DGAP-News: Balda AG: Significant sales revenue growth, EBIT burdened by extraordinary items


DGAP-News: Balda AG / Key word(s): Quarter Results/9-month figures

Balda AG: Significant sales revenue growth, EBIT burdened by

extraordinary items

12.05.2015 / 07:36


– Revenue up by EUR 10.9 million to EUR 61.9 million during first nine


– EBITDA (EUR 2.8 million) and EBIT (EUR -0.8 million) burdened by EUR

2.4 million of extraordinary items

– CEO Oliver Oechsle: “Balda on a solid growth course”

– FY 2014 / 2015 sales revenues forecast raised to between EUR 80 and 82

million, with EBIT growth before extraordinary items

Bad Oeynhausen, 12 May 2015 – Balda AG posted consolidated revenue of EUR

61.9 million in the nine months of its 2014 / 2015 financial year compared

to EUR 51.0 million in the equivalent period of the previous year. This

growth is primarily attributable to exchange rate effects and to a higher

demand for products in both the America and Europe segments. Earnings

before interest and taxes (EBIT) were nevertheless burdened by

extraordinary items (EUR 2.4 million).

“The marked sales revenues growth shows that we have proved convincing on

the market with our high product quality and reliability, once again

confirming the confidence that our customers have in us,” explains Oliver

Oechsle, CEO of Balda AG, adding, “This is precisely the right direction to

be heading in achieving successful long-term development and growth.”

Key revenue and earnings figures for Balda Group in first nine months of

2014 / 2015

Following total sales revenues of EUR 20.7 million in the first quarter and

EUR 19.7 million in the second quarter, Balda continued this positive trend

in the third quarter with sales revenues of EUR 21.4 million. Overall,

Balda AG generated EUR 61.9 million of consolidated sales revenues,

equivalent to growth of EUR 10.9 million, or 21.4 %, compared with the

reference period (previous year: EUR 51.0 million). A markedly higher level

of customer orders resulted in this growth.

Earnings before interest, taxes, depreciation and amortization (EBITDA)

after extraordinary items reached EUR 2.8 million in the July 2014 to March

2015 reporting period (before extraordinary items: EUR 5.2 million),

compared with EUR 1.3 million in the prior-year period (before

extraordinary items: EUR 1.8 million), reflecting a 4.6 % EBITDA margin

after extraordinary items. Extraordinary items impacted EBIT, which

amounted to EUR -0.8 million after the first nine months of 2014 / 2015

(previous year: EUR -2.4 million). Before extraordinary items, EBIT was

positive to the tune of EUR 1.6 million during the period under review

(previous year: EUR -1.9 million). The one-off extraordinary are primarily

attributable to known legal disputes. They arose in particular from

provisions for ongoing management costs in the USA and an increase in the

risk provision for litigation costs.

Balda reports earnings after taxes of EUR 4.5 million for the July 2014 to

March 2015 period. This lies significantly ahead of the previous year’s EUR

10.4 million, and is primarily due to a lower level of financial and tax


Operating segments’ performance

The America segment recorded 16.4 % sales revenues growth to a level of EUR

34.0 million in the period under review (previous year: EUR 29.2 million).

Segment EBITDA of EUR 1.2 million nevertheless fell short of the previous

year’s EUR 1.7 million, which is also due to extraordinary items. This is

also clearly identifiable in EBIT of EUR -0.9 million compared with the

previous year’s EUR -0.4 million.

The Europe segment reported significant sales revenues growth of 26.9 %

during the first nine months of the year, climbing from EUR 21.9 million in

the reference period to EUR 27.8 million. Segment EBITDA of EUR 1.9 million

is also significantly above the previous year’s EUR -0.3 million.

Operating earnings also grew, with Balda generating segment EBIT of EUR 0.5

million, compared with EUR -1.9 million in the previous year.

In the Other segment, higher costs, including in connection with the

closure of the subsidiary in Singapore, resulted in an EBITDA loss of

EUR -0.3 million compared with EUR -0.1 million in the prior-year period.


The Management Board of Balda AG has slightly modified its forecast for the

current 2014 / 2015 financial year. Compared with its previous expectation

of EUR 73 to 78 million of consolidated sales revenues, the Management

Board now anticipates sales revenues of between EUR 80 and 82 million for

the full year. Due to the extraordinary items, the Management Board

nevertheless also expects that Balda AG will prospectively fail to reach

its forecast of positive EBIT in its full-year results. This applies

insofar as macroeconomic conditions do not deteriorate significantly, and

no other unforeseeable negative events of major consequence for the Balda

Group occur.

“Although we will prospectively not reach positive EBIT as a result of the

one-off extraordinary items, the upgrade to our sales revenues forecast

shows that we are on a solid growth path, and that our strategic

orientation therefore correct,” notes Oliver Oechsle.

The latest report for the first nine months of 2014 / 2015 can be

downloaded from the investor relations section of Balda’s website.


Michael Pfister

Deekeling Arndt Advisors

Phone: +49 (0) 5734 922 2555

Mobile: +49 (0) 160 90560506

Mail: michael.pfister@deekeling-arndt.de

About Balda

Balda (ISIN: DE0005215107) is a provider of first-class solutions in

plastics for demanding, high-quality applications in the fields of

healthcare, lifestyle, automotive and consumer electronics industries.

Balda has operating divisions in Europe and America and maintains

state-of-the-art production facilities at its headquarter in Bad

Oeynhausen, Germany as well as in the USA. The success of Balda, which

employs around 800 people, is based on the deployment of leading-edge,

cost-effective technologies, coupled with the trust-based and close

collaboration with customers.



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Language: English

Company: Balda AG

Bergkirchener Str. 228

32549 Bad Oeynhausen


Phone: +49 (0) 57 34 / 9 22-0

Fax: +49 (0) 57 34 / 9 22-2604

E-mail: ir@balda-group.com

Internet: www.balda-group.com

ISIN: DE0005215107

WKN: 521510

Listed: Regulated Market in Frankfurt (Prime Standard); Regulated

Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,

Munich, Stuttgart

End of News DGAP News-Service


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