This report analyses the financial performance of Varroc Lighting Systems Czech Republic for the 2018. You will find all the necessary details regarding company's profitability, volume growth, indebtedness and a comparison with selected peers.
Varroc Lighting Systems Czech Republic announced a net profit of CZK 369 mil in 2018, down 25.4% when compared to the last year. Sales increased 18.7% yoy to CZK 15,282 mil, EBITDA rose 12.4% to CZK 730 mil and net margin amounted to 2.41%. In the last three years, the Company grew its revenues by -1.19% a year, and produced an average return on capital of 9.68% and return on equity of 16.2%.
The key highlights are:
Sales increased 18.7% yoy to CZK 15,282 mil in 2018. That’s compared to average growth of -1.19% in the last three years and 20.2% more when compared to the average annual increase in the last decade.
EBITDA amounted to CZK 730 mil and grew 12.4% when compared to last year. EBITDA margin reached 4.78%, up 1.62%pp when compared to a 5-year average.
Company’s indebtedness fell when measured by Net Debt/Equity and reached 55.0% at the end of 2018. When compared to EBITDA, net debt fell to 2.91x at the end of 2018.
Varroc Lighting Systems Czech Republic netted CZK 369 mil to its shareholders in the last year, down 39.0% when compared to the average seen in the last five years. The company produced a return on capital of 5.27% and return on equity of 9.90% in the last year. Since 2013, Varroc Lighting Systems Czech Republic’s average ROCE amounted to 15.5% and ROE 23.2%.
When compared to selected peers, Varroc Lighting Systems Czech Republic has grown 13.4 pp faster in sales in the last five years. It was also 8.37 pp more profitable in terms of ROCE, and achieved 0.958 pp lower EBITDA margin based on a last year's results.
In terms of indebtedness, the company operated with 52.5 pp higher net debt to equity at the end of 2018 when compared to its peers (55.0% at Varroc Lighting Systems Czech Republic vs. 2.51% of its peers).
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