4: -8.3%), while EBITDA amounted to €62 million
representing 4.6% of sales compared to 4.5% in 2019.
During this year, the Group paid particular attention to
preserving health and safety of its employees as well as adapting
to the economic environment its costs and steel inventories (down
€75 million to €368 million at 2020 year-end).
Furthermore, the Group pursued a sustained capital
expenditure policy (€27 million in 2020 after €30 million in
2019), despite the context, mainly aimed at strengthening Group's
positioning on its key markets.
Having generated €140 million of operating cash flow in
2020, the Group strengthened its financial structure, posting a
debt to equity ratio (gearing) of 28% at 2020 year-end compared to
46% at 2019 year-end.
Without returning to pre-crisis levels, business at the start
of 2021 benefited from the increase in raw material prices,
fueling expectations of a Q1 2021 increase in gross margin level.
Nevertheless, the overall environment remains marked by a lack of
visibility, exacerbated by still unstable health conditions.
In 2021 the Group will be aiming to improve its operating
efficiency, particularly in the IMS group division in Germany,
pursue the capital expenditure policy and seek out growth
opportunities.
On March 9, 2021 the Board of Directors, chaired by Éric
Jacquet, approved the consolidated financial statements for the
year ended December 31, 2020, which have been audited by the
Statutory Auditors.
€m
Q4 2020
Q4 2019
2020
2019
Sales
326
355
1,365
1,615
Gross margin
% of sales
94
28.8%
86
24.3%
328
24.0%
374
23.2%
EBITDA 1
% of sales
30
9.2%
11
3%
62
4.6%
73
4.5%
Adjusted operating income
1
% of sales
27
8.4%
4
1%
24
1.8%
43
2.7%
Operating income
35
1
28
40
Net income (Group
share)
30
5
11
25
1 Adjusted for non-recurring items The activity report includes
a definition of non-IFRS financial indicators and explains the
methods used to calculate them. The report is available at
jacquetmetals.com.
Q4 2020
The Group posted highly contrasting performances between H1 and
H2 2020:
- in H1 2020, Group's business was drastically slowed down by
the COVID-19 crisis. Results were impacted by expenses of over €10
million related to the set-up of a savings plan and the impact of
the economic slow- down on inventory valuation (leading the Group
to record a provision representing 18% of the gross value of
inventories at June 30, 2020 versus 15.6% at 2019 year-end).
- In H2 2020, Group's business picked up slightly towards the
end of the year, particularly for IMS group. Moreover, inventory
valuation benefited from the late 2020 increase in raw material
prices. The inventory provisions rate at 2020 year-end reverted
close to its 2019 year-end level. Under these conditions, the Group
posted positive net income of €30 million for Q4 2020, after
the recognition of €9 million of deferred taxes.
2020 results
Consolidated sales amounted to €1,365 million, down 15.5%
versus 2019 (Q4: -8.3%), including the following effects:
- volumes sold: -12.4% (Q4: -1.6%); - prices: -3.1% (Q4: -6.6%).
Q4 2020 prices were down 1.6% from Q3 2020.
Gross margin amounted to €328 million (24% of sales)
compared to €374 million (23.2% of sales) in 2019.
Current operating expenses* represented €266 million,
down €35 million (-11.5%) from 2019. This decline is mainly due to
the adjustment of variable expenses and the implementation of
flexible staff working arrangements, which resulted in a temporary
€9 million reduction in personnel expenses. * excluding
depreciation and amortization (€35) million and provisions €1
million.
EBITDA amounted to €62 million and represented 4.6% of
sales compared to 4.5% in 2019.
Adjusted operating income amounted to €24 million
(representing 1.8% of sales). Adjusted operating income includes
over €10 million expenses related to the set-up of a savings plan
across all divisions (€8 million annual savings expected, including
€3 million effective as from 2020).
Under these conditions, net income (Group share) amounted
to €11 million compared to €25 million in 2019 (2019 net income
included a €9 million capital gains on the sale of
Abraservice).
Financial position
As of December 31, 2020, the Group generated positive
operating cash flow of €140 million.
Operating working capital amounted to €332 million (24.3%
of sales) compared to €417 million at 2019 year- end (25.8% of
sales), mainly due to the adaptation of inventory levels to market
conditions (inventories down €75 million to €368 million).
Capital expenditure amounted to €27 million, including
the acquisition of the main IMS group distribution center in Italy
for €7.5 million.
After taking into account the dividend (€5 million paid
in July) and share buyback program (€6 million), net
debt amounted to €106 million compared to €175 million as of
December 31, 2019. The net debt to equity ratio (gearing) amounted
to 28% compared to 46% at 2019 year-end.
The Group is in a solid financial position to weather the
present situation and its potential developments: cash and cash
equivalents amounted to €333 million at 2020 year-end, while
lines of credit totaled €728 million (€289 million of which is
unused).
2020 earnings by division excluding IFRS 16
impacts
JACQUET
STAPPERT
IMS Group
Stainless steel quarto
plates
Stainless steel long
products
Engineering steels
€m Q4 2020
2020
Q4 2020
2020
Q4 2020
2020
Sales
70
305
97
427
161
645
Change vs. 2019
-12.5%
-11.2%
-6.0%
-8.7%
-7.7%
-21.2%
Price effect
-4.7%
-2.7%
-9.6%
-3.2%
-6.2%
-3.3%
Volume effect
-7.8%
-8.4%
+3.6%
-5.5%
-1.5%
-17.8%
EBITDA 1 2
5.8
13.4
4.9
17.2
12.6
7.9
% of sales
8.2%
4.4%
5.1%
4.0%
7.8%
1.2%
Adjusted operating income 2
4.5
5.3
5.3
14.9
13.7
0.8
% of sales
6.4%
1.7%
5.4%
3.5%
8.5%
0.1%
1 In 2020, non-division operations and the application of IFRS
16 - Leases contributed €6.6 million and €17.2 million to EBITDA
respectively. 2 Adjusted for non-recurring items The activity
report includes a definition of non-IFRS financial indicators and
explains the methods used to calculate them. The report is
available at jacquetmetals.com.
JACQUET: continued development
JACQUET specializes in the distribution of stainless steel
quarto plates. The division generates 68 % of its business
in Europe and 25% in North America.
In 2020, the division pursued its organic development by
launching the long products business in the USA, a market more
severely impacted by the crisis than Europe, JACQUET Korea (South
Korea) and JACQUET Tianjin (China). The division also invested in
two new sites, in Italy and Hungary, due to start operating in
2021.
Sales amounted to €305 million, down 11.2% from €343 million in
2019 (Q4: -12.5%):
- volumes: -8.4% (Q4 -7.8%) ; - prices: -2.7% (Q4 -4.7% vs Q4.19
et +0.1% vs. Q3.20).
Gross margin amounted to €89 million, representing 29.1% of
sales, compared to €105 million in 2019 (30.6% of sales).
EBITDA amounted to €13 million, representing 4.4% of sales,
compared to €23 million in 2019 (6.8% of sales).
STAPPERT: outstanding performance
STAPPERT specializes in the distribution of stainless steel
long products in Europe. The division generates 41% of its
sales in Germany, the largest European market.
In 2020, in a disrupted market subject to strong competitive
pressure, particularly in Germany, STAPPERT succeeded in preserving
margins and improving earnings. In particular, the division
improved its operating performance in Western Europe (Netherlands,
France, Belgium).
Sales amounted to €427 million, down 8.7% from €467 million in
2019 (Q4: -6%):
- volumes: -5.5% (Q4 +3.6%) ; - prices: -3.2% (Q4 -9.6% vs Q4.19
et -1.6% vs. Q3.20).
Gross margin amounted to €88 million, representing 20.7% of
sales, compared to €92 million in 2019 (19.6% of sales).
EBITDA amounted to €17 million, representing 4% of sales,
compared to €14 million in 2019 (3% of sales).
IMS group: highly challenging market conditions
IMS group specializes in the distribution of engineering
steels, mostly in the form of long products. The division
generates 45% of its sales in Germany, the largest European
market.
In 2020, the division suffered from both a lasting slowdown in
manufacturing since 2019, particularly in Germany, and from its
strong foothold in Southern European markets particularily impacted
by the health crisis (this region accounts for 35% of IMS group
sales). In this context, sales amounted to €645 million, down 21.2%
from €818 million in 2019 (Q4: -7.7%):
- volumes: -17.8% (Q4 -1.5%) ; - prices: -3.3% (Q4 -6.2% vs
Q4.19 et -2.4% vs. Q3.20).
Gross margin amounted to €151 million, representing 23.4% of
sales, compared to €177 million in 2019 (21.7% of sales).
EBITDA amounted to €8 million (Q4: €13 million), representing
1.2% of sales, compared to €14 million in 2019 (1.8% of sales).
Key financial informations
Income statement
€m
Q4 2020
Q4 2019
2020
2019
Sales
326
355
1,365
1,615
Gross margin
94
86
328
374
% of sales
28.8%
24.3%
24.0%
23.2%
EBITDA 1
30
11
62
73
% of sales
9.2%
3%
4.6%
4.5%
Adjusted operating income
1
27
4
24
43
% of sales
8.4%
1%
1.8%
2.7%
Operating income
35
1
28
40
Net financial expense
(2)
(2)
(11)
(11)
Corporate income tax
(2)
(3)
(4)
(13)
Net income from discontinued
operations
-
9
-
12
Minority interests
(1)
(0)
(2)
(3)
Net income (Group
share)
30
5
11
25
1 Adjusted for non-recurring items The activity report includes
a definition of non-IFRS financial indicators and explains the
methods used to calculate them. The report is available at
jacquetmetals.com.
Cash flow
€m
2020
2019
Operating cash flow before change
in working capital
Change in working capital
52
88
54
4
Cash flow from operating
activities
140
59
Capital expenditure
(27)
(30)
Asset disposals
1
25
Dividends paid to shareholders of
JACQUET METALS SA
(5)
(17)
Interest paid
(13)
(12)
Other movements
(27)
14
Change in net debt
69
40
Net debt brought
forward
175
215
Net debt carried
forward
106
175
Balance sheet
€m
31.12.20
31.12.19
Goodwill
66
66
Net non-current assets
154
143
Right-of-use assets
70
85
Net inventory
368
442
Net trade receivables
135
152
Other assets
91
91
Cash & cash equivalents
333
206
Total assets
1,217
1,186
Shareholders’ equity
373
379
Provisions (including provisions
for employee benefit obligations)
96
99
Trade payables
171
178
Borrowings
439
381
Other liabilities
64
63
Lease liabilities
73
86
Total equity and
liabilities
1,217
1,186
Activity report available: jacquetmetals.com
Q1 2021 earnings: May 5, 2021 6.00pm
JACQUET METALS is a European leader in the
distribution of specialty steels. The Group develops and operates a
portfolio of three brands:
JACQUET stainless steel quarto plates -
STAPPERT stainless steel long products - IMS group
engineering steels With a headcount of 2,857 employees, JACQUET
METALS has a network of 106 distribution centers in 25 countries in
Europe, China and North America.
Compartment B - ISIN : FR0000033904 - Reuters :
JCQ.PA - Bloomberg : JCQ FP
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210309005863/en/
JACQUET METALS: Thierry Philippe - Chief Financial
Officer - comfi@jacquetmetals.com NEWCAP: Emmanuel Huynh - T
+33 1 44 71 94 94 - jacquetmetals@newcap.eu
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