Belgian listed companies have shown good health in 2018, at least, if we will not take into account the AB InBev, the results are disappointing. Family business take over. Of these, a strong balance sheet, they have enough money to invest in their growth and spread a generous dividend.
Despite the slowdown in economic growth and a strong market correction of recent months, the Belgian listed companies recorded a good year 2018. Two thirds of them have increased their turnover. Of course, everything could not be faced with a headwind, and only 57% of the listed companies show an increase in net profit. Shareholders will be able to open the champagne after the general meeting, which will take place in the near future. For two of the three companies, distributing dividends decided to treat its shareholders by increasing the coupon and 24% of the companies keep the same dividend. Only 10% of them had to reduce or eliminate dividends.
As always, the giant AB InBev It distorts the overall results. The largest brewery group in the world 41% of the total turnover of the Belgian industrial companies and 25% of the profits of all listed companies. Mammoth Leuven faced with a crisis in emerging markets and a falling currency, the Brazilian real, the Mexican peso and South African rand. Although these groups do not have reduced the consumption of beer AB InBev has registered a decline of 7% in revenue and almost 50% of the net profit, shall be converted into euros. The consequence: the total net profit of all listed Belgian companies decreased by 11% to 16.3 billion euros. If we exclude the AB InBev, it increased from 12.8% to Euro 12.5 billion and revenues by 6.1% (+ 0.2%, but if we include AB InBev),
"Dividends have always been relatively low, and it is time to fix. Resilux can gradually become a dividend per share. "
beer lovers, who relied on the dividend of their favorite brewer, to fund their package Leffe, Stella or Tripel Karmeliet are their costs. AB InBev has reduced the dividend by 50%, which represents a savings of 3.63 billion euros for the group. From this amount, it would be feasible to provide Elia. But most companies have decided to treat their shareholders. With the exception of AB InBev, the Belgian listed companies this year will allocate 6.3 billion of shareholders, representing an increase of 21%. This beautiful jump is mainly due to major groups such as KBC (+ 17%), Barco (+ 10%), Umicore (+ 7%) and Solvay (+ 4%), but also the first dividend in five years, distributed Telenet (583 million euros). There are also more than generous redistribution D & # 39; Ieteren, after the partial sale of automotive glass reductant Belron, and media group Roularta after Medialaan sale.
The average dividend yield companies, which distribute a coupon gross amount of 4.3%. If we exclude the special dividend rate of 3.5% gross or 2.45% net. Balances enable businesses to be generous. At a ratio of 49% debt and payout ratio of 50% – if we exclude AB InBev – most companies demonstrate excellent health. More debt and interest payments from the & # 39 is low, the larger will be there.
One can only wonder generosity of the family business. Companies coupons, and Resilux. Lotus Bakeries. Texaf. VGP. Spadel. Sioen. Brederode or Miko show double-digit growth. Family Moury put dishes in large decree "double coupon" to mark the centenary of the construction company Moury Construct. Obviously medium businesses today tend to be less effective and to allocate a greater share of their income. "Dividends have always been relatively low, and it is time to fix. Resilux can gradually become a dividend to action"Said his CEO Dirk De Cuyper.
PET bottle manufacturer increases the coupon rate of 50%, which is the highest growth of all companies. This dividend is to serve as a guide for the future. "We have very little debt, and we have reached sufficient maturity to continue to invest heavily and grow while rewarding our shareholders«Said De Cuyper and numbers to prove him right. The debt is unlikely to exceed 22%, and is now being distributed Resilux third of net profit.
In terms of numbers, Resilux results are very comparable to Lotus Bakeries, Biscuit manufacturer also increases the dividend of almost 50%. even holding Brederode He changed his tune. After his strong performance and a moderate increase in its dividend in recent years, Brederode has decided at this time to increase it by 11%. But the biggest surprise came from SmartPhotoIt distributes a dividend for the first time since 2004.
He is in Barco that the investors were the most euphoric: the projected image specialist closed the week with a sharp increase after a & # 39; waking about 20% increase of its annual results. cash flow growth (+ 16%) higher than expected, and the rate of return of 12.1% at the present time has reached the target that the group set Kortrijk 2020. Barco, rich in cash, as well as increased the dividend by 10%. courses D & # 39; Ieteren. IBA. BPOST and a small active player in the Congo Texaf jumped after the publication of their results. Texaf increases its coupon of around 20% for the twelfth consecutive year, thanks to strong demand for luxury homes safe in Kinshasa.
Profit is not everything
Dividends and other figures, taken individually, are not sufficient to evaluate the effect. Analysis of the main trends is necessary to form an opinion. For example, a decline in profits is not necessarily negative. group MikoSpecializing in plastic and coffee, in particular, saw its profit after tax by 18%, but the decline was mainly due to the decisions taken in the company. First, she took on the Cafe Danish group Maas (loss). Miko has allocated only 1 euro, but has promised to make the necessary investments for the company to restore its profitability within two years.
Decrease in profit after tax Miko 18% due to the decisions taken in the company.
So far, Maas weighs on margins. In addition, Miko invested heavily in new technology to a major contract in the division of plastic that will generate a profit until the second half of this year. According to Miko, all these decisions should give a boost to the salary a year. The company confident enough to increase the dividend by more than 10%, and in the seventh year in a row. She can afford it, because it distributes 25% of the profits, and the debt ratio of 1.3 times cash flow, it shows excellent health and has sufficient flexibility to finance this year's investment of about 20 million people.
Of course, some companies disappointed, Sun showing disastrous results. In addition to AB InBev, only a limited number of companies had to reduce the coupon after a disappointing 2018.
The layers of the producers Ontex and the company focused on Bekaert steel wire, this decline was expected. Ontex is suffering from high pulp prices, strong competition and currency crisis in developing countries. Although the action has increased due to the improvement in Brazil, where many bodies were taken out of the closet during the recovery Hypermarcas.
Bekaert faced with the consequences of a trade war, fierce competition and significant decrease in car sales, which reduced the demand for tires.
SIPEF its planes two-thirds of the coupon, which is a & # 39 is a logical consequence of its strategy, which aims to distribute 30% of the profits. They also reduced by two thirds lower than the low price of palm oil, and heavy rains in Sumatra. On the balance sheet, SIPEF great that we can not say, carpet manufacturer Balta or producer of fruits and vegetables GreenyardThat categorically eliminated their dividends.
Manufacturer of lead and antimony Kempen coupon cut of 20%. Prices came under pressure in the second half of the year. Result: growth (limited) on the & # 39; the amount was not enough to manage the sales and profits up. Meanwhile, there is a correlation between the prices of the old batteries and other lead waste – which of the & # 39 are the bedrock of processing Kemp – and that the company gets to lead the market. As promised, the dividend is maintained at BPOSTBut we must prepare for a significant reduction in the following year.
This year, investors will move with fewer signs of business. Van de Velde I decided not to give any estimate of future results. EVS liquidated quarterly on the & # 39 announcement of its full results, and replace it with a short "update". Other companies such as Umicore, Lotus, Colruyt, etc. Resilux has already decided not to publish detailed quarterly results.
For the first time since 2014, 3D printer materialize Lovny can register a net profit in the black instead of red, although it remains modest. Revenues distort the result Roularta, D & # 39; Ieteren and Home Invest, but also on the basis of profit "current" – leaving aside the special case presented by National Bank – one can only be struck by the favorable exchange rate effect of the technology group EVS Liège.
Texaf and gold mine in Kinshasa
EVS low score is due to a storm that blows in the share price. Nevertheless, Liegeois published a handsome profit (24%) in this difficult year. The same applies to the AB InBev, which collects the best of the field in this area. Champion Texaf, having struck gold with their real estate projects in the area of the embassy in Kinshasa.
Telenet is obliged to distribute more than 600 million of its shareholders. As AB InBev and Eliana, telecoms group has a strong and stable cash flow, enabling it to continue to finance this debt. The X-Fab, cash flow is under pressure because of the severe crisis in the automotive industry, but due to the strength of its balance sheet, the chip manufacturer has a solid mattress to cushion the impact of the crisis.
AB InBev has experienced heavy in 2018, but the brewing group in the world shows far the most important advantage of Euronext Brussels. With stable profit, KBC dangerously close giant. Also note that the holding company Sofina exceeded GBL with an exceptional 2018 harvest.
MIS gap – bis
Although AB InBev double the dividend, the group continues to distribute virtually all of its net income. Again, KBC manifests itself on the heels of the brewery group. With its thick mattress capital, bancassurance group can afford to distribute to its shareholders 60% of the profits, instead of 50%. Result: the coupon is increased by 17%.
Dividends (too) high, but not regularly
If you want to get rich, do not count on the generous BPOST dividends: postal company said it expected to decline this year. For the fiscal year 2018 dividend, BPOST had to distribute all of its net income. Solid coupons Roularta, D & # 39; Ieteren and Telenet with the & # 39 are exceptional and can not be played every year, even if the CEO Telenet John Porter says that this year, his group can allocate a small dividend, of course, but " stable ".