1Q 2018 trading update
- This is an abstract. For further details, please refer to the full press release. -
Positive start to the year – full-year guidance unchanged
- D’Ieteren group’s combined sales rose by 3.5% in 1Q 2018.
- D’Ieteren Auto’s sales increased by 2.4%, mainly reflecting a positive price and model mix effect partly offset by a decline in new vehicle deliveries. D’Ieteren Auto’s market share improved by 8bps to 20.37% in a broadly flat market (+0.6%).
- Belron’s sales rose by 4.1%, comprising a 9.6% organic increase, thanks to market share gains and positive mix developments supported by favourable weather conditions, together with 3.1% from acquisitions. This was partially offset by a 7.3% negative currency translation effect and a 1.3% negative trading day impact due to the timing of Easter.
- Moleskine’s strong organic revenue growth (+27.2%) was underpinned by higher B2B sales across the regions and solid Wholesale and Retail revenues in the Americas and EMEA. At actual exchange rates, sales were up 19.0%.
- Unchanged full-year guidance: D’Ieteren is aiming for a mid-to-high single-digit improvement for its adjusted consolidated result before tax, group’s share. Following the sale of 40% of its shares in Belron to CD&R, D’Ieteren’s stake in Belron stands at 54.85% as from February 2018. The guidance assumes a 58.18% stake (a weighted average of 94.85% for one month and 54.85% over 11 months) in 2017 and 2018. If Belron had been consolidated according to this ratio (58.18%) in 2017, the adjusted consolidated result before tax, group’s share, would have been EUR 195.9 million. This guidance assumes average foreign exchange rates in 2018 that are in line with the exchange rates that prevailed at the end of 2017.
Message from the Management
“1Q 2018 was positive for each of our three activities.
Belron’s performance was driven by market share gains made possible by sustained investments in marketing, key account relationships and service levels. The business continues to innovate, with improvements to the operational performance and its key account offering, as well as expansion into new services.
D’Ieteren Auto managed to increase its market share and saw sales growth underpinned by the successful launch of new SUVs. The network optimization is nearing completion and investments are being made to improve customer experience using an approach that is increasingly based on digital and mobile platforms.
Moleskine reported a significant pick-up in sales momentum underpinned by its multi-channel distribution and product expansion strategy.
Following the partial sale of D’Ieteren’s stake in Belron, the Corporate team is continuing to look at new investment opportunities.”
End of abstract
In existence since 1805, and across family generations, D’Ieteren seeks growth and value creation by pursuing a long-term strategy for its businesses and actively encouraging and supporting them to strengthen their positions in their respective industries and geographies. The group currently has three activities articulated around strong brands:
- D'Ieteren Auto distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti, Porsche and Yamaha vehicles in Belgium. It is the country's number one car distributor, with a market share of around 21% and 1.2 million vehicles on the road at the end of 2017. Sales and adjusted operating result reached respectively EUR 3.3 billion and EUR 85.9 million in FY 2017.
- Belron (54.85% owned) makes a difference by solving people’s problems with real care. It is the worldwide leader in vehicle glass repair and replacement, trading under more than 10 major brands including Carglass®, Safelite® AutoGlass and Autoglass®. In addition, it manages vehicle glass and other insurance claims on behalf of insurance customers. Belron is also expanding its services to focus on solving problems for people who need assistance with repairs to their vehicles and homes. Sales and adjusted operating result reached respectively EUR 3.5 billion and EUR 189.8 million in FY 2017.
- Moleskine (100% owned) is a premium aspirational lifestyle brand that develops and sells iconic branded notebooks and writing, travel and reading accessories through a multichannel distribution strategy across more than 115 countries. Sales and operating result reached respectively EUR 155 million and EUR 25 million in FY 2017.
Axel Miller, Chief Executive Officer
Arnaud Laviolette, Chief Financial Officer
Pascale Weber, Financial Communication - Tel: + 32 (0)2 536.54.39