Brussels, 8 May 2017 – Ideal Standard International S.A., the leading manufacturer of residential, commercial and healthcare bathroom solutions, today announced its consolidated results for the first quarter of 2017.
Consolidated net sales for the first quarter reached €186.7m, a growth of 9.1% versus prior year on a constant currency basis, driven by positive market dynamics and market share gains through successful new product introductions. Including an unfavourable foreign exchange impact of 8.9%, mainly due to currency evolutions in the UK and Egypt, sales increased 0.2% versus prior year.
Sales performance reflects revenue growth at constant currency across most of the company’s European markets by 3.8% on average, complemented by a €10m revenue increase versus prior year in the Middle East and North Africa (MENA).
Adjusted EBITDA reached €17m in the first quarter, an improvement of €3.2m or 23.2% versus prior year. Adjusted EBITDA margin increased by 170bps and reached 9.1% in the first quarter of 2017. This performance reflects a gross profit improvement that is mainly driven by increased volume absorption, focus on higher margin activities, pricing, and cost improvements.
Additional first quarter highlights
A major milestone for the company in the first quarter was our successful presence at ISH 2017, the world’s leading trade fair for the Bathroom Experience, Building, Energy, Air-conditioning and Renewable Energies. During the exhibition we presented a new wave of product innovations, revealed our new corporate design expressing our close partnership with Professionals and highlighted our strategy of investment into growth and value creation. Three key elements that not only generated positive feedback from our customers and the media, but also had an almost immediate business impact through an increased order in-take following the fair.
At the end of February, the company also announced it completed the issuance of €75m in aggregate principal amount of Series AAA Notes. Cash proceeds resulting from the issuance will be used to fund the company’s value creation strategy, including significant capacity and technology investments, as well as investments in Innovation and Customer Service / digital.
Commenting on the company’s Q1 activities and results, Group CEO Torsten Türling, stated:
“I am very pleased to see that our first quarter results show a continuation of the positive business momentum from 2016. The over-proportionate improvement of our profitability clearly indicates that our value creation strategy is starting to come through and deliver results.
I’m also particularly excited and encouraged by the strong positive feedback of our customers at ISH 2017. We look forward to reinforcing our long-term partnerships and bringng even more innovations to the market that meet their needs.”
A complete set of financials of Ideal Standard’s 1Q17 results are available for download on www.isi-investor.com
The company will host an investor conference call on 8 May 2017 at 15h00.
This disclosure contains inside information.
The ISIN and Common Code numbers in relation to the outstanding Notes issued by the Company are as set forth above. No representation is made as to the correctness or accuracy of such numbers listed in this release.
This release may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Forward-looking statements are based on assumptions and current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise.
Ideal Standard International S.A. Analytic Profit & Loss Summary
Ideal Standard International
+32 (0) 2800 4800
Torsten Tuerling, Chief Executive Officer
Zubair Javeed, Chief Financial Officer
Sven Voet, Corporate Communications
About Ideal Standard International
Ideal Standard International is one of the world’s leading manufacturers of high-quality residential, commercial and healthcare bathroom solutions. Headquartered in Brussels, Belgium, the privately-owned company employs almost 9,500 people and operates 18 manufacturing sites, serving over 60 countries across Europe, the Middle East and Africa. Using the latest technologies and working with world class designers, the company is focused on developing innovative bathroom solutions across multiple product categories including bathroom Ceramics, Taps & Fittings, Bathing & Wellness and Furniture & Accessories. Its products are sold under strong international and local brands such as Ideal Standard, Armitage Shanks (UK), Porcher (France), Ceramica Dolomite (Italy) and Vidima (Eastern Europe).