STRATEC POSTS DYNAMIC START TO FINANCIAL YEAR 2020
DGAP-News: STRATEC SE
/ Key word(s): Quarter Results/Quarterly / Interim Statement
STRATEC POSTS DYNAMIC START TO FINANCIAL YEAR 2020
- Sales up by 21.3% to € 56.5 million in Q1/2020; organic growth of +20.1% (Q1/2019: € 46.6 million)
Birkenfeld, May 14, 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 March 31, 2020 with the publication of its Quarterly Statement Q1|2020.
KEY FIGURES 1
Adj. = adjusted
bps = basis points
1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and the associated reorganization expenses.
Adjusted EBIT surged by 53.9% to € 7.7 million, up from € 5.0 million in the previous year's quarter. As a result, the adjusted EBIT margin improved year-on-year by 290 basis points to 13.6% (Q1/2019: 10.7%). This positive development in the margin was due in particular to positive benefits of scale, as well as to a good sales and product mix.
Given this increase in operating profitability and an additional reduction in the tax rate, consolidated net income from continuing operations increased by 66.3% to € 6.2 million (Q1/2019: € 3.8 million). Adjusted (basic) earnings per share from continuing operations amounted to € 0.52 in the first quarter of 2020, as against € 0.31 in the previous year.
To facilitate comparison, the figures stated above for the first quarter of 2020 and the previous year's figures have been adjusted to account for the disposal of the Data Solutions business unit, which has been reported as a discontinued operation. In the interests of comparability, the key earnings figures have also been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions and associated reorganization expenses. A reconciliation of the adjusted figures with those reported in the consolidated income statement can be found in the Quarterly Statement Q1|2020 also published today.
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. A figure of around 15% is 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 its customer order 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 outlined above, but also 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.
For 2020, STRATEC has budgeted investments in property, plant and equipment and intangible assets at 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
Given the continuing trend within the in-vitro diagnostics industry to outsource automation solutions to specialist companies such as STRATEC, the company still has a well-filled development pipeline. In the first quarter, STRATEC also made further progress with numerous negotiations for promising future projects.
DEVELOPMENT IN PERSONNEL
QUARTERLY STATEMENT Q1|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/audiowebcast20200514 (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 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.
14.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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