TenCate posts organic sales growth of 4% in 2014
March 05, 2015 - Netherlands
Advanced textiles and composites producer, TenCate reported organic revenue growth of 4 per cent year over year in 2014; with sales in the second half of 2014 growing higher by 9 per cent.
In a press release, TenCate said growth was driven by the composites, synthetic turf yarns and industrial protective fabrics divisions.
It added that expected increase in defense revenues failed to materialise as a result of postponed deliveries of vehicle armour orders.
In the second half of the year defense revenues rose as expected, compared to the first half of 2014. TenCate Advanced Armour, however, did not keep pace with this trend.
Although in 2014, new multi-year supply agreements were concluded for a total amount of more than US$ 100 million, delivery of orders was slow to start.
“The timing of deliveries remains uncertain and it is expected that half of the total contract volume will be delivered after 2015,” the Netherlands based company informed.
There was a downward pressure on results due to a substantial operating loss at TenCate Advanced Armour and lower margins at TenCate Geosynthetics and also increased marketing costs.
EBITA for the full year of 2014 was down at €53.3 million as against €54.4 million in 2013, while EBITA margin reached 5.1 per cent as against 5.4 per cent in the prior year.
Net profit before exceptional items however rose to €24.1 million in 2014 from €23.2 million in its previous year.
Positive cash flow was massively down to €1.9 million compared to €42.6 million in 2013 from increase in working capital as a result of strong revenue growth in the fourth quarter.
Net debt for 2014 also rode higher at €215.5 million as against €188.3 million in 2013 and net debt to EBITDA ratio stood at 2.57 compared with 2.27 in 2013.
The TenCate board proposed a dividend unchanged from 2013 at €0.50 per share in 2014.
For 2015, the company expects organic growth in revenues similar to that in 2014.
CEO Loek de Vries said, “TenCate revenues have developed favourably from the second quarter of 2014 onwards and fourth quarter revenues increased organically by 15 per cent from a year ago quarter.”
“The latter can be attributed to the demand from the US for TenCate Defender M products, revenue growth in composites and armour products and sustained demand for synthetic turf yarns,” Vries added.
“For the full year of 2014, TenCate Advanced Composites with 16 per cent showed the highest organic revenue growth after TenCate Grass with 11 per cent,” he noted. (AR)
In a press release, TenCate said growth was driven by the composites, synthetic turf yarns and industrial protective fabrics divisions.
It added that expected increase in defense revenues failed to materialise as a result of postponed deliveries of vehicle armour orders.
In the second half of the year defense revenues rose as expected, compared to the first half of 2014. TenCate Advanced Armour, however, did not keep pace with this trend.
Although in 2014, new multi-year supply agreements were concluded for a total amount of more than US$ 100 million, delivery of orders was slow to start.
“The timing of deliveries remains uncertain and it is expected that half of the total contract volume will be delivered after 2015,” the Netherlands based company informed.
There was a downward pressure on results due to a substantial operating loss at TenCate Advanced Armour and lower margins at TenCate Geosynthetics and also increased marketing costs.
EBITA for the full year of 2014 was down at €53.3 million as against €54.4 million in 2013, while EBITA margin reached 5.1 per cent as against 5.4 per cent in the prior year.
Net profit before exceptional items however rose to €24.1 million in 2014 from €23.2 million in its previous year.
Positive cash flow was massively down to €1.9 million compared to €42.6 million in 2013 from increase in working capital as a result of strong revenue growth in the fourth quarter.
Net debt for 2014 also rode higher at €215.5 million as against €188.3 million in 2013 and net debt to EBITDA ratio stood at 2.57 compared with 2.27 in 2013.
The TenCate board proposed a dividend unchanged from 2013 at €0.50 per share in 2014.
For 2015, the company expects organic growth in revenues similar to that in 2014.
CEO Loek de Vries said, “TenCate revenues have developed favourably from the second quarter of 2014 onwards and fourth quarter revenues increased organically by 15 per cent from a year ago quarter.”
“The latter can be attributed to the demand from the US for TenCate Defender M products, revenue growth in composites and armour products and sustained demand for synthetic turf yarns,” Vries added.
“For the full year of 2014, TenCate Advanced Composites with 16 per cent showed the highest organic revenue growth after TenCate Grass with 11 per cent,” he noted. (AR)