Picanol rapier technology. © Picanol

Picanol, a leading textile machinery manufacturer, has reported a stable revenue on a comparable basis in the first six months of 2019, with a slight decrease of 1%, compared to the previous year.

Machines and Technologies business segment experienced a sharp decline in revenue of 26% as a result of the global slowdown in the machine market, which was driven by the uncertain macroeconomic climate.

Revenue of the Agro segment increased by 6%, while Bio-valorization revenue increased due to higher PB Leiner volumes. The revenue of Industrial Solutions also increased, mainly thanks to the contribution of DYKA Group. T-Power, only fully (from 20% to 100%) acquired in the final quarter of 2018, contributed EUR 34.8 million to the group’s revenue, which was in line with expectations.

Profit

The profit for the first half of 2019 after fair value adjustment amounted to EUR 20.7 million, compared to EUR 67.1 million for the same period in the previous year, or a decrease of EUR 46.4 million. This is mainly due to the decrease in revenue in the Machines and Technologies segment.

“For the second half of 2019, Picanol Group anticipates a further negative impact of the current uncertain macroeconomic climate, whereby the slowdown in the global machine market will not be compensated by the other segments of Tessenderlo Group. For the full financial year 2019, Picanol Group expects adjusted EBITDA to be lower than that of 2018,” the company concludes.

Adjusted EBITDA

The first half year’s adjusted EBITDA after fair value adjustment decreased by 12%. The impact on the adjusted EBITDA of the fair value adjustment on inventory amounts to EUR -29.1 million. The adjusted EBITDA before fair value adjustment increased by 5% or EUR 8.6 million.

Adjusted EBITDA (excluding the impact of IFRS 16 Leases and exchange rate effects) decreased in the Machines and Technologies (-59%) and Agro (-9.5%) segments and this was only partially offset by the increases in Bio-valorization and Industrial Solutions. The contribution of T-Power amounted to an increase of EUR 24.4 million.

www.picanolgroup.com