Investment company Eurazeo made a loss after tax of EUR155.8m in the first half of 2009 compared to a profit of EUR854.5m the previous year.
Investment company Eurazeo made a loss after tax of EUR155.8m in the first half of 2009 compared to a profit of EUR854.5m the previous year.
The company says the decrease is due to the absence of significant divestitures during the first half of 2009 compared to the first half of 2008 which included capital gains from the sale of the stake in Danone to Legendre Holding 22 (a wholly-owned subsidiary of Eurazeo) for EUR854.1m and shares of Veolia for EUR252.5m.
Eurazeo’s net asset value as of 30 June 2009 stood at EUR47.8 per share compared to EUR53.4 per share as of 31 December 2008. The company says the 30 June figure would be EUR50.9 per share if ANF were valued at its NAV instead of its share price.
Eurazeo consolidated revenues for the first half of 2009 stood at EUR1,811.6m, a reduction of 7.8 per cent pro forma at constant exchange rates and of 8.4 per cent as reported. It says the decrease is mainly due to lower recurring dividends rated to the 2008 sale of shares in Air Liquide and Veolia, and the expected decrease in Europcar’s activity which weighed on revenues of the private equity business.
Real estate grew by 8.2 per cent to EUR16.7m as a result of increased rental revenues from ANF.
Consolidated net income group share, amounted to negative EUR120.9m compared to EUR241.7m for the first half of 2008. Consolidated net income including minority interests and interests relative to the Eurazeo Partners limited partnership fund, stood at negative EUR177.8m as of 30 June 2009 compared to EUR242.5m for the first six months of 2008.
As of 27 August 2009, Eurazeo had cash assets of EUR514.5m (including collateral), EUR106.0m in Danone liquid shares and a complementary EUR109.9m available, subject to call, from Eurazeo Partners limited partners. Eurazeo may also use its syndicated credit line of EUR1bn, unused to date, and available in totality until mid-2012 and for up to EUR875m until mid-2013.
Patrick Sayer (pictured), chairman of the executive board, says: ‘The group accelerated the implementation of performance optimization measures throughout its perimeter which, in the near-term, serve to limit the impacts of the economic crisis and which will deliver their full benefits once the recovery is confirmed.
‘The results for the first half of 2009 were impacted by the absence of capital gains, the loss of value in investment properties linked to higher rates of capitalization, the negative impact of the economic environment on Europcar and the decline in results of equity affiliates, Rexel and Accor.
‘All of the group’s companies respected their covenants during the 1st Half. In addition, Rexel’s debt was renegotiated providing flexibility for the future maintenance of its commitments. Eurazeo took advantage of market opportunities to reinforce its financial structure in issuing bonds exchangeable for Danone shares and the sale of available shares at satisfactory prices. These operations reinforce Eurazeo’s financial resources and structure.
‘With our cash, the balance of available Danone shares and the commitments of Eurazeo Partners, and our fully available line of credit, we are confident of our ability to support the development of the group’s companies, if needed, and to make new investments.’
