ANTALIS INTERNATIONAL : Operating results at end-September 2017 (AcT)

Press release

Boulogne-Billancourt, 25 October 2017

Operating results at end-September 2017

• Sales down 3.8% to €1,770 million (down 2.2% at constant exchange rates)
• EBITDA of €60 million, close to 9 months 2016; EBITDA margin up 0.1 points to 3.4%
• Current operating income up 8.9% to €46 million
   

Key operating indicators at end-September 2017

1. Including a €2.3 million gain arising on a change to a Swiss pension plan.

Antalis' sales came in at €1,770 million for the first nine months of the year, down 3.8% on 9 months 2016 (and down 2.2% at constant exchange rates). The acquisitions completed in late 2016 added
 €19 million to 9 months 2017 sales.

There were contrasting performances in the third quarter - which traditionally witnesses lower sales and also included 1.3% less working days this year – with good performances in France and Eastern Europe offset by a slowdown in the UK. Business in the Packaging sector held up well and helped to partially offset the decline in Paper volumes. Antalis continued to deliver an enhanced gross margin rate across its three business sectors thanks to its margin protection policy and continued efforts to reduce overheads.

EBITDA for the first nine months of the year came in at €60 million, close to 9 months 2016 EBITDA, with an increase in the EBITDA margin of 0.1 point to 3.4%. Lower overheads across the supply chain together with an improved product mix almost entirely offset the decline in Paper volumes and an unfavourable forex impact.

Current operating income grew by 8.9% to €46 million (including a €2 million gain arising on a change to a Swiss pension plan).

Breakdown of sales by geography

In the nine months to 30 September, the Main European Geographies (UK & Ireland, France, Germany & Austria) delivered sales of €899 million, down 5.6% on 9 months 2016 (and down 1.6% at constant exchange rates). This reflects the decline in Paper volumes, especially in the UK where the political and economic uncertainty over Brexit continues to weigh on demand, and the depreciation in sterling over the period.

Sales for the Rest of Europe were down by 3.1% to €701 million. There was no material forex impact over the period.

Sales for the Rest of the World grew by 4.0% in the first nine months of the year to €170 million thanks to a favourable FX impact (on the rand, peso, and real). Excluding the forex impact, sales would be down 1.6% for the period.

In the fourth quarter, trends in Antalis' businesses should be similar to those encountered during the first nine months of the year. Brexit-related uncertainty should continue to hit demand in the UK & Ireland which together contribute 26% of Antalis' sales.

For the year as a whole, Antalis should continue to reap the benefits of its margin protection policy, the growing contribution of the Packaging and Visual Communication sectors, and reduced overheads thanks to greater flexibility across its supply chain.

Excluding acquisitions and at constant exchange rates, Antalis' consolidated full-year sales should register a low single-digit decrease compared with the sales achieved for FY 2016 and EBITDA margin should come in at between 3.4% and 3.8%.

The Group continues to actively study various different solutions to refinance its credit facilities which are secured through 31 December 2018.

Contacts
Analysts & Investors
Xavier Roy-Contancin
+33 (0)1 58 04 21 90
Communication
Sylvie Noqué
+33 (0)1 58 04 21 90
www.antalis.com
contact@antalis.com

Source : Actusnews