DGAP-News: Balda records positive revenue and operating result trend in the first half-year

11.02.2015

DGAP-News: Balda AG / Key word(s): Half Year Results

Balda records positive revenue and operating result trend in the first

half-year

11.02.2015 / 07:30

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– Revenue up by EUR 5.5 million to EUR 40.4 million

– EBITDA (EUR 2.7 million) and EBIT (EUR 0.4 million) continue positive

trend as expected

– CEO Oliver Oechsle: “significant step closer to operational turnaround”

– Revenue forecast for 2014 / 2015 financial year again confirmed:

revenue at the top end of the EUR 73 to 78 million range with positive

EBIT

Bad Oeynhausen, 11 February 2015 – Balda AG posted consolidated revenue of

EUR 40.4 million in the first half-year 2014 / 2015 compared to EUR 34.9

million in the equivalent period of the previous year. Higher sales in

healthcare products in the Europe segment primarily contributed to this

rise.

“The significant increase in demand for healthcare products indicates that

our more intensive activities are paying off. We are closer to the market

and our customers appreciate our product quality and dependability,”

remarked Oliver Oechsle, CEO of Balda AG, adding: “This confirms that we

have adopted the right approach and that Balda is back on track.”

Key revenue and earnings figures for the Balda Group in the first half-year

2014/2015

After generating total revenue of EUR 20.7 million in the first quarter,

the positive trend continued in the second with the figure coming in at

EUR 19.7 million. This means the Balda Group achieved total revenue of EUR

40.4 million in the period under review compared with EUR 34.9 million in

the equivalent period of the previous year. This represents a 15.8 %

increase. As in the first three months, Balda reported significantly

stronger demand for med-tech products.

In the period from July to December 2014, Balda AG posted earnings before

interest, tax, depreciation and amortization (EBITDA) of EUR 2.7 million

compared to EUR 1.1 million in the prior-year period, which represents an

EBITDA margin of 6.8 %. At operational level, the Group reported earnings

before interest and taxes (EBIT) of EUR 0.4 million after EBIT came in at a

loss of EUR -1.5 million in the equivalent period of the previous year. The

EBIT margin in the first half-year of the financial year 2014 / 2015

therefore stood at 1.0 %.

At EUR 3.7 million, the company’s consolidated earnings after taxes were

significantly below the previous year’s figure of EUR 11.1 million, which

is attributable to a lower financial result due to weaker currency results.

“After the first half-year 2014/2015, our figures prove that we have taken

a significant step towards our goal of achieving an operational turnaround.

We will continue to work intensively on making Balda even stronger and more

profitable,” indicated CEO Oliver Oechsle.

Operating segments performance

The America segment posted growth of 7.7 % in the reporting period with

revenue recorded at EUR 21.6 million (previous year: EUR 20.1 million).

However, at EUR 1.7 million the segment’s EBITDA was considerably higher

than the previous year’s figure of EUR 1.2 million. The segment’s EBIT was

positive in the period under review after EUR -0.3 million in the previous

year and climbed to EUR 0.3 million.

In the Europe segment, Balda achieved a substantial 26.7 % increase in

revenue to EUR 18.8 million after generating EUR 14.9 million in the

prior-year period. This significant rise is primarily attributable to the

stronger demand for healthcare products. Both the segment’s EBITDA and EBIT

were well in the black in the first half-year 2014 / 2015 after losses in

the equivalent period of the previous year. EBITDA rose from EUR -0.06

million to EUR 1.2 million while EBIT came in at EUR 0.3 million after

EUR -1.2 million in the previous year.

In the Other segment, general holding company costs once again resulted in

a slight EBITDA loss of EUR -0.2 million in the period under review after

EUR -0.06 million in the prior-year period.

Outlook

Balda AG’s Management Board reconfirmed its forecast for the current 2014 /

2015 financial year. The forecast applies provided the macroeconomic

conditions do not deteriorate significantly and no other unforeseeable

negative events of major consequence to the Balda Group occur. The company

is targeting consolidated revenue of EUR 73 million to EUR 78 million, but

now expects the figure to come in at the upper end of the forecast range.

The Management Board is also aiming for positive earnings before interest

and taxes (EBIT) and an EBIT margin in the low single-digit percentage

range.

The latest half-year report 2014 / 2015 can be downloaded from the investor

relations section of Balda’s website.

Contact

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 770 people, is based on the deployment of leading-edge,

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

collaboration with customers.

www.balda-group.com

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11.02.2015 Dissemination of a Corporate News, transmitted by DGAP – a

service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

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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: ir@balda-group.com

Internet: www.balda-group.com

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

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