DGAP-Ad-hoc: H&R GmbH & Co. KGaA / Key word(s): Annual Results
Insider information pursuant to Article 17 of the Market Abuse Regulation [MAR]
H&R GmbH & Co. KGaA: Sales increase and stable operating income
- Positive contributions from all segments enable an operating income on a robust level: EBITDA of EUR 74.7 million at the upper end of last year's forecast
- Net income of EUR 21.6 million
Salzbergen, 28 February, 2019. H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; DE000A2E4T77) achieved a lower but nevertheless robust operating income (EBITDA - Consolidated income before tax, other financial income and expenses and depreciation/amortization, impairment and appreciation of fixed assets and property, plant and equipment) of EUR 74.7 million (2017: EUR 97.9 million) in financial year 2018. At the same time, it reached the upper end of the forecast of EUR 70.0 million to EUR 75.0 million, last refined in November 2018. Based on the lower EBITDA, the other earning levels appear to be weaker as well: EBIT amounted to EUR 40.6 million (2017: EUR 54.8 million), earnings before taxes (EBT) EUR 33.7 million (2017: EUR 46.2 million). All in all, net earnings attributable to shareholders amounted to EUR 21.6 million (2017: EUR 32.1 million). The net profit of EUR 26.7 million reported in the annual financial statements of H&R GmbH & Co. KGaA in accordance with the accounting regulations of the German Commercial Code (HGB) will be carried forward. This recommendation is subject to approval by the shareholders at the Annual General Meeting on May 24, 2019.
This solid figure was achieved with sales of EUR 1,114.2 million, again around 9% higher than in the previous year (2017: EUR 1,025.1 million). The key factor here was the higher average price of raw materials compared with the previous year.
Global politics and market uncertainties shape business trend 2018
H&R already adjusted its expectations as early as the middle of the year. In this way, the company responded to the challenges facing its own business and the perspectives of many customers. This included not only global political aspects (keyword: US-Chinese trade and customs dispute) but also the slowing of the global economy (keyword: automotive industry).
In the second half of the year, the company was on track to reach its target of EUR 75.0 million. The fourth quarter of 2018 contributed an operating income of EUR 15.0 million to achieving EBITDA (fourth quarter of 2017: EUR 17.0 million). The remaining earning levels experienced significant relief towards the end of the year: EBIT in the fourth quarter amounted to EUR 6.1 million (Q4/2017: EUR 0.4 million). Earnings before taxes (EBT; Q4/2018: EUR 5.2 million; Q4/2017: EUR -1.3 million) and net profit attributable to shareholders (Q4/2018: EUR 1.4 million; Q4/2017: EUR -1.8 million) also improved strongly, turning the previous year's shortfalls into positive figures.
On a quarterly perspective, the company generated sales of EUR 280.5 million (Q4/2017: EUR 240.2 million), 16.8% higher than in the same period of the previous year due to higher raw material prices.
Operating cash flow positive again in 2018
Based on a significantly improved consolidated income, operating cash flow increased from EUR 1.5 million to EUR 14.0 million in the fourth quarter of 2018. Free cash flow, amounting EUR -11.7 million, also recovered significantly despite significantly higher investment activities (Q4/2017): EUR -18.8 million).
Over the year, however, operating cash flow decreased from EUR 46.2 million to EUR 23.3 million compared to the prior year - based on a lower consolidated income. This was due to a significantly higher raw material price over the course of the year, which pushed net working capital requirements up by around EUR 22.7 million. In addition, higher cash outflows for investments had a negative impact on free cash flow, which fell from EUR -11.9 million to EUR -46.4 million.
Solid equity position
Balance sheet total increased to EUR 730.4 million at the end of the financial year 2018 (Dec. 31, 2017: EUR 662.6 million), due to higher liabilities to banks. Equity at the balance sheet date stood at EUR 357.4 million. (Dec. 31, 2017: EUR 342.7 million). The changes are mainly related to higher reserves. Equity ratio amounts to 48.9% (31.12.2017: 51.7 %).
For a complete presentation of business performance including segment reporting and the annual financial statements, H&R KGaA refers to the 2018 Annual Report to be published on 21 March 2019.
Forward-looking statements and forecasts:
28-Feb-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||H&R GmbH & Co. KGaA|
|Neuenkirchener Str. 8|
|Phone:||+49 (0)40 43 218 321|
|Fax:||+49 (0)40 43 218 390|
|Listed:||Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of Announcement||DGAP News Service|
782531 28-Feb-2019 CET/CEST