September 26, 2017

2017 half-year results and second quarter sales

In the first half of 2017, the Group achieved €559 million in sales, up +0.4% year-on-year and up +0.1% before currency effects, with organic change of -0.9%. Sales for the second quarter were practically stable at €283 million, and down a slight -0.2% on an organic basis. HY 2017 current operating income totaled €101 million, before acquisition-related expense, up +0.9% compared with the first half of 2016. Current operating margin (before acquisition-related expense) remained stable at 18.0% of sales. Factoring in the impact of asset disposals, net attributable income came out at €51.0 million in HY 2017, compared with €58 million one year earlier. The net margin was 9.1% of sales, from 10.5% in first-half 2016. Cash flow after investments rose sharply to €61 million from €44 million in the same period in 2016.

Denis Thiery, Chairman and Chief Executive Officer of Neopost, commented: "Our performance in the first half of 2017, and especially in the second quarter, confirms the improved overall trend that began in Q3 2016. Our legacy business declined moderately while our new businesses continued to grow, even though it was still at a rate of under 10%. We stabilized our current operating margin while continuing our substantial investment program. Our growing EBITDA and robust cash flows give us the resources to pursue our transformation. These strong results confirm the value of our strategic choices and reaffirm our confidence in our ability to meet our medium-term objectives".