rd Quarter Results 2018 - CMVM · Vista Alegre arrives to Mexico through a partnership with Pineda-Covalin, considered to be one of the leading luxury brands in Latin America. To

08 Fall

3rd Quarter

Results 2018

(Non-audited financial

information)

Results Report - 3rd T 2018 29th October 2018

Vista Alegre Atlantis, SGPS, S.A. * Public company * Head office: Lugar da Vista Alegre, Ílhavo * Registered

with the Commercial Registry of Ílhavo * Taxpayer no 500 978 654 * Share capital: 121,927,317.04 Euros

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2018 Third Trimester Results

Highlights

>> Turnover of 63.9 million euro, an increase of 5% compared to the same period in 2017; >> EBITDA of 11.4 million euro, 22% higher than during the same period in 2017; >> Operating result increases 50% reaching to 6.7 million euro; >> Net profit of 3.7 million euro, 96% higher than during the same period in 2017; >> Foreign markets represent 67% of turnover; >> Acquisition of Bordalo Pinheiro and Cerutil allows for reinforcing Vista Alegre’s positioning in the ceramics sector and is aimed at achieving a greater scale and diversity in its business segments as well as taking maximum benefit from the long-standing brand “Bordallo Pinheiro”; >> Pro-forma Turnover1 in the first nine months of 2018 was 70.4 million euro and the Pro-forma EBITDA, in the same period, reached 13.4 million euro.

1 In the event that the Cerutil and Bordalo Pinheiro acquisitions bear the date of 1st January 2018




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Activity

In the first nine months of 2018 it is worth to note Vista Alegre’s excellent performance,

with the net profit of 3.7 million euro standing out, carrying on with the good results

reached in the first half of 2018.

The external market continues to be a great promoter of this good performance, with 42.6

million euro in sales, currently representing 67% of Vista Alegre’s turnover. This growth is

justified by increasing business in new markets, namely in Europe and Asia. In Europe,

France and Spain stood out with the greatest increases.

In the internal market total sales were at 21.3 million euro, rooted in business within its

own stores as well as in Vista Alegre’s consolidation strategy, which invested in these

outlets in Portugal.

The integrated refurbishment project of the Vista Alegre Museum was the winner of the

“public’s choice” for the RegioStars Awards, an initiative of the European Commission. On

9th October 2018, the winning projects in 5 categories were announced in Brussels, with

Vista Alegre collecting the award as chosen by the public.

Associated with the Vista Alegre Museum, the Vista Alegre Complex, located in Ílhavo, was

honoured on 24th September 2018 with a silver medal, as part of the awarding of Tourist

Merit Medals, an initiative by the State Secretary of Tourism and the Minister of Economy.

In the first nine months of 2018, being present at the Maison & Objet fair in Paris stands out

(January 2018), where the brand presented new collections developed in collaboration with

leaders in modern design, among them Christian Lacroix and Marcel Wanders.

Vista Alegre was once again recognised and internationally awarded, this time by the

“European Product Design Awards”, for the collections “Cannaregio”, “Hryb”, “Maya” and

“Bicos Bicolor” glasses. The innovative design as well as the excellence of this long-standing

brand in porcelain, glass and crystal caught the jury’s interest of the international contest

once again, won over by these pieces of great quality and distinction.




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Vista Alegre arrives to Mexico through a partnership with Pineda-Covalin, considered to be

one of the leading luxury brands in Latin America. To mark this connection with and

expansion to Mexico, a collection of Vista Alegre pieces was launched paying homage to one

of the symbols of the country – the dreamcatcher. “Atrapasueños” is the name of this

tableware and giftware collection.

Results

Grupo Vista Alegre’s consolidated income regarding the first nine months of 2018 has

shown a good performance compared to the same period in 2017, having the turnover

increased 5%, to 63.9 million euro and EBITDA with a 22% growth, amounting to 11.4

million euro on the 30th September 2018.

The company recorded an operating result of 6.7 million euro, 50% higher than during the

same period in 2017, and the net profit of the period had a 96% growth rate, during the

same period as well, amounting to 3.7 million euro.

The constant focus on product differentiation through unique design and quality, and the

continuous improvement of the industrial procedures, innovative production, as well as

investigation and development of new products have been the main factors for the good

operating performances of Vista Alegre.

T €

Valor %

Turnover 63,921 60,906 3,015 5%

E B I T D A 11,388 9,336 2,052 22%

EBITDA Margin 17.8% 15.3%

Operating result 6,738 4,478 2,259 50%

Operating Margin 10.5% 7.4%

Result before taxes 4,830 2,071 2,759 133%

I R C -1,178 -203 -974 480%

Net results 3,652 1,868 1,784 96%

Consolidated results

Items 30-09-2018 30-09-2017 Variation




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It should also be pointed out that Vista Alegre acquired the companies Cerutil and Faianças

Artísticas Bordalo Pinheiro on 31st August 2018. These acquisitions aim to strengthen the

position within the context of the sector and competing companies, granting the Vista

Alegre Group greater scale and diversity as well as giving it the opportunity to market the

long-standing brand “Bordallo Pinheiro”.

In the event these acquisitions are dated 1 January 2018 (Pro-forma), the total of the

turnover and the EBITDA of Vista Alegre Group in the first nine months of 2018, would rise

to 70.4 million euro and 13.4 million euro, respectively.

Investments

In the first nine months of 2018 the investments to the amount of 17.5 million euro were

mainly in the stone tableware (extension of the productive capacity of the Ria Stone factory)

and crystal / handmade glass (CristalLux project).

Prospects

Following a third quarter in 2018 marked by good performance within the Group, it is

expected that the last semester will carry on along the same lines, seated in the strategic

vectors that have been implemented. These are namely in the continuous launch of new

products that are relevant in international markets, in design awards offering visibility and

boosting brand awareness greatly, in communication on digital platform channels, public

relations events, through the emphasis on participating in leading international fairs,

through investment in growth within the hotel sector in the top segments on the

international level and in reinforcing expansion into new markets and consolidating its

presence in its current main markets.

The priority markets in which Vista Alegre will direct its efforts in order to continue on with

sustainable growth will be France, Italy, Mexico, India and Canada. In the French market,




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where the company already has a branch, expansion of the current distribution network is

expected so as to bring the brand ever closer to consumers. Operations in Mexico and in

India are starting and due to business investment in the North American markets, namely in

Canada, such that sales in this region will grow in the coming quarters.

With the focus on the foreign markets and the reinforcement of the commercial teams

throughout the world, the last trimester of 2018 will present reinforcement on sales

growth, allowing to improve the Group’s profitability.

Vista Alegre holds its focus on increasing production capacity, innovation, competitiveness,

productivity and operational efficiency through investment projects currently underway in

Ria Stone, Atlantis, Cerutil and Bordallo Pinheiro.

Consolidated Financial Statements

On 30th September 2018 and 2017

Unaudited T €

Items 30-09-2018 30-09-2017

Sales and services provided 63,921 60,906 Gross margin 46,266 42,139 Supplies and external services -13,873 -12,301 Personnel costs -23,192 -20,650 Other costs and operational losses -1,186 -1,192 Other revenue and operating income 3,373 1,340 EBITDA 11,388 9,336 Amortizations, impairment and provisions for the year -4,650 -4,858 Operating income 6,738 4,478 Interest and similar expenses -1,994 -2,429 Interest and similar income 86 22 Financial result -1,908 -2,407 Result before taxes 4,830 2,071 Income tax -1,178 -203 Consolidated result for the period 3,652 1,868




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Documents

rd Quarter Results 2018 - CMVM · Vista Alegre arrives to Mexico through a partnership with Pineda-Covalin, considered to be one of the leading luxury brands in Latin America. To