2015 Half-Year Results
Both activities (D’Ieteren Auto and Belron) realized higher sales and a significant improvement in results during the first half of 2015. D’Ieteren Auto’s market share declined slightly in a market that was marginally down. New vehicle sales and results benefited from a positive price/mix effect. Improved results from the sale of spare parts and accessories and at the corporately-owned dealerships as well as cost savings also contributed to the sharp increase in D’Ieteren Auto’s results. The first half was mixed for Belron in terms of organic sales, with solid growth in the US partially offset by declines in Europe. Results rose steeply however thanks to the fall through from higher sales in the US, cost savings in Europe and a positive currency effect.
Whereas previously the group communicated that it expected its current consolidated result before tax, group’s share, to grow by more than 10% in 2015 compared to 2014, it now anticipates a 20-25% increase based on current exchange rates. The upward revision mainly reflects the favourable currency effect and higher-than-expected results at D’Ieteren Auto in H1 2015.
Consolidated sales amounted to EUR 3,230.3 million, +8.6% compared with the first half of 2014. They break down as follows:
- D’Ieteren Auto: EUR 1,590.7 million, +5.4% year-on-year. The market share reached 22.02% in H1 2015 (22.27% in H1 2014). In total 63,553 new vehicles were delivered in H1 2015 (63,286 in H1 2014).
- Belron: EUR 1,639.6 million, +11.9% year-on-year, comprising a 2.0% organic increase, a 0.2% increase from acquisitions and a 10.1% positive currency translation effect, partially offset by an adverse 0.4% trading day impact. The organic increase reflects solid growth in the US, which was partially offset by market declines in Europe.
- The consolidated result before tax reached EUR 107.2 million (EUR 78.8 million in H1 2014). Excluding unusual items and re-measurements (EUR -36.3 million), the current consolidated result before tax reached EUR 143.5 million (+61.8% year-on-year). The unusual items and re-measurements mainly relate to the impairment of goodwill and tangible fixed assets at Belron’s Brazilian and Turkish operations.
- Our key performance indicator – the current consolidated result before tax, group’s share – stands at EUR 140.0 million, up 61.5%. It breaks down as follows:
- D’Ieteren Auto and Corporate activities: EUR 59.6 million, +60.2% year-on-year, mainly thanks to a positive price/mix effect in new car sales, higher profits from the sale of spare parts and accessories, improved results at the corporately-owned dealerships and cost savings.
- Belron: EUR 80.4 million, up 62.4% year-on-year. The strong improvement reflects the significant fall through from increased sales in the US, tight cost control and the impact of restructuring actions in Europe (as announced in December 2014) and a positive currency impact.
- The group’s share in the net result for the period stands at EUR 83.7 million (EUR 65.9 million in H1 2014). Excluding unusual items and re-measurements, the current net profit, group’s share, reached EUR 117.5 million, up 63.4% year-on-year.
Financing of the activities
D’Ieteren’s activities are financed autonomously and independently of each other. Between June 2014 and June 2015, the group’s consolidated financial net debt has increased from EUR 556.2 million to EUR 650.6 million.
The net cash position of the D’Ieteren Auto/Corporate segment decreased from EUR 160.3 million in June 2014 to EUR 113.3 million, mainly due to the timing of accounts payables payments.
Belron’s net financial debt rose from EUR 716.5 million in June 2014 to EUR 763.9 million, mainly due to the stronger US dollar.
Outlook for FY 2015 current consolidated result before tax, group’s share
Whereas the group had previously communicated that it expected an increase in current consolidated result before tax, group’s share of more than 10% in 2015 compared to 2014, it now anticipates a 20-25% increase based on current exchange rates. The upward revision mainly reflects the favourable currency effect and higher-than-expected results at D’Ieteren Auto in H1 2015.
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 at the end of 2014. Sales in 2014: EUR 2.7 billion.
- Belron (94.85% owned) is the worldwide leader in vehicle glass repair and replacement. In 2014, some 2,400 branches and 9,400 mobile vans, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass® served customers in 34 countries. Sales in 2014: EUR 2.9 billion.
Axel Miller, Chief Executive Officer
Arnaud Laviolette, Chief Financial Officer
Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39