DGAP-News: Balda reports strong sales increase in the first

DGAP-News: Balda AG / Key word(s): Quarter Results Balda reports strong sales increase in the first quarter of 2013/2014 19.12.2013 / 11:14 --------------------------------------------------------------------- - EBITDA at EUR 1.1 million, consolidated EBIT at EUR -0.3 million - Consolidated earnings after taxes at EUR 7.3 million on the strength of net finance income - Consolidated sales increase from EUR 8.1 million to EUR 17.5 million, due primarily to the new US companies - Subdued customer demand in the Balda Technical segment - Guidance for financial year 2013/2014: consolidated sales between EUR 70 million and EUR 80 million and positive earnings Bad Oeynhausen, 19 December 2013 - The Balda Group today announced that it continued on its growth trajectory in the period from July to September 2013. Additional orders were acquired in the Balda Medical segment. Nonetheless, subdued customer demand, especially in the Balda Technical segment, meant that the segment's operating earnings failed to meet expectations. From a strategic perspective, the focus continued to be on the integration of the two US-based plastics specialists acquired at the end of December 2012 - Balda C. Brewer and Balda HK Plastics Engineering - into the Balda Group and on the future growth strategy. Consolidated sales from continuing operations stood at EUR 17.5 million in the first three months, up from the prior-year figure of EUR 8.1 million. The increase is due to financial reporting of the US companies, which were not yet included in the comparative period. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of the continuing operations in the first three months amounted to EUR 1.1 million, compared with EUR 0.5 million in the comparative period. After taxes, the Group posted a profit from continuing operations of EUR 7.3 million, which is dominated by the effects of net finance income (currency gains) (prior-year period: EUR 6.7 million). 'The performance of Balda AG in the first quarter of the 2013/2014 financial year was uneven. While we are on track in the Balda Medical segment, we must further improve operations in the Balda Technical segment. I am confident that we will achieve this goal in the medium term,' said Oliver Oechsle, Chief Operating Officer of Balda AG. 'In pursuing further growth of the Balda Group, a key focus will also be on our cost structure. We see potential for optimization in all segments and we will utilize this potential to gradually achieve a considerable improvement of our EBITDA margin', said Dieter Brenken, Chief Financial Officer of Balda AG. Key sales and earnings figures of the Balda Group for Q1 2013/2014 The consolidated sales from continuing operations in the first three months of the 2013/2014 financial year were EUR 17.5 million after EUR 8.1 million in the prior-year period. This considerable increase can be attributed primarily to the contribution to sales by the US companies that have been consolidated since the beginning of 2013. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose from EUR 0.5 million to EUR 1.1 million. Net finance income totaled EUR 7.9 million after three months (prior-year period: EUR 6.8 million). Net finance income in both the reporting period and the prior-year period was significantly influenced by positive currency effects from the reporting date measurement of items denominated in foreign currencies in the subsidiaries (EUR 7.4 million). Due to the decrease in cash and cash equivalents compared to the prior-year period as well as a lower interest level, net interest income fell by EUR 0.3 million to EUR 0.5 million. The consolidated earnings after taxes for the quarter were EUR 7.3 million, compared with EUR 6.8 million in the prior-year period. Performance of the operating segments Sales of the Balda Medical segment after three months of the 2013/2014 financial year were EUR 5.0 million higher than the figure for the prior-year period (EUR 8.1 million). The share of sales attributable to the US companies in the reporting quarter was EUR 6.2 million. Adjusted for the US companies, sales were therefore slightly lower than in the previous year. After three months, segment EBITDA stood at EUR 1.5 million and was thus 40.0% higher than the prior-year figure of EUR 1.1 million. In relation to the segment's gross revenue, the EBITDA margin declined from 14.0% to 11.3%. Balda Technical posted sales of EUR 4.4 million for the first three months of 2013/2014 (prior-year period: EUR 0), due exclusively to revenues generated by the US companies. The segment's EBITDA felt the effects of the low volume of business and was slightly negative at EUR -0.1 million in the reporting period. Outlook The Management Board continues to adhere to the guidance in the 2012/2013 Annual Report on business performance in the current 2013/2014 financial year: Assuming that macroeconomic conditions do not deteriorate significantly and barring any other unforeseeable adverse effects that have a material impact on the Balda Group, the Management Board aims to achieve, based on the current portfolio, consolidated sales of EUR 70 million to EUR 80 million and a single-digit EBITDA margin (based on sales) in the 2013/2014 financial year. On this basis, consolidated earnings before and after taxes are also expected to be positive. For additional information, please see the section entitled 'Opportunities and anticipated developments' in our Annual Report for the 2012/2013 financial year. Contact: Michael Pfister Deekeling Arndt Advisors Tel: +49 (0) 5734 922 2555 Mail: michael.pfister@deekeling-arndt.de End of Corporate News --------------------------------------------------------------------- 19.12.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Balda AG Bergkirchener Str. 228 32549 Bad Oeynhausen Germany Phone: +49 (0) 57 34 / 9 22-0 Fax: +49 (0) 57 34 / 9 22-2604 E-mail: info@Balda.de Internet: www.balda.de ISIN: DE0005215107 WKN: 521510 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 245492 19.12.2013