Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 18FinancialPerformanceResults(€ × 1 million) 2010 2009 CHANGERevenue 1,231.3 1,159.6 6.2%Gross profit 292.3 296.8 (1.5%)Ebitda 104.1 110.4 (5.7%)Depreciation (47.0) (50.1) 6.2%Amortisation (12.8) (12.8) 0.0%Non-recurring items (6.4) (14.6) 56.2%Operating result 37.9 32.9 15.2%Revenue up 6.2%to € 1.23 billionRevenueRevenue grew 6.2% to € 1.231 billion despite serious winter conditions affecting our business in thefi rst quarter and last month of the year. As Wavin recorded 59% of revenue outside the Euro-zone,the appreciation of non-Euro currencies had a positive effect of 2.8% on reported revenue.The consolidation of a sales joint venture in Czechia contributed 0.3% to the revenue growth.On a like-for-like basis, revenue growth was 3.1%. In a number of countries, such as the UK, Sweden,Norway, Poland and Turkey, we registered double-digit growth. Elsewhere, like in the Netherlands, Italyand some smaller emerging markets, further decline was experienced, in line with market developments.Gross profitGross profi t came in at € 292.3 million, 1.5% below 2009. Growth in lower margin countries had anegative impact on the gross profi t margin, which dropped 190 bps to 23.7%. The general economicclimate and overcapacity in the industry caused delays in passing on raw material price increases to themarket. Price competition was clearly fi ercer in the more generic product ranges and in markets lackingclear market leadership. Production costs were contained by complexity reduction and manufacturingfootprint optimisation, partly compensating for the margin pressure in the year.EbitdaThe operating result before depreciation and amortisation and non-recurring items (Ebitda) decreased by5.7% to € 104.1 million, from € 110.4 million in 2009. Rationalising back offi ce functions translated intolower selling and distribution costs as well as general and administrative costs. Despite effective costcontrol, the steady increase of raw material prices caused a drop in our Ebitda margin, which fell to8.5%, from 9.5% in 2009.Depreciation and amortisationDepreciation decreased to € 47.0 million (2009: € 50.1 million) because of lower investment levels inthe past two years. Amortisation costs were € 12.8 million, equal to 2009.Non-recurring itemsNon-recurring items in the operating result amounted to € 6.4 million (2009: € 14.6 million). Nonrecurringcosts of € 7.3 million, largely related to restructuring measures in the Netherlands and France,resulting in structural cost reductions. Non-recurring income of € 0.9 million was recorded ondivestments of assets.Operating resultWe realised an operating result of € 37.9 million in 2010, an increase of € 5.0 million or 15.2% comparedto 2009. The positive development was a result of lower non-recurring costs and lower depreciationcharges.