Francotyp-Postalia Holding AG - Earnings Release 2016

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Corporate | 25 August 2016 06:50

Francotyp-Postalia Holding AG: Francotyp-Postalia demonstrates strength in first six months of 2016 with further revenue and EBITDA growth

DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Half Year Results/Half Year Results

2016-08-25 / 06:50

The issuer is solely responsible for the content of this announcement.

Corporate News

Francotyp-Postalia demonstrates strength in first six months of 2016 with further revenue and EBITDA growth

– Revenue up 5.4% to EUR 100.3 million

– EBITDA rises by 2.5% to EUR 14.6 million

– Free cash flow improves significantly to EUR 6.3 million

– First operational excellence measures implemented

– Management Board confirms forecast for year as a whole

Berlin, 25 August 2016 The digital mailroom provider Francotyp-Postalia Holding AG remains on a profitable growth path. Revenue increased to EUR 100.3 million in the first half of 2016 compared with EUR 95.2 million in the previous year. On a quarterly basis, revenue rose from EUR 45.7 million in the second quarter of 2015 to EUR 49.0 million. The company recorded growth in its traditional franking machine business as well as in its new Mail Services and Software business areas. Against the market trend, franking machine revenue increased to EUR 63.1 million in the first half of 2016 compared with EUR 62.2 million in the same period of the previous year despite the growing headwind resulting from the strong euro. The company’s growth was due to the success of the multiple award-winning PostBase family. In 2016, the FP Group introduced two new PostBase systems for larger mail volumes on the first markets.

In the new business areas, the FP Group increased its revenues by 12.6% to EUR 37.2 million in the first half of 2016. The Mail Services segment relating to the collection, franking, sorting and delivery of business mail with postage discounts were main contributors to this success. Revenue in this area increased by 15.3% to EUR 30.1 million.

EBITDA and EBIT growth

The success in the business areas is reflected in the Group’s earnings for the first half of 2016. EBITDA improved by 2.5% to EUR 14.6 million, while EBIT increased by 3.5% to EUR 6.3 million despite the slightly higher level of amortisation and depreciation as anticipated. Consolidated net income was unchanged year-on-year at EUR 4.0 million. The company has already implemented operational excellence measures aimed at optimising the tax rate. As a result, it expects the tax rate for 2016 as a whole to be considerably lower than in the previous year. The main operational excellence measures also include the improved and significantly expanded Group funding. In June 2016, the company concluded a new, extended loan agreement with a volume of EUR 120 million at improved terms and conditions. This gives the FP Group the necessary scope to finance the planned growth over the coming years, including the possibility of acquisitions.

Free cash flow improves to EUR 6.3 million

In addition to its earnings power, the FP Group considerably improved its financial strength in the first half of 2016. Free cash flow improved significantly to EUR 6.3 million after EUR -0.6 million in the previous year thanks to the planned reduction in investments in leased products as well as an improvement in working capital. There was also a positive effect due to non-recurring cash inflows not recognised in earnings in the amount of EUR 1.7 million from the successful conclusion of mutual tax agreement procedures.

In light of the positive development in the first half of 2016, the Management Board is confirming its forecast for 2016 as a whole: Assuming that exchange rates remain unchanged, the company expects to see a slight year-on-year increase in revenue and EBITDA as well as a positive free cash flow.

Increased growth potential in the medium term

Rüdiger Andreas Günther, CEO of the FP Group, commented: “As a start, I am satisfied with our performance in the first six months of 2016. We recorded growth and demonstrated our strength in all business areas as expected. In the medium term, however, our company has a great deal more profitable growth potential to offer. To achieve this, we are currently enhancing our strategy and initiating operational excellence measures.” The FP Group will present its enhanced growth strategy and information about the next steps in the autumn. Günther: “I am confident that we will leverage our company’s potential.”

Key figures at a glance:


in EUR million	H1/2016	H1/2015	Change
Revenue	100.3	95.2	5.4%
– of which franking machines	63.1	62.2	1.5%
– of which Mail Services	30.1	26.1	15.3%
– of which Software	7.1	6.9	2.7%
EBITDA	14.6	14.3	2.5%
EBIT	6.3	6.1	3.5%
Consolidated net income	4.0	4.0	0.2%
Earnings per share (basic, in EUR)	0.24	0.24	0.0%
Investments	8.5	9.1	– 7.0%
Free cash flow	6.3	-0.6	n.a.
Employees (number)	1,041	1,064	-2.2%
	30.06.2016	31.12.2015
Net debt	16.9	20.4	-17.2%

Contact

Francotyp-Postalia Holding AG

Investor Relations/Public Relations

Sabina Prüser

Tel: +49 (0)30 220 660 410

Fax: +49 (0)30 220 660 425

E-mail: [email protected]

De-Mail: [email protected]

About Francotyp-Postalia Holding AG

The FP Group, which has its headquarters in Berlin, is a Digital Mailroom provider. This global company offers all products and solutions for communication and document processes and thus focuses on business and private customers. In addition to traditional machinery to frank and insert mail, the company’s range comprises services such as the collection of business mail and innovative software solutions such as De-Mail. The FP Group is now present in many developed countries with its own branches and has a global market share of more than 10% in the area of franking machines. Having existed for over 90 years, the FP Group now benefits – on all markets – from the willingness of companies to digitise business processes and outsource their business mail to a professional service provider. In the 2015 fiscal year, the company generated EUR191.1 million in revenue. The FP Group employees over 1,000 people worldwide.

Contact:

Francotyp-Postalia Holding AG

Media Relations

Telephone: +49 (0)30 220 660 410

Telefax: +49 (0)30 220 660 425

E-Mail: [email protected]

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Language:	English
Company:	Francotyp-Postalia Holding AG
	Prenzlauer Promenade 28
	13089 Berlin
	Germany
Phone:	+49 (0)30 220 660 410
Fax:	+49 (0)30 220 660 425
E-mail:	[email protected]
Internet:	www.fp-francotyp.com
ISIN:	DE000FPH9000
WKN:	FPH900
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange