FY 2015/2016 results: Recovery and transformation under way
Plaisir, November 22, 2016 – The Supervisory Board of Zodiac Aerospace Group met on November 21, 2016 and approved the financial statements for fiscal year 2015/2016 (September to August). This fiscal year marked progresses in the recovery plan Zodiac Aerospace is engaged in. The first step consisted and remains to restore on time and on quality delivery performance to our customers. This action translated into high operation costs in our aircraft interiors activities, and weighted on the FY2015/2016 current operating income. Furthermore, the deployment of the Focus transformation plan within the whole Group is progressing on track to achieve return to operational performance within end 2017, i.e. 18 months from the announcement of March 2016.
Olivier Zarrouati, CEO, said « The 2015/2016 fiscal year was the one of return to the performance of delivery towards our customers. The 2016/2017 fiscal year will be the one of return in the operational performance thanks to the deployment of the Focus plan. Zodiac Aerospace leads an in-depth industrial transformation which will allow a progressive return to the historic financial performance within three years.»
The 2015/2016 was marked by high level of cost overruns incurred by Aircraft Interiors to restore delivery performance to customers ; FY 2015/2016 Current Operating Income decreases by -14.1%, to €269.6m
The second phase of the recovery is on track. Owing to the deployment of the Focus transformation plan, the return to operational performance is targeted for end 2017.
This will permit the Group to continue its transformation, re-sizing and cost cutting to remove most of extra costs and production variances, to get back to historical profitability levels by FY2019/2020
Zodiac Aerospace targets stable sales and a 10-20% increase in COI in 2016/2017, and a double digit operating income margin in FY2017/2018
The Supervisory Board will propose a dividend of €0.32 per share to the General Meeting of Shareholders on January 19, 2017, with payment in cash or in cash and shares