Tuesday, April 7, 2015

Tessenderlo annual report 2014

Tessenderlo, 2014, annual, report, front page

The report arrived and nothing much happened to the share price which has generally slowly but surely been climbing up in the last months. What was in it?

For the full report please go here and to see a previous report then please take a look at Tessenderlo operating report Q3 2014 or you can go to the analysis of Tessenderlo.

Let us take a look at the income statement below there we see that Tessenderlo did not have a good year and the revenue made a significant drop which comes mainly from that they sold off several business units. What is good is that the cost of sales decreased in a significant number and the profit in the end of day turned out to be acceptable with 53.7 million euro which should be compared with the -64 million in 2013. It is rare that one sees a positive figure on restructuring costs but here it comes from that some already started restructuring were stopped as well as some business sell off were also cancelled by the new larger shareholder and co-CEO.

Tessenderlo, annual, 2014, income statement

When we look at the segments then we see that Agro has performed exceptionally well during 2014 and the Bio-valorization seems to be a real trouble child but most likely considered to be a potentially profitable business since it is left in the group and they also claim that significant cost cutting programs are running to bring back profitability. The Other segment which was for instance a phosphate part had done very well but were sold off in end of February 2014 so in the future no more revenue and earnings will come from that.

Tessenderlo, annual, 2014, segments revenue

Conclusion: I must say that I am amazed an impressed at how fast this has happened. To me the turn around is already here after less then one year since Luc Tack stepped into the company. I will very much enjoy the ride that I have now joined into with an exceptional business man at the steering wheel.

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