Strongest financial performance in a decade

Deceuninck’s 2018 annual report reveals the company’s highest financial performance in a decade; a difficult market in Turkey was balanced by strong growth in North America and emerging markets.

Full year 2018 group sales fell 1.9% to 674.2 million euros (687.2 million euros in 2017) as solid sales growth in North America and the Emerging Markets has been offset by lower volumes in Turkey due to challenging market conditions in the second half.

Sales in Europe remained stable, however, with different dynamics in different markets. Adjusted EBITDA increased to 72.4 million euros (68.1 million euros in 2017). Adjusted EBITDA Margin increased to 10.7% on sales (9.9% in 2017) driven by operational efficiencies resulting from process improvements and investments in equipment and infrastructure.

Price increases compensated for higher raw material prices, devaluation and inflation. Net profit increased to 15.6 million euros (13.8 million euros in 2017). Strategic projects – including the new recycling plant, new product developments, initiatives to further strengthen the brand, and the roll out of SAP – are on track, the company said.

Deceuninck UK’s managing director Rob McGlennon said: “These are great results, and I’m pleased to say that continued strong growth from the UK not only contributed positively to sales and profits, but consistent year-on-year growth has moved us up the group rankings so that the UK is overtaking some core countries.

“January sales were up 12% year-on-year in the UK. This follows a record-breaking 2018 which finished 21% up on the previous year. February sales to date are 25% ahead of February 2018. We are going like a train.”