19.11.2020 – FRIGOGLASS (Q3/9M:20 review)

19.11.2020 – FRIGOGLASS (Q3/9M:20 review)

FRIGOGLASS (Q3/9M:20 review):  The group posted 9M losses of €7.15m as sales declined by 30%. Results impacted by €1.5 million impairment charges related to the South African operations and €0.2 million restructuring cost related to employees’ layoff. In a snapshot: 

§   Sales declined 37% year-on-year driven by the continued impact of the pandemic across our markets, albeit an improvement compared to -55% of Q2:20. Sequential demand improvement is seen in Commercial Refrigeration in Europe and Africa, as well as in the Nigerian glass container business, versus the previous quarter.

§   Gross profit (excluding depreciation) declined by 48.3% to €12.7 million. The gross margin contracted by 460

§   basis points year-on-year to 20.8%, as the impact from high idle cost, fixed cost under-absorption and Naira’s

§   devaluation more than offset lower discounts and production related cost-out initiates.

§   EBITDA is down 61% year-on-year, despite cost mitigation actions and production ramp-down initiatives kicked-off in April in anticipation of demand slowdown.

§   Adjusted free cash flow was €7.7 million at the end of September 2020, compared to an inflow of €26.1 million last year, led by the lower EBITDA and settlement of accrued expenses. These factors were partly offset by an improvement in net trade working capital requirements, following lower sales, as well as, lower capital expenditure. Adjusted net debt was €259.5 million, compared to €225.7 million last year.

§   The group said that has a sufficient liquidity position, comprising of €59 million cash and €21 million of undrawn facilities, to secure near-term financing costs and working capital needs

§   Frigoglass will host an analysts and investors conference call to discuss its third quarter 2020 results today at 4:00 pm, Athens Time (2:00 pm London time). Callers should dial +30 211 211 1511 from Greece, +44 207 194 3759 from the UK (also other international callers) and +1 844 286 0643 from the US. The access code to the conference call is 87953905#. 

The following table summarizes FRIGOGLASS Q3/9M:20 financial performance: 

FRIGOGLASS

2019

2020

Y-o-Y

2019

2020

Y-o-Y

EUR thous.

9M

9M

(%)

Q3

Q3

(%)

Sales

384,831

269,727

-29.9% 

96,569 

61,055 

-36.8% 

EBITDA

64,590

35,644

-44.8% 

16,074 

6,296 

-60.8% 

EBITDA Mrg

16.8% 

13.2% 

-357 bps 

16.6% 

10.3%  

-633 bps 

Net Income

9,163

-7,155

-178.1% 

-1,643 

-7,741 

-371.2% 

Net Mrg

2.4% 

-2.7% 

-503 bps 

-1.7% 

-12.7% 

-1,098 bps