2014 Full-Year Results

D'Ieteren’s 2014 results are in line with the guidance. D'Ieteren Auto’s market share and profitability improved despite tough competition. At Belron, the marginal contribution from the significant sales uplift in the US could only partially offset the decline in Europe. In this context, the Board of Directors of D'Ieteren has decided to propose an unchanged dividend. 

In an environment that remains challenging, both activities are taking initiatives to ensure their development and invest in their future: D'Ieteren Auto is setting up a new structure for the distribution network and is investing in its own dealership network in Brussels, while Belron is implementing profitability improvement measures. The group expects its current result before tax, group’s share, to be up in excess of 10% in 2015.

 

Group Summary

 

A.      Sales 

The consolidated sales amounted to EUR 5,541.6 million, +1.3% compared with 2013. They are broken down as follows: 

-        D’Ieteren Auto: EUR 2,660.5 million, +1.3% year-on-year, comprising an organic decline of 0.2%. The acquisition of a number of independent dealerships late 2013 and in H1 2014 contributed 1.5% to sales. The real market share1 rose to 22.67% (22.39% in 2013). In total 111,667 vehicles were delivered in 2014 (112,877 in 2013). 

-        Belron: EUR 2,881.1 million, +1.3% year-on-year, comprising a 2.2% increase from acquisitions partially offset by a 0.5% organic decrease, a 0.3% negative currency translation and an adverse 0.1% trading day impact. The slight organic decrease is due to a significant market decline in Northern Europe resulting from mild winter weather, which was not completely offset by the impact of extreme winter weather in the US.

 

B.      Results 

-        The consolidated result before tax reached EUR -5.3 million. Excluding unusual items and re-measurements (EUR -166.2 million), the current consolidated result before tax reached EUR 160.9 million (-11.7% year-on-year). The unusual items are mainly comprised of the non-cash impairment charges and the restructuring costs at Belron that were announced mid-December 2014. 

-        Our key performance indicator2, the current consolidated result before tax, group’s share, stands at EUR 157.2 million, down 11.5%, in line with our guidance of a decline of slightly more than 10%. It is broken down as follows: 

  • D’Ieteren Auto and Corporate activities: EUR 52.5 million, +11.5% year-on-year, mainly thanks to lower marketing costs and a positive product mix effect. 
  • Belron: EUR 104.7 million, -19.8% year-on-year. The marginal contribution from the significant sales uplift in the US could only partially offset the decline in Europe. 

-        The group’s share in the net result for the period stands at EUR -11.1 million
(EUR 114.0 million profit in 2013). Excluding unusual items and re-measurements, the group generated a net profit of EUR 125.7 million, down 7.6% year-on-year. The unusual items are mainly comprised of the restructuring costs and the non-cash impairment charges at Belron that were announced mid-December 2014.

 

C.      Dividend 

The Board of Directors of D’Ieteren proposes to maintain the gross dividend at EUR 0.80 per share for 2014. If this dividend is approved by the General Meeting of Shareholders on 28 May 2015, it will be paid on 4 June 2015 (ex date: 2 June 2015). 

 

 D.      Financing of the activities 

D’Ieteren’s activities are financed autonomously and independently of each other. Between December 2013 and December 2014, the group’s consolidated financial net debt3 has increased from EUR 505.3 million to EUR 597.8 million. 

The net cash position3 of the D’Ieteren Auto/Corporate segment decreased from EUR 226.4 million in December 2013 to EUR 138.1 million, partially due to the acquisition of independent dealerships in the Antwerp and Mechelen areas (EUR 31 million). 

Belron’s net financial debt3 increased slightly from EUR 731.7 million in December 2013 to EUR 735.9 million, mainly due to the stronger US dollar. 

 

E.      Outlook for FY 2015 current consolidated result before tax, group’s share2 

On the basis of the current outlook of its activities, D’Ieteren still expects its 2015 current consolidated result before tax, group’s share, to be up in excess of 10% on 2014. 

 

Webcast 

A live webcast of the presentation to the analysts (in English), which will take place on 26 February 2015 at 5:45 pm, is available by clicking on the following link: http://edge.media-server.com/m/p/u92h5jf5

 

Group profile 

D'Ieteren is a group of services to the motorist founded in 1805, serving some 12 million corporate and end customers in 34 countries in two areas: 

- D'Ieteren Auto distributes Volkswagen, Audi, Seat, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles across Belgium. It is the country's number one car distributor, with a market share of more than 22% and 1.2 million vehicles of the distributed makes on the road. Sales in 2014: EUR 2.7 billion. 

- Belron (94.85% owned) is the worldwide leader in vehicle glass repair and replacement. Some 2,400 branches and 9,400 mobile vans, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass® serve customers in 34 countries. Sales in 2014: EUR 2.9 billion.

 

Financial Calendar 

Last five press releases

Next events

 

 

 

 

26 February 2015

Webcast – 2014 Full-Year Results

15 April 2015

Annual Report 2014

25 February 2015

Repurchase of own shares

28 May 2015

General Meeting & Trading update

17 February 2015

Repurchase of own shares

2 June 2015

Ex date

12 December 2014

Annual impairment testing and profitability improvement measures / Update on group’s FY 2014 outlook / Early views on 2015

4 June 2015

Payment date

4 November 2014

Repurchase of own shares

31 August 2015

2015 Half-Year Results / Analyst meeting & press conference

 

Contacts 

Axel Miller, Chief Executive Officer

Benoit Ghiot, Chief Financial Officer 

Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39

E-mail: financial.communication@dieteren.be – Website: www.dieteren.com