Fluidra records outstanding results in 2017February 28, 2018
The company substantially exceeded its 2018 sales targets 1.5 years in advance.
Sales increased by 9.6% in 2017 to €781 million. EBITDA grew by 15.2% to reach €99 million, while Net Profit was 29% higher with €31.1 million.
After excluding non-recurring costs, Adjusted EBITDA raised to €105.3 million (+22.4%) and Adjusted Net Profit reached €35.6 million (+47.7%).
All geographies evolved extremely well in 2017. Europe grew near double-digit once adjusted for divestitures and currency. The South Asia region also performed well thanks to great results in the Commercial Pool area, and the Americas markets showed strong developments.
Fluidra, a Spanish listed multinational group devoted to the development of applications for the sustainable use of water for Pool & Wellness, recorded outstanding results in 2017. With this performance, the company not only reached its 2018 Strategic Plan targets 1.5 years in advance but exceeded them substantially.
Sales increased by 9.6% in 2017 and reached €781 million, compared to €713 million in the previous year.
Spain recorded a 9.1% sales increase adjusting for divestitures. Southern Europe showed a very positive performance with 16% growth. Once adjusted for perimeter changes, growth was 10.7% associated with the acquisition of SIBO and Piscine Laghetto in Italy.
Central and Northern Europe evolved very positively too, mostly due to Germany and the Netherlands, thanks to the contribution of SIBO. Once adjusted for it and for currency effects, growth was 3.1%. Eastern Europe was driven by great results in Croatia, Czech Republic and Russia, with 21% growth once adjusted for currency.
In the meantime, Asia and Australia remained strong with an 8.9% growth and demonstrated great achievements on the back of commercial pool business. Rest of the World presented an excellent performance supported by Latin America and the US.
All financial indicators of Fluidra showed an excellent performance in 2017: EBITDA grew by 15.2% to €99 million thanks to increased volume and positive margin performance. The expansion of the operating result helped Net Profit reach €31.1 million, which represents a 29% increase compared to last year.
After excluding non-recurring costs of the long-term incentive plan and Zodiactransaction costs, these figures were even more positive. Adjusted EBITDA raised to €105.3 million (+22.4% compared to 2016), while Adjusted Net Profit grew by 47.7% to €35.6 million.
The company has also reduced Net Debt to €146 million, reaching a leverage ratio of 1.4x Adjusted EBITDA due to the good evolution of Cash Flow in a year of strong sales growth.
Commenting on Fluidra’s performance, Eloi Planes, Executive Chairman, said: “We just closed another year of great results with double-digit growth, and we have reached our 2018 strategic plan targets 1.5 years in advance. All markets performed strongly. This good evolution reinforces our confidence in the company’s future and positions us well for the merger with Zodiac”.
Merger with Zodiac
In November, Fluidra and Zodiac announced a merger to create a global leader in the pool industry. The businesses are highly complementary in terms of geographical coverage, brand portfolios and product offerings
The merger process between both companies proceeds according to plans. Fluidra recently announced the launch of a refinancing process (a TLB of €850M, an RCF of €130M, and an ABL facility of $230M) with meetings in Madrid, London, and New York. Furthermore, the company obtained preliminary corporate credit ratings for the combined entity of BB/Ba3 by S&P and Moody’s, respectively.
Fluidra shareholders approved the merger on February 20 while Zodiacshareholders are scheduled to vote to approve it on February 28.
The closing of the merger remains subject to regulatory and other approvals and the companies continue to operate as independent businesses at this stage. The merger is expected to close in Q2.