Nikolaj Plads 6
DK-1007 Copenhagen K
17 May 2017
Announcement No. 12
NKT A/S Q1 2017: Solid increase in operational EBITDA
Due to the intended split of NKT A/S, Nilfisk is considered as discontinued operations and therefore a separate Q1 2017 Interim Report is issued (enclosed in this announcement).
Group Executive Director Michael Hedegaard Lyng states:
- Q1 2017 was eventful with completion of the acquisition of ABB HV Cables to create one of the leading high-voltage power cables companies in the world. We were satisfied with the first months of ownership and the integration process is on track. The Q1 2017 financial development of NKT was as expected, with a satisfactory increase in revenue and operational EBITDA. In Q1 2017, Nilfisk also performed well, with solid organic growth and a positive margin development. Finally, the intended split of NKT A/S into two separately listed entities is still expected to take place in 2nd half 2017.
Q1 2017 financial highlights
|EURm||NKT (formerly NKT Cables)||NKT Photonics||Nilfisk**|
|Operational EBITDA margin||9.6%*||Neg.||13.0%***|
* Std. metal prices, ** discontinued operations, *** before special items
2017 outlook reconfirmed
The NKT 2017 financial outlook comprises separate guidance for each business unit and the guidance provided 11 April 2017 is confirmed, cf. Company Announcement No. 8 and Q1 2017 Interim Report page 3.
NKT (formerly NKT Cables): Milestone achieved with the completion of ABB HV Cables acquisition. Operational EBITDA margin increased to 9.6%
In Q1 2017, NKT increased revenue by EUR 22m to EUR 185.2m (std. metal prices) driven by the acquired ABB HV Cables activities. Organic growth of -8% reflects timing of revenue. The development in the high-voltage offshore business was satisfactory with solid execution of various projects. Operational EBITDA was EUR 17.8m, up EUR 5.7m from Q1 2016 driven by the acquired activities, as well as positive development in the remaining part of the business.
NKT Photonics: All-time high sales pipeline and financial performance as expected
In Q1 2017, NKT Photonics recorded revenue of EUR 7.5m, up from EUR 7.2m in Q1 2016. Organic growth was -18% due to quarterly fluctuations in revenue. Return to positive organic growth is expected in both Q2 and 1st half 2017. EBITDA amounted to EUR -2.1m due to an increased cost base and number of employees. The sales pipeline reached an all-time high level.
Nilfisk: Solid organic growth and improved margins. Continued roll-out of Accelerate+ strategy
Nilfisk reported organic growth of 5% in Q1 2017 driven by the Americas and EMEA. EBITDA before special items increased to EUR 35.1m from EUR 27.2m in Q1 2016, equivalent to a margin improvement of 2.3%-points due to better gross margin and a decreased overhead cost ratio. Roll out of the Accelerate+ strategy continued, positively impacting the cost base. Nilfisk’s new CEO Hans Henrik Lund is still expected to join the company no later than August 2017.
NKT hosts a teleconference for investors and financial analysts at 10:00 am CET today, and it can be accessed at www.nkt.dk. The presentation for the call will be available shortly after this release. To attend, please dial in from:
Denmark: +45 3271 1664
UK: +44 (0) 20 3427 1930
US: +1 646 254 3376
Michael Nass Nielsen
Tel: +45 2494 1654
Tel: +45 2349 9098