REVENUES UP 3.4% AT €466.1 MILLION
(+6.9% AT CONSTANT EXCHANGE RATES)
EBITDA AT €77.5 MILLION, 16.6% ON REVENUES
NET PROFIT AT €43.6 MILLION, 9.3% ON REVENUES
NET FINANCIAL POSITION POSITIVE AT €10.9 MILLION
- Revenues in the quarter at €159.1 million, up 5.1% compared to €151.4 million in the third quarter of 2017
- EBITDA at €26.7 million compared to €26.1 million in the third quarter of 2017 (EBITDA margin at 16.8% compared to 17.2% in the third quarter of 2017)
- Net profit at €14.6 million compared to €15.8 million in the third quarter of 2017
- Net Financial Position positive at €10.9 million compared to €30.1 million as at 31 December 2017 and negative €15.2 million as at 30 September 2017
9M PERFORMANCE BY DIVISION
In the first nine months of the year, the Datalogic Division reported a turnover of €431.1 million, an increase of 3.2% compared to the same period of 2017 (+6.3% at constant exchange rates), with a significantly positive trend in North America where a growth of 8.7% (+15.5% at constant exchange rates) was recorded and in APAC, especially in China and Korea, which reported a growth of 15.5% (+20.1% at constant exchange rates).
EBITDA related to the division amounted to €73.5 million, down 2.2%, corresponding to 17.1% of sales (18% as at 30 September 2017). This decrease is attributable to greater investments in R&D and the increase in commercial expenses.
The following table provides a breakdown of the revenues of the Datalogic Division, by business sector:
(*) The Channel sector (Unallocated) includes the revenues which are not directly attributable to the 4 sectors identified.
(**) Data for 2017 have been restated.
The Retail sector reported a 4% increase compared to last year (+8% at constant exchange rate), mainly in North America (+26.8% and +35.1% at constant exchange rate).
The Manufacturing sector confirmed its expansion trend, up by 13.6% compared to the previous year (+15.9% at constant exchange rate); growth was recorded in all the main geographical areas and in particular in China and Korea (+38.4%) as well as in EMEA (+8.1%).
The Transportation & Logistics sector reported a 24.1% increase compared to the same period of 2017 (+27.9% at constant exchange rate), with strong growth in particular in North America (+52%), China and Korea (+10.7%) and EMEA (+10.1%).
The Healthcare sector reported a 36% decrease (-33.3% at constant exchange rate), compared to the first nine months of 2017, which had posted exceptionally positive results due to the acquisition of important orders in some of the leading US hospital chains.
The sales through distribution channel, especially to small and medium-sized customers, not directly attributable to any of the four main sectors, reported a 36.7% decrease due to a physiological seasonal trend of stock reduction in the main distributors in the first part of the year and to the timing of the launch of new products dedicated to the distribution channel.
The Solution Net Systems Division recorded revenues of €22.4 million, an increase of 16.1% compared to the first nine months of 2017 (+24.4% at constant exchange rates) mainly due to the acquisition of further important orders, both in the postal and retail sectors. EBITDA related to the Division amounted to €3.6 million, with a 16.1% impact on revenues, compared to 14.7% in the same period of 2017.
In the first nine months of 2018, the Informatics Division recorded a turnover of €14.6 million, down 10.8% (-4.3% at constant exchange rate) compared to the same period in 2017. EBITDA for the division amounted to €0.5 million (negative by €0.1 million in the same period of 2017).
9M PERFORMANCE BY GEOGRAPHIC AREA
The following table shows the breakdown by geographical area of Group revenues achieved in the first nine months of 2018 compared to the same period of 2017:
(*) EMEA: Europa, Middle East e Africa; APAC: Asia & Pacific
(**) As at 30 September 2018, sales in Mexico were included in the North America region, data as at 30 September 2017 were reclassified accordingly.
During the first nine months of 2018, strong growth was recorded mainly for North America for 8.1% (+15.2% at constant exchange rate) and APAC for 8.8% (+13.8% at constant exchange rate), driven by China and Korea (+15.5% and +20.1% at constant exchange rate).
QUARTER PERFORMANCE
Total revenues in the third quarter of 2018 amounted to €159.1 million, up 5.1% compared to the third quarter of 2017 (+4.9% at constant exchange rate). In the third quarter, the Datalogic Division reported a turnover of €146.8 million, up by 5.9% compared to the same period of 2017 (+5.8% at constant exchange rate), with a particularly positive growth of 45.7% in North America.
EBITDA for the third quarter showed an increase of 2.4% (+2% at constant exchange rate). As a percentage of revenues (EBITDA margin), it stood at 16.8% (17.2% in the third quarter of 2017) and was affected by greater investments in R&D of 10.4% (9.0% in the third quarter of 2017) and the strengthening of sales organisations, partially offset by the improvement in gross profit and by the containment of overheads and administrative expenses.
SIGNIFICANT EVENTS FOR THE QUARTER AND SUBSEQUENT TO THE END OF THE QUARTER
No significant events are to be reported.
BUSINESS OUTLOOK
Despite the negative impact on sales due to the Euro/Dollar exchange rate, especially in the first half of the year, the results for the first nine months of the year reported a continued growth in revenues, in line with the business forecasts of a gradual and steady quarterly improvement of growth rates compared to the same period last year.
The Group continues its growth strategy focused on a continuous increase in R&D investments, an improvement of service levels offered to customers, a further improvement of all sales organisations in the main development areas, with special focus on North America, and the continuous optimisation of production costs, combined with a thorough control on operating costs and overheads.
Of particular significance in the last few months was the completion of the technological switch to the Android operating system of the entire mobility products line and the achievement of 'Android Enterprise Recommended' Google product certification for Memor 10, the first of a new family of PDA products with unique characteristics in the market. The launch of Memor 10 will take place in the near future and will be an important component of the strong pipeline expected for the next few months.
Even though the activities to complete the switch to the Android technology have taken longer than anticipated, with the consequent delay in the launch of some important new products, on the basis of the expectations of further growth in revenues for the last quarter of the year and in the absence of significant changes in economic and sector trends, the Group expects to end the year with revenues growing further than the trend in the first nine months, while maintaining the EBITDA margin essentially in line with last year, and continuing to preserve its financial solidity.
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Please note that the Quarterly Report at 30th September 2018 of Datalogic S.p.A. will be available to anyone who requests it at the company headquarters, at the offices of Borsa Italiana S.p.A. (www.borsaitaliana.it), on the 'eMarket STORAGE' instrument, managed by Spafid Connect S.p.A. and may also available on the company's website www.datalogic.com (Investor Relations section), in accordance with the law and applicable regulations.
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The manager responsible for preparing the company's financial reports - Alessandro D'Aniello - declares, pursuant to paragraph 2 of Art. 154-bis of the 'Testo Unico della Finanza', that the accounting information contained in this press release corresponds to the document results, books and accounting records.
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It should also be noted that this press release contains forward-looking statements concerning the Group's intentions, beliefs or current expectations in relation to financial results and other aspects of the Group's activities and strategies. The reader of this press release should not place undue reliance on these forward-looking statements, as the actual results could differ significantly from those contained in said statements, as a result of a number of factors, most of which are outside of the Group's control.
Reclassified income statement at 30 September 2018 - Euro/1.000
Reclassified Balance Sheet at 30 September 2018 () - Euro/1.000
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Datalogic S.p.A. published this content on 13 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 November 2018 17:43:09 UTC