Annual Report 2009
11-03-2010
The Board of Directors today approved the 2009 Annual Report.
It has been a year of worry and concern but the strat-egy of owning a diversified portfolio has proven its worth. ”Most of our businesses have navigated the crisis quite well. The two largest emerged from 2009 with strong improvements in operational profit and, not least, our capital structure has improved strongly and we have lowered our debt,” says President Jens Bjerg Sørensen. “We have laid the groundwork for our companies to become strong players in their individual markets in 2010 and the following years and to lift our consolidated earnings considerably in a concerted effort.”
HIGHLIGHTS:
2009 was a year of considerable challenges for all of the Group’s businesses. The overall performance of the year was acceptable, and with a single material exception all of our portfolio companies overcame the challenges they encountered.
Schouw & Co. had defined ambitious goals for reducing the working capital tie-up and the net interest-bearing debt. Expectations were to reduce the working capital tie-up by an amount in the tripledigits of millions of Danish kroner and to lower the debt by at least DKK 300 million. The actual achievements were a reduction of the working capital by DKK 753 million and the net interest-bearing debt was lowered by DKK 716 million. Overall, this is considered to be highly satisfactory.
Cash flows from operating activities were DKK 1,191 million, a DKK 918 million improvement on 2008, demonstrating the Group’s very good ability to adapt to the difficult conditions prevailing during the year.
Consolidated revenue fell by 14% from DKK 9,821 million to DKK 8,440 million. All group businesses reported declining revenue, the setbacks mainly being due to lower raw materials prices and the general economic downturn.
EBIT for the year was DKK 190 million. Exclusive of the effects of the holding of Vestas shares, profit before tax was DKK 61 million, which is in line with the most recent guidance.
The 2009 profit before tax included a DKK 41 million positive value adjustment on the holding of Vestas shares. In 2008, the Vestas holding had a negative effect of DKK 872 million. Accordingly, the profit before tax for 2009 amounted to DKK 102 million.
BioMar incurred a 9% drop in revenue, but also reported a highly satisfactory profit improvement. The EBIT margin was up from 1.7% to 3.9% and profit before tax was DKK 140 million in 2009, up from DKK 33 million in 2008.
Although Fibertex reported a 15% drop in revenue, its EBIT improved by 33% to DKK 117 million. Profit before tax was satisfactory at DKK 91 million.
Grene saw its revenue fall by 13%, achieving an EBIT margin of 2.7% and an acceptable profit before tax of DKK 15 million.
Although its revenue fell by 21%, Hydra-Grene reported a very satisfactory EBIT margin of 15% and a profit before tax of DKK 60 million.
Martin was severely hit by the effects of the global economic downturn, generating revenue of DKK 647 million compared with DKK 1,045 million in 2008. Substantial adjustments were made throughout the organisation, but Martin incurred an EBIT loss of DKK 200 million and a highly unsatisfactory loss before tax of DKK 232 million. The amount includes non-recurring costs of approx. DKK 100 million.
Schouw & Co.’s guidance for 2010 is for consolidated revenue in the region of DKK 9 billion. EBIT is expected to be in the DKK 250–400 million range, indicating an improvement of DKK 60–210 million on 2009. We expect to narrow the wide interval, which is provided due to the general economic situation and the associated risks, in the interim reports for the first half-year and the third quarter of 2010.
Schouw & Co. will be reviewing the annual report online and will be hosting a teleconference (in Danish) for analysts, the media and other interested parties on
THURSDAY, MARCH 11, AT 15.00 CET
The presentation will be webcast. A link to the presentation is available at the Schouw & Co. web site, www.schouw.dk, where the presentation will also be available for subsequent viewing.
Those wishing to attend the teleconference are invited to call tel. +45 32 71 47 67.
HIGHLIGHTS:
2009 was a year of considerable challenges for all of the Group’s businesses. The overall performance of the year was acceptable, and with a single material exception all of our portfolio companies overcame the challenges they encountered.
Schouw & Co. had defined ambitious goals for reducing the working capital tie-up and the net interest-bearing debt. Expectations were to reduce the working capital tie-up by an amount in the tripledigits of millions of Danish kroner and to lower the debt by at least DKK 300 million. The actual achievements were a reduction of the working capital by DKK 753 million and the net interest-bearing debt was lowered by DKK 716 million. Overall, this is considered to be highly satisfactory.
Cash flows from operating activities were DKK 1,191 million, a DKK 918 million improvement on 2008, demonstrating the Group’s very good ability to adapt to the difficult conditions prevailing during the year.
Consolidated revenue fell by 14% from DKK 9,821 million to DKK 8,440 million. All group businesses reported declining revenue, the setbacks mainly being due to lower raw materials prices and the general economic downturn.
EBIT for the year was DKK 190 million. Exclusive of the effects of the holding of Vestas shares, profit before tax was DKK 61 million, which is in line with the most recent guidance.
The 2009 profit before tax included a DKK 41 million positive value adjustment on the holding of Vestas shares. In 2008, the Vestas holding had a negative effect of DKK 872 million. Accordingly, the profit before tax for 2009 amounted to DKK 102 million.
BioMar incurred a 9% drop in revenue, but also reported a highly satisfactory profit improvement. The EBIT margin was up from 1.7% to 3.9% and profit before tax was DKK 140 million in 2009, up from DKK 33 million in 2008.
Although Fibertex reported a 15% drop in revenue, its EBIT improved by 33% to DKK 117 million. Profit before tax was satisfactory at DKK 91 million.
Grene saw its revenue fall by 13%, achieving an EBIT margin of 2.7% and an acceptable profit before tax of DKK 15 million.
Although its revenue fell by 21%, Hydra-Grene reported a very satisfactory EBIT margin of 15% and a profit before tax of DKK 60 million.
Martin was severely hit by the effects of the global economic downturn, generating revenue of DKK 647 million compared with DKK 1,045 million in 2008. Substantial adjustments were made throughout the organisation, but Martin incurred an EBIT loss of DKK 200 million and a highly unsatisfactory loss before tax of DKK 232 million. The amount includes non-recurring costs of approx. DKK 100 million.
Schouw & Co.’s guidance for 2010 is for consolidated revenue in the region of DKK 9 billion. EBIT is expected to be in the DKK 250–400 million range, indicating an improvement of DKK 60–210 million on 2009. We expect to narrow the wide interval, which is provided due to the general economic situation and the associated risks, in the interim reports for the first half-year and the third quarter of 2010.
Schouw & Co. will be reviewing the annual report online and will be hosting a teleconference (in Danish) for analysts, the media and other interested parties on
THURSDAY, MARCH 11, AT 15.00 CET
The presentation will be webcast. A link to the presentation is available at the Schouw & Co. web site, www.schouw.dk, where the presentation will also be available for subsequent viewing.
Those wishing to attend the teleconference are invited to call tel. +45 32 71 47 67.
Klik på billedet for at forstørre
