MONIER GROUP EMERGES STRONGER FROM 2009 FINANCIAL YEAR
Market share successfully maintained and in some cases expanded
Large geographical coverage ensures sales of 1.245 billion euros (-17.3%) despite difficult market environment
Operating cash flow maintained at 2008 levels through effective working capital management and expenditure controls
Successful conclusion of financial restructuring puts Group on a sound long-term financial footing, and greatly reduces net debt
Wednesday 26, May 2010
The MONIER Group performed well in the 2009 financial year. In a market overshadowed by the global economic downturn, demand for roofing materials in 2009 fell significantly compared with the previous year. In the first quarter in particular, volumes were also impacted by the harsh winter in many European markets and in the USA. However, the downturn gradually eased as the year progressed.
Headquartered in Luxembourg, the MONIER Group is the world’s leading supplier of pitched roofing materials and innovative roofing, chimney and ventilation systems. In 2009, the Group’s total sales fell by 17.3% to 1.245 billion euros. Sales declined most sharply in Eastern Europe, the USA, South Africa and Turkey. However, growth was recorded in Italy and in key Asian markets, especially Malaysia and China (which together account for 90% of the Group’s sales in the Asia Pacific region). Sales in Germany too declined only slightly, and were therefore above expectations.
Comments Pepyn Dinandt, CEO of the MONIER Group: “Despite lower sales and increased competitive pressure, MONIER performed well compared to other players in its industry and emerged from the 2009 financial year in a stronger position. This is due to our large geographical coverage and broad product range, but also more particularly to our prompt and systematic efforts to improve performance, adjust capacity and manage capital expenditure appropriately. This enabled us to maintain our position as the world’s leading manufacturer of roofing materials, and in certain areas, including France and the UK, to actually expand our market share. In doing so, we have laid the foundations for sustainable future growth.”
Initiatives to improve performance and liquidity
The “World Class MONIER” performance improvement programme, which was launched in the second half of 2008, gathered momentum in 2009, with some 1,500 individual initiatives. The focus was not just on cost reduction (e.g. through purchasing synergies and productivity gains), but also on measures to increase sales and profitability, for example by improving commercial performance. The result was a fall in fixed costs of more than 50 million euros.
Improving cash management was one of the Group’s priorities for the last financial year. The Group’s liquidity position was improved through effective working capital management and expenditure controls.
Financial restructuring successfully concluded in 2009
The Group’s significantly improved liquidity position, combined with the successful conclusion of its financial restructuring in 2009, puts it on a sound long-term financial footing, and gives it the necessary flexibility to pursue strategic opportunities in its key markets. The refinancing agreement reduces interest-bearing loans by approximately two thirds, and annual interest payments by approximately 80%. The additional credit line of 150 million euros will ensure the Group is able to exploit future growth opportunities to strengthen its global market-leading position.
Outlook for 2010 and strategic priorities
In 2010, ongoing uncertainty about the overall economic situation again represents the most significant challenge for effective forward planning. The building materials sector continues to suffer from low demand from residential and public-sector construction in the current financial year. “After a slow start in January and February due to the weather conditions, there were tentative signs in March that business is picking up, especially in Germany,” says Jürgen Koch, CFO of the MONIER Group.
For the financial year as a whole, the Group expects demand to strengthen slightly in most Western European markets. Asian roofing material markets, including China and India, should also grow slightly. In the USA, there are signs of a slight upturn, though demand remains at a very low level in comparison with previous years. The business environment in Eastern European countries is expected to remain difficult. For its chimney and ventilation system business line, MONIER expects demand to remain steady.
CEO Pepyn Dinandt sums up the Group’s strategic priorities for the current financial year as follows: “The key is to be present in attractive markets with high growth potential, and to offer the right products. We want to expand our offering to customers in ways that add genuine value, and not just in our core business areas – we also see enormous potential in new fields, such as the megatrend towards energy-efficient construction. By leveraging our long experience of roofing and the strength of our brands, we can utilize the full potential of roofs as a driver of sustainability, and thereby generate value for our customers, employees and owners.”
About Monier
The MONIER Group is the world’s leading provider of building materials for pitched roofs, and innovative roofing, chimney and ventilation systems. Its holding company is headquartered in Luxembourg, and it operates in 42 countries across four continents. Decades of experience, a comprehensive product offering and constant innovation enable the Group to exploit the full potential of the sustainable roofing concept, to the benefit both of customers and of present and future generations. In 2009, the Group employed 9,667 people (1,877 of them in Germany) and generated sales of 1.245 billion euros. For more information, visit www.monier.com.
