Picanol Group reports audited eighth consecutive year of strong results – well filled order log for half year 2018

EUR 25 million investments planned and 100 vacancies in Ypres

In line with the previously announced forecast, the Picanol Group (Euronext: PIC) realized a consolidated turnover of EUR 688.93 million over the full 2017 financial year, a turnover increase of 8% compared to th eEUR  639.78 million recorded in 2016 (the best year in the history of the Picanol Group).

In 2017, the Weaving Machines division again experienced a record breaking year. The rising demand for quality and technology resulted in strong sales – mainly in Asia – and this led to further market share growth in many countries and weaving market segments. This resulted in Picanol putting a record number of weaving machines on the market in 2017. The sales of spare parts and accessories followed the positive trend of the weaving machines.

The Industries division (Proferro, PsiControl and Melotte) also showed strong sales growth in various market segments while making an increasing contribution to the group’s turnover. On the other hand, rising material prices and a higher share of subcontracting versus own production had an adverse effect on the result. Within Industries, Proferro continues to modernize its machine park in order to increase profitability and production capacity.

The activities of the Picanol Group resulted in 2017 in a net profit of EUR 91.64 million compared to EUR 88.38 million in 2016. In addition, Tessenderlo Group nv made a positive contribution to the net profit of EUR 10.07 million in 2017 (compared to EUR  31.34 million in 2016). The group closed 2017 with a net profit of EUR 101.71 million, compared to EUR 119.72 million in 2016.

The Board of Directors will propose the payment of a gross dividend of EUR 0.2 at the annual general meeting on April 18, 2018, for a total amount of EUR 3.54 million.

 

For the first six months of 2018, the order book is well-filled. For the first half of 2018 the Picanol Group expects to realize a turnover in line with that of the first half of 2017, but is taking into account a further negative impact of rising commodity prices.

The Picanol Group currently has some 100 vacancies that are aimed at further strengthening its technological leadership position. The vacancies include roles for CNC operators, field technicians and quality engineers. In addition, the group also has several vacancies for R&D engineers and various positions in IT and Sales & Services. All of the vacancies are published on the website www.picanolgroup.com

Notes to the profit and loss account

In 2017, the Picanol Group realized a consolidated turnover of EUR 688.93 million over the full financial year, which represented an increase in turnover of 8 % compared to the EUR 639.78 million in 2016. The turnover of Picanol nv increased in 2017 by 3 % compared to 2016, from EUR 510.1 millionto 526.9 million. The gross profit of the Picanol Group for the 2017 financial year amounted to EUR 159.39 million, compared to EUR 158.4 million in 2016. The gross profit percentage decreased slightly from 25 % to 23 %. The operating result is stable at EUR 120.77 million in 2017 compared to EUR 120.98 million in 2016.

The Picanol Group closed 2017 with a net profit of EUR 101.71 million, compared to a net profit of EUR 119.72 million in 2016. The share of the results of Tessenderlo Group nv for the full financial year 2017 was EUR 10.07 million euros (compared to EUR 31.34 million in 2016).

 

Dividend

The Board of Directors will propose the payment of a gross dividend of 0.2 euros at the annual general meeting on April 18, 2018, for a total amount of 3.54 million euros.

Outlook

For the first six months of 2018, the order book is well-filled. For the first half of 2018 the Picanol Group expects to realize a turnover in line with that of the first half of 2017, but is taking into account a further negative impact of rising commodity prices.

The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost-control remains of the essence.

Beyond Industry 4.0: Let’s Make it Together

Currently, the Picanol Group operates in a constantly changing world of ever-increasing complexity and this creates many challenges. In addition to automation, product development, innovation and quality – of both products and services – agility, teamwork and, above all, smart responses to new technological challenges will be the keys to becoming and remaining successful in the future. The Picanol Group firmly believes in the further growth of its manufacturing industry in Belgium. And the company is also committed to the future and to sustainable growth, with its employees as the driving force.

In this context, the Picanol Group has launched Let’s Make it Together in the course of 2017 to focus in the coming years on three priorities that should help it on its way to becoming the (manufacturing) company of and for the future:

  1. World class manufacturing technologies

The Picanol Group will continue to invest in future-oriented equipment and efficient logistics processes. At the same time, the company wants to create an appealing working environment.

  1. Digital company

The group is committed to the digitization of production and processes by capturing, making available and using data efficiently. The use of good hardware and software platforms to support the business processes is of central importance in this context.

  1. Human centred company

The Picanol Group strives for an organization in which engaged employees have room for creativity and initiative. Its employees are actively supported in this regard, receiving ongoing training in order to further develop their talents and provide added value.

Auditing report

The auditor, DELOITTE Bedrijfsrevisoren BV ovve. CVBA, represented by Kurt Dehoorne, confirms that the audit is substantially completed, and did not reveal any significant adjustments to the financial information included in the press release.

 Financial Calendar

The annual report for the 2017 financial year is available with effect from March 14, 2018, on the corporate website.

 This year, the Picanol Group has launched a sustainability report for the first time, which marks a new step towards making its sustainability efforts more visible to all stakeholders. The sustainability report of the Picanol Group will be available in a digital version with effect from March 14, 2018 on.

Both items can be had at the link below.

www.picanolgroup.com