Tessenderlo annual report 2015

Tessenderlo arrived with an ok report which made the share price increase by over 12%. Silly is probably the word I want to use for that kind of share price movements. What was then in it?

For the report in full please click here and to see my previous summary then please visit Tessenderlo report Q3 2015 and to find out more concerning Tessenderlo then please go to analysis of Tessenderlo 2015 (a new one will follow shortly).

Well, let us jump directly into the financial statement below and then we see that Tessenderlo increased their revenue by almost 11% and the earning were up by 57% which is great but less so than one could think at a first glance. By this I mean that the earnings for 2014 were seriously bad and not at all something normal for the company. As a chemical company they will be able to profit more and more the longer the oil price remain low since it will increase their margins. We can also see that they took an impairment cost of almost 24 million € which I hope we will not see during the coming year.

I would also like to mention that the Agro part had an excellent year with plus over 20% in revenue followed by Industrial solutions with plus over 10%. The troubles some part of the company have now also managed to pull themselves together and they could at least show an increased revenue of around 2% and it will be interesting to see if they can push that further next year with increased earnings to follow.

It should also be mentioned that Tessenderlo and Picanol will be joined under one umbrella during this spring which will annoy many analysts but for me as an investor I simply do not care since my investment is 100% based on the management and not the business.

Conclusion: Tessenderlo ended up having an ok year. Part of the business did very well and other parts did so, so. The merger between Picanol and Tessenderlo will decrease some administrative costs even one step further but more importantly the revenue and earnings for the combined group will be good and I look forward to the development. I will of course remain as a shareholder in Tessenderlo.