Imerys announces increase in first quarter 2018 earnings

2018-05-02

Apr. 28, 2018 - Revenue for the first quarter ended 31 March 2018 amounts to €1,207.6 million, up + 8.5% compared to the same period of 2017. This increase reflects the organic growth of + 4.2%, thanks in particular to a robust price-mix effect in all business groups, up + 3.0%. In markets that continue to be positive, volumes rose by + 1.2%. The activity has been impacted by adverse weather conditions in Europe and the United States.

Revenue also includes a positive perimeter effect of + €129,0 million (+ 11.6%), of which €108.0 million from Kerneos in particular, as well as the impact of significant adverse exchange rates for - €80.9 million euros (- 7.3%). 

First quarter 2018 current operating income totaled €154.2 million, up + 4.8% compared to the first quarter of 2017. Excluding the impact of exchange rate fluctuations (- €13.2 million), it is up + 15.1% thanks, in particular, to a positive price-mix effect of + €31.3 million, which is offsetting the increase in variable costs (+ €19.3 million, notably raw materials and energy) which remain under control, and a gradual improvement in the contribution from recent acquisitions (+ €14.1 million), Kerneos, notably. Sales volumes contribute more than €6.7 million.

Moreover, the + €16.8 million increase in fixed costs and overheads includes further investments in new production capacity, innovation, human resources and programmes designed to strengthen the Group’s competitiveness and support its growth. 

Thus, the Group’s operating margin remains firm at 12.8% for the first quarter of 2018, despite a - 0.2 point unfavorable exchange rate impact and taking into account a different business mix in the first quarter. 

Net income from current operations rose + 11.8% to €95.4 million (Q1 2017: €85.3 million). It includes a financial result that goes from - €25.8 million in the first quarter 2017 to - €19.6 million in the first quarter 2018, due to the decrease of - €6.2 million in financial costs. The tax charge of - €39.0 million (Q1 2017: - € 35.8 million) reflects an effective tax rate of 29.0 % (Q1 2017: 29.5%).

Net income from current operations, Group share, per share is up + 11.5% to €1.21. 

First quarter 2018 net income, Group share, increased by + 16.3% to €91.7 million after taking into account other income and operating expenses, net of taxes of - €3.7 million in the first quarter of 2018, lower than in the first quarter of 2017.