For FY11, management fine-tuned its reported revenues to €552.1m instead of €552.3m previously, representing a 7.8% increase with a price effect of +10.2% and volume of -2.4%.
Operating income came to €23.7m, +11.3% (+15% in H1), driven mainly by mix and pricing power (the group succeeded in passing on price increases to compensate for the rise in the price of raw materials).
Net income was €10.5m which represented an 18.6% decrease compared to the same period last year (including €0.9m related to financial restructuring initiated in H1 10 and a tax impact of €4.5m).
As a consequence of the WCR requirement linked to the huge increase in raw material prices (no information provided at this stage), net debt was €80.6m, up €12.2m compared to end-June. Gearing stood at 44% compared to 38% at end-2010.
For FY12, Chargeurs remains cautious given the current economic environment and thus did not provide any financial targets but expects a “satisfactory level of profitability”.
As expected the second part of the year was difficult, especially in Q4.
The group succeeded in passing on price increases but volumes were negatively impacted by customers’ lack of confidence primarily in the Chargeurs Protective films and Interlining divisions.
The Wool division performed well both on top-line (growth reach +23.5%) and profitability (€6.7m which represents about 5.6× 2010’s level) driven by the wool price and selectivity in contracts.
We assume that the global deterioration in consumption in Europe since the summer (customers’ lack of confidence in this “troubled” environment), the increasing pressure on prices as well as the time lag between cost increases and the rise in selling prices and the fluctuations in costs will weigh on Chargeurs’ profitability for 2012.
We will review our figures with the much more detailed figures expected mid-April.
