Resilient operating performances in an unfavourable market context
- Sales down 3.7% to €551 million on a comparable basis (down 6.5% as reported)
- Resilient gross margin rate at 24.4%
- EBITDA down 18.3% to €15 million on a comparable basis and at constant accounting methods (down 21.4% as reported); EBITDA margin of 2.7% (down 0.6 points)
- First-time application of IFRS 16 (Leases): EBITDA of €25 million at 31 March 2019
Full-year 2019 objectives
- At constant perimeter, exchange rates and accounting methods, Antalis’ sales should decline by between 3% and 4% year on year, and EBITDA margin should come in at between 2.7% and 3.1%
Key operating indicators (unaudited figures on a comparable basis and at constant accounting methods)
In Q1 2019, the slowdown in Europe and economic uncertainty negatively impacted consumption, especially in the European paper market where volumes declined by around 7% over the period. Antalis was also hit by disruptions in the supply of coated and recycled papers from its supplier Arjowiggins Graphic, which entered into receivership in early January 2019. However, its Packaging business continued to grow in most countries. The Visual Communication sector held up well despite uncertainty over Brexit and its consequences for the UK retail trade.
In this context, Antalis delivered sales of €551 million, down 3.7% on a comparable basis. Sales declined by 6.5% on a reported basis which included the negative €17 million impact from the sale of subsidiaries in South Africa and Botswana in early October 2018. The impact of exchange rates and number of working days on sales was negligible.
Gross margin fell 3.7% to €134 million (down 6.3% on a reported basis). Higher selling prices partially absorbed lower volumes in Papers. Gross margin rate was stable when compared to Q1 2018 at 24.4%.
EBITDA fell 18.3% to €15 million on a comparable basis and at constant accounting methods (down 21.4% on a reported basis). An enhanced product mix and greater flexibility in logistics overheads partially absorbed the negative impact of lower volumes in Papers. EBITDA margin represented 2.7% of sales (down 0.6 points).
Current operating income came in at €10 million, down 27.7 % on a comparable basis and at constant accounting methods (down 31.2% on a reported basis). Current operating margin represented 1.7% of sales (down 0.6 points).