STRATEC SE / Key word(s): Preliminary Results/Change in Forecast
STRATEC POSTS PRELIMINARY FIGURES FOR FIRST QUARTER AND RAISES GUIDANCE FOR 2021 FINANCIAL YEAR
Birkenfeld, April 26, 2021
Based on preliminary figures, STRATEC expects to report consolidated sales of € 72.0 million for the first quarter of 2021 (previous year: € 56.5 million), corresponding to constant-currency sales growth of 32.5% compared with the previous year (nominal: +27.4%). This dynamic growth was driven by, among other factors, ongoing high demand for molecular and immunodiagnostic solutions, which led to substantial sales growth with Systems and to a very strong performance in the Service Parts and Consumables business.
Adjusted EBIT for the first quarter of 2021, also based on preliminary figures, is expected to rise year-on-year by 109.4% to € 16.0 million (previous year: € 7.7 million). The adjusted EBIT margin would then amount to 22.3% (previous year: 13.6%) and thus exceed the company's original expectations. The margin performance was positively influenced by factors such as benefits of scale, measures implemented to enhance efficiency (e.g. targeted increase in production depth at Budapest location), and a strong product mix, including an above-budget performance in the Service Parts and Consumables business.
Based on persistently high order volumes and updated capacity plans, STRATEC expects its sales performance to remain highly dynamic in the months ahead as well. In view of this and accounting for the better than expected margin performance in the first months of the financial year, as well as for risk-adjusted orders and order forecasts for the second half of the year, the company's Board of Management has decided to raise its financial guidance for 2021. For the 2021 financial year, STRATEC now expects constant-currency sales growth at least in a high single-digit percentage range (previously: "at least in a mid single-digit percentage range") and an adjusted EBIT margin of around 17.5% to 18.5% (previously: "around 17.0% to 18.0%").
Due to the COVID-19 pandemic, STRATEC continues to observe higher volatility in its customers' order behavior. In the first quarter of 2021, the company witnessed an overall rise in order forecasts for the second half of 2021. Due to the additional forecasting uncertainty resulting from the pandemic, however, the higher order forecasts for the fourth quarter of 2021 in particular are still not incorporated in the above financial guidance.
STRATEC will publish its complete figures for the first quarter as planned on May 7, 2021 and will hold a conference call (in English) on the same day.
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|EQS News ID:||1188363|
|End of Announcement||DGAP News Service|