The Azkoyen Group doubles its net profits to €6.76 million during the first nine months of 2016
- Turnover increased by 10.1%, reaching €98.09 million.
- Its net financial debt decreased by 58.9%.
- The Group's EBITDA grew by 42.1%, amounting to €14.42 million.
- R&D activities represent 7.2% of the consolidated turnover.
- Electronic payment methods have grown the most, with a 15.3% increase, 0.3% more than vending machines (15%), and far ahead of the 2.3% growth experienced by technology and security systems.
The Azkoyen Group has increased its net profits during the first nine months of 2016 to € 6.76 million, doubling the results obtained during the same period the year before. The consolidated turnover of the multinational company recorded an increase of 10.1%, reaching a figure of €98.09 million. The good growth of sales stands out, motivated by the satisfactory behaviour of the vending machine and electronic payment methods business lines. It is important to note that of the Group's turnover during the first three months of the year, Spain accounts for 18.2% of the total, while 76.4% comes from the rest of the European Union and 5.4% from other countries, which reflects the strong international vocation of the Azkoyen Group.
The Navarre-based Group managed to increase its net operating earnings (EBIT) by 58.3%, to €10.59 million, while its gross operating earnings (EBITDA) rebounded 42.1% to €14.42 million. The EBITDA percentage / Group sales marks a positive change of 3.3%, which is 14.7% better than the 11.4% recorded during the same period the year before.
The Group's net financial debt as of 30 September 2016 decreased by €13.2 million as compared to last year, with a reduction of €7.0 million during the fourth quarter of 2015 and €6.2 million over the first nine months of 2016.Altogether, this reduction represents 58.9% of the net financial debt.
On 28 June 2016, the Ordinary General Meeting of Shareholders approved the proposed distribution of the results from the 2015 fiscal year, including a final dividend of €1.16 million, which corresponds to a gross amount slightly greater than €0.047 per share in circulation at that time and entitled to receive it. Once the corresponding withholding taxes owed were deducted according to applicable tax laws, the net amount of the aforementioned dividend was paid out on 15 July 2016.
Staffing expenses, including compensation, amounted to €33.6 million, 1.7% higher than during the same period in 2015, with an average of 755 employees.
Likewise, the Azkoyen Group continues to be committed to promoting innovation, increasing the efficiency of its business lines and operations and maintaining effective cost control. In terms of innovation, during the first three quarters of 2016, research and development activities represented 7.2% of the consolidated net turnover.
Evolution of sales by business line
Continuing the growing trend from the previous year, the revenue from cigarette vending machine and vending sales has increased by 15%. Sales in the electronic payment methods business line has grown by 15.3% as compared to the same period last year. Finally, sales in the technology and security systems division have grown by 2.3% over the same period the previous year.
Cigarette vending machines and vending
In the cigarette vending machine and vending division, sales have risen by 15% as compared to the same period the year before.
Of the total sales in this division, those of cigarette vending machines were 11% higher than during the same period the previous year, with a decrease in activity in this business in Spain. In general, sales in other European markets have evolved positively. In Italy, in order to increase the market share, a new machine is being marketed specifically for this country. In this market niche, the Group continues to be the leader in the European market and the standard for the large multinational tobacco companies.
In the vending machine business, sales as of 30 September 2016 continue to experience the upward trend of recent years, registering a 16.6% growth as compared to figures the year before, with comparatively greater activity in Spain, Germany and other markets outside the European Union, such as the Middle East and China.
Likewise, of note is the fact that 10.8% of the vending income accrued in the first nine months of 2016 is related to a contract with S.E. Correos y Telégrafos, S.A. (Correos) for the supply, installation, maintenance and monitoring of automated home package delivery terminals called Homepaq.
On the other hand, continuing with the expansion plan, in April 2016 the Group participated for the first time in the NAMA trade fair in Chicago, with the aim of introducing their coffee vending machines in the United States.
Electronic, industrial and vending machine payment methods
In this business unit, sales have increased by 15.3% as compared to the same period the year before.
In industrial payment methods (which includes gaming, service automation and retail), sales have increased by 29.3% over the previous year, with 22.4% growth in aggregate payment method sales for gaming and service automation. In comparison, in the retail segment or Cashlogy, sales have risen by 58.5% during the first nine months of 2016, as compared to the same period the previous year.
The Coges subsidiary has recorded an increase of 2.2% in the sales of payment systems for vending machines, with better sales performance in Italy. Around 60-65% of the payment methods sales for vending machines by the Italian company Coges, the European leader in closed-environment cashless systems, are in the Italian market.
Technology and security systems. Primion Subgroup.
In the area of technology and security systems, sales and the gross margin have grown by 2.3% and 4.7%, respectively. According to company, sales grew in Germany (2.7%), thanks to Primion Technology, AG, the Benelux (5.4%) and Spain (6.3%), while they declined in France (-16.2%).
In early October 2016, through Primion Technology, AG, the Azkoyen Group acquired the entire share capital of Opertis GmbH, the German manufacturer of mechatronic locking systems.
The current shareholding in Primion Technology, AG, after acquiring an additional 2.84% during the first nine months of this year, amounts to 95.49%.