Brunel reports strong Q1 profit increase
30 April 2021 - 7:30AM
Brunel reports strong Q1 profit increase
Amsterdam, 30 April 2021 – Brunel International N.V. (Brunel;
BRNL), a global provider of flexible workforce solutions and
expertise, today announced its first quarter (Q1) 2021 results.
Key points Q1 2021
- EBIT up 34% at EUR 10.7 million
versus Q1 2020;
- Revenue of EUR 213 million, down
17% versus Q1 2020 due to COVID-19; and up 2% versus Q4 2020
despite seasonality;
- Cost savings resulting in EUR 8
million lower operating cost versus Q1 2020;
- Gross margin increased by 1.8
percentage points to 23.1%;
- Financial position remains strong
with net cash at EUR 150.6 million;
Jilko Andringa, CEO of Brunel
International N.V.: ”Q1 demonstrated our enhanced group
agility with profits up substantially, while revenues were as
expected still depressed by COVID-19. Due to our operational
discipline, investments in added value and focus on rates, we
managed to improve our gross margin significantly. Combined with
the impact of last year’s cost saving program, we achieved a 34%
increase in EBIT, ahead of a post-pandemic revenue recovery
anticipated to commence once the world opens up again. The recovery
will allow cross-border mobility of specialists to increase and
local need for specialists to spike. Brunel is ready for this next
phase of profitable growth. We can capitalize on our capabilities
and leverage our global footprint to further drive profitability
through specialization, diversification, capabilities building and
disciplined execution. We will continue to expand our pool of
upskilled specialists through our talent communities enabling us to
connect them to challenging projects. We will particularly focus on
growth in the segments future mobility, renewables, life sciences,
mining, infrastructure and oil & gas. Our global team of
passionate Brunellers is eager to take advantage of the anticipated
post-COVID-19 market momentum and put their vital specialist and
engineering expertise to work for a more sustainable world. With
confidence I am looking forward to the coming quarters.”
Brunel International (unaudited) |
|
|
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
213.0 |
255.8 |
-17% |
a |
Gross Profit |
49.3 |
54.4 |
-9% |
|
Gross margin |
23.1% |
21.3% |
|
|
Operating costs |
38.6 |
46.4 |
-17% |
b |
EBIT |
10.7 |
8.0 |
34% |
|
EBIT % |
5.0% |
3.1% |
|
|
|
|
|
|
|
Average directs |
9,290 |
11,447 |
-19% |
|
Average
indirects |
1,310 |
1,567 |
-16% |
|
Ratio direct /
Indirect |
7.1 |
7.3 |
|
|
|
|
|
|
|
a -15 %
like-for-like |
|
|
|
|
b -16 %
like-for-like |
|
|
|
|
Like-for-like is measured excluding the impact of currencies |
Q1 2021 results by divisionP&L amounts in
EUR million
Summary:
Revenue |
Q1 2021 |
Q1 2020 |
Δ% |
|
|
|
|
DACH
region |
55.7 |
69.6 |
-20% |
The
Netherlands |
47.2 |
50.8 |
-7% |
Australasia |
25.2 |
30.0 |
-16% |
Middle East
& India |
25.2 |
33.8 |
-25% |
Americas |
20.3 |
28.5 |
-29% |
Rest of
world |
39.4 |
42.3 |
-7% |
Unallocated |
0.0 |
0.8 |
-100% |
|
|
|
|
Total |
213.0 |
255.8 |
-17% |
EBIT |
Q1 2021 |
Q1 2020 |
Δ% |
|
|
|
|
DACH
region |
6.0 |
4.0 |
50% |
The
Netherlands |
4.0 |
3.2 |
25% |
Australasia |
0.0 |
0.0 |
|
Middle East
& India |
2.4 |
3.2 |
-25% |
Americas |
-0.1 |
-0.8 |
88% |
Rest of
world |
1.3 |
1.1 |
18% |
Unallocated |
-2.9 |
-2.7 |
-7% |
|
|
|
|
Total |
10.7 |
8.0 |
34% |
The Group’s revenue decreased
by 17% or EUR 42.8 million versus Q1 2020, a period in which the
impact of COVID-19 was still limited. Revenue was up 2% versus Q4
2020, despite seasonality.
Gross margin came in at 23.1%, a 1.8 percentage
point increase versus Q1 2020 with almost all regions contributing
and a particular strong contribution from the DACH region. EBIT
increased by 34% or EUR 2.7 million versus Q1 2020, despite one
less working day in Germany and The Netherlands. Cost savings
realised in 2020 and continued cost discipline helped our EBIT
improve in almost all regions.
PERFORMANCE BY REGION
DACH region (unaudited) |
|
|
P&L amounts in EUR million |
|
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
|
Revenue |
55.7 |
69.6 |
-20% |
|
|
Gross
Profit |
19.6 |
21.3 |
-8% |
|
|
Gross
margin |
35.2% |
30.6% |
|
|
|
Operating
costs |
13.6 |
17.3 |
-21% |
|
|
EBIT |
6.0 |
4.0 |
50% |
|
|
EBIT % |
10.8% |
5.7% |
|
|
|
|
|
|
|
|
|
Average
directs |
1,901 |
2,548 |
-25% |
|
|
Average
indirects |
377 |
511 |
-26% |
|
|
Ratio direct /
Indirect |
5.0 |
5.0 |
|
|
|
Revenue per working day in the DACH
region decreased by 19% with a 25% lower headcount. The
decrease in revenue follows the headcount decline and is partly
offset by higher rates and an increased productivity. The gross
margin adjusted for working days is significantly up to 36.0% in Q1
2021 (2020: 30.6%). The gross margin improvement was driven by a
higher productivity, compared to a low productivity in Q1 2020.
Productivity in Q1 2020 was also impacted by the move of our
automotive test center, that is now at a normal productivity. The
number of specialists in short-time working reduced from 130 in Q4
2020 to 75 in Q1 2021.
Working days Germany:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2021 |
63 |
60 |
66 |
65 |
254 |
2020 |
64 |
59 |
66 |
65 |
254 |
Headcount as of 31 March was 1,908 (2020:
2,545).
The Netherlands (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
47.2 |
50.8 |
-7% |
|
Gross
Profit |
13.5 |
14.1 |
-4% |
|
Gross
margin |
28.6% |
27.8% |
|
|
Operating
costs |
9.5 |
10.9 |
-13% |
|
EBIT |
4.0 |
3.2 |
25% |
|
EBIT % |
8.5% |
6.3% |
|
|
|
|
|
|
|
Average
directs |
1,733 |
2,016 |
-14% |
|
Average
indirects |
301 |
367 |
-18% |
|
Ratio direct /
Indirect |
5.8 |
5.5 |
|
|
Revenue per working day in The Netherlands
decreased by 6%. The business line Legal continued to show strong
growth, partly offsetting the decline in some other business lines.
Gross margin adjusted for working days is 29.6% in Q1 2021 (Q1
2020: 27.8%). The gross margin increased due to higher rates and a
higher productivity. EBIT improved by 25% as a result of the higher
gross profit and the cost saving initiatives that were realized
throughout 2020.
Working days The Netherlands:
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
2021 |
63 |
61 |
66 |
66 |
256 |
2020 |
64 |
60 |
66 |
65 |
255 |
Headcount as of 31 March was 1,737 (2020:
2,000).
Australasia (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
25.2 |
30.0 |
-16% |
a |
Gross
Profit |
2.4 |
2.6 |
-8% |
|
Gross
margin |
9.5% |
8.7% |
|
|
Operating
costs |
2.4 |
2.6 |
-8% |
b |
EBIT |
0.0 |
0.0 |
|
|
EBIT % |
0.0% |
0.0% |
|
|
|
|
|
|
|
Average
directs |
906 |
1,059 |
-14% |
|
Average
indirects |
83 |
82 |
2% |
|
Ratio direct /
Indirect |
10.9 |
13.0 |
|
|
|
|
|
|
|
a
-21 % like-for-like |
|
b
-13 % like-for-like |
|
Like-for-like is measured excluding the impact of currencies |
|
Revenue is down both in Australia and PNG.
Australia suffered from poor weather conditions, where PNG
continued to be impacted by its dependency on expats travelling
into the region, which was still restricted due to COVID-19.
Middle East & India (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
25.2 |
33.8 |
-25% |
a |
Gross
Profit |
4.1 |
5.9 |
-31% |
|
Gross
margin |
16.3% |
17.5% |
|
|
Operating
costs |
1.7 |
2.7 |
-37% |
b |
EBIT |
2.4 |
3.2 |
-25% |
|
EBIT % |
9.5% |
9.5% |
|
|
|
|
|
|
|
Average
directs |
2,078 |
2,711 |
-23% |
|
Average
indirects |
125 |
146 |
-15% |
|
Ratio direct /
Indirect |
16.7 |
18.5 |
|
|
|
|
|
|
|
a
-19 % like-for-like |
|
b
-31 % like-for-like |
|
Like-for-like is measured excluding the impact of currencies |
|
In Middle East & India we
saw a continued decrease in revenue, mainly due to completion of
several projects and currency effects. Gross margin decreased due
to margin pressure from existing clients and an unfavourable change
in the client mix. Operating costs have decreased as a result of
cost saving initiatives implemented in the second half year of
2020.
Americas (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
20.3 |
28.5 |
-29% |
a |
Gross
Profit |
2.6 |
3.2 |
-19% |
|
Gross
margin |
12.8% |
11.2% |
|
|
Operating
costs |
2.7 |
4.0 |
-33% |
b |
EBIT |
-0.1 |
-0.8 |
88% |
|
EBIT % |
-0.5% |
-2.8% |
|
|
|
|
|
|
|
Average
directs |
761 |
877 |
-13% |
|
Average
indirects |
100 |
121 |
-18% |
|
Ratio direct /
Indirect |
7.6 |
7.2 |
|
|
|
|
|
|
|
a
-22 % like-for-like |
|
b
-24 % like-for-like |
|
Like-for-like is measured excluding the impact of currencies |
|
In the Americas revenues
decreased by 29%, with strong growth in Brazil and growth in
Canada. The activities in the USA did not yet show any recovery and
were also hindered by the severe winter weather conditions in
Texas. Gross margin has increased by 1.6 percentage points
year-on-year boosted by higher recruitment revenue and project wins
at a higher margin.
Rest of world (unaudited) |
|
P&L amounts in EUR million |
|
|
|
|
Q1 2021 |
Q1 2020 |
Change % |
|
Revenue |
39.4 |
42.3 |
-7% |
a |
Gross
Profit |
7.1 |
7.3 |
-3% |
|
Gross
margin |
18.0% |
17.3% |
|
|
Operating
costs |
5.8 |
6.2 |
-6% |
b |
EBIT |
1.3 |
1.1 |
18% |
|
EBIT % |
3.3% |
2.6% |
|
|
|
|
|
|
|
Average
directs |
1,911 |
2,195 |
-13% |
|
Average
indirects |
264 |
275 |
-4% |
|
Ratio direct /
Indirect |
7.2 |
8.0 |
|
|
|
|
|
|
|
a
-1 % like-for-like |
|
b
-3 % like-for-like |
|
Like-for-like is measured excluding the impact of currencies |
The Rest of World includes
Asia, Russia & Caspian area, Belgium and Europe & Africa.
In Russia, activities have increased with some new projects being
started. In Asia, work continued on construction projects that were
started pre-COVID-19. The increased profitability is mainly driven
by a strong performance in our growth markets in Asia.
OutlookWe expect the current
trend to continue in Q2 2021: revenue will be similar to Q1 2021,
meaning a much lower decline yoy, however, still impacted by
COVID-19.
Over Q2, gross margins are expected to be lower compared to Q1
2021 due to the seasonality and the lower number of working days as
is EBIT, due to seasonality. Last year’s cost savings program
resulted in a significantly lower cost level, ensuring we will
achieve a significantly higher EBIT compared to Q2 2020. Through a
strong focus on growth in the segments future mobility, renewables,
life sciences, mining, infrastructure and oil & gas we are
ready to benefit when the world opens up again.
Press Release Q1 202
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