1. Key figures for 2018
In thousands of EUR
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
Operating margin %
Result before tax
2. Key events in 2018
a) New business
In 2018, many national and international companies chose an Emakina agency as their partner. These include: Arçelik, ATPS, Bardahl, Beko, Brady Seton, Comdata Group, ECCO, Fermacell, Frankstahl, Groupe Descamps, Hema, Hutchison 3G, Kastner & Öhler, KitchenAid, Longchamp, LuLu Hypermarkets, Micromania-Zing, Omron, Pierre Hardy and REWE/Öcard.
b) Continued acquisitions
In February 2018, Emakina Group acquired 100% of the shares in the New York agency Karbyn, with a staff of ten, through its subsidiary The Reference, based in Ghent, Belgium.
This transaction reflects Emakina’s growth ambitions in the US and offers new opportunities for attracting international clients in search of top-quality support in the US. The price of the transaction will be based on the operating results recorded over the first five years.
In March 2018, Emakina Group took control of 100% of the capital of WittyCommerce, through its Turkish subsidiary Emakina.TR, established in Izmir. With this acquisition, Emakina Group further confirms its ambitions in the region. As a reminder, the 30 experts at WittyCommerce have been sharing their experience in strategy and development of e-commerce websites with Emakina through a commercial partnership since 2016. The price of the transaction will be based on the operating results recorded over the first five years.
In geographic terms, sales ‘outside Belgium’ increased by over 18.5% during 2018 as a whole and now account for 63% of the consolidated income, compared with 61% in 2017.
This trend is accelerating as a result of the group's expansion strategy, particularly in Turkey and the UAE, where Emakina’s Asia Headquarters are to be set up in 2019. The new offices in New York are another example of the group's international ambition.
d) Integration and processes
In 2018, Emakina Group continued to invest in integration and synergies between the entities in its network, particularly in the Netherlands, where the new centralised management platform for projects combined with the new version of the ERP is to be deployed at the end of the year and then extended to the group as a whole.
In this context, Emakina Group continues to strengthen its teams and organises regular coordination meetings and training sessions to better share best practices. Finally, the Emakina teams made substantial efforts to ensure that its processes comply with the new European General Data Protection Regulation (GDPR).
The management of human capital remains a key element in the group’s further development.
With more than 900 talents in the organisation, the management’s priority is to attract the best people and accompany them in their career, while maintaining a subtle balance between the skills required by clients and technological progress and the need to keep costs under control.
Through its commercial partners, Emakina Group continues to offer its clients a wide geographic scope combined with in-depth local knowledge: Air (Belgium), Asiance (South Korea, Japan) Bubblegum (Spain); Domino (Italy); Metia (Great Britain, United States and Singapore); Portalgrup (Turkey), and SinnerSchrader (Germany).
g) Prizes and awards
In 2018, Emakina won over 30 awards (SIA, AVA, Best of Web, Communicator, W3, SWEDMA, Technology Partner, etc.) for various projects related to web-building, e-commerce, user experiences, video, design, content and creativity and platform integration, emphasising the quality of the group’s services.
3. General comments
Sustained growth in activities globally and at constant scope
In 2018, Emakina Group’s consolidated sales amounted to EUR 92,389,601 compared with EUR 80,304,612 the previous year, an increase of 15.0% (+13.0% at constant scope), boosted in particular by 18.5% growth in activities outside Belgium.
Almost 7% growth in EBITDA
The consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 6,107,455 (EUR 6,314,831 at constant scope) in 2018, compared with EUR 5,726,817 in 2017, an increase in absolute terms of 6.6% (+ 10.3 at constant scope). Expressed as a percentage of total sales, EBITDA evolved from 7.1% to 6.7% (7.0% at constant scope) between 2017 and 2018.
This development in the operating profitability can be attributed in particular to stable prices, a better occupancy rate, improved production efficiency and a cost structure under control.
Slight increase in current profit and positive net result
The current profit before tax amounted to EUR 1,383,048 in 2018, up 1% compared with 2017, mainly owing to the development of the operational performance, the increase in the amortisation of goodwill linked to the group’s external growth strategy and to the decrease in the financial result, mainly due to the fall of the Turkish lira.
The net profit in 2018 (EUR 56,727) may be attributed to the development of the current profit and non-recurrent charges linked in particular to commercial disputes, partially offset by a lighter tax burden. This net profit helps to maintain the group’s equity base.
As a reminder, the amortisation of goodwill (which is compulsory under Belgian accounting standards) had a negative impact of EUR 2,553,237 on the company’s net result in 2018, compared with EUR 2,390,944 in 2017 further to the development of the group’s scope. This element of Belgian accounting law, which imposes systematic amortisation (booked under financial charges), weighs significantly on the consolidated net result.
4. Financial health
The group maintained its financial stability in 2018 thanks to an increase in net profit, a level of financial indebtedness in line with its internationalisation strategy and the availability of credit lines in proportion to the development of the activities. It is important to keep an eye on the impact of the growth on working capital requirements.
5. Events after closure
There are no events after closure to be mentioned.
6. Outlook for 2019
Based on current commercial indicators and the existing scope, Emakina Group is expecting one-digit growth of its consolidated income in 2019.
7. Statement from the company directors
The Board of Directors of the company declares that, to the best of its knowledge, the condensed and consolidated financial statements as at 31 December 2018, established in accordance with Belgian accounting standards, give a true and fair view of the assets, financial status and results of Emakina Group. The annual financial report contains an accurate description of the information that must be included in it.
The auditor has confirmed that his audit of the consolidated accounts is complete in terms of substance and has not revealed any significant adjustment to be made to the accounting data presented in the annual report.
Belgian accounting standards
All the consolidated figures set out in the appendices have been established in accordance with Belgian accounting standards (in particular as regards the mandatory amortisation of goodwill). These figures provide a summary of the financial results that are presented in detail in the 2018 annual report.
Shareholders’ diary 2019
1 April 2019 Annual report 2018 (brochure)
23 April 2019 General meeting of shareholders
27 September 2019 Publication of first half-yearly results 2019
Karim Chouikri Chief Executive Officer +32(0)2 400 40 75 [email protected]
Frédéric Desonnay Chief Financial Officer +32(0)2 788 79 26 [email protected]
Luc Malcorps Director of Media Relations +32(0)2 788 79 73 [email protected]
Emakina Group S.A.
Rue Middelbourg 64A
ISIN BE 0003843605
In accordance with the Euronext Growth Brussels regulations, all the regulated information is included in the Emakina Group annual financial report 2018, which contains all the regulatory information, available on the website www.emakina.com (section “Financial - Reports”).