Francotyp-Postalia Holding AG - Earnings Release 2016

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Corporate | 2 March 2017 06:57

Francotyp-Postalia Holding AG: FP dispels ‘myths’ and posts revenues and earnings growth in 2016

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

02.03.2017 / 06:57

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

Corporate news

FP dispels “myths” and posts revenues and earnings growth in 2016

– Preliminary 2016 results: all key figures increase, 100% of targets achieved

– Revenues climbs 6.2% to EUR 203.0 million

– EBITDA improves by 1.6% to EUR 27.2 million

– Consolidated net income increases by 66.5% to EUR 6.2 million

– FP will propose dividend of 16 cents

– Free cash flow of EUR 4.6 million significantly positive

– Further growth in revenues and EBITDA for 2017 expected

Berlin, 2 March 2017. According to preliminary results, Francotyp-Postalia Holding AG, an expert in secure and efficient communication, saw significant growth in the 2016 fiscal year and exceeded the EUR-200-million revenues mark for the first time. At the same time, the company improved its return on revenues and generated positive free cash flow again. Rüdiger Andreas Günther, CEO of the FP Group, explained: “We saw dynamic growth in 2016 and are showing strength in all divisions.” The company has achieved all its targets for 2016 and even exceeded these in some cases. Günther explained: “Three assumptions have been slowing down our company for years: the market for franking systems is shrinking, FP is unable to achieve further growth in the core business and digitization will happen overnight. All of these assumptions are nothing more than a myth. With the good figures that have been given today, we are showing the potential that lies in our company.”

Growth in the core business with franking systems

According to preliminary results, the FP Group’s revenues rose by 6.2% to EUR 203.0 million in 2016. All divisions contributed to this increase. Revenues with franking systems was driven by higher product sales and improved by roughly 2% to EUR 125.9 million. The company posted higher growth rates in the software business at 4% to EUR 14.2 million. In particular, the Mail Services segment also posted growth of 17% to EUR 62.8 million. Negative exchange rate effects of EUR 2.3 million prevented an even stronger rise in revenues.

Consolidated net income and earnings per share rise significantly

Despite a negative exchange rate effect of EUR 1.1 million, EBITDA improved to EUR 27.2 million compared to EUR 26.8 million in the previous year according to preliminary results. EBIT rose significantly to EUR 9.7 million after EUR 9.0 million in 2015. According to preliminary results, consolidated net income performed even better and jumped to EUR 6.2 million compared with EUR 3.7 million in the previous year. As a result, earnings per share rose to EUR 0.36 compared with EUR 0.22 in 2015. The Management Board and Supervisory Board therefore intend a dividend of 16 cents per share for the 2016 fiscal year according to the communicated dividend policy. Consolidated net income benefited particularly from an improvement in interest income thanks to higher interest income from finance leases and success with the improvement of the tax rate as part of the FP FIT programme. Günther explained: “We have kept our promises and significantly reduced the high tax rate.”

The increase in free cash flow also underlines the company’s good performance in 2016. According to preliminary results, this control parameter, which is important for the FP Group, improved to EUR 4.6 million after negative free cash flow of -EUR 1.4 million in 2015. Investments in the acquisition of 49% non-controlling interests in IAB and the increase in finance leases to boost sales and retain customers thereby had an impact of EUR 4.9 million on free cash flow.

FP CEO Günther said: “2016 was a good year. But we are going to be even better. We have also set ourselves ambitious goals. Last year, we demonstrated our ability to deliver. In the next two years, we will build the foundations to achieve more profitable growth with our ACT growth strategy and FP FIT.” In November 2016, the company presented its FP FIT measures to the public in order to increase its implementation expertise and efficiency in all areas in addition to the new ACT growth strategy.

FP expects profitable revenues growth

2017 will be shaped by the continued implementation of ACT and FP FIT. Günther explained: “We will not leave one stone unturned. But we will also need time to implement our plans.” This is why the FP Group expects a slight increase in revenues and EBITDA on the assumption that exchange rates remain unchanged. Based on high investments in the modernisation of the product portfolio in previous years, the FP Group expects amortisation and depreciation to rise in 2017. Despite a slight increase in investments for ACT and FP FIT, the company expects an adjusted free cash flow at a similar level to last year. Günther explained: “In the years to come, we will release the forces that drive growth within the FP Group with ACT.” The company aspires to generate revenues of around EUR 250 million and an EBITDA margin of 17% in 2020. At the moment, the EBITDA margin is 13%.

Key figures at a glance:


in EUR million	2016	2015	Change
Revenues	203.0	191.1	+6.2%
EBITDA	27.2	26.8	1.6%
EBIT	9.7	9.0	8.1%
Consolidated net income	6.2	3.7	66.5%
Earnings per share (in EUR)	0.36	0.22	64.5%
Investment	17.6	20.1	-12.5%
Free cash flow	4.6	-1.4	n/a

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 expert in secure and efficient communication. The 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 2016 fiscal year, the company generated more than 200 million euro revenues. 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