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Results first half 2020

Campine NV
·5-min read


Regulated information - 24 September 2020 – 07:50

Headlines - Financial results

During the first semester of 2020 Campine achieved a revenue of 82,7 mio € (2019: 102,9 mio €). Profit after taxes amounted to 103 K€ (2019: 2,33 mio €). The reduction in sales and profit is entirely related to the impact of the Corona pandemic. Volumes as well as metal prices were on average substantially lower compared to the same period in 2019.

Strict cost control and some ambitious initiatives helped Campine to navigate quite well through this crisis. “The company saved 1,5 mio € in expenses in the first semester and seized several opportunities to limit the volume loss.” explains CEO De Vos “We also managed to advance our yearly maintenance shutdown and carry it out with more own personnel. With strict cash management and a better spread of our investments, we managed to retain our strong 2019 year-end balance sheet” he concludes. With a solvency ratio of 54%, Campine does not expect financing problems in the near future.

To minimise the Covid-19 contagion risks for its employees, Campine implemented a large number of measures. Campine used several government measures, such as temporary unemployment, to counterbalance the lower market demands. The different manufacturing units were alternately closed to keep the efficiency as high as possible. Several expenses were avoided or delayed whenever possible. All planned investments will be carried out, but some will be rescheduled in time. Some investment projects were delayed because some subcontractors were unable to continue their work seen the Covid pandemic.

Performances per division

Division Specialty Chemicals

Market and Operations

  • The first effects of the Covid pandemic were experienced early February when antimony metal prices started to rise due to fears of shortages on the world market. The centre of the antimony production is found in China’s Hunan province, which is adjacent to Wuhan (Hubei province) where the pandemic originated. Fear for shortages helped the antimonytrioxide demand to remain at normal levels during the first quarter. Only early May the impact became clear in our Specialty Chemicals division, with customers in some market segments reducing their demand by 30 to 40%. This decrease in demand ultimately lead to a fast price decline of antimony raw materials.

  • Sales revenue decreased to 34,2 mio € (-22% versus 2019) as a result of lower volumes (-10% compared to 2019) and lower sales prices of our antimony products.

  • Thanks to cost savings and better operational efficiency, a positive operational result of 1.077 K€ was reached (compared to a break-even results of 10 K€ in 2019).


Division Metals Recycling

Market and Operations

  • We experienced the impact of the Corona crisis immediately from early March onwards in our lead unit, where more than 80% of our products are being used for batteries, with the automotive sector as largest segment. The shutdown of many assembly lines throughout Europe caused the demand for lead to drop dramatically. Volume reductions at some industrial customers of 50 to 60% were no exception. Despite this we were able to keep sales volumes on decent levels thanks to seizing new opportunities at new customers and with different metal traders. By the end of April the supply chain of our main raw material – scrap batteries – dried up completely; due to forced closures of car workshops and scrap dealers, scrap batteries no longer reached our suppliers. We therefore decided to bring forward our yearly maintenance shutdown from July to May.

  • The Metals Recovery activities, in which we recycle other metals, was not impacted by the Covid pandemic.

  • Sales revenue decreased to 54,2 mio € (-19% tov 2019) as a result of lower volumes (-12% compared to 2019) and lower LME lead prices, which are the basis of our lead products sales prices. The average LME lead prices during the first half of 2020 were substantially lower than in the first semester of last year: 1.597 €/ton versus 1.735 €/ton in 2019.

  • The operational result was a loss of -970 K € in comparison with a profit in 2019 of 3.168 mio €. Beside lower volumes and lower sales prices, we additionally had the shift of the full maintenance shutdown expenses into our first year half in 2020.

Outlook 2020

Making a prognosis for the full year 2020 remains very difficult considering the volatile and uncertain market conditions. If however raw material prices retain their rise, we expect to close the year with profit.

Demand for our Specialty Chemicals products is restoring very slowly. We expect to reach pre-Covid levels only by the last quarter of 2020. Antimony metal prices are on the rise since early August, mainly related to some shortages on the antimony ore markets.

In our Metals Recycling division we reached normal demand levels since July. This is potentially related to temporary shutdowns at some of our regional competitors. LME lead prices increased substantially during the summer months from a level below 1.500 €/ton mid-May to above 1.650 €/ton and fluctuates around a level of 1.600 €/t in the meantime.


The full interim financial report is available on our website www.campine.com: Investors/shareholder information/financial reports and calendar/Financial reports/interim financial report 2020.

This information is also available in Dutch. Only the Dutch version is the official version. The English version is a translation of the original Dutch version.

For further information you can contact Karin Leysen (tel. no +32 14 60 15 49)
(email:
Karin.Leysen@campine.com).

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