Press Releases

Haniel on consolidation path – One-off effects result in significant loss

04/08/2013

  • Haniel Holding Company reduces debt aggressively
  • Metro shareholding devalued
  • Portfolio measures impact Celesio and Metro
  • Revenue remains steady
  • Improved operating profit
  • CWS-boco repositioning successful
  • ELG sees weak business environment
  • TAKKT grows through acquisitions

Duisburg, 8 April 2013. The Haniel Holding Company's consolidation is making further progress. In the past year, debt was lowered significantly and an adjustment to the carrying amounts for the Metro investment led to a considerable reduction in accounting risks. Despite persistent macroeconomic uncertainty, particularly in Europe, the Group's revenue remained stable at EUR 26.3 billion. Operating profit increased from EUR 400 million to EUR 496 million. However, the Haniel Group reported a heavy loss of EUR 1.9 billion due to comprehensive portfolio and restructuring measures. "The measures implemented by Haniel in 2012 will lay the foundation for successful economic development over the long term", explained Stephan Gemkow, Chairman of the Managing Board.

Revenue remains steady
The Haniel Group's revenue of EUR 26.3 billion was at the previous year's level of EUR 26.5 billion. However, development in the divisions varied greatly. In 2012, TAKKT benefited from regional diversification and acquisitions, and increased its revenue by 10 per cent overall. CWS-boco lifted its revenue by 1 per cent. This was due in part to further improvements in service to existing customers and optimised service quality management as well as positive development of the new customer business. Revenue also increased by 1 per cent at Celesio. Adjusted for acquisitions and disposals of companies and currency translation effects, Celesio recorded a 2 per cent decline, due in particular to lower revenue for patented medicines and health sector cutbacks in many European countries. Although ELG managed to maintain stable output tonnage of stainless steel scrap, revenue declined by 13 per cent. Business in this segment was weighed down in particular by lower price quotes for nickel.

Improved operating profit
The Haniel Group's operating profit rose from EUR 400 million to EUR 496 million. This was attributable mainly to the Celesio division, which posted a 13 per cent improvement in earnings, primarily due to lower one-off expenses for the strategic realignment. TAKKT succeeded in increasing operating profit by 8 per cent. The positive contributions to earnings from acquired companies as well as positive business situation for TAKKT AMERICA compensated for the economy-driven decrease at TAKKT EUROPE. CWS-boco also showed encouraging development and increased operating profit by 41 per cent. In addition to higher revenues, the increase is also attributable to operational improvements from the "Focus Future" repositioning project. Moreover, lower one-off expenses were incurred in 2012 than in the previous year. In contrast, earnings at ELG fell by 35 per cent in a business environment that continues to be intensely competitive.

Profit after taxes sharply negative due to one-off factors
The Haniel Group's profit after taxes in 2012 was highly negative at EUR -1.9 billion, following prior-year profit of EUR 236 million. The primary cause for this was the impact on earnings from the Metro investment, which amounted to EUR -1.5 billion and was considerably below the prior-year figure of EUR 329 million, and which weighed down the Group's investment result. While this decline is attributable in part to lower income from operating activities and higher one-off expenses for portfolio and restructuring measures at METRO GROUP, it is due primarily to write-downs on the carrying amounts of the Metro investment held by Haniel.­ Furthermore it should be factored in that Haniel had reported additional income of EUR 172 million in the previous year stemming from the disposal of the Metro properties.

Moreover, profit after taxes was also reduced by profit or loss from discontinued operations, which were impacted by the strategic realignment of Celesio: The sale of Movianto, Pharmexx and the DocMorris mail-order pharmacy resulted in a disposal loss.

Aggressive debt reduction
A comprehensive action plan was resolved in order to reduce net financial liabilities at the Holding Company level below EUR 2.0 billion: As a first action, the Haniel Holding Company reduced its equity interest in Celesio AG at the end of November from 54.64 per cent to 50.01 per cent and as a result reduced the equity interest in METRO AG from 34.24 per cent to 30.01 per cent of voting shares, as announced. Both divisions will remain anchor investments in the Haniel portfolio. In addition, Haniel initiated the disposal of its shares in two investment funds. The net financial debt of the Holding Company has already been reduced from EUR 2.4 billion to EUR 2.2 billion by the end of the financial year. It is currently already below EUR 2 billion.

Haniel expects to grow again in 2013
The 2012 financial year was marked by strategic realignments and portfolio measures, in particular at Celesio and the METRO GROUP. The initiated measures will continue to be implemented systematically in 2013, and Haniel expects these to translate into positive momentum for business development. "Haniel's medium-term objective is to achieve greater equilibrium in its portfolio so that it can take action even in an uncertain economic environment", stated Stephan Gemkow.

2012 key figures at a glance:

EUR million (IFRS)

   2011*

2012

% change

Haniel Group

 

 

 

Revenue

26,473

26,331

-1%

Operating profit

400

496

+24%

Profit before taxes

463

-1,483

<-100%

Profit after taxes

236

-1,896

<-100%

Haniel cash flow

436

440

+1%

Cash flow from operating activities

813

519

-36%

Capital expenditure

469

740

+58%

Annual average number of employees (headcount)

58,828

56,480

-2%

CWS-boco

 

 

 

Revenue

748

757

+1%

Operating profit

41

58

+41%

Annual average number of employees (headcount)

7,816

7,643

-2%

ELG

 

 

 

Revenue

2,721

2,364

-13%

Operating profit

81

53

-35%

Annual average number of employees (headcount)

1,068

1,098

+3%

TAKKT

 

 

 

Revenue

852

940

+10%

Operating profit

104

112

+8%

Annual average number of employees (headcount)

2,003

2,340

+17%

Celesio

 

 

 

Revenue

22,153

22,271

+1%

Operating profit

302

342

+13%

Annual average number of employees (headcount)

46,669

45,166

-3%

METRO GROUP

 

 

 

Haniel investment result

329

-1,523

<-100%

 *  Prior-year figures adjusted in accordance with IFRS 5