DGAP-News: STRATEC SE
/ Key word(s): Annual Results/Forecast
STRATEC GENERATES DOUBLE-DIGIT SALES AND EARNINGS GROWTH IN 2019
- Sales up by 18.0% to € 221.6 million in 2019; at constant currency: +15.6% (2018: € 187.8 million)
- Adjusted EBIT for 2019 increases by 19.1% to € 31.2 million (2018: € 26.2 million)
- Adjusted EBIT margin for 2019 at 14.1% (2018: 13.9%)
- Numerous product launches and ongoing high level of development activity
- Outlook for 2020: High single-digit percentage sales growth at constant currency and adjusted EBIT margin of around 15% expected
Birkenfeld, April 2, 2020
STRATEC SE, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard) today announced its financial results and major events for the period from January 1, 2019 to December 31, 2019 with the publication of its 2019 Annual Report.
KEY FIGURES 1
Adj. = adjusted
1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and the associated reorganization expenses, as well as other non-recurring effects.
Adjusted EBIT grew by 19.1% to € 31.2 million in fiscal year 2019, as against € 26.2 million in the previous year. The adjusted EBIT margin stands at 14.1% and thus rose slightly compared with the previous year (2018: 13.9%). This key figure was positively influenced in particular by benefits of scale, as well as by measures introduced within the earnings improvement initiative launched in 2018. However, these positive factors were largely offset by a weaker sales and product mix compared with the previous year and by negative measurement items for stock appreciation rights (€ -1.0 million).
Given the operating earnings growth and a lower tax rate, adjusted consolidated net income from continuing operations rose by 28.0% to € 25.9 million (2018: € 20.2 million). Adjusted earnings per share from continuing operations (basic) for fiscal year 2019 amounted to € 2.16, as against € 1.70 in the previous year.
In the interests of comparability, key earnings figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions, associated reorganization expenses, and other non-recurring items. A reconciliation of the adjusted figures with those reported in the consolidated statement of comprehensive income can be found in the 2019 Annual Report also published today.
In view of the aforementioned factors, STRATEC expects to generate constant-currency consolidated sales growth in a high single-digit percentage range in fiscal year 2020.
This increase in consolidated sales, and the resultant benefits of scale, should impact positively on profitability. For the 2020 financial year, STRATEC expects to generate an adjusted EBIT margin of around 15 % (2019: 14.1 %).
As the coronavirus (SARS-CoV-2) spreads, STRATEC is currently observing more volatile order behavior among some of its customers. Most recently, the company witnessed an upward trend in orders and order forecasts. Overall, however, the implications of the pandemic, including potential effects on the supply chain and any temporary interruptions in production arising as a result, currently cannot be predicted in full and have therefore not been factored into the above outlook. The same applies to current plans concerning the timing of and form in which the Annual General Meeting is held.
For 2020, STRATEC has budgeted investments in property, plant and equipment and intangible assets at around 10% to 12% of sales (previous year: 12.1%). Investments in property, plant and equipment mainly relate to the construction work still underway to significantly extend the buildings at the company's headquarters in Birkenfeld. The building work is scheduled to be completed in the third quarter of 2020. As a result, the investment ratio is expected to decrease further in 2021.
PROJECTS AND OTHER DEVELOPMENTS
STRATEC extended its development and deal pipeline with promising new projects once again in 2019. Group-wide development activities therefore remain at a very high level. The pipeline also includes numerous projects that are already in highly advanced stages of development. STRATEC therefore expects additional product launches in the months ahead.
DEVELOPMENT IN PERSONNEL
2019 ANNUAL REPORT
CONFERENCE CALL AND AUDIO WEBCAST
You will receive the dial-in data (telephone number, password + individual PIN) following brief registration at the following link: www.stratec.com/registration
The conference call will also be available at the same time as an audio webcast at www.stratec.com/audiowebcast20200402 (brief registration required). Please note that no questions can be submitted via the audio webcast. Clicking this link also enables you to follow or download the slide presentation.
The partners market the systems, software and consumables, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. STRATEC develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE000STRA555) are traded in the Prime Standard segment of the Frankfurt Stock Exchange.
|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|
|EQS News ID:||1013337|
|End of News||DGAP News Service|