STRATEC Biomedical AG / Key word(s): Quarter Results/Forecast
STRATEC reports preliminary Q1 2018 figures
Birkenfeld, May 7, 2018
Based on preliminary figures, STRATEC expects to report sales of EUR 41.6 million for the first quarter of 2018 (previous year: EUR 49.5 million). Year-on-year, this corresponds to a sales decline of 11.8% in constant exchange rates (reported: -16.0%). This was due in particular to the strong figures in the previous year, as well as to the specific timing of milestone payments being recognized as sales. Quarterly sales were also adversely affected by diverse internal factors at several key customers. Substantially higher order volumes by these customers are expected in the second half of the year.
The adjusted EBIT margin for the first quarter of 2018 is expected to amount to 10.3% and thus to fall 360 basis points short of the previous year's figure of 13.9%. This corresponds to an adjusted EBIT of EUR 4.3 million, compared to EUR 6.9 million in the previous year. This year-on-year decline in profitability is due in particular to the temporary fall in sales volumes and corresponding absence of benefits of scale. For comparison purposes, adjusted EBIT excludes amortizations resulting from purchase price allocations in the context of acquisitions, associated integration expenses, as well as other one-off items.
This weak start to the financial year is largely consistent with the expectations already communicated as part of the publication of the 2017 full-year figures. In this context and based on current order forecasts from customers, STRATEC confirms its financial guidance provided for the 2018 financial year. The company thus still expects to generate organic sales growth net of exchange rate effects and acquisitions in at least a mid-single-digit percentage range. Given higher sales contributions from products newly launched onto the market and the aforementioned shifts in the timing of sales, STRATEC still expects most of the sales growth budgeted for 2018 to be generated in the second half of the year. The company still expects to achieve an adjusted EBIT margin at the previous year's level of around 17%.
The preliminary figures hereby reported and the above guidance for 2018 do not yet account for any implications resulting from first-time adoption of IFRS 15. Based on initial, still preliminary assessments, STRATEC expects IFRS 15 requirements to have only a moderate impact on its earnings, financial, and asset position.
STRATEC will publish its full set of first-quarter figures on May 15, 2018. Moreover, a conference call will be held in English on May 15, 2018.
Further information can be obtained from:
|Company:||STRATEC Biomedical AG|
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|