Refresco reports Q3 2018 results 20 November 2018 I Rotterdam, the Netherlands
Agenda • Refresco at a glance • Q3 2018 highlights • Financials Financials • Key take-aways • Q&A 20-11-2018 Q3 2018 results
Refresco at a glance TB 20-11-2018 Q3 2018 results
Q3 2018 highlights • Volume 3,019 million liters (Q3 2017: 1,853 million liters). • Gross profit margin per liter 13.5 euro cents (Q3 2017: 13.9 euro cents). • Adjusted EBITDA increased to € 97 million (Q3 2017: € 61 million). • Working capital improvement of € 53 million vs. Q2 2018. • Headwinds in packaging material costs & supply chain hiccups. • Integration of Cott’s bottling activities well on track. 20-11-2018 Q3 2018 results
Q3 & YTD 2018 Financials 20-11-2018 Q3 2018 results
Key financials Q3 and YTD 2018 In millions of € unless stated otherwise, Q3 2018 Q3 2017 YTD 2018 YTD 2017 (Unaudited) Volume (millions of liters) 3,019 1,853 8,332 5,579 Revenue 1,026 583 2,836 1,749 Gross profit margin 408 258 1,163 769 Gross profit margin per liter (euro cents) 13.5 13.9 14.0 13.8 EBITDA 84 48 162 151 Adjusted EBITDA 97 61 240 164 Net profit/(loss) 4 11 (60) 43 Adjusted net profit/(loss) 14 20 31 54 Net debt 2,400 597 1 The YTD 2018 financial information comprises the financial information of Refresco Group N.V. for the period January 1, 2018 - March 31, 2018 and the financial information of Sunshine Top B.V for the period April 1, 2018 - September 30, 2018. The YTD 2017 financial information relates to Refresco Group N.V. All values are rounded to the nearest million unless otherwise stated. 2 Cott's bottling business in North America and in the UK was consolidated in Refresco's financial information as of January 30, 2018. 3 2017 amounts for adjusted net profit have been adjusted so that tax effect is included 4 Net debt includes € 100 million of shareholder funding. 20-11-2018 Q3 2018 results
Gross profit margin per liter Gross margin per liter (in euro cents) 14 14.4 14.2 14.2 14.1 14.0 • Gross profit margin per liter 13.5 12 was 13.5 cents vs. 13.9 euro cents in Q3 2017 reflecting mix changes and impact of the 10 acquisition of Cott’s bottling business. 8 • In line with the seasonal pattern, the gross profit 6 margin per liter is typically lower in Q2 & Q3. 4 2 0 2015 2016 2017 Q1 2018 Q2 2018 Q3 2018 20-11-2018 Q3 2018 results
One-off acquisition costs and headwinds in input cost affected net results Breakdown of one-off costs In millions of € , Unaudited Q3 2018 Q3 2017 YTD 2018 YTD 2017 In millions of € YTD Operating profit 45 25 54 80 Unaudited 2018 D&A and impairment 39 23 108 71 Transaction cost 1 43 EBITDA 84 48 162 151 PPA (non-cash) 22 One-off costs / (benefits) 13 13 78 14 Integration & other cost 13 Adjusted EBITDA 97 61 240 164 Adjusted net profit 14 20 31 54 1 The transaction cost is related to the acquisition of Cott’s bottling activities and the acquisition of Refresco by PAI and BCI. 20-11-2018 Q3 2018 results
Balance sheet and financial position Unaudited 1 Audited 2 Unaudited 2 30 September 31 December 30 September • Continued strong cash position In millions of € 2018 2017 2017 • Net debt € 2,400 million as of Total assets 4,485 1,928 1,956 September 30, 2018 includes € 100 million shareholder Total non-current funding. 2,657 800 808 liabilities Total current liabilities 946 572 604 Total equity 882 556 544 Cash and cash equivalents 198 146 150 1. Sunshine Top B.V . 2. Refresco Group N.V . 20-11-2018 Q3 2018 results
Cash flows In millions of € , Unaudited YTD 2018 YTD 2017 EBITDA 162 151 Working capital change 27 (5) • Cash flows include the Net cash operating activities 104 109 acquisition of Cott’s bottling activities and take-over of Net cash investing & acquisition activities (2,712) (63) Refresco by PAI & BCI Net cash financing activities 2,662 (34) Movement in cash 52 11 20-11-2018 Q3 2018 results
Working capital Working capital ( € m) 185 156 • Working capital improvement 103 of € 53 million vs. Q2 2018. 78 77 75 70 61 58 55 50 43 42 42 38 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2017 2018 2016 20-11-2018 Q3 2018 results
Key takeaways Key takeaways Q3 2018 results 20-11-2018
Key takeaways Solid underlying volumes across the business Headwinds in packaging materials One-off acquisition costs impacted net results Synergy realization well on track Attractive market dynamics 20-11-2018 Q3 2018 results
Appendix: Reconciliation from operating profit to adjusted net profit In millions of € , Unaudited Q3 2018 Q3 2017 YTD 2018 YTD 2017 Operating profit 45 25 54 80 Net finance cost (34) (5) (125) (16) Profit / (loss) before income tax 11 20 (71) 64 Income tax (expense) / benefit (6) (9) 16 (21) Minority interest (2) - (5) - Profit / (loss) 4 11 (60) 43 One off cost EBITDA 13 13 78 14 One off cost Finance cost 0 - 43 - Tax effect on one off costs (3) (3) (30) (3) Adjusted net profit 14 20 31 54 20-11-2018 Q3 2018 results
Appendix: Net debt as of September 30, 2018 In millions of € Amount Cash and cash equivalents 198 Senior notes (EUR) 445 Revolving Credit Facility ( € 200million) 1 90 Term Loan B (equiv.)2 1,977 Shareholder loan 100 Mortage Loan 20 Finance leases and other loans 3 Capitalized finance costs (41) Other loans 3 2,400 All values are rounded to the nearest million. 1 € 90mm RCF was drawn in connection with the acquisition of Refresco by PAI & BCI. 2 Represents the euro-equivalent aggregate amount outstanding under the Term Loan B (denominated in EUR, USD and GBP) based on EUR/USD FX rate of 1.160 and on EUR/GBP FX rate of 0.888 as of September 30, 2018. 20-11-2018 Q3 2018 results
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