S&P revises Consolis view to negative

S&P said it revised the outlook for Consolis (Compact Bidco BV) to negative from stable and affirmed the B- issuer and issue credit ratings.

“Consolis reported weaker-than-expected results in 2021, with lower profitability and negative cash flow. As of year-end 2021, the company reported a S&P Global Ratings-adjusted EBITDA margin of about 6.9%, down from 8.1% the previous year, following lower profitability in all segments except emerging markets. This was mostly due to the increase in energy and raw material prices, particularly steel and cement,” the agency said in a press release.

S&P said it forecasts free operating cash flow will remain negative in 2022, before slowly improving from 2023.

However, the agency said it projects revenue continuing to grow in 2022. “Following sales growth of about 6.7% in 2021 compared with 2020, we expect Consolis will continue to report solid revenue growth of 7%-8% in 2022, supported by higher selling prices announced in 2021 and resilient order intake.”

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