Alumetal Group
1H 2020 financial results
28 August 2020
1H 2020 and LTM at glance
- Volume sales - 70,2 k tons in 1H 2020 and 159,2 k tons in LTM
- EBITDA - PLN 36,7 mn in 1H 2020 and PLN 82,2 mn in LTM
- Normalized net profit - PLN 19,5 mn in 1H 2020 and PLN 48,3 mn in LTM
- Operating cash flow - PLN 22,6 mn in 1H 2020 and PLN 103,3 mn in LTM
- Net debt - PLN 51,9 mn (0,6x EBITDA)
Alumetal Group activities during the pandemic
- Safety
- anti-pandemicprocedures and measures implemented at the beginning of March 2020 and constantly updated
- Financial liquidity
- uphold the recommendation of profit distribution for 2019 - allocation of 70% of the normalized consolidated net profit to reserve capital for the payment of dividends in the future or permanent retention of these funds in the Company
- implementation of additional solutions related to circulating capital management
- transfer minor part of planned capex from 2020 to 2021
- very solid balance sheet, low net debt and sound financial liquidity
- renewal of credit agreements with existing banks for the next year
- Operating activities
- Alumetal Group didn't use the Polish anti-crisis shield in the 1H 2020 (apart from the reduction of real estate tax by PLN 115 k), while it benefits from the public funds in 2H 2020 (anti-crisis shield 4.0)
- limited production level in our plants and short-term downtime adapted to the key customers production schedules performed in accordance with the adopted assumptions
- the savings plan implemented
- reduction of operating costs
- effective renegotiation of most permanent contracts
- resignation from part of planned in the budget costs
- 9% reduction in employment
Motor vehicle registrations in the EU and UK in k units
5 500 | |||||||||
5 000 | -26% | -52% | |||||||
4 500 | |||||||||
4 000 | |||||||||
3 500 | |||||||||
3 000 | |||||||||
2 500 | |||||||||
2 000 | |||||||||
1 500 | |||||||||
1 000 | |||||||||
500 | |||||||||
- | |||||||||
1Q | 2Q | 3Q | 4Q | ||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | ||
| In | 1H 2020 new motor vehicle registration | in the EU and Great Britain decreased by 39% | ||||||
(passenger cars (PC) decreased by 40% and commercial vehicles (CV) decreased by 36%) | |||||||||
In LTM sales volume of motor vehicles in the EU and Great Britain amounted to 13,25 mn units, | |||||||||
decrease by 21% in comparison to 2019 (21% decrease in PC and 19% in CV) |
Metal Bulletin 226 alloy spread in EUR/t
550
500
450
400
350
300
250
200
150
100
50
0
344
01-200804-200807-200810-200801-200904-200907-200910-200901-201004-201007-201010-201001-201104-201107-201110-201101-201204-201207-201210-201201-201304-201307-201310-201301-201404-201407-201410-2014 | 01-201504-201507-201510-201501-201604-201607-201610-201601-201704-201707-201710-201701-201804-201807-201810-201801-201904-201907-201910-201901-202004-2020 | ||||
monthly average | long-term average | ||||
- Significant decrease in the benchmark margin in 2Q 2020 (from 464 EUR/t in March 2020 to 252 EUR/t in June 2020). The margin of June 2020 was 27% below the long-term average.
- The average margin in the 1H 2020 amounted to 381 EUR/t and was 2% higher than the average margin in 2019 and 11% higher than the long-term average.
Volume sales in thou. tons
120 | 225 | ||||||
104,2 | 200 | 197,7 | |||||
193,1 | |||||||
100 | 175 | 176,0 | |||||
164,8159,3 | 159,2 | ||||||
156,1 | |||||||
80 | 70,2 | 150 | |||||
126,9 | |||||||
125 | |||||||
60 | |||||||
49,8 | 99,4 | ||||||
100 | |||||||
88,1 | |||||||
40 | 75 | ||||||
22,6 | 50 | ||||||
20 | |||||||
25 | |||||||
0 | 0 | ||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | ||||
2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM | |||||||
- In 1H 2020 sales volume decreased by 33% yoy to 70,2 k tons
- In LTM sales volume amounted to 159,2 k tons, decrease by 18% in comparison to 2019
Sales revenue in mn PLN
900 | 1800 | 1 655,3 | ||||||
800 | 774,3 | 1600 | 1 441,9 | 1 456,2 | ||||
700 | 1400 | 1 383,8 | ||||||
1 235,3 | 1 271,8 | |||||||
600 | 1200 | 1 015,3 | 1 091,9 | |||||
482,3 | 1000 | |||||||
500 | ||||||||
811,7 844,6 | ||||||||
367,8 | 800 | |||||||
400 | ||||||||
300 | 600 | |||||||
200 | 160,2 | 400 | ||||||
100 | 200 | |||||||
0 | 0 | |||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM |
- In 1H 2020 sales revenue decreased by 38% yoy to PLN 482,3 mn
- In LTM sales revenue amounted to PLN 1,09 bn, decrease by 21% in comparison to 2019
EBITDA in mn PLN
60 | 140 | ||||||
50,0 | 115,9 | 121,4 | |||||
50 | 120 | ||||||
106,6 | |||||||
40 | 100 | 97,0 | 95,4 | ||||
36,7 | 82,2 | ||||||
78,3 | |||||||
80 | |||||||
30 | 25,2 | 63,0 | |||||
60 | 54,0 | ||||||
52,9 | |||||||
20 | |||||||
10,6 | 40 | ||||||
10 | 20 | ||||||
0 | 0 | ||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM | |||
- In 1H 2020 EBITDA decreased by 27% yoy to PLN 36,7 mn
- In LTM EBITDA amounted to PLN 82,2 mn, decrease by 14% in comparison to 2019
EBITDA per ton in PLN
800 | 800 | 727 | |||||
715 | |||||||
700 | 700 | 647 | |||||
614 | |||||||
600 | 600 | 551 | |||||
506 | 523 | 532 | 502 | 494 | 516 | ||
470 | 479 | 500 | |||||
500 | 425 | ||||||
400 | 400 | ||||||
300 | 300 | ||||||
200 | 200 | ||||||
100 | 100 | ||||||
0 | 0 | ||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 | LTM |
- In 1H 2020 EBITDA per ton increased by 9% yoy to 523 PLN/t
- In LTM EBITDA per ton amounted to 516 PLN/t, increase by 5% in comparison to 2019
Net profit in mn PLN
40 | 100 | ||||||
90 | 89,9 | ||||||
35 | |||||||
30 | 28,2 | 80 | 74,7 | 70,7 74,3 | |||
70 | |||||||
25 | 60 | 58,9 | |||||
50,5 | |||||||
20 | 50 | ||||||
43,9 | |||||||
15,7 | |||||||
40 | 34,5 35,8 | 38,0 | |||||
15 | 13,2 | ||||||
10 | 30 | ||||||
20 | |||||||
5 | 4,0 | 10 | |||||
0 | 0 | ||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM |
- In 1H 2020 net profit decreased by 44% yoy to PLN 15,7 mn
- In LTM net profit amounted to PLN 38,0 mn, derease by 25% in comparison to 2019
Normalized net profit in mn PLN
40 | 100 | 92,1 | ||||||
90,4 | ||||||||
90 | ||||||||
35 | 33,9 | |||||||
80 | 77,7 | |||||||
30 | ||||||||
67,5 | ||||||||
70 | ||||||||
62,7 | ||||||||
25 | 58,9 | |||||||
60 | ||||||||
20 | 19,5 | 50 | 43,9 | 48,3 | ||||
17,0 | ||||||||
15 | 40 | 34,5 35,8 | ||||||
10 | 30 | |||||||
20 | ||||||||
4,5 | ||||||||
5 | ||||||||
10 | ||||||||
0 | 0 | |||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM |
- In 1H 2020 normalized net profit decreased by 42% yoy to PLN 19,5 mn
- In LTM normalized net profit amounted to PLN 48,3 mn, decrease by 23% in comparison to 2019
Capex in mn PLN
40 | 37,1 | 120 | 108,4 | |||||
35 | 100 | |||||||
30 | ||||||||
25 | 80 | |||||||
21,6 | 64,2 | |||||||
20 | 19,1 | 60 | 53,2 | |||||
47,3 | 48,4 | |||||||
15 | 12,5 | 40 | 38,6 | 34,1 35,2 | ||||
33,5 | ||||||||
10 | ||||||||
5 | 20 | 10,8 | ||||||
0 | 0 | |||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM |
- In 1H 2020 capex amounted to PLN 37,1 mn
- PLN 4,6 mn maintenance capex
- PLN 32,5 mn development capex
- In LTM capex amounted to PLN 53,2 mn, increase by 51% in comparison to 2019
EBITDA vs OCF in mn PLN
120 | |||||||||||||||||||||
98,5 | |||||||||||||||||||||
100 | |||||||||||||||||||||
80 | |||||||||||||||||||||
65,3 | |||||||||||||||||||||
60 | |||||||||||||||||||||
50,0 | |||||||||||||||||||||
40 | 33,8 | 36,7 | |||||||||||||||||||
25,2 | 22,6 | ||||||||||||||||||||
20 | |||||||||||||||||||||
10,6 | |||||||||||||||||||||
0 | |||||||||||||||||||||
2Q'19 | 2Q'20 | 1H'19 | 1H'20 | ||||||||||||||||||
EBITDA | OCF | ||||||||||||||||||||
200
180
160
140
120
100
80
60
40
20
0
179,2
115,9 | 121,4 | |||||||||||||||||||||||||||||||||||||||||||
106,6 | 95,4 | 103,3 | ||||||||||||||||||||||||||||||||||||||||||
97,0 | 96,0 | |||||||||||||||||||||||||||||||||||||||||||
85,9 | 82,2 | |||||||||||||||||||||||||||||||||||||||||||
78,3 | ||||||||||||||||||||||||||||||||||||||||||||
63,0 | 60,9 | 70,1 | ||||||||||||||||||||||||||||||||||||||||||
58,5 | ||||||||||||||||||||||||||||||||||||||||||||
52,9 | 54,0 | |||||||||||||||||||||||||||||||||||||||||||
36,5 | 40,2 | |||||||||||||||||||||||||||||||||||||||||||
17,2 | ||||||||||||||||||||||||||||||||||||||||||||
2011 2012 2013 2014 2015 2016 2017 2018 2019 | LTM | ||||
EBITDA | OCF | ||||
- In 1H 2020 OCF amounted to PLN 22,6 mn vs PLN 36,7 mn of EBITDA
- In LTM OCF amounted to PLN 103,3 mn vs PLN 82,2 mn of EBITDA
Net debt and effective CIT rate
Dług netto | Efektywna stawka CIT |
140 | 1,8 | 131,7 | ||
120 | 112,1 | 114,6 | ||
100 | 1,4 | 1,3 | 94,1 | 1,4 |
80 | 72,1 70,2 | 0,9 | ||
60 | 0,8 | |||
45,4 46,7 | 51,9 | |||
40 | 33,0 | |||
0,6 | 0,6 | |||
20 | 0,4 | 0,3 | ||
0 | ||||
2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM |
Net debt | Net debt/EBITDA | |||
2,0 | 25% | |||||
1,8 | 18,8% | 19,5% | ||||
20% | ||||||
1,6 | 17,9% | |||||
1,4 | 15% | 12,3% | ||||
1,2 | 10% | 7,8% | 7,1% 7,8% | |||
1,0 | 6,0% | 6,4% | ||||
11,4% | 4,8% | |||||
5% | 4,7% | 4,6% 4,5% | ||||
0,8 | 6,9% | 6,9% | 4,1% | |||
0,6 | 0% | 1,7% | 1,1% | |||
0,4 | 2011 2012 2013 2014 2015 2016 2017 2018 2019 1H'20 | |||||
0,2 | -5% | |||||
-4,7% | ||||||
0,0 | -10% |
Effective CIT rate | Current CIT rate | |||
- At the end of 1H 2020 net debt amounted to PLN 51,9 mn, and Net debt/EBITDA ratio increased from the level of 0,3x at the end of 2019 to 0,6x at the end of June 2020
- Effective CIT rate in 1H 2020 amounted to 19,5% and current CIT rate amounted to 6,4%
Kęty plant modernization
- The advancement of construction works contracting exceeds 98%
- All the machines and equipment delivered to the plant and the level of advancement of assembly exceeds 90%
- Due to the COVID-19, some of the assembly works carried out by foreign companies has been moved to 3Q 2020
- In 1H 2020 capex amounted to PLN 23,3 mn and from the beginning of the project PLN 48,6 mn
- Despite the pandemic, the project is progressing according to the schedule
Summary
- In 2Q 2020, unprecedented collapse in sales volume of new motor vehicles in the EU and Great Britain, in consequence very large decrease in the benchmark margin
- Despite an unfavorable market situation and a drastic decrease in sales volume, Alumetal Group achieved positive financial results in the 1H 2020 and the EBIDTA margin per ton increased yoy
- The Management Board of Alumetal Group notes the growing demand in the 2H 2020
- Modernization of the plant in Kęty is carried out according to the schedule and the assumed budget
- Very good financial standing of Alumetal Group (strong balance sheet, solid OCF)
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Disclaimer
Alumetal SA published this content on 28 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 August 2020 13:23:04 UTC