RINGMETALL
DGAP-News: Ringmetall Aktiengesellschaft
/ Key word(s): Half Year Results
Ringmetall increases EBITDA by around 14 percent in the first half year despite corona crisis Munich, 17 September 2020 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, continued to grow in the first six months of 2020 despite the generally tense economic environment. The business development figures published today in the interim report for the first half of 2020 essentially correspond to the preliminary business figures published on 6 August 2020. Consolidated net revenues increased by 0.9 percent to EUR 62.3 million in the first half of the year (H1 2019: EUR 61.8 million). The revenue growth was mainly driven by acquisition effects of the subsidiary Tesseraux, consolidated for the first time as of July 1, 2019, and the business activities of Sorini. At the same time, however, declining steel prices and purely organic business development had a slightly counteracting effect. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew disproportionately by 13.6 percent to EUR 6.5 million (H1 2019: EUR 5.7 million). The EBITDA margin in relation to total operating performance increased accordingly and, at 10.3 percent, was back in the double-digit range. On the earnings side, cost management, which was very closely aligned with day-to-day business, had a particularly significant impact. As a result of a significant reduction in the proportion of temporary staff, it was possible to cut personnel costs significantly in the course of the COVID 19 pandemic without having to make cuts in the core workforce. Likewise, short-time working had to be used only to a very limited extent and very selectively in certain regions. A separate analysis of the effects of steel price development, inorganic and organic growth showed the following effects on segment sales in the first half of 2020: Industrial Packaging Industrial Handling The key preliminary figures for business development in the first half of 2020 are as follows:
*Gross profit defined as: Group revenues including changes in inventories less cost of raw materials, consumables and supplies as well as purchased services; purchased services H1 2019 reduced by cost of temporary workers (EUR 1.8 million), as this item will be reported under personnel expenses upon publication of the Annual Report 2019 Revenues in the Industrial Packaging segment rose by 2.4 percent to EUR 56.9 million (H1 2019: EUR 55.6 million). Segment EBITDA increased by 18.8 percent to EUR 7.4 million (H1 2019: EUR 6.2 million). In addition to the already mentioned consistent personnel cost management, the cost of materials ratio was also primarily improved as a result of reduced production waste, which had a positive effect on the division's earnings performance. The steadily increasing share of revenues of the inliner product category, which now accounts for around 18 percent of segment revenues, also meant that the order situation was noticeably less sensitive to economic trends. Furthermore, the first positive effects on earnings from the integration of the acquisitions made in 2019 into the Group, which went hand in hand with an optimization of corporate structures, were already evident. In the Industrial Handling segment, the negative impact of the COVID 19 pandemic was more noticeable in a reduced order situation. Consequently, sales with a major customer in the industrial truck sector fell far short of expectations. On the cost side, however, it was also possible in this segment to adjust personnel costs in line with the order situation and thus contain the extent of the negative effects. Segment revenues decreased by 12.3 percent to EUR 5.4 million (H1 2019: EUR 6.1 million) while segment EBITDA decreased by 76.1 percent to EUR 0.2 million (H1 2019: EUR 0.8 million). The Management Board still considers the forecast for the Company's development in the full year 2020 to be realistic. However, the significant decline in steel prices could - unless the trend reverses at least partially in the further course of the year - lead to Group revenues falling slightly short of expectations, although the Company's operating performance is certainly in line with expectations. However, this will not have a negative effect on earnings. At the current point in time, the Management Board therefore continues to expect consolidated sales of EUR 125 to 135 million and EBITDA of EUR 11 to 13 million for 2020. The complete interim report for the first half of 2020 and further information on Ringmetall AG and its affiliated subsidiaries are available at www.ringmetall.de. Contact: About the Ringmetall Group
17.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | Ringmetall Aktiengesellschaft |
| Innere Wiener Str. 9 | |
| 81667 Munich | |
| Germany | |
| Phone: | 089 / 45 22 098 - 0 |
| Fax: | 089 / 45 22 098 - 22 |
| E-mail: | info@ringmetall.de |
| Internet: | www.ringmetall.de |
| ISIN: | DE0006001902 |
| WKN: | 600190 |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1132703 |
| End of News | DGAP News Service |
1132703 17.09.2020
