Deceuninck has released its 2018 annual report, announcing the highest financial performance in a decade.
According to Deceuninck, a difficult market in Turkey was balanced by strong growth in North America and emerging markets. Deceuninck says that it is in the top three systems companies in most major world markets, and is a ‘leader in innovation, sustainability, colour and design’.
Full year 2018 group sales fell 1.9% to €674.2 million (€687.2 million in 2017) as sales growth in North America and the emerging markets has been offset by lower volumes in Turkey due to challenging market conditions in the second half. Sales in Europe remained stable however, with different dynamics in different markets. Adjusted EBITDA increased to €72.4m (€68.1m in 2017). Adjusted EBITDA margin increased to 10.7% on sales (9.9% in 2017) driven by operational efficiencies resulting from process improvements and investments in equipment and infrastructure. Price increases compensated for higher raw material prices, devaluation and inflation. Net profit increased to €15.6m (€13.8m in 2017). Strategic projects including the new recycling plant, new product developments, initiatives to further strengthen the brand and the roll out of SAP are on track.
In the report, Francis Van Eeckhout, Deceuninck CEO, said: “2018 was a good year for Deceuninck with adjusted EBITDA increasing to €72.4m, the highest level in a decade. I am also pleased with our new recycling capability in Belgium, which confirms the ecological ambition of both Deceuninck and our customers.”
Deceuninck UK managing director, Rob McGlennon, added: “These are great results, and I’m pleased to say that continued strong growth from the UK not only contributed positively to sales and profits, but consistent year on year growth has moved us up the group rankings so that the UK is overtaking some core countries. January sales were up 12% year-on-year in the UK. This follows a record-breaking 2018 which finished 21% up on the previous year. February sales to date are 25% ahead of February 2018. We are going like a train!
“We’re expecting further strong growth in 2019 on the back of innovative product launches and the development of existing initiatives and strategy,” Rob concluded.
