DGAP-News: R. Stahl AG
/ Key word(s): Quarterly / Interim Statement/9 Month figures
Waldenburg, 7 November 2019 - R. STAHL, leading supplier of products and systems for explosion protection, today publishes figures for the third quarter 2019.
In Q3, sales growth as well as an improved product mix and efficiency measures led to a significant increase in profitability and a return to double digit EBITDA margins pre exceptionals in the quarter under review als well as in the first nine months 2019. Effects from the new accounting standard for leases, IFRS 16, also contributed positively to this. "With the continuous improvement of our processes and cost structures, we are increasingly building a sustainable foundation to translate future sales growth into even higher earnings growth. This becomes already visible in the earnings development in Q3 2019", said Dr. Mathias Hallmann, CEO of R. STAHL.
In Q3, R. STAHL increased sales by 2.2% year-on-year to EUR71.3 million (Q3 2018: EUR69.8 million). This rise also reflects the expected catch-up effects from the previous quarter, in which the scheduled introduction of new warehousing software at the Waldenburg site had resulted in a temporary supply bottleneck and a decline in sales. Significant increases were achieved in particular in the Central region as well as America.
Sales of EUR15.7 million were achieved in Germany, representing a year-on-year drop of 19.2% (Q3 2018: EUR19.5 million). The main reason for this development was the high comparative figure for the previous year, which included a non-recurring major order. The Central region - consisting of Africa and Europe excluding Germany - showed a strong performance, with sales increasing 10.3% to EUR31.8 million (Q3 2018: EUR28.9 million). First successful sales in Africa as well as consistently high demand from northern Europe contributed to this. The Americas region continued its series of annual growth, increasing quarterly sales year-on-year for the sixth time in a row to EUR9.6 million (Q3 2018: EUR8.1 million), up 18.4%. Driving this sustained positive development in particular are the distribution and production processes at our US American location; they were reorganised in the past year with the aim of achieving a more systematic approach to unlocking market potential and shortening delivery times. In the Asia/Pacific region, increased demand for products and solutions for the maritime sector resulted in sales growth of 5.9%, to EUR14.1 million (Q3 2018: EUR13.3 million).
In the quarter under review, order intake was at EUR67.5 million, representing a slight drop of 3.4% from the previous year (Q3 2018: EUR69.9 million). This is a 2.3% drop compared with the previous quarter (Q2 2019: EUR69.1 million). Together with a quarter-on-quarter rise in sales (Q2 2019: EUR65.5 million), this resulted in a reduction in the order backlog to EUR71.2 million as at the end of the reporting period (30 June 2019: EUR76.9 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals increased by EUR4.0 million or 63.4% to EUR10.4 million in the quarter under review (Q3 2018: EUR6.3 million). Higher sales, an improved cost of materials ratio and positive effects from the new accounting standard for leases, IFRS 16, that is mandatory since 1 Januar 2019, contributed to this. According to IFRS 16, the running costs associated with leases that R. STAHL reported under other operating expenses until 31 December 2018 are shown as amortization of the capitalized rights of use and interest expense. Exceptionals came to EUR-1.4 million in the third quarter (Q3 2018: EUR0.3 million). This significant increase is due to a property sale in the previous year, which resulted in one-off earnings of EUR2.0 million. Nevertheless, EBITDA increased by 35.9% to EUR9.0 million in the quarter under review (Q3 2018: EUR6.6 million), and EBIT grew 26.4% to EUR4.6 million (Q3 2018: EUR3.6 million). The financial result improved by 24.0% to EUR-0.6 million (Q3 2018: EUR-0.8 million), driven by higher income from the ZAVOD Goreltex investment. Higher interest expenses as a result of the new financial accounting standard for leases were almost entirely balanced by lower utilization of bank loans in the quarter under review. Earnings before income taxes were EUR4.0 million in the quarter under review, representing a 40.0% year-on-year increase (Q3 2018: EUR2.8 million). Income taxes of EUR0.7 million were incurred (Q3 2018: EUR-0.3 million), resulting in an 27.8% improvement of net profit to EUR3.3 million (Q3 2018: EUR2.6 million). This is equivalent to earnings per share of EUR0.50 (Q3 2018: EUR0.40).
Against the backdrop of the positive development in the first nine months, R. STAHL believes to exceed the recently increased forecast for EBITDA pre exceptionals for the full year. Accordingly, an EBITDA pre exceptionals of more than EUR30 million is now expected for FY2019, whith sales to come in at around EUR275 million.
1) Africa and Europe excl. Germany; 2) 1 January 2019 until 30 September 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:||906677|
|End of News||DGAP News Service|