STRATEC SE / Key word(s): Preliminary Results/Change in Forecast
STRATEC REPORTS PRELIMINARY FIGURES FOR Q1 2020 AND RAISES GUIDANCE FOR SALES GROWTH IN FINANCIAL YEAR 2020
Birkenfeld, May 4, 2020
Based on preliminary figures, STRATEC expects to report sales of € 56.5 million for the first quarter of 2020 (Q1 2019: € 46.6 million). This corresponds to year-on-year growth of 21.2%. This dynamic growth in sales was driven by strong developments in all segments. In particular, sales with systems, as well as with service parts and consumables, showed a better than expected performance within the segments. By contrast, the COVID-19 pandemic only had a slight positive impact on the first-quarter sales performance.
The adjusted EBIT margin for the first quarter of 2020 should amount to around 13.6% and thus significantly exceed the previous year's figure of 10.7%. The development in the margin was positively influenced in particular by benefits of scale.
When assessing the above figures, it should be noted that on May 4, 2020 STRATEC signed a contract with Total Specific Solutions (TSS) B.V., a subsidiary of the CSI Group, concerning the sale of its Data Solutions business unit, which comprises the middleware laboratory software business. In the figures for the first quarter of 2020 and the previous year, the Data Solutions business unit has for comparability reasons already been treated as a discontinued operation. The transaction will lead to a negative (non-cash) measurement item of around € 3 million in the first quarter. This will be reported under earnings from discontinued operations.
Given the company's strong performance in the first four months of the year, the board of management has decided to raise the sales growth guidance for financial year 2020. Based on adjustments made to the previous year's figures to account for the disposal of the Data Solutions business unit (2019 sales basis: € 214.2 million), STRATEC now expects to generate constant-currency organic sales growth in a low double-digit percentage range in financial year 2020 (previously: "high single-digit percentage range"). A figure of around 15% is still forecast for the adjusted EBIT margin.
In connection with the COVID-19 pandemic, STRATEC is currently observing significantly positive and slightly negative effects in terms of customer orders and order forecasts. Overall, the company currently expects to see a notably positive impact on demand in the current financial year. All in all, the implications of the pandemic, such as those referred to above and also any potential interruptions within the supply chain, are still not fully visible. Apart from those effects that had already materialized by the end of April 2020, the above guidance therefore does not account for the effects of the pandemic.
STRATEC will publish its complete figures for the first quarter on May 14, 2020 and will hold a conference call (in English) on the same day.
|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:||1035543|
|End of Announcement||DGAP News Service|