- Sales in Q2 at €65.5 million, down €5.0 million or 7.1%
year-on-year (Q2 2018: €70.5 million) - Schedule implementation of a new ERP system at the
Waldenburg site leads to a temporary supply bottleneck
and shift in sales to the coming quarter - EBITDA pre exceptionals increases by 28.6% to
€5.4 million (Q2 2018: €4.2 million) due to the effects of
IFRS 16 - EBITDA margin pre exceptionals improves to 9.8% in the
first six months 2019 (6M 2018: 4.7%) - Outlook for 2019 specified and lifted: EBITDA pre
exceptionals now expected between €28 million and €30 million
Waldenburg, 8 August 2019 – R. STAHL, leading supplier of
products and systems for explosion protection, today publishes
figures for the second quarter 2019.
The company’s ongoing measures to increase efficiency led to
a further improvement of cost structures in the quarter under review.
R. STAHL stays well on track to significantly drive its profitability in
FY 2019. “The progress in our operations and the consequent focus
on reasonable sales quality are bearing fruits. Against this
backdrop, we slightly raise our profit target for this year despite the
development of the global economy, which is increasingly becoming
uncertain”, said Dr. Mathias Hallmann, CEO of R. STAHL.
Sales in the second quarter were down 7.1% year-on-year to
€65.5 million (Q2 2018: €70.5 million). This was primarily driven by
the scheduled implementation of new warehousing software at the
Waldenburg site in June. The system adjustments required as a
result of the implementation of the new ERP system were
completed successfully as of the end of the quarter, which will
have a positive effect on sales in the coming quarter. Unlike the
previousstand-alone warehousing software, the new software solution
is now an integrated component of the Group-wide standard ERP
system. The harmonization of the Group-wide IT systems is a key
element of the efficiency program R. STAHL 2020 that the company
initiated last year.
The temporary supply bottleneck particularly affected Germany,
leading to a sales decline by 23.9% to €14.5 million (Q2 2018:
€19.0 million). In addition, the prior year’s high sales level benefitted
from a large bulk order. Sales in the Central region – consisting of
Africa and Europe excluding Germany – grew slightly by 2.2% to
€30.1 million (Q2 2018: €29.5 million). This was primarily due to the
good order situation in northern Europe. Business in the Americas
region continued to develop very positively, generating consecutive
year-on-year growth for the fifth time in a row and growing 3.8% to
€8.2 million (Q2 2018: €7.9 million). In the quarter under review, the
restructuring measures initiated 2018 in the Group’s US subsidiary
have been completed. In Asia, sales declined by 10.1% year-onyear
to € 12.7 million (Q2 2018: €14.1 million), mainly driven by the
consequent focus on orders with reasonable profitability.
In the quarter under review, order intake rose by 2.7% to €69.1
million year-on-year (Q2 2018: €67.3 million). As of the end of the
reporting period, the order backlog of €76.9 million stood slightly
higher than at the end of the previous quarter (order backlog as of
31 March 2019: €75.8 million).
Earnings before interest, taxes, depreciation and amortization
(EBITDA) pre exceptionals improved by 28.6% to €5.4 million in the
quarter under review (Q2 2018: €4.2 million) despite the declining
sales. A lower material cost ratio and the new accounting standard
for leases according to IFRS 16, which is mandatory since
1 January 2019, drove this positive development. According to
IFRS 16, the running costs associated with leases that were booked
as other operating expenses until end of 2018 are now shown as
amortization of the capitalized rights of use as well as interest
expense. This has an particular impact on EBITDA, the interest
result and the balance sheet total.
In the first six months of 2019, the EBITDA margin pre
exceptionals more than doubled to 9.8% (6M 2018: 4.7%).
Structural operational improvements and the new accounting
standard for leases contributed to this development about equally.
In the second quarter, exceptionals in connection with the
R. STAHL 2020 efficiency program were significantly below the
previous year’s figure, totalling €1.2 million (Q2 2018: €2.2 million).
Consequently, EBITDA more than doubled year-on-year to
€4.2 million (Q2 2018: €2.0 million) and EBIT improved to €0.9
million year-on-year (Q2 2018: €-1.0 million). The financial result
reduced by 35.4% to €-0.8 million in Q2 2019 (Q2 2018:
€-0.6 million). Although the interest expense for bank loans was
lower due to the considerably reduced net debt year-on-year, the
new accounting standard for leases led to an increase of total cost
of debt. Earnings before income taxes rose to €0.1 million, up
€1.7 million year-on-year (Q2 2018: €-1.6 million). Income taxes of
€-0.9 million were incurred (Q2 2018: €0.2 million). Net profit
improved by 47.8% to €-0.8 million (Q2 2018: €-1.5 million) and
earnings per share to €-0.12 (Q2 2018: €-0.22).
Given the solid development in the first six months of the year,
R. STAHL is confident to exceed its previous forecast for EBITDA
pre exceptionals in the year under review. Including the effects of
accounting for leases according to IFRS 16, we therefore now
expect an EBITDA pre exceptionals for FY 2019 of between
€28 million and €30 million.
Key figures of the R. STAHL Group pursuant to IFRS
in EURm | Q2 | Q2 | Change | 6M | 6M | Change |
Sales | 65.5 | 70.5 | -7.1 | 133.0 | 136.2 | -2.3 |
Germany | 14.5 | 19.0 | -23.9 | 30.7 | 35.0 | -12.4 |
Central region 1) | 30.1 | 29.5 | +2.2 | 59.6 | 60.0 | -0.6 |
Americas | 8.2 | 7.9 | +3.8 | 15.8 | 14.4 | +9.4 |
Asia/Pacific | 12.7 | 14.1 | -10.1 | 26.9 | 26.8 | +0.5 |
Order backlog |
|
|
| 76.9 | 89.2 | -13.8 |
EBITDA | 5.4 | 4.2 | +28.6 | 13.1 | 6.5 | >+100 |
EBITDA margin | 8.2 % | 5.9 % |
| 9.8 % | 4.7 % |
|
EBITDA 2) | 4.2 | 2.0 | >+100 | 10.5 | 2.7 | >+100 |
EBIT pre exceptionals 2, 3) | 2.1 | 1.2 | +79.2 | 4.5 | 0.5 | >+100 |
EBIT 2) | 0.9 | -1.0 | n/a | 1.9 | -3.3 | n/a |
Net profit 2) | -0.8 | -1.5 | +47.8 | -0.7 | -4.9 | +86.6 |
Earnings | -0.12 | -0.22 | +47.8 | -0.10 | -0.76 | +86.6 |
Cashflow from | 3.1 | 7.7 | -59.8 | 10.0 | 5.0 | >+100 |
Depreciation and amortization 2) | 3.3 | 3.0 | +8.7 | 8.6 | 6.0 | +43.8 |
Capital expenditures | 2.1 | 2.3 | -9.1 | 4.7 | 4.5 | +4.8 |
|
|
|
| 30 June |
| Change |
Total assets 2) |
|
|
| 260.3 | 227.9 | +14.2 |
Equity |
|
|
| 53.8 | 62.3 | -13.6 |
Equity ratio2) |
|
|
| 20.7% | 27.3% |
|
Net debt 4) |
|
|
| 3.3 | 5.5 | +39.4 |
Net debt incl. lease liabilities pursuant |
|
|
| 41.8 | - | n/a |
Employees 5) |
|
|
| 1.674 | 1.690 | -0.9 |
1) Africa and Europe excl. Germany; 2) 1 January 2019 until 30 June 2019 including effects from initial application of IFRS 16; 3) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations; 4) Excl. pension provision and excluding lease liabilities; 5) Excl. apprentices
Investors’ and analysts’ conference call of R. STAHL AG for Q2 2019
The Executive Board of R. STAHL AG, Dr Mathias Hallmann,
will explain the results of Q2 2019 today at 10:00 CET in a
conference call and will be available for questions afterwards. The
conference call will be held in English language.
Please dial the following number to join the call and provide the
PIN as well as your full name and company when prompted:
DE: +49 (0)69 2222 25576
UK: +44 (0)330 336 9127
USA: +1 646-828-8143
PIN: 3844704#
Along with the conference call, we will provide an online
presentation via the internet. Please log on as a participant on the
following website (no password required):
Website: https://webcasts.eqs.com/rstahl20190808/no-audio
A replay of the audio webcast will be available shortly after the
conference call has ended on the company’s website under the
following link:
https://r-stahl.com/en/global/corporate/investor-relations/ir-newsand- publications/events-and-presentations/
Financial calendar 2019
07 November Interim Report Q3 2019
25-27 November Eigenkapitalforum, Frankfurt am Main
Contact
R. STAHL AG
Am Bahnhof 30, 74638 Waldenburg (Württ.)
Dr. Thomas Kornek
Head of Investor Relations & Corporate Communications
T: +49 7942 943-1395
E : thomas.kornek@stahl.de
About R. STAHL – www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and
electronic products and systems for explosion protection. These
products and systems prevent explosions in hazardous areas and
contribute to the safety of people, machines and the environment.
The portfolio ranges from products used in switching/distributing,
installing, operating/monitoring, lighting and signalling/alarming up
to automation. Typical customers are the oil & gas industry, the
chemical and pharmaceutical industry and the food industry. In
2018, global sales amounting to about € 280 million were generated
by 1,690 employees. The shares of R. STAHL AG are traded on
the Regulated Market/Prime Standard of Deutsche Boerse (ISIN
DE000A1PHBB5).
The contents of this press release are intended to address all genders. For
the sake of readability and without any intent to discriminate, only the male form
will be used.