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Ringmetall AG
Earnings Release • Sep 19, 2019
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Earnings Release
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Corporate | 19 September 2019 07:00
Ringmetall Group shows acquisition-related sales growth in the first half of 2019
DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): Interim Report/Half Year Results
19.09.2019 / 07:00
The issuer is solely responsible for the content of this announcement.
Ringmetall Group shows acquisition-related sales growth in the first half of 2019
– Half year figures without significant deviations from preliminary figures
– Group revenues increase by 7.0 percent to EUR 61.8 million
– EBITDA declines by 10.3 percent to EUR 5.7 million due to higher personnel expenses
Munich, 19 September 2019 – Ringmetall AG (ISIN: DE0006001902) , a leading international specialist in the packaging industry, today released its Interim Report on business development in the first half of 2019. There were no significant deviations from the preliminary figures published on 20 August.
Group revenues increased by 7.0 percent to EUR 61.8 million (H1 2018: EUR 57.8 million) due to acquisitions. This figure includes the revenues of Nittel Halle GmbH, which has been consolidated since 1 January 2019. Earnings before interest, taxes, depreciation and amortization (EBITDA) declined as a result of an increase in personnel costs and, at EUR 5.7 million, were 10.3 percent down on the previous year (H1 2018: EUR 6.4 million). The EBITDA margin was also down at 9.3 percent (H1 2018: 11.0 percent) due to higher costs for temporary staff. Due to the fluctuating business performance in the first half of the year, the company was unable to adequately respond to the temporary drop in demand with cost reductions.
The key preliminary figures for business development in the first half of 2019 are as follows:
| in EUR ‘000 | H1 2019 | H1 2018 | ∆ [abs.] | ∆ [%] |
| Group revenues | 61,764 | 57,749 | 4,015 | 7.0 |
| Gross profit* | 32,213 | 30,335 | 1,878 | 6.2 |
| Gross margin | 52.2 % | 52.5 % | ||
| EBITDA | 5,718** | 6,376 | -658 | -10.3 |
| EBITDA margin | 9.3 % | 11.0 % | ||
| EBIT | 3,477 | 5,348 | -1,870 | -35.0 |
| EBIT margin | 5.6 % | 9.3 % |
* Gross profit defined as: revenues including inventory change less expenses for raw materials, consumables and supplies
** The first-time application of IFRS 16 resulted in an effect of EUR 0.8 million
Taking into account the effects of steel price development, inorganic and organic growth, the following effects on segment sales were apparent in the first half of 2019:
Industrial Packaging
– Effect of steel price development on segment revenues: +2.2 percent
– Effect of corporate acquisitions on segment revenues: +12.7 percent
– Effect of organic business development on segment revenues: -5.2 percent
Industrial Handling
– Effect of organic business development on segment revenues: -12.9 percent
In the Industrial Packaging segment, the operating development was primarily characterized by a decline in demand on the part of customers from the chemical industry. However, due to the acquisition of Nittel, segment sales nevertheless increased by 9.7 percent to EUR 55.6 million (H1 2018: EUR 50.7 million), while the segment EBITDA fell by 1.2 percent to EUR 6.2 million at the same time (H1 2018: EUR 6.3 million).
The Industrial Handling division was also affected by a decline in demand on the part of a material handling equipment manufacturer, which led to a 12.9 percent decline in segment sales to EUR 6.1 million (H1 2018: EUR 7.0 million) and segment EBITDA by 9.7 percent to EUR 0.7 million (H1 2018: EUR 0.9 million).
“In the first half of the third quarter, the course of business continued to be rather mixed both in terms of time and from a regional perspective. However, this coincides with our current expectations, “explains Christoph Petri, Spokesman of the Management Board of Ringmetall AG. “With our current guidance, we feel still in the right position. With our adjusted forecast we have accordingly priced in the worst-case scenario of a recession and a scenario that assumes only a cyclical downturn in growth.”
The complete interim report for the first half of 2019 as well as further information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.
Contact:
Ingo Middelmenne
Investor Relations
Ringmetall AG
Phone: +49 (0)89 45 220 98 12
Mobile: +49 (0)174 90 911 90
Email: [email protected]
About Ringmetall Group
Ringmetall is an internationally leading specialist in the packaging industry. The Industrial Packaging business segment offers highly secure gasket and locking systems for the chemical, the petrochemical and the pharmaceutical industry as well as the food industry. The Industrial Handling business segment develops application-optimized vehicle accessory parts for the handling and transport of packaging units. Besides its headquarters in Munich, Ringmetall has worldwide production and sales subsidiaries in Germany, Great Britain, Spain, Italy, Turkey, the Netherlands, as well as in China and the USA. On a global scale, Ringmetall generates revenues of more than EUR 100 million per year.
19.09.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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| Language: | English |
| Company: | Ringmetall Aktiengesellschaft |
| Innere Wiener Str. 9 | |
| 81667 Munich | |
| Germany | |
| Phone: | 089 / 45 22 098 – 0 |
| Fax: | 089 / 45 22 098 – 22 |
| E-mail: | [email protected] |
| Internet: | www.ringmetall.de |
| ISIN: | DE0006001902 |
| WKN: | 600190 |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 876147 |
| End of News | DGAP News Service |