On 29 March 2019, Personal care and hygiene company, Asaleo Care Limited (ASX: AHY) published its Annual Report for the period ending 31.
The company mentioned that it has been an exciting time for AHY. After the review of its operations work, AHY is now engaged in the creation of fresh opportunities for its brands, along with the renewed concentration on its consumers and customers.
The Statutory Net Loss After Tax for the period was noted at $108.7 as compared to FY17’s Net Profit After Tax of $57.2 million. The Loss per share stood at 20.0 cents, relative to 10.5 cents per share in FY17. Also, the Free Cash Flow of AHY stood at $64.8 million. Total underlying group EBITDA was noted at $80.6 million, which was a decline of 35 per cent in 2017.
Underlying EBITDA from continuing operations stood at $81.5 million EBITDA in FY18, compared with $97.6 million in FY17. EBIT stood at $65.8 million in FY18 compared with $82.2 million in the corresponding period.
Revenue was 1.8% lower in FY18, which was mainly driven by the Retail segment (-5.2%), slightly offset with growth in the Business-to-Business (B2B) segment (+1.2%).
Net Finance Costs saw an increase of 31.0% which was due to the average drawn debt being higher in FY18 compared with FY17 and higher effective interest rate in FY18 of 4.3% compared to 3.5% in FY17.
No dividends have been declared for the period of FY18.
The principal activities of the Group are Manufacturing, Marketing, Distribution and Sale of Professional Hygiene, Personal Care and Consumer Tissue products in Australia, New Zealand, Fiji and several countries in the Pacific.
During the year, the company gained a private tissue contract which began in the last quarter of last year. There was a fruitful launch of new Tena products, Night Pants and Lights, which boosted the solid performance of the company’s Incontinence Retail category with revenue increasing to 4.8 per cent.
In its Business-to-Business section, EBITDA declined by 12.4 per cent to $45.1 million. Incontinence Healthcare’s performance was solid, and AHY saw progress in its Professional Hygiene proprietary systems continuing. EBITDA was affected by rising pulp costs of around $12 million.
The company also updated the market about its 5th Annual General Meeting to be held on 30 April 2019 at 10:00 am (AEST) at the offices of PricewaterhouseCoopers, 2 Riverside Quay, Southbank 3006, Level 19, Melbourne, Australia.
The company has made the decision to sell its Australian Consumer Tissue business to Solaris Paper for $180 million. Following completion of the transaction, AHY’s leverage ratio will be at the bottom of its target range of 1.5 to 2.5 times by the end of 2019. The sale is expected to be completed by the end of the first quarter of 2019.
The company has successfully piloted TENA identifi, an incontinence assessment tool that utilises sensors in pads to accurately measure the amount and frequency of urinary episodes. TENA identifi will be launched to the market in 2019 and provides a key point of product differentiation.
The Company has commenced implementing the requirements of the Task Force on Climate-related Financial Disclosure (TCFD). During 2019, in line with the TCFD project, a high-level risk and impact analysis will be completed as part of the Company’s risk management procedure.
In 2019, the company anticipated its underlying EBITDA from continuing operations to be between $80 million- $85 million under the new lease accounting standard. This compares to $90.6 million in 2018 under that standard.
The stock of the company is currently trading at A$0.892 (as on 29 March 2019, 3:35 PM AEST), up by 0.225%.
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