Business News
schlott gruppe confirms preliminary results for Q1 2008/9
Wednesday 04. February 2009 - VAS of 56.9 million in line with expectations (prev. year adjusted: 61.5 million); Operating performance slightly above target; EBT 2.8 million, compared to 3.2 million; Forecast 2008/9 reaffirmed: VAS in excess of 215 million; break-even EBT
schlott gruppe has confirmed its preliminary results for the first quarter (October to December) of the 2008/9 financial year presented at the fiscal year-end press conference 2007/8 on January 28, 2009. As already outlined by the company, the start to the new financial year was essentially considered satisfactory. The overall operating performance of schlott gruppe was even slightly better than anticipated.
As expected, value-added sales (VAS) contracted in response to the considerable downturn in the European economy over the course of the second half of 2008, falling by 7.5 per cent to 56.9 million, compared to 61.5 million for the same period a year ago on a like-for-like basis. Within this context, last year’s figure has been adjusted for the sale of the sachsendruck subsidiary at the end of September 2008. In parallel, like-for-like tonnage was down 5.8 per cent, from 162.7 to 153.2 thousand tonnes.
Group revenue for the first quarter of the current financial year stood at 106.6 million, compared with 119.9 million a year ago – adjusted for sachsendruck. Revenue receded at a more pronounced rate relative to VAS due to the significant increase in the paper provision ratio, which rose to 76.4 per cent from 71.1 per year last year (cf. “Notes to financial data” below).
The cost-reduction measures implemented during the financial year just ended had a noticeably positive effect on earnings performance in the first quarter, with EBIT reaching 3.2 million, compared to 5.0 million a year ago. Net finance income includes an exceptionally high level of positive exchange differences, which are the result of operational currency hedges relating to pound sterling. Owing to the significant levels of volatility currently witnessed in the currency markets, these gains may not be sustainable. In the reporting period net finance income improved to -0.5 million, compared to -1.8 million a year ago, as a result of which EBT came in at 2.8 million after 3.2 million last year to.
After taxes, schlott gruppe posted a net profit of 2.6 million in the first quarter, compared to 2.1 million a year ago. Earnings per share stood at 0.42, up from 0.33 last year.
The print unit generated value-added sales of 55.8 million in the first quarter of 2008/9, after 60.5 million (adjusted) in the same period a year ago. EBIT amounted to 2.7 million, after 5.1 million in the previous year, while EBT stood at 4.0 million, in contrast to 4.1 million. The corporate services unit, which is responsible solely for providing services within the Group, also performed in line with expectations.
After an encouraging start to the financial year 2008/9, schlott gruppe remains committed to its annual target of VAS in excess of 215 million, compared to 225 million (adjusted) last year. At the same, the Group’s EBT guidance figure remains unchanged at a slightly positive figure, which corresponds to the annual result posted last year. In formulating its outlook, the schlott gruppe calculated on the basis of weak economic development in its key sales market. A more severe economic downturn would have an impact on the revenue and earnings performance of schlott gruppe.
Irrespective of future developments, the programme introduced in 2007/8 for the purpose of streamlining cost structures as well as the company’s stringent cost management and other specific measures will have a tangible effect on schlott gruppe’s performance in the current financial year. From a competitive perspective, schlott gruppe has entered the period of economic downturn in a stronger position. The current recession is likely to stimulate structural change within the printing industry, which will in turn provide a number of opportunities for the company to pursue.