PRESS RELEASE
PRESS RELEASE
M.J. MAILLIS GROUP: Q3 2014 Financial Results
(for the period 01.07.2014 – 30.09.2014)
November 21, 2014. Athens, Greece The M.J. Maillis Group, a global leader in the field of secondary packaging listed on the Athens Exchange (ATHEX: MAIK), announces its results for the period from 1 January to 30 September 2014.
Highlights:
The increase in Gross Margin by about 2 percentage points, as a result of production improvement programs and the positive effect of exchange variances were the main factors that led to an increased EBITDA by 40% in the 9month period of 2014, despite the slight decrease of sales.
In comparison to Q3 of 2013:
- Sales increased by 4.7%
- Gross Profit Margin increased by 3.0 percentage points
- ΕΒΙΤDA improved by 1.8 million
|
|
3rd quarter 2014 |
3rd quarter 2013 |
Nine Months 2014 |
Nine Months 2013 |
Difference |
|
Sales |
63,564 |
60,719 |
187,972 |
196,097 |
-4.14% |
|
Gross Profit |
13,969 |
11,570 |
40,465 |
38,057 |
6.33% |
|
Gross Margin |
22.0% |
19.1% |
21.5% |
19.4% |
2.1 pp |
|
Operating EBITDA |
4,195 |
2,279 |
10,994 |
9,715 |
13.17% |
|
EBITDA |
3,987 |
2,231 |
11,204 |
8,035 |
39.44% |
Comparison of Nime Months 2014 and 2013
Group 9months ytd sales 2014 decreased by 4.1% compared to 9months 2013, while Gross Profit rose by 2.1 percentage points, which led to an increase of €3.2 million in EBITDA.
Financial Performance:
The decrease of Sales, that reached €188.0 million for the M. J. Maillis Group during the 9months of 2014, by €8.1 million compared to 2013 was mainly the result of lower Machines sales due to the negative effect of the Canadian dollar exchange rate and the delay in orders delivery in Italy due to the merger of two production facilities.
The increase in Gross Margin at 21.5% compared to 19.4% in previous year is due to improvement in the Gross Margin of consumables as the result of lower raw material prices and normalized production cycles.
Excluding non-recurring Income and Expenses amounts, the result of exchange differences, as well as provisions and restructuring costs, the ytd Operating EBITDA increased by 1.3 m€ vs. the same period in 2013, due to the positive Gross Margin effect. Total EBITDA increased by 3.2 m€, compared to 9months of 2013.
The Net Losses before Tax at 0.2 m€ decreased significantly vs last year (-11.7 m€). However, due to the positive effect of Restructuring Agreement in the financial statements the Profits after tax were 19.5 m€ vs. losses of 16.1 m€ in 2013.
Restructuring:
The effect of financial restructuring is depicted in the following table (m€):
|
Borrowing at the date of financial restructuring |
Borrowing after the financial restructuring |
Balance of borrowings transferred to equity during the financial restructuring to: |
|||
|
Book Value |
Balance of borrowings transferred to equity during the financial restructuring |
Reserves |
Retained Earnings |
Profit&Loss |
|
|
265.6 |
83.3 |
182.3 |
74.2 |
100.2 |
7.9 |
*The balance of borrowing includes the bond loan of € 10 m issued on 1st August 2014 to finance working capital needs.
The main terms of the Agreement, which establishes the prerequisite of a substantial recovery and safeguards the continuity of the Group's activity, are the following:
-The transfer of the existing Lenders' shares, to the Strategic Investor (HIG).
-The capitalization of 100% of the convertible bonds and of 50% of the Senior bonds, for achieving an equivalent reduction of the Company's debt. In more detail, the book value of € 96.3 m of convertible bonds were transferred directly to retained earnings while the 50% of book value of Senior bond amounting to € 69.2 m was transferred to other reserves.
-The improvement of the main terms of the two existing ordinary bond loans, the Senior Bond Program and Super Senior Program, such as, extension of the repayment schedule and reduction of the applicable interest rate, that will cause a substantial decrease of the related financial cost, on an annual basis.
-The further support of the Company's liquidity, by the issue of new bond loan of 10 m€, for Working Capital financing.
After the above capitalizations and the recognition of the improved terms, the new bond loans are amounted to € 83.4 million. The difference that occurred during the initial recognition was € 11.7 million and recorded both in the income statement (amount € 7.9 m) and in the retain earnings (amount € 3.8 m).
Outlook:
Through the Restructuring Agreement, the second phase of financial restructuring is completed leading to a significant reduction in borrowings and generally a sanitized balance sheet of the Group. The implementation of this second phase gives a definitive solution to the problem of high debt and capital adequacy of the Group, in conjunction with programs to reduce operating costs and increase productivity, while maintaining its headquarters and production base in Greece, lays the foundation for further growth.
About the M.J. Maillis Group
The M.J. Maillis Group is a leader in secondary packaging providing its clients globally with complete, high technology and cost effective packaging solutions (one-stop-shopping) that combine packaging equipment, packaging materials, service and support. The Group maintains physical presence in 18 countries in Europe and North America, while its products are sold in more than 80 countries worldwide. The Group's customer base extends to the food and beverage, aluminium, steel, construction, timber and bailing industries and it is the exclusive or preferred global supplier to an increasing number of major industrial and consumer products multinationals such as US Steel, Nestlé, Coca-Cola, P&G, Henkel, Pepsi, Mars, Lafarge, ArcelorMittal, Tata, Walmart, etc. The shares of the M.J. Maillis Group are listed on the Athens Stock Exchange under the ticker symbol "MAIK".
For more information please contact:
Company Contact:
Group's Investor Relations Department
Tel. +30-210-6285-000
E-mail investor.relations@maillis.gr