DGAP-Ad-hoc: H&R GmbH & Co. KGaA / Key word(s): Half Year Results/Preliminary Results
Insider information pursuant to Article 17
H&R GmbH & Co. KGaA: Preliminary figures for the first half year of 2019
- Operating income (EBITDA) of EUR 39.7 million just under previous year's figures
- Positive EBITDA contributions from the chemical-pharmaceutical divisions
- Improved cash flow figures
- Earnings projections of up to EUR 75.0 million EBITDA
Salzbergen, 16 July, 2019 H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; ISIN DE000A2E4T77) has consolidated its business performance since the beginning of the year with a solid half-year result close to the previous year's level. Compared to the beginning of the year, the Group's operating income (EBITDA*) in the second quarter was slightly lower, but according to preliminary calculations, at EUR 19.7 million, it exceeded the previous year's comparative figures (Q2-2018): EUR 17.5 million). On the remaining levels, earnings decreased somewhat as a result of this year's higher depreciation: EBIT closed at EUR 8.6 million, down from EUR 9.0 million in the previous year.
Looking at the first half of 2019 as a whole, EBITDA fell only moderately year-on-year. The company achieved a preliminary operating income (EBITDA) of EUR 39.7 million (H1 2018: EUR 41.2 million). The higher depreciation also characterizes the six-month overview: EBIT amounted to EUR 18.0 million (first half year of 2018: EUR 24.4 million). Earnings before taxes (EBT) showed a comparable trend at EUR 14.0 million (first half of 2018: EUR 20.9 million). Net profit to shareholders closed at EUR 10.1 million (first half year of 2018: EUR 14.9 million). This means that H&R KGaA generated earnings per share of EUR 0.27, of which EUR 0.14 in the second quarter of 2019 (first half of 2018: EUR 0.41; Q2-2018: EUR 0.14). Due to the weaker sales in the second quarter of 2019, revenues of EUR 550.0 million were almost the same as in the same period of the previous year (first half of 2018: EUR 550.3 million).
The ChemPharm Refining segment made a significant contribution to earnings, with EBITDA of EUR 9.5 million in the second quarter of 2019 even slightly exceeding Q2-2018 (Q2-2018: EUR 9.4 million). For the six-month period, however, the division achieved a lower EBITDA of EUR 22.9 million (first half of 2018: EUR 25.2 million). Segment revenues remained stable at EUR 345.4 million (H1 2018: EUR 347.5 million). Of this amount, EUR 161.8 million was attributable to the second quarter of 2019 (Q2 2018: EUR 172.2 million).
The international activities bundled in the ChemPharm Sales segment reported slightly better operating results this year with EUR 8.2 million in the second quarter and EUR 15.2 million in the first half overall (Q2-2018: EUR 7.5 million; first half of 2018: EUR 14.8 million). At EUR 188.0 million, revenues in the first half of the year remained clearly above the previous year's level (first half of 2018: EUR 177.1 million), but only remained constant in the second quarter at EUR 94.2 million (second quarter of 2018: EUR 95.0 million).
The Plastics segment for the first time in years no longer generated positive EBITDA, both on a quarterly basis and in the first half of 2019. It recorded EUR -0.4 million and EUR -0.5 million, respectively (Q2-2018: EUR 1.4 million; first half of 2018: EUR 2.7 million). Revenues also decreased significantly at EUR 10.4 million and EUR 22.0 million, respectively, compared to the prior-year figures (Q2-2018: EUR 15.2 million; first half of 2017: EUR 30.4 million). The reason for this is the weakness of the automotive sector, which is burdening the entire value chain of the industry, including car manufacturers, suppliers and component manufacturers.
Operating cash flow recovered strongly in the first half of 2019. In total, it amounted to EUR 7.5 million in the second quarter of 2019 (Q2-2018: -12.7 million), free cash flow amounted to EUR -4.5 million (Q2-2018: EUR -23.2 million). Just as in the first quarter of 2019, a lower net working capital requirement strengthened operating cash flow compared with the first half of the previous year, changing from EUR -15.6 million to EUR 51.1 million. The free cash flow accordingly improved - despite increased investments - from EUR -40.5 million to EUR 20.9 million.
The balance sheet total increased from EUR 730.4 million as of December 31, 2018 to EUR 760.1 million. Equity rose from EUR 357.4 million to EUR 365.2 million in the same period. As of June 30, 2019, the Company's equity ratio was 48.0% (December 31, 2018: 48.9 %).
Overall, the company concluded the first half of 2019 with a robust performance, in part even on a year-on-year basis. Nevertheless, the reports from other market participants, whether from the automotive or chemical sectors, as well as from our own customers, confirm our assumption that our more optimistic annual forecast of EUR 75.0 to EUR 90.0 million will be difficult to achieve under the given global economic conditions. Based on the present state of our knowledge, we expect to achieve EBITDA of up to EUR 75.0 million.
The final financial figures and additional information on business performance to date in 2019 will be published as planned on August 15, 2019 in the half-year financial report.
H&R GmbH & Co. KGaA:
Forward-looking statements and forecasts:
16-Jul-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|
|EQS News ID:||842089|
|End of Announcement||DGAP News Service|
842089 16-Jul-2019 CET/CEST