Key points Q2 2019
- Revenue up by 17% to EUR 258 million
- EBIT (excluding one-off) up by 21% to EUR 5 million
- EBIT EUR 0.5 million negative due to one-off loss of 5.5 million
Key points H1 2019
- Revenue up by 20% to EUR 524 million
- EBIT (excluding one-off) up by 51% to EUR 17 million, reported EBIT up by 3% to EUR 12 million
Jilko Andringa, CEO of Brunel International N.V.: “We continued to outperform in key markets like Germany and Middle East & India. However, we also incurred a one-off loss in the USA.
In line with our entrepreneurial spirit, we started an entity to build up new project capabilities in Texas. With this new entity, we won many new projects. One of the initial projects did not go as planned and resulted in a loss. As painful as this is, we used the learnings of this project to improve our team, processes and controls. Supported by the improved settings, this new activity delivers profitable revenue growth.
In the DACH region, we continued to grow, while we experienced some impact from the weakness in the Automotive Industry. This has not reduced headcount and productivity, as we continued to focus on other growth markets, in line with our strategy of diversification. In the Netherlands, despite a revenue decline, we were able to realize a higher EBIT than Q2 last year, as a result of operational control and cost savings.
Overall, Brunel realized strong growth in most of its regions in the first half of 2019. Outside of Europe, we see project activity and our pipeline increasing. Taking into account some project ramp-up time this will lead to continued growth in revenue and profitability”.
Brunel International (unaudited) |
|||||||||
P&L amounts in EUR million |
|||||||||
Q2 2019 |
Q2 2018 |
Δ% |
H1 2019 |
H1 2018 |
Δ% |
||||
Revenue |
258.1 |
221.3 |
17% |
a |
524.2 |
435.1 |
20% |
b |
|
Gross Profit |
47.0 |
48.7 |
-3% |
106.1 |
98.7 |
8% |
|||
Gross margin |
18.2% |
22.0% |
20.2% |
22.7% |
|||||
Operating costs |
47.5 |
44.6 |
7% |
c |
94.5 |
87.4 |
8% |
d |
|
EBIT |
-0.5 |
4.1 |
11.6 |
11.3 |
3% |
||||
EBIT % |
-0.2% |
1.8% |
2.2% |
2.6% |
|||||
Average directs |
12,607 |
11,889 |
6% |
12,797 |
11,558 |
11% |
|||
Average indirects |
1,650 |
1,539 |
7% |
1,630 |
1,533 |
6% |
|||
Ratio direct / Indirect |
7.6 |
7.7 |
7.9 |
7.5 |
b 18 % at constant currencies
c 6 % at constant currencies
d 7 % at constant currencies
H1 2019 results by division
P&L amounts in EUR million
Summary:
Revenue |
Q2 2019 |
Q2 2018 |
Δ% |
H1 2019 |
H1 2018 |
Δ% |
|
DACH region |
69.6 |
65.8 |
6% |
143.2 |
130.0 |
10% |
|
The Netherlands |
51.9 |
54.1 |
-4% |
106.3 |
110.3 |
-4% |
|
Australasia |
28.6 |
28.3 |
1% |
57.3 |
56.0 |
2% |
|
Middle East & India |
28.6 |
20.3 |
41% |
55.6 |
39.5 |
41% |
|
Rest of world |
79.4 |
52.9 |
50% |
161.9 |
99.4 |
63% |
|
Total |
258.1 |
221.3 |
17% |
524.2 |
435.1 |
20% |
EBIT |
Q2 2019 |
Q2 2018 |
Δ% |
H1 2019 |
H1 2018 |
Δ% |
|
DACH region |
4.3 |
4.7 |
-8% |
12.8 |
10.4 |
24% |
|
The Netherlands |
1.6 |
1.1 |
39% |
4.4 |
5.3 |
-18% |
|
Australasia |
-0.4 |
-0.5 |
23% |
-1.0 |
-0.5 |
-91% |
|
Middle East & India |
2.3 |
1.7 |
37% |
5.2 |
3.4 |
51% |
|
Rest of world |
-6.6 |
-0.4 |
-1426% |
-6.0 |
-2.3 |
-160% |
|
Unallocated |
-1.7 |
-2.4 |
32% |
-3.8 |
-5.0 |
23% |
|
Total |
-0.5 |
4.1 |
-112% |
11.6 |
11.3 |
3% |
DACH region (unaudited) |
||||||||
P&L amounts in EUR million |
||||||||
Q2 2019 |
Q2 2018 |
Δ% |
H1 2019 |
H1 2018 |
Δ% |
|||
Revenue |
69.6 |
65.8 |
6% |
143.2 |
130.0 |
10% |
||
Gross Profit |
20.6 |
20.1 |
2% |
45.4 |
40.7 |
11% |
||
Gross margin |
29.6% |
30.6% |
31.7% |
31.3% |
||||
Operating costs |
16.3 |
15.4 |
6% |
32.6 |
30.3 |
8% |
||
EBIT |
4.3 |
4.7 |
-8% |
12.8 |
10.4 |
24% |
||
EBIT % |
6.2% |
7.1% |
9.0% |
8.0% |
||||
Average directs |
2,725 |
2,606 |
5% |
2,712 |
2,565 |
6% |
||
Average indirects |
516 |
476 |
8% |
509 |
474 |
7% |
||
Ratio direct / Indirect |
5.3 |
5.5 |
5.3 |
5.4 |
Revenue
This region includes Germany, Switzerland, Austria and Czech Republic. In Q2 we started to experience some slowdown in the Automotive market, but have been able to balance this through our diversification approach and found projects for our specialists in other market segments.
Revenue per working day increased by 7% in Q2, despite a slightly lower productivity due to vacation. In H1 revenue per working day increased by 11%. Headcount at 30 June 2019 is 3% above last year’s headcount and we experienced a 3-4% price increase through the first half of 2019.