16.02.2016     |     Company

Cash generation reached R$30.5 million in 2015 indicating that Romi is being able to compensate the Brazilian market instability

Romi reinforces its presence abroad and, despite the 6.5% fall in net revenue, net income reached R$7.3 million in 2015.

Santa Bárbara d’Oeste, February, 2016 – Romi, the Brazilian leader in the industrial equipment market, with 85 years of history and over 150,000 machines installed around the world, presents the financial results achieved in the fourth quarter and in the full year 2015.

With R$606.6 million in revenues in 2015, Romi reached gross margin of 22.8% and negative EBIT (Earnings Before Interest and Taxes) margin of 0.3%. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin was 5.3%, with net margin of 1.2%, which represents a net income of R$7.3 million in the year.

Cash generation in 2015 was R$30.5 million, reducing Romi’s net debt to R$72.1 million, confirming that the strategies for cash flow optimization were effective.

The current highly uncertain Brazilian market negatively affects the country’s investment levels. This fact reflected on the orders placed for Machine Tools and Plastic Processing Machines, which fell by 47.2% and 39.8%, respectively, in 2015 when compared to 2014. Raw and Machined Cast Iron Parts Business Unit, propelled by greater demand by the wind power industry, had an increase in order entry of 27.5% in the same period.

As at December 31, 2015, the order backlog totaled R$243.5 million, an amount that is 13.2% lower than the portfolio at the end of 2014.
The number of new customers attended in foreign markets grew demonstrating the consolidation of Romi brand abroad. In 2015, the share of foreign markets in the consolidated net operating revenue was 41%, which represents an increase of 1000 basis points compared to that achieved in 2014.

The sale of non-strategic assets impacted EBITDA and net income of R$21.9 million and R$ 21.0 million, respectively. A property located in the Comune of Grugliasco, Italy, and other located in the São Paulo, Brazil, were sold.

According to Luiz Cassiano Rosolen, Romi´s Chief Executive Officer, “the Company is focused on maintaining cash and debt at suitable levels, which allows us, even in a recessive year, to direct efforts to the capture of opportunities, aiming sustainability and recovery of profitability in the medium and long term. Among these opportunities are the reduction of production lead time, the optimization of indirect structures, contract reduction and investments in automation.”

Investments in 2015 totaled R$16.9 million and were partly used for maintenance, productivity, flexibility and competitiveness of the industrial facilities within the investment plan for 2015.

The Stock Repurchase Program issued by the Company on April 28, 2015, was completed on January 19, 2016, with the acquisition of 3.1 million shares at the total amount of R$5.6 million.