Imerys announces significant improvement in 2017 results

2018-02-24

Feb. 14, 2018 - Imerys’ Board of Directors examined the definitive financial statements for 2017. These will be put to the Shareholders’ General Meeting for approval on May 4, 2018. 

10.4% increase in revenue on current basis (+ 3.3% organic growth(1))
 

Current operating income up + 11.3% to 648 M€, operating margin improves to 14.1%
 

Growth target exceeded for net income from current operations: + 11.4%
 

Robust generation of current free operating cash flow at 358 M€, with substantial capital expenditure program
 

Further + 11.0% growth in dividend to €2.075 per share proposed  

Chairman & CEO Gilles Michel commented: “In 2017, the Group’s results improved substantially and its cash flow generation was robust. Imerys largely exceeded its growth target for net income from current operations. 2017 was a major year in the rollout of Imerys’ strategy. The Group broadened its business portfolio with the acquisition of Kerneos, the world leader in calcium aluminate specialties on the fast-growing building chemicals market. It enhanced its existing offering through several bolt-on acquisitions and developed its international footprint, particularly in China. 2018 should be another year of growth in net income from current operations. Imerys will benefit from the quality of its business model, its operational discipline, the contribution of recent acquisitions and substantial capital expenditure on production capacities, as well as from innovation, excellence programs and internal efficiency.”

COMMENTARY BY BUSINESS GROUP 

Solutions for Energy & Specialties (29% of consolidated revenue in 2017)  

The Solutions for Energy & Specialties business group’s revenue totaled €1.326.6 million in 2017, up + 6.1%. This increase takes into account a + 37.5 million structure effect, mainly from the acquisitions in the Monolithic Refractories division and, to a lesser extent, the Carbonates and Graphite & Carbon divisions. It also includes a - €11.9 million negative exchange rate effect over the year (- €24.6 million in the second half).  

Filtration & Performance Additives (27% of consolidated revenue in 2017)  

The Filtration & Performance Additives business group’s revenue totaled €1.237.0 million in 2017. a + 8.1% increase compared with 2016. It takes into account a + €44.1 million structure effect, mainly relating to the acquisitions of Damolin (industrial absorbents) and, to a lesser extent, Regain Polymers (plastics recycling). The exchange rate impact amounts to - €12.4 million in 2017 (- €23.0 million in the second half).  

Ceramic Materials (25% of consolidated revenue in 2017) 

The Ceramic Materials business group’s revenue totaled €1.183.0 million in 2017. The - 3.2% current change from 2016 factors in a - €7.2 million exchange rate effect (- €11.7 million in the second half) and a structure impact of - €1.8 million (divestment of a site). 

High Resistance Minerals (19% of consolidated revenue in 2017) 

Revenue for the High Resistance Minerals business group, which mainly serves high temperature industries (steel, foundry, glass, aluminum, etc.), abrasives and construction (high performance calcium aluminate binders), totaled €915.0 million in 2017, a + 53.1% increase on a current basis compared with 2016. This change takes into account a + €256.8 million structure effect, mainly due to the integration of Kerneos in the second half and, to a lesser extent, the Alteo Group’s specialty alumina production activities, which were consolidated from the end of 2016 and Zhejiang Zr-Valley’s zirconia derivatives in China, from the end of July 2017. Exchange rate effects totaled - €3.6 million in 2017 (- €9.6 million in the second half).