First half-year 2020 results - Mitigated COVID-19 impact and key strategic moves
- Net sales: from EUR 453.8 million to EUR 374.3 million (-17.5%), including a -0.5% currency effect
- Adjusted EBITDA: from EUR 34.6 million to EUR 19.0 million (-44.9%)
- Result of the period (share of the Group): from EUR 16.1 million to EUR 60.1 million, including net capital gain and result for the period from discontinued operations
- Net financial debt: EUR 43.8 million (including EUR 55.2 million IFRS 16 lease obligations)
- Closing of the divestments of the participation in Eurofoam and of the Automotive Interiors division
Olivier Chapelle (CEO): “After a good start of the year, the COVID-19 pandemic has severely impacted the topline of the Group from mid-March onwards, resulting in a sales decline of -3.0% in 1Q2020 and -32.3% in 2Q2020. After reaching a low point of -51.5% in April 2020 versus April 2019, the sales shortfall versus last year has improved to -35.4% in May and -9.3% in June. This recovery trend continues with July 2020 being -4.1% lower than July 2019.
After having ensured that all sanitary measures had been put in place in all our locations to protect our employees, the Group immediately implemented measures to reduce costs and preserve cash. These measures include the adjustment of the production capacity, the use of temporary unemployment, strict spending and capital expenditure control.
As a consequence, the cash consumption of our continued operations and the negative impact on Adjusted EBITDA have been reduced to the maximum extent possible.
On June 30th, the transactions related to the divestment of our participation in the Eurofoam joint venture and to the partial divestment of our Automotive Interiors division have been closed as planned and announced. As a consequence, the Group ended the second quarter with a net positive cash position of EUR 11.4 million (excluding the IFRS 16 lease obligations), and ample financial headroom to focus and engage in the execution of its growth strategy in its higher value added business segments.”
Subject to there being no further COVID-19 impacts, the dynamics of the recovery observed during the 2nd quarter and the month of July lead the Group to expect the 2H2020 consolidated net sales and Adjusted EBITDA of its retained business to be at the level of 2H2019.