Imerys announces solid performance in first half 2018 earnings

2018-07-28

Jul. 27, 2018

Highlights:

● Roofing division disposal to enhance Imerys growth profile and financial structure 

● Revenue organic growth¹ up + 5.3%² 

   o Revenue growth of + 11.9% to €2.3 billion euros on current basis, supported by external growth (Kerneos in particular) 

   o Supportive underlying markets 

   o Positive price-mix 

● + 4.7% organic growth of the current operating income³ to €284 million

   o + 7.7% on current basis 

   o Stable operating margin on a like-for-like basis 

● Guidance for full year 2018: net income from current operations to increase by around + 7% on FY 2017 on a proforma basis, assuming current market and exchange rates conditions 

CEO Conrad Keijzer commented: 

“Imerys’ performance in the first half of 2018 benefited from strong underlying markets, a positive price-mix and contribution from acquisitions, mainly Kerneos. This achievement gives us confidence that the Group is on track to deliver an increase in net income from current operations of around + 7% in 2018, assuming current market and exchange rates conditions. Furthermore, the disposal of the Roofing business, which we expect to complete by the end of the year, marks an important milestone in our value-creation strategy: it will allow the Group to optimize its growth profile and benefit from enhanced financial resources to further build a portfolio of activities focusing on specialty materials.”

¹ Organic growth: growth at comparable Group perimeter and exchange rates, or "like-for-like" 

² Calculation on proforma basis: Roofing division accounted for as a discontinued activity in H1 2018 and restated in H1 2017 accounts. As a consequence, all financial data throughout this press release are presented excluding the Roofing division. 

³ "Current" means "before other operating revenue and expenses", as defined in the notes to the financial statements relating to the consolidated income statement 

⁴ The weighted average number of outstanding shares was 79,149,662 in the first half of 2018 (79,035,849 in the first half of 2017). 

Kerneos was first consolidated into Imerys from July 17, 2017 and will therefore not be included in the scope effect in the second half. For the full-year, the Group is confident to achieve an increase of around +7% in net income from current operations on 2017 on a proforma basis excluding the Roofing division, assuming current markets and exchange rates conditions. Furthermore, the disposal of the Roofing business will allow the Group to benefit from enhanced financial resources.