Zwolle, 19 April 2012 - Wavin, Europe's leading supplier of plastic pipe systems and solutions, today provides an update on its performance in Q1 2012.
Q1 revenue EUR 286 million(1) (EUR 300 million in Q1 2011)
Q1 Ebitda(2) EUR 11.6 million (2011: EUR 10.9 million)
Ebitda margin rose to 4.1 % (Q1 2011: 3.6%)
Markets and Performance
Wavin's Q1 2012 revenue was EUR 286 million, a decrease of 4.7% compared to Q1 2011. The like-for-like revenue decrease was 1.1%. The Scandinavian countries, Germany, Czechia and Poland continued their strong performances. Market circumstances in the UK, the Netherlands and Italy remained difficult. Revenue development in February was affected by severe winter conditions.
Raw material cost rose sharply in the course of Q1. The negative effect on margins was mitigated by tight cost control, operational improvements and sales price increases. Q1 Ebitda amounted to EUR 11.6 million, up 6.4% compared to the same period last year. The Q1 Ebitda margin increased 50 bps to 4.1%.
At the beginning of the year Wavin announced a restructuring plan, leading to a head count reduction of approximately 80 people in the back-office in the UK and 70 people in other operating companies throughout continental Europe. This restructuring is in full progress and will be finalised mid-year.
On 8 February, Wavin and Mexichem jointly announced that they had reached a conditional agreement in connection with a public offer by Mexichem for all issued and outstanding ordinary shares of Wavin. On 9 March Mexichem launched its recommended cash offer, the acceptance period ends 7 May, unless extended.
On 23 March, Mexichem announced that its shareholders had approved the acquisition and that Mexichem had a 22.28% shareholding in Wavin. The offer will be explained at the Wavin Annual General Meeting of Shareholders on 25 April.
In 2012, sentiments will continue to differ in our key countries. The situation in Scandinavia, Germany, Poland and Turkey looks positive. Markets in the UK, the Netherlands and Italy are difficult. We expect a further rise of raw material costs but the pace will level off. We will continue to put emphasis on passing these on.
(1)All 2012 figures included in this release are unaudited
(2)All references to Ebitda reflect operating result before depreciation, amortisation and non-recurring items
Wavin is the leading supplier of plastic pipe systems and solutions in Europe. The company provides essentials: plastic pipe systems and solutions for tap water, surface heating and cooling, soil and waste, rain- and storm water, distribution of drinking water and gas and telecom applications. Wavin is headquartered in Zwolle (The Netherlands) and has a presence in 25 European countries. The company employs approximately 6,000 people and reported revenue of approximately EUR 1.3 billion for 2011. Outside Europe, it has a global network of agents, licensees and distributors. Wavin is listed on the NYSE Amsterdam stock exchange (WAVIN). More details about Wavin can be found at www.wavin.com
For further information:
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Herbert van Zijl
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