DGAP-News: STRATEC SE
/ Key word(s): Half Year Results/Change in Forecast
STRATEC WITH SIGNIFICANT SALES GROWTH AND INCREASED PROFITABILITY IN THE FIRST HALF OF 2020
- 2020 financial guidance amended to account for COVID-19 pandemic: Organic sales growth of 14.0% to 18.0% and adjusted EBIT margin of around 15.5% to 16.5% expected
Birkenfeld, August 13, 2020
STRATEC SE, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard, SDAX) today announced its financial results and major events for the period from January 1, 2020 to June 30, 2020 with the publication of its Half-Year Financial Report H1|2020.
KEY FIGURES 1
Adj. = adjusted
bps = basis points
1 To facilitate comparison, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and associated reorganization expenses
Adjusted EBIT for the first six months of 2020 rose by 43.8% to € 18.4 million, compared with € 12.8 million in the previous year. Accordingly, the adjusted EBIT margin improved by 360 basis points to 15.4% (H1/2019: 11.8%). This significant margin growth was especially due to positive benefits of scale, as well as a strong sales and product mix. By contrast, measurement items for stock appreciation rights (SARs) had a negative impact of 200 basis points (€ 2.4 million) on the margin.
Given the company's operating earnings growth, adjusted consolidated net income from continuing operations (pursuant to IFRS 5) also improved, in this case by 49.2% to € 15.6 million (H1/2019: € 10.5 million). Adjusted earnings per share (basic) from continuing operations for the first six months of 2020 rose by 49.4% to € 1.30, up from € 0.87 in the previous year.
To facilitate comparison, key earnings figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and associated reorganization expenses and other non-recurring items. A reconciliation of the adjusted figures with those reported in the consolidated income statement can be found in the Half-Year Financial Report H1|2020 also published today.
UPDATE TO FINANCIAL GUIDANCE
STRATEC expects that the current additional demand among its customers due to the COVID-19 pandemic will have a significantly positive impact on its sales performance and product mix in the third and fourth quarter as well. Accounting for the potential and currently foreseeable implications of the COVID-19 pandemic, STRATEC therefore now expects to achieve constant-currency adjusted organic sales growth of between 14.0% and 18.0% in the 2020 financial year (2019 sales basis: € 214.2 million). For its adjusted EBIT margin, STRATEC now forecasts a figure of around 15.5% to 16.5% (2019: 13.7%).
STRATEC's previous financial guidance, dated May 4, 2020, provided for constant-currency adjusted organic sales growth in a low double-digit percentage range accompanied by an adjusted EBIT margin of around 15.0% in the 2020 financial year.
For 2020, STRATEC still expects its investments in property, plant and equipment and intangible assets to correspond to around 10% to 12% of sales. Investments in property, plant and equipment mainly relate to the construction work currently underway to significantly extend the buildings at the company's headquarters in Birkenfeld. This work is scheduled for completion in the third quarter of 2020. As a result, the investment ratio is expected to decrease further in 2021.
PROJECTS AND OTHER DEVELOPMENTS
Despite the challenges presented by the COVID-19 pandemic, STRATEC also reached important milestones in terms of new product developments in the first half of the year and is holding promising negotiations with partners for new projects.
DEVELOPMENT IN PERSONNEL
CHANGE IN SUPERVISORY BOARD
Rainer Baule, previously Deputy Chairman of the Supervisory Board of STRATEC SE, had already stood down from this position due to personal reasons. The Supervisory Board and Board of Management would like to thank him very warmly for his commitment and his very successful work on the Supervisory Board of STRATEC SE, of which he had been a member since June 2017.
HALF-YEAR FINANCIAL REPORT H1|2020
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/audiowebcast20200813 (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 and are listed in the SDAX select index of the German 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:||1116757|
|End of News||DGAP News Service|