Press Releases

Haniel makes good progress with debt reduction ─ profit significantly higher

08/30/2013


Duisburg, 30 August 2013. The Haniel Group significantly increased its profit in the first half of 2013. This was attributable to efficiency enhancements across all divisions, in addition to the absence of one-off expenses which weighed down profits in the previous year. "Haniel is again placing the highest priority on debt reduction in 2013. We are making good progress and have reduced the Holding Company's net financial debt to EUR 1.9 billion", said Stephan Gemkow, Chairman of Haniel's Managing Board.

Economy impairs revenue development
The Haniel Group's revenue fell to EUR 12.6 billion in the first half of 2013, down from EUR 13.5 billion in the same period of the previous year. In addition to the economic climate, the disposal of Irish and Czech activities at Celesio had a negative effect on revenue. Adjusted for corporate acquisitions and sales and currency translation effects, revenue at the Haniel Group declined by 4 per cent. This was due primarily to declining revenue at ELG, caused by weaker prices and demand for raw materials. The economy was also felt at TAKKT and resulted in acquisition-adjusted revenue declines – above all at TAKKT EUROPE. Celesio also posted lower revenue. In addition to a declining market in France, savings in healthcare in several countries were also responsible for this decline. CWS-boco's service business remained encouragingly stable, although trade sales declined as a result of economic conditions.

Higher operating profit
During the first half of 2013, the Haniel Group generated operating profit of EUR 293 million, thus exceeding the operating profit of EUR 275 million in the previous year's period. This improvement is attributable to one-off expenses for the Operational Excellence Program and the sale of various business activities at Celesio, which had a negative impact in the previous year. Lower revenue from lesser quantities and lower prices meant that ELG's operating profit was significantly lower than in the previous year. While TAKKT generated additional contributions to earnings from the companies acquired in 2012, these were unable to fully compensate for declining business growth due to the economy, in particular in Europe. However, CWS-boco succeeded in slightly increasing its operating profit despite lower revenue.

Profit before taxes up significantly year-on-year
The profit before taxes of EUR 143 million, which includes investment results and the results from financing activities in addition to operating profit, was considerably above the figure for the same period of the previous year – EUR 11 million. The increase resulted – in addition to the higher operating profit – from both higher investment results and improved results from financing activities.

The higher investment result was attributable primarily to the Metro investment. The METRO GROUP's business during the first half of 2013 was impacted by worsened consumer confidence, in particular in southern Europe. Nonetheless, the earnings contribution for Haniel from the Metro investment was higher than in the previous year.

Outlook
Haniel expects economic conditions to remain difficult in the second half of the year, particularly in Europe. "Macroeconomic development will remain susceptible to external disruptions. However, we are confident that we will be able to conclude financial year 2013 with a significant profit before taxes", said Stephan Gemkow.

H1 2013 figures at a glance:

EUR million

30 Jun. 2012*

30 Jun. 2013

Haniel Group

 

 

Revenue

13,485

12,621

Operating profit

275

293

Profit before taxes

11

143

Profit after taxes

-277

84

Haniel cash flow

360

287

CWS-boco

 

 

Revenue

376

369

Operating profit

32

33

Employees (average headcount)

7,667

7,549

ELG

 

 

Revenue

1,415

1,049

Operating profit

36

23

Employees (average headcount)

1,093

1,199

TAKKT

 

 

Revenue

444

470

Operating profit

61

54

Employees (average headcount)

2,118

2,545

Celesio

 

 

Revenue

11,251

10,733

Operating profit

176

203

Employees (average headcount)

45,481

38,563

Metro investment

 

 

Haniel investment result

-39

-17

* Prior-year figures have been adjusted in the management report in accordance with IAS 8.


The full 2013 Half-Year Financial Report is available here.