DGAP-News: SURTECO GROUP SE: SURTECO GROUP with solid start to the business year 2019
15.05.2019 (www.4investors.de) -
DGAP-News: SURTECO GROUP SE / Key word(s): Quarterly / Interim Statement
SURTECO GROUP SE: SURTECO GROUP with solid start to the business year 2019
15.05.2019 / 07:30
The issuer is solely responsible for the content of this announcement.
SURTECO GROUP with solid start to the business year 2019
- Group sales in the first quarter of 2019 at EUR 182 million as expected below the high level of the previous year
- EBIT at EUR 11.6 million, earnings per share of EUR 0.49
- Overall targets confirmed for the year: Sales forecast of EUR 670 million to EUR 700 million and significant increase in EBIT to between EUR 38 and EUR 40 million
Buttenwiesen, 15 May 2019 - SURTECO GROUP SE, holding company for the leading national and international brands of surface technology, made a solid start to the business year 2019 in spite of difficult framework conditions. Group sales amounted to EUR 181.9 million for the period from January to March and as expected they were around 3 % below the high year-earlier level of EUR 186.7 million. The company achieved a value of EUR 11.6 million (Q1 2018: EUR 13.4 million) for earnings before financial result and income tax (EBIT). In view of an improved financial result, the pretax profit amounted to EUR 10.6 million (Q1 2018: EUR 11.0 million) and consolidated net profit was EUR 7.6 million (Q1 2018: EUR 8.0 million). Against the background of the cost-efficiency measures introduced in the previous year, SURTECO confirms the full-year forecast for 2019. The Management Board therefore expects an EBIT between EUR 38 and EUR 40 million with relatively stable sales between EUR 670 and EUR 700 million and the expected EBIT is significantly above the value of EUR 32.2 million from 2018.
"In view of the expected challenging environment, we succeeded in making a solid start to the year 2019 in the first quarter. We did our homework on the cost side and we additionally perceive opportunities for slight relaxation on the raw-materials side. We therefore confirm our overall target for the year as being able to achieve EBIT of between EUR 38 and EUR 40 million," commented Dr. Herbert Müller, Chairman of the Management Board of SURTECO GROUP SE.
First-time reporting for the new Decoratives, Profiles and Technicals segments
Analyzing the development of the three segments reveals a differentiated picture. While in line with expectations Decoratives with sales of EUR 129.4 million (Q1 2018: EUR 133.8 million) and Technicals at EUR 27.9 million (Q1 2018: EUR 30.4 million) remained below the level of the previous year due to of the current weak sector development, Profiles continued its upward trajectory. Sales in this segment climbed from EUR 22.6 million to EUR 24.6 million. Plans are in place for this segment to generate further dynamic growth both organically and through acquisitions over the coming years. Segment EBIT shows a comparable picture against the year-earlier quarter: Decoratives (EUR 9.4 million after EUR 10.9 million) and Technicals (EUR 1.0 million after EUR 1.8 million) were below the year-earlier values, EBIT for Profiles rose to EUR 2.8 million after EUR 2.6 million in the previous year.
Unchanged balance sheet quality - significantly improved cash flow
On 31 March 2019, the balance sheet total for the Group rose mainly on account of the seasonal increase in receivables and liabilities, and owing to the new IFRS 16 accounting standard to EUR 874.5 million (31 December 2018: EUR 844.5 million). Since equity also underwent a slight increase, the equity ratio remained stable at 41.6 % (31 December 2018: 41.8 %). The new accounting regulation was also reflected in net financial debt, which increased to EUR 211.0 million (31 December 2018: EUR 197.5 million). The level of debt therefore rose from 56 % to 58 %. Cash flow from current business operations amounted to EUR 6.2 million in the first quarter of 2019 after EUR -3.7 million in the year-earlier quarter. Consequently, free cash flow amounted to EUR -2.5 million after EUR -12.9 million in the previous year.
You can find the report on the first quarter of 2019 and other information about the SURTECO GROUP SE on the Internet at www.surteco-group.com.
SURTECO GROUP SE
Investor Relations and Press Office
T +49 8274 9988-508
F +49 8274 9988-505
Profile of SURTECO
SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems.
The Group having a workforce of more than 3,300 employees at 23 production sites worldwide, generates annual sales of around EUR 700 million. 24 % of these sales are generated in Germany, 47 % in European countries outside Germany and a further 29 % in America, Asia and Australia. Customers of the SURTECO Group primarily come from the wood-based, flooring and furniture industries, as well as from interior design.
More information on the company is available at: www.surteco-group.com
The shares in SURTECO GROUP SE are listed on the official market (Prime Standard) of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and ISIN DE0005176903. They are also traded on the stock markets in Berlin, Düsseldorf and Stuttgart.
Cautionary note regarding forward-looking statements
This press release may contain statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.
Important indicators of SURTECO GROUP SE (in EUR million)
- of which Deoratives
- of which Technicals
-of which Profiles
Foreign sales in %
- of which Decoratives
- of which Technicals
- of which Profiles
EBIT margin in %
Consolidated net profit
Earnings per share in EUR 2
Cash flow from current business operations
Free cash flow
Balance sheet total
Level of debt in % 3
Equity ratio in %
(1) Difference to balance of segment earnings due to internal clearing
(2) Based on a number of shares amounting to 15,505,731
(3) Net debt / Equity
15.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
SURTECO GROUP SE
+49 (0)8274 99 88-0
+49 (0)8274 99 88-5 05
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange
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