DGAP-News: STRATEC SE / Key word(s): Half Year Results
STRATEC WITH DOUBLE-DIGIT SALES AND EARNINGS GROWTH IN FIRST HALF OF 2019
- Sales in H1/2019 show year-on-year growth of 21.7% at constant currency to EUR 110.4 million; nominal growth of +24.1% (H1/2018: EUR 88.9 million)
- Financial guidance for fiscal year 2019 confirmed
Birkenfeld, August 15, 2019
STRATEC SE, Birkenfeld, Germany, (Frankfurt: SBS; Prime Standard) today announced its financial results and major events for the period from January 1, 2019 to June 30, 2019 with the publication of its Half-Yearly Financial Report H1|2019.
KEY FIGURES 1
1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions
Adj. = adjusted
Adjusted EBIT for the first six months of 2019 rose by 40.4% to EUR 12.7 million, compared with EUR 9.1 million in the previous year. Accordingly, the adjusted EBIT margin improved by 130 basis points to 11.5% (H1/2018: 10.2%). This margin growth was due in particular to positive benefits of scale. In addition, the company also witnessed the first beneficial effects of its earnings improvement initiative launched in 2018. The positive impact on the margin was nevertheless partly offset by higher expenses in connection with the above-average current volume of development activities. Furthermore, the development in the margin was also restrained by the high share of sales attributable to development and services. In this respect, the company expects to achieve a significantly stronger sales mix in the second half of the year.
Given the company's operating earnings growth, its adjusted consolidated net income from continuing operations also increased by 37.9% to EUR 10.3 million (H1/2018: EUR 7.5 million). Adjusted earnings per share from continuing operations (basic) for the first six months of 2019 rose by 36.5% to EUR 0.86, compared with EUR 0.63 in the previous year.
In the interests of comparability, key earnings figures have been adjusted to exclude amortization resulting from purchase price allocations in the context of acquisitions, associated reorganization expenses, and other non-recurring items. A reconciliation of the adjusted figures with those reported in the consolidated statement of comprehensive income can be found in the Half-Yearly Financial Report H1|2019 also published today.
PROJECTS AND OTHER DEVELOPMENTS
STRATEC made substantial progress in negotiating new development agreements once again in the first six months of 2019. Not only that, at the AACC (American Association for Clinical Chemistry), the industry's most important specialist conference held at the beginning of August, STRATEC enjoyed its most successful trade fair performance in years.
The construction work begun in 2018 to significantly expand the building capacities available at the company's headquarters in Birkenfeld is progressing on schedule. The first building complex newly completed was occupied by employees in May 2019. Completion of the second phase of construction is still scheduled for mid-2020. Once this construction work, which involves adding around 15,000 m² of new surfaces, is finished, significantly more space will be available, particularly for research and development, prototype production, and storage.
DEVELOPMENT IN PERSONNEL
Given the construction work underway to significantly expand capacities at its headquarters in Birkenfeld and investments in numerous development projects, STRATEC expects its investment ratio to remain at an above-average level in 2019. The company has budgeted investments in property, plant and equipment and intangible assets corresponding to around 12% to 14% of sales for 2019 (2018: 10.3%). However, the investment ratio will likely decline considerably from 2020 onwards once the construction measures have been completed.
HALF-YEARLY FINANCIAL REPORT H1|2019
CONFERENCE CALL AND AUDIO WEBCAST
You will receive the dial-in data (telephone number, password + individual PIN) following brief registration at the following link: www.stratec.com/registration
The conference call will also be available at the same time as an audio webcast at www.stratec.com/audiowebcast20190815 (brief registration required). Please note that no questions can be submitted via the audio webcast. Clicking this link also enables you to follow or download the slide presentation.
The partners market the systems, software and consumables as system solutions, generally together with their own reagents, to laboratories, blood banks and research institutes around the world. STRATEC develops its products with its own patent-protected technologies.
The shares of the company (ISIN: DE000STRA555) are traded on the Prime Standard of the Frankfurt Stock Exchange.
15.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Phone:||+49 (0)7082 7916 0|
|Fax:||+49 (0)7082 7916 999|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||857851|
|End of News||DGAP News Service|