Ramirent's Interim Report January-March 2017: Strong sales growth with improved profit flow-through

Vantaa, Finland, 2017-05-09 08:00 CEST (GLOBE NEWSWIRE) --
Ramirent Plc Interim Report May 9, 2017 at EET 9:00 am

· Net sales EUR 164.6 (146.0) million, up by 12.7% or 12.3% at comparable exchange rates
· Reported and comparable EBITA EUR 16.6 (7.2) million or 10.1% (5.0%) of net sales
· Gross capital expenditure EUR 41.6 (40.4) million
· Cash flow after investments EUR 5.2 (-6.8) million
· Change in segment reporting: The share of Fortrent Group's net result is reported under Group unallocated items; Europe East segment renamed as Baltics segment.

KEY FIGURES (MEUR and %) 1-3/17 1-3/16 CHANGE 1-12/16
Net sales 164.6 146.0 12.7% 665.2
EBITDA 42.6 31.9 33.6% 169.0
% of net sales 25.9% 21.8%   25.4%
Comparable EBITA 16.6 7.2 128.8% 68.1
% of net sales 10.1% 5.0%   10.2%
Reported EBITA 16.6 7.2 128.8% 59.2
% of net sales 10.1% 5.0%   8.9%
Earnings per share (EPS), EUR 0.08 0.02 n/a 0.20
Gross capital expenditure 41.6 40.4 3.0% 190.8
Cash flow after investments 5.2 -6.8 177.0% -20.7
Capital employed at the end of period 614.7 613.6 0.2% 645.0
Comparable ROCE,% (R12) 11.2% 10.1%   9.3%
Reported ROCE,% (R12) 7.8% 10.7%   6.2%
Comparable ROE, % (R12) 16.1% 13.3%   12.1%
Reported ROE, % (R12) 10.2% 14.6%   7.2%
Net debt 340.6 287.9 18.3% 345.8
Net debt to EBITDA ratio (R12) 1.9x 1.7x 12.8% 2.0x
Personnel (FTE) 2,741 2,685 2.1% 2,686

In 2017, Ramirent's comparable EBITA is expected to increase from the level in 2016.

"Our year got off to a good start with strong net sales growth of more than 12% in the first quarter, partly due to the timing of Easter. The growth in rental sales was good and profit flow-through improved markedly. First-quarter comparable EBITA-margin was at the same level as for full-year 2016.
Our profitability improvement was driven by volume growth, good market conditions, favorable business mix and improved pricing in some of our segments as well as steady progress in our profitability improvement actions. EBITA improved to 16.6 (7.2) million or 10.1% (5.0%) of net sales. Our fixed costs also decreased to a level of 39.6% (41.8%) of net sales. The EBITA margin improved in all segments and we are particularly pleased with the profitability improvement in Sweden and Europe Central. Our cash flow after investments was positive at 5.2 (-6.8) million in the first quarter.
I'm delighted to see progress in our key priorities to improve profitability. Improved efficiency in Europe Central is now a fact and the supply chain performance and cost efficiency is gradually improving also in Sweden. Turnaround activities in the Swedish scaffolding business and Norway's Temporary Space business also advanced during the quarter. However, as we are now entering our peak season, we must stay very focused on our core business and basic priorities in order to sustain our performance.
Rental is a future-proof business and we remain optimistic on the long-term opportunities to develop our company, benefiting from the trends of outsourcing non-core activities, resource efficiency and helping increase productivity in construction. To that end, we are working on a comprehensive strategy update that will be completed later this year."

Ramirent's market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries.
In Finland, market conditions are expected to remain favorable supported by new residential construction and large non-residential construction projects. In Sweden, continued strong momentum in the construction sector is expected to drive demand for equipment rental and related services. The Danish and Norwegian equipment rental markets are estimated to remain fairly stable or grow slightly. In Baltics, the market situation is expected to be stable in Estonia and Lithuania, and improving in Latvia supported by new project start-ups. In Poland and Slovakia, the equipment rental markets are supported by new construction and industrial projects. Market outlook is more subdued in the Czech Republic due to low activity in the construction market.

A briefing for investment analysts and the press will be arranged May 9, 2017 at 11:00 a.m. Finnish time at Klaus K, Bulevardi 2-4, Helsinki, (Studio K).

You can participate in the analyst briefing on Tuesday May 9, 2017 at 11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and conference call. Dial-in number for conference call: +358 9 8171 0495 (FI), +46 8 5664 2702 (SE), +44 2031940552 (UK) and +1 8557161597 (US). A recording of the webcast will be available at www.ramirent.com later the same day.

Ramirent observes a silent period during 30 days prior to the publication of annual and interim financial results.
Half Year Financial Report 2017 August 2
Interim report January-September 2017 November 8
The financial information in this stock exchange release has not been audited.

CFO Pierre Brorsson
tel. +46 8 624 9541, pierre.brorsson@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon
tel. +358 20 750 2859, franciska.janzon@ramirent.com

Main news media

Ramirent is a leading equipment rental group combining the best equipment, services and know-how into rental solutions that simplify customer's business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2016, Ramirent Group sales totalled EUR 665 million. The Group has 2,741 employees in 292 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent - More than machines®.

Ramirent 1-3 2017 Interim report.pdf 

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