ARBONIA AG EQS-Adhoc: Outlook on the 2020 full year results

Directive transparence : information réglementée

09/12/2020 06:55

EQS Group-Ad-hoc: Arbonia AG / Key word(s): Profit Warning
Outlook on the 2020 full year results

09-Dec-2020 / 06:55 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

Arbon, 9 December 2020 - The second half of the financial year 2020 is going very well for Arbonia.

  • Organic* growth in the second half-year is expected to be > 4%, approximately 2% in Swiss francs. 
  • The revenue for the full year of 2020 is predicted to grow organically by > 1% but to decrease by around 2% in Swiss francs. 
  • Consequently, Arbonia expects an EBITDA margin of approximately 11% for the financial year 2020; this corresponds to an EBITDA in the order of CHF 150 million. (Increase of ~ 11% without one-time effects and ~ 20% with one-time effects compared to the previous year)
  • If this is the case, the EBIT, the free cash flow and the net profit will increase disproportionately.

Thanks to a favourable product mix and due to the investments made in increasing efficiency and productivity, Arbonia's business performance for the year 2020 looks very encouraging as of the end of November. As a result, the profitability of the company is likely to be well above market expectations. 

After the first half-year of 2020, especially the second quarter, was marked by the effects of the COVID-19 pandemic, there was a noticeable recovery in most of Arbonia's sales markets and product areas starting in June. This was particularly evident in the domestic markets of Germany and Switzerland. After the lockdown was lifted in the summer, Arbonia was able to benefit in many of its markets from the continuously active drivers of high demand for housing in the conurbations, the renovation backlog (especially in Germany), and government subsidy programmes for the energy-efficient renovation of buildings. Nevertheless, Arbonia will probably only be able to partially make up for the -6.3% decline in sales in Swiss francs in the first half-year caused by COVID-19, partly due to currency effects, while an organic sales growth is expected. 

The continuing low interest rate policy of the central banks and the new, massive government support programmes for the economy also ensure that real estate remains almost without alternative as an asset class. In addition, the appreciation for one's own living space has increased, and people are now using their financial savings to increase their well-being by investing in residential property. Another factor that has had a positive impact on Arbonia's business over the last few months is the Green New Deal of the European Union, the objectives and requirements of which have further accelerated the transition to energy-efficient residential and commercial property. 

Arbonia therefore expects the market environment to remain positive in the coming financial year 2021, particularly in residential construction. 

Arbonia will provide information on the detailed group result 2020 and the outlook for the financial year of 2021 on Tuesday, 2 March 2021 as part of its financial media and analyst conference.

Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54

End of ad hoc announcement
Language: English
Company: Arbonia AG
Amriswilerstrasse 50
9320 Arbon
Phone: +41 71 447 41 41
E-mail: holding@arbonia.com
Internet: www.arbonia.com
ISIN: CH0110240600
Listed: SIX Swiss Exchange
EQS News ID: 1153796

End of Announcement EQS Group News Service

1153796  09-Dec-2020 CET/CEST