DGAP-News: R. Stahl AG / Key word(s): Quarterly / Interim Statement/Half Year Results
Waldenburg, 8 August 2019 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes figures for the second quarter 2019.
The company's ongoing measures to increase efficiency led to a further improvement of cost structures in the quarter under review. R. STAHL stays well on track to significantly drive its profitability in FY 2019. "The progress in our operations and the consequent focus on reasonable sales quality are bearing fruits. Against this backdrop, we slightly raise our profit target for this year despite the development of the global economy, which is increasingly becoming uncertain", said Dr. Mathias Hallmann, CEO of R. STAHL.
Sales in the second quarter were down 7.1% year-on-year to EUR65.5 million (Q2 2018: EUR70.5 million). This was primarily driven by the scheduled implementation of new warehousing software at the Waldenburg site in June. The system adjustments required as a result of the implementation of the new ERP system were completed successfully as of the end of the quarter, which will have a positive effect on sales in the coming quarter. Unlike the previous stand-alone warehousing software, the new software solution is now an integrated component of the Group-wide standard ERP system. The harmonization of the Group-wide IT systems is a key element of the efficiency program R. STAHL 2020 that the company initiated last year.
The temporary supply bottleneck particularly affected Germany, leading to a sales decline by 23.9% to EUR14.5 million (Q2 2018: EUR19.0 million). In addition, the prior year's high sales level benefitted from a large bulk order. Sales in the Central region - consisting of Africa and Europe excluding Germany - grew slightly by 2.2% to EUR30.1 million (Q2 2018: EUR29.5 million). This was primarily due to the good order situation in northern Europe. Business in the Americas region continued to develop very positively, generating consecutive year-on-year growth for the fifth time in a row and growing 3.8% to EUR8.2 million (Q2 2018: EUR7.9 million). In the quarter under review, the restructuring measures initiated 2018 in the Group's US subsidiary have been completed. In Asia, sales declined by 10.1% year-on-year to EUR 12.7 million (Q2 2018: EUR14.1 million), mainly driven by the consequent focus on orders with reasonable profitability.
In the quarter under review, order intake rose by 2.7% to EUR69.1 million year-on-year (Q2 2018: EUR67.3 million). As of the end of the reporting period, the order backlog of EUR76.9 million stood slightly higher than at the end of the previous quarter (order backlog as of 31 March 2019: EUR75.8 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals improved by 28.6% to EUR5.4 million in the quarter under review (Q2 2018: EUR4.2 million) despite the declining sales. A lower material cost ratio and the new accounting standard for leases according to IFRS 16, which is mandatory since 1 January 2019, drove this positive development. According to IFRS 16, the running costs associated with leases that were booked as other operating expenses until end of 2018 are now shown as amortization of the capitalized rights of use as well as interest expense. This has an particular impact on EBITDA, the interest result and the balance sheet total.
In the second quarter, exceptionals in connection with the R. STAHL 2020 efficiency program were significantly below the previous year's figure, totalling EUR1.2 million (Q2 2018: EUR2.2 million). Consequently, EBITDA more than doubled year-on-year to EUR4.2 million (Q2 2018: EUR2.0 million) and EBIT improved to EUR0.9 million year-on-year (Q2 2018: EUR-1.0 million). The financial result reduced by 35.4% to EUR-0.8 million in Q2 2019 (Q2 2018: EUR-0.6 million). Although the interest expense for bank loans was lower due to the considerably reduced net debt year-on-year, the new accounting standard for leases led to an increase of total cost of debt. Earnings before income taxes rose to EUR0.1 million, up EUR1.7 million year-on-year (Q2 2018: EUR-1.6 million). Income taxes of EUR-0.9 million were incurred (Q2 2018: EUR0.2 million). Net profit improved by 47.8% to EUR-0.8 million (Q2 2018: EUR-1.5 million) and earnings per share to EUR-0.12 (Q2 2018: EUR-0.22).
Given the solid development in the first six months of the year, R. STAHL is confident to exceed its previous forecast for EBITDA pre exceptionals in the year under review. Including the effects of accounting for leases according to IFRS 16, we therefore now expect an EBITDA pre exceptionals for FY 2019 of between EUR28 million and EUR30 million.
Key figures of the R. STAHL Group pursuant to IFRS
1) Africa and Europe excl. Germany; 2) 1 January 2019 until 30 June 2019 including effects from initial application of IFRS 16; 3) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations; 4) Excl. pension provision and excluding lease liabilities; 5) Excl. apprentices
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|Company:||R. Stahl AG|
|Am Bahnhof 30|
|Phone:||+49 (7942) 943-0|
|Fax:||+49 (7942) 943-4333|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Tradegate Exchange|
|EQS News ID:||853961|
|End of News||DGAP News Service|