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VARTA AG
Earnings Release • Apr 25, 2018
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Earnings Release
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Corporate | 25 April 2018 07:30
VARTA AG: Quarterly Statement Q1 2018
DGAP-News: VARTA AG / Key word(s): Quarterly / Interim Statement
25.04.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
Corporate News
Ellwangen, 25th April 2018
VARTA AG releases report for the first quarter 2018
– VARTA AG continues high growth rate in Q1/2018
– Group revenue increased in the first quarter 2018 by 11.5% to EUR 68.3 million
– Revenue figures: adjusted EBITDA of 50,0% and EBIT of 55.9% have clearly improved compared to the same period of the previous year
– Adjusted EBITDA margin exceeded 20% for the first time in VARTA AG’s recent history
– Increase in sales and results in all segments
– Intensified investment activities for expansion of lithium-ion production capacity
VARTA AG, a global expert for microbatteries and market leader for hearing aid batteries as well as for solutions for hearables, power packs and energy storage, today releases its quarterly report for the first quarter 2018. VARTA AG continues the high growth rate in Q1/2018.
“The group revenue increased in the first quarter 2018 by 11.5% to EUR 68.3 million and therefore once again increased in the double-digit range over the prior year.
The Microbatteries and Power & Energy segments again recorded double-digit growth rates”, says Herbert Schein, CEO of VARTA AG.
The development of the adjusted EBITDA margin is particularly pleasing.
It exceeded 20% for the first time in VARTA AG’s recent history. The improvement of the profitability is in particular the result of the profitable growth of hearing aid batteries as well as the lithium-ion cells, with a simultaneous below-average increase of costs due to scaling of the business model. This development confirms the strategic alignment and affirms the intention to continue to invest massively in profitable growth. At EUR 13.9 million, the adjusted EBITDA was 50,0% higher compared to the same period of the previous year.
The Microbatteries and Power & Energy segments grew significantly in terms of revenue and EBITDA.
The revenue in the microbatteries segment increased by 9.8% to EUR 56.3 million. The microbatteries segment continues to be characterized by the continuous development in the area of hearing aid batteries and the rapid development in small lithium-ion batteries. The EBITDA improved from EUR 9.8 million to EUR 13.2 million, which corresponds to an increase of 34.1% in comparison to the previous year. This results in an EBITDA margin of 23.4% in proportion to revenue (in comparison: 19.2% in Q1/2017).
Revenue in the Power & Energy segment grew by 21.6% to EUR 11.8 million. The revenue growth is chiefly caused by the continued successful development of stationary energy storage solutions. At EUR 0.7 million, the EBITDA is for the first time clearly in the positive range. This is the result of the structural improvement of the operating income in addition to the dynamic revenue growth.
The consistent implementation of the company’s growth strategy is the reason for this tremendous growth:
Key figures of VARTA AG Group
Financial figures of VARTA AG Group
| (in KEUR) unaudited according to IFRS | Period ending March 31, 2018 |
Period ending March 31, 2017 |
Change in KEUR |
Change in % |
| Net revenue | 68,266 | 61,223 | 7,043 | 11.5% |
| thereof “Microbatteries” | 56,312 | 51,309 | 5,003 | 9.8% |
| thereof “Power & Energy” | 11,762 | 9,675 | 2,087 | 21.6% |
| EBIT | 10,972 | 7,038 | 3,934 | 55.9% |
| in % of net revenue | 16.1% | 11.5% | ||
| Depreciation and amortization | 2,474 | 2,216 | 258 | 11.6% |
| EBITDA | 13,446 | 9,254 | 4,192 | 45.3% |
| in % of net revenue | 19.7% | 15.1% | ||
| Adjustments | ||||
| IPO expenses | 0 | 0 | ||
| Pension obligations reimbursement claim | 0 | 0 | ||
| Share-based payment expenses | 435 | 0 | ||
| Adjusted EBITDA | 13,881 | 9,254 | 4,627 | 50.0% |
| in % of net revenue | 20.3% | 15.1% | ||
| EBT | 10,726 | 6,042 | 4,684 | 77.5% |
| in % of net revenue | 15.7% | 9.9% | ||
| Group result | 8,039 | 3,776 | 4,263 | 112.9% |
| Cash flow from operating activities | 430 | 5,842 | ||
| Cash flow from investment activities | -12,445 | -761 | ||
| Cash flow from financing activities | -19 | -7,784 | ||
| FTE employees as at reference date March 31, | 2,178 | 2,021 | ||
| Earnings per Share (EPS) in EUR | 0.19 | 0.59 |
| (in KEUR) unaudited according to IFRS | March 31, 2018 | Dec. 31, 2017 | Change in KEUR |
Change in % |
| Balance sheet figures | ||||
| Balance sheet total | 342,267 | 331,480 | 10,787 | 3.3% |
| Long-term assets | 116,539 | 105,258 | 11,281 | 10.7% |
| Short-term assets | 225,728 | 226,222 | -494 | -0.2% |
| thereof liquid funds | 126,403 | 138,536 | -12,133 | -8.8% |
| Equity capital | 238,301 | 230,452 | 7,849 | 3.4% |
| in % of balance sheet total | 69.6% | 69.5% | ||
| thereof subscribed capital | 38,200 | 38,200 | 0 | 0 |
| Long-term liabilities | 29,330 | 29,423 | -93 | -0.3% |
| Short-term liabilities | 74,636 | 71,605 | 3,031 | 4.2% |
| Net financial debt | -117,614 | -130,135 | 12,521 | 9.6% |
| Trade Working Capital | 56,418 | 41,394 | 15,024 | 36.3% |
Due to the very positive result for the Q1 report 2018, VARTA AG therefore still expects for the full year 2018 a significantly improved result as compared to the previous year.
Contact:
Dr. Michael Pistauer, Board Member
Investor Relations
Daimlerstrasse 1
73479 Ellwangen
E-Mail: [email protected]
About VARTA AG
VARTA AG as the group’s parent company operates via its subsidiaries VARTA Microbattery GmbH
and VARTA Storage GmbH in the business segments microbatteries and power & energy. Already
today, VARTA Microbattery GmbH is innovation leader in the area of microbatteries, one of the market
leaders for hearing aids batteries and strives to also become market leader for lithium -ion batteries in
the area of wearables and in particular hearables. VARTA Storage GmbH is focused on intelligent
energy solutions for customized battery storage systems for OEMs as well as on design, system
integration and mounting of stationary lithium -ion energy storage systems. With its five production
and manufacturing facilities in Europe and Asia as well as sales offices in Asia, Europe and the USA, the
operating subsidiaries of VARTA AG group are currently active in more the 75 countries worldwide.
25.04.2018 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: | VARTA AG |
| Daimlerstraße 1 | |
| 73479 Ellwangen | |
| Germany | |
| Phone: | +49 (0)791-921-0 |
| E-mail: | [email protected] |
| Internet: | www.varta-ag.com |
| ISIN: | DE000A0TGJ55 |
| WKN: | A0TGJ5 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |