Tessenderlo Group HY14 results

2Q14 results confirm 1Q14 performance, thanks to the profitability of the Agro segment and to cost management initiatives throughout the group.

2Q142Q13% ChangeMillion EUR[1]HY14HY13% Change 379.3 542.4 -30.1% Revenue Group 775.7 1,029.0 -24.6% -1.4 -117.8 - Revenue Other segment -31.2 -251.0 377.9 424.7 -11.0%Revenue at comparable scope[2]744.5 778.0 -4.3% 45.3 49.0 -7.5% Rebitda Group 87.1 81.7 6.7% 0.7 -6.6 - Rebitda Other segment -1.2 -8.9 46.0 42.4 8.4%Rebitda at comparable scope[2]85.9 72.8 18.0% Rebit Group 54.7 43.9 24.6% - Rebit Other segment -1.2 -4.9 Rebit at comparable scope[2]53.5 39.0 37.2%Profit (+) / loss (-) for the period27.7 -35.1 nmNet debt 199.0 250.9 Notional net debt 291.3 378.1

1 All quarterly information included in the press release is unaudited.
2 Comparable scope includes the following businesses:
- Agro: Tessenderlo Kerley Core (fertilizer activities), Tessenderlo Kerley International (fertilizer activities outside North America), Novasource (crop protection activities) and Sulfates
- Bio-valorization: Akiolis and Gelatin
- Industrial solutions: Plastic Pipe Systems, Mining & Industrial, Water Treatment, MPR/ECS and Sulfur Derivatives
Other segment includes the businesses sold or ended since January 2013: Compounds, Organic Chlorine Derivatives, Phosphates and Profiles

Revenue

At comparable scope, the 2Q14 revenue decreased by 11.0% or by 8.7% when excluding the foreign exchange effect. The 2Q14 group's revenue is significantly impacted by production driven lower sales in sulfates.

The HY14 revenue at comparable scope decreased by 4.3% (or by 2.2% excluding the foreign exchange effect), mostly impacted by the operating segment Bio-valorization.

REBITDA

The 2Q14 rebitda increased by 8.4% at comparable scope or by 14.9% excluding the foreign exchange effect. Key contributors are the profitability within the operating segment "Agro", as well as the impact of cost management initiatives.

The HY14 rebitda increased by 18.0% at comparable scope or by 24.5% excluding the foreign exchange effect. While the above mentioned key contributors impact both Q1 and Q2 significantly, the group benefited in Q1 also from milder winter conditions, which led to an increase of business in Industrial solutions. The operating segment Bio-valorization still experienced a decrease in overall profitability versus last year.

Profit/loss for the period

The HY14 profit amounts to 27.7 million EUR compared to a loss of -35.1 million EUR in the same period last year. This result could be realized thanks to the decrease of non-recurring costs (HY14: -2.2 million EUR compared to -49.0 million EUR in HY13) and to the increase of operational results (rebit moved from 43.9 million EUR in HY13 to 54.7 million EUR in HY14). Moreover the group benefited from lower net finance costs and taxes in HY14 compared to HY13.

Net financial debt

At the end of June 2014, group net financial debt stood at 199.0 million EUR, versus 258.9 million EUR at the end of December 2013, resulting in a leverage of 1.6x at the half year end.
The decrease of the net financial debt is mostly driven by the higher operational results and a reduction in working capital even after considering the increased factoring amount which moved from 81.9 million EUR at year end 2013 to 92.3 million EUR at the end of June 2014. Capital expenditure amounted to 31.1 million EUR in HY14 versus 50.2 million EUR in HY13.
 
 

Outlook

The group does not anticipate any material recovery of volumes and margins in the bio-valorization segment for the foreseeable future.

Based on the current assumptions and in view of the seasonality of the business, the group anticipates the REBITDA Group for the full year to end up slightly higher than last year.

The net debt at the end of the year should end up slightly higher than at end of December 2013, reflecting capex and increased working capital requirements in preparation of the 2015 Agro season.

In view of the anticipated refinancing of its corporate bond and syndicated loan facility and in order to realize its strategy, including growth and stay in business capex, the group is currently reviewing its funding structure and evaluating various funding options.
 
 
Tessenderlo Group is a worldwide specialty company, focused on food, agriculture, water management and on valorizing bio-residuals. The group employs about 5,000 people and is a leader in most of its markets, with a consolidated revenue of 1.8 billion EUR in 2013.  Tessenderlo Chemie NV is listed on NYSE Eurolist by Euronext Brussels and is part of Next 150 and BEL Mid indices. Financial News wires: Bloomberg: TESB BB - Reuters: TesBt.BR - Datastream: B:Tes

Investor Relations
Kurt Dejonckheere
+32 2 639 18 41

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Source: Tessenderlo Group via Globenewswire
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