Brief: Nilfisk Slashes 2019 Guidance On Organic Growth

Nilfisk Holding A/S

26/06/2019 07:47

June 26 (Reuters) - Nilfisk Holding A/S  NLFSK.CO :
    * REG-NILFISK ADJUSTS FINANCIAL GUIDANCE FOR 2019 AND
POSTPONES
MID-TERM TARGETS
    * SINCE ANNOUNCEMENT OF Q1 INTERIM REPORT 2019, WE HAVE
EXPERIENCED HEADWIND IN KEY MARKETS
    * EXPECTS ORGANIC GROWTH FOR 2019 TO BE APPROXIMATELY -1.0%
FOR
BUSINESS IN TOTAL (PREVIOUSLY APPROXIMATELY 2.0%).
    * ACCORDINGLY, WE ADJUST OUR EXPECTATIONS TO FULL-YEAR
ORGANIC
GROWTH IN BRANDED PROFESSIONAL BUSINESS TO BE APPROXIMATELY FLAT
(PREVIOUSLY: ABOVE 3.0%)
    * EXPECTATIONS TO PRIVATE LABEL BUSINESS ARE UNCHANGED, AS
WE
STILL EXPECT FLAT ORGANIC GROWTH IN 2019
    * CONSUMER BUSINESS HAS FINISHED HIGH SEASON WITH A
CONTINUED
NEGATIVE TREND IN EMEA
    * EXPECTATIONS TO PRIVATE LABEL BUSINESS ARE UNCHANGED, AS
WE
STILL EXPECT FLAT ORGANIC GROWTH IN 2019.
    * WE NOW EXPECT ORGANIC GROWTH FOR 2019 TO BE APPROXIMATELY
-1.0%
FOR BUSINESS IN TOTAL (PREVIOUSLY APPROXIMATELY 2.0%)
    * CONTINUE IMPLEMENTATION OF STRUCTURAL CHANGES IN
COMBINATION
WITH LOWERING LONG TERM INVESTMENTS, AS WELL AS SCALING OUR
GROWTH INITIATIVES
    * STILL EXPECT A SIGNIFICANT UPLIFT IN GROSS MARGIN,
HOWEVER,
LOWER THAN EXPECTED ORGANIC GROWTH WILL HAVE AN ADVERSE EFFECT
ON EBITDA MARGIN
    * SLOW-DOWN IN Q2 IN INDUSTRIAL SEGMENT AND KEY MARKETS SUCH
AS
GERMANY AND NORDICS WAS NOT ANTICIPATED
    * EXPECTS AN EBITDA MARGIN BEFORE SPECIAL ITEMS IN RANGE OF
11.0-11.5% BEFORE IFRS 16 (PREVIOUSLY: ABOVE 12.0%)
    * WE SEE A DELAY TO 2021 IN REALIZATION OF OUR MID-TERM
TARGETS OF
ORGANIC GROWTH IN RANGE 3-5% AND AN EBITDA MARGIN BEFORE SPECIAL
ITEMS OF 13.2-15.2% (BEFORE POSITIVE EFFECT OF IFRS 16)
    * IT IS A MAJOR DISAPPOINTMENT FOR US NOT BEING ABLE TO
DELIVER
WHAT WE SET OUT TO IN BEGINNING OF YEAR - CEO
    * SLOW-DOWN WE HAVE EXPERIENCED IN Q2 IN INDUSTRIAL SEGMENT
AND
KEY MARKETS SUCH AS GERMANY AND NORDICS WAS NOT ANTICIPATED -
CEO

Source text for Eikon:  ID:nGNE35p5g0 
Further company coverage:  NLFSK.CO 

 (Gdynia Newsroom)
 ((gdynia.newsroom@thomsonreuters.com; +48 58 772 0920;))