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Francotyp-Postalia Holding AG Earnings Release 2014

May 28, 2014

162_rns_2014-05-28_2703a0ad-fb4b-40b7-aeca-b3652f6a7986.html

Earnings Release

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News Details

Corporate | 28 May 2014 07:00

Francotyp-Postalia Holding AG: FP Group off to good start in 2014 as expected

Francotyp-Postalia Holding AG / Key word(s): Quarter Results/Quarter Results

28.05.2014 / 07:00


Corporate News

FP Group off to good start in 2014 as expected

– Revenue increased by 2.1% to EUR 44.4 million in the first quarter of 2014

– EBITDA increases by 8.1% to EUR 6.7 million

– EBIT increases by 8.8% to EUR 3.7 million

– FP Group confirms its forecast for 2014

Birkenwerder, 28 May 2014. Francotyp-Postalia Holding AG, a multi-channel provider for mail communication, succeeded once again in increasing its revenue and earnings in the first quarter – traditionally a strong quarter for the Group – despite the strong Euro. In the first quarter of 2014, revenue increased by 2.1% to EUR 44.4 million. This growth was primarily attributed to significantly higher recurring revenue, particularly in the Mail Services and Software segments.

The higher total revenue and stable personnel costs decisively contributed to increasing earnings power in the first quarter of 2014. The FP Group generated EBITDA, operating earnings before interest, taxes and depreciation, of EUR 6.7 million compared with EUR 6.2 million in the first quarter of 2013. The EBITDA margin rose to 15%. As a result, EBIT rose, despite higher amortisations, to EUR 3.7 million versus EUR 3.4 million in the previous-year period. By contrast, the consolidated profit was down from the previous year (EUR 2.2 million) to EUR 1.9 million due to a higher tax result and negative financial result. However, free cash flow – the balance of cash inflows from operating activities and cash outflows from investing activities – improved significantly in the first three months of 2014 reaching a total of EUR 2.3 million compared with EUR 1.2 million in the first quarter of 2013.

Outlook for 2014: FP Group anticipates profitable growth

In view of the anticipated strong start to the financial year, the FP Group confirms its forecast for 2014 as a whole. The company expects revenue to grow to at least EUR 173 million, EBITDA to increase to at least EUR 25 million and an improvement in EBIT to at least EUR 12 million. With regard to free cash flow, the FP Group is anticipating a one-off negative value of EUR -2 million. The reason for this is the high level of capital expenditure expected in 2014.

Capital expenditure in 2014 primarily concerns investments in the rental markets of the USA and France. As a result of ongoing decertification, many companies in the USA are replacing their older franking machines with the new PostBase. At the same time, the FP Group is expanding its business in Europe’s largest market for franking machines, namely France. With the company also continuing to invest in the development of a new franking system and machines for production, total investments in the current year are expected to increase by approximately EUR 5 million to total EUR 19 million.

FP CEO Hans Szymanski explains: “In the current year, we will continue to lay the foundation for long-term success. In Germany, we are optimising sales activities with the Aufbruch 2015 initiative. At the same time, we are firmly establishing our franking machine business in two large markets: the USA and France. As a result, we are investing to a considerable extent in future growth and, at the same time, plan to increase revenue and our operating earnings. This demonstrates that the FP Group is well positioned and still has potential.”

Key figures at a glance:

in EUR million Q1 2014 Q1 2013 Change
Revenue 44.4 43.5 2.1%
EBITDA 6.7 6.2 8.1%
EBIT 3.7 3.4 8.8%
Consolidated net income 1.9 2.2 -13.6%
Free cash flow 2.3 1.2 91.7%
Q1 2014 31.12.2013
Net debt 27.8 30.1 -7.6%

Contact

Francotyp-Postalia Holding AG

Corporate Communications

Sabina Prüser

Tel: +49 (0)3303 525 410

Fax: +49 (0)3303 53707 410

E-Mail: [email protected]

About Francotyp-Postalia Holding AG

The FP Group is the first multi-channel provider for mail communication. The globally active company offers the entire range of products and solutions for business and private customers. In addition to standard machines for franking and inserting mail, its offering includes services such as the collection of business mail and innovative software solutions such as the fully electronic letter. The FP Group, based in Birkenwerder near Berlin, can therefore provide tailored multi-channel solutions. The Group currently operates its own branches in a number of industrialised countries and holds a global market share in franking machines of around 10%. With a history dating back 90 years, the FP Group today benefits across all markets from the increasing liberalisation of postal markets and the readiness of companies to outsource their business mail to professional service providers. In the 2013 financial year, the company generated revenue of EUR 168.9 million. The FP Group employs around 1,100 people worldwide.

End of Corporate News


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Language: English
Company: Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Germany
Phone: +49 (0)3303 525 777
Fax: +49 (0)3303 53 70 77 77
E-mail: [email protected]
Internet: www.fp-francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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270813  28.05.2014