DGAP-News: Balda AG / Key word(s): Quarter Results
Balda AG further continues positive trends
12.11.2015 / 08:13
– Sales revenues increase by EUR 0.7 million to EUR 21.3 million
– EBITDA (EUR 1.7 million) and EBIT (EUR 0.4 million Euro) continue on
positive track as expected
– Full-year forecast confirmed, but subject to sale of the operating
Bad Oeynhausen, 12 November 2015 -Today, Balda AG published the Q1 Report
2015 / 2016. Accordingly, during the first three months, the Group
generated sales revenues in the amount of EUR 21.3 million following EUR
20.7 million in the same period during the previous year. This growth is
particularly due to a moderate US Dollar / Euro exchange rate. Consolidated
earnings before interest, taxes and depreciation (EBITDA) and before
extraordinary items thus amount to EUR 2.1 million following EUR 1.8
million last year.
Sales revenues and key earnings figures of the Balda Group during the first
three months 2015 / 2016
During the first quarter, Balda AG generated consolidated sales revenues in
the amount of EUR 21.3 million, which corresponds to an increase by 2.8 %
in comparison to the reference period (previous year: EUR 20.7 million).
During the period under review from July 2015 until September 2015,
earnings before interest, taxes and depreciation (EBITDA) after
extraordinary items were EUR 1.7 million (before extraordinary items: EUR
2.1 million); in the same period during the previous year they amounted to
EUR 1.5 million (before extraordinary items: EUR 1.8 million). This
corresponds to an EBITDA margin after extraordinary items of 7.7 % (before
extraordinary items: 9.4 %). Extraordinary items primarily are accounted
for by expenditure in connection with the consolidation of the US sites and
expenses associated with the planned sales of the operating units.
Also the earnings before taxes and depreciation (EBIT) were affected by the
extraordinary items that, similar to the previous year, amounted to EUR 0.4
million also after the first three months of 2015 / 2016. Before
extraordinary items, the EBIT is only slightly higher in the current period
under review than last year (EUR 0.8 million now compared to EUR 0.7
million in the previous year).
For the first quarter 2015 / 2016 Balda AG reports earnings after taxes of
EUR 0.6 million (previous year: EUR 3.0 million). This lower value compared
to the previous year is primarily due to the lower financial results.
Financial results were significantly lower compared to the previous year as
a consequence of the development of the US Dollar / Euro exchange rate.
Development of the operating segments
During the reporting period from July until September 2015, thanks to
currency benefits, the America segment achieved a sales revenue increase to
EUR 11.9 million (previous year: EUR 10.9 million). Also the EBITDA
increased, which was EUR 1.4 million during the first quarter (previous
year: EUR 0.7 million). Also the operating results of the segment improved
significantly, Balda generated an EBIT of EUR 0.6 million, following
EUR 0.07 million last year.
The Europe segment reports a slight decrease for the first quarter 2015 /
2016; the segment sales revenues amounted to EUR 9.4 million after EUR 9.8
million during the same period last year. The decrease is primarily due to
declining product sales in the medical technology business. This negative
effect was mostly offset though by the accelerated engineering and tooling
business. The segment EBITDA was EUR 0.3 million and therefore also below
the previous year’s value of EUR 0.9 million. Also the EBIT was affected by
the decrease and was EUR -0.2 million compared to EUR 0.4 million during
the same period last year. Extraordinary items amounted to EUR 0.3 million.
In the Other segment, general holding expenses again caused a slightly
negative EBITDA of EUR -0.038 million after EUR -0.1 million in the
Summary of important developments during the period under review and beyond
On 23 September 2015 Balda AG announced the sale of all operating
subsidiaries to Paragon Partners from Munich (“Paragon”), subject to
approval by the Annual General Meeting (“AGM”) and the anti-trust
authorities. The purchase agreement provided that the economic transition
of the business take retroactive effect as per 1 July 2015.
On 1 October Balda AG received a further offer: The Heitkamp & Thumann
Group from Düsseldorf (“H&T”) submitted a higher notarized offer. It also
concerned all operating subsidiaries and featured retroactive effect of the
agreement as per 1 July 2015.
In response, on 20 October 2015, Paragon also submitted a higher offer.
Moreover, it was agreed that both the improved offer and the purchase
agreement already concluded would be rendered obsolete entirely in case H&T
or a third party increased their offer to at least EUR 74.0 million. In
this case, an indemnity payment of EUR 1.4 million was agreed.
On 30 October 2015 H&T in turn adjusted its bid and now offered EUR 74.0
million for the operating units, thus overriding the offer and the existing
purchase agreement by Paragon. On 2 November 2015 Balda made the
agreed indemnity payment to Paragon.
Due to the complexity of the situation, Balda AG scheduled the AGM for two
days. The ordinary AGM for the business year 2014 / 2015 will now take
place in Hanover on 30 November and possibly also on 1 December 2015.
The Management and Supervisory Boards have also suggested the payment of a
dividend in the amount of EUR 1.10 per share. At the same time, the share
capital is to be reduced by EUR 0.90 per share in case the sale of the
operating business is approved. Both actions together would result in a
cash outflow and reduction of equity capital in the amount of around EUR
“The recent developments and the interest of potential buyers in our
operating units clearly show that Balda is on the right path and has great
growth potential. The market has recognized Balda’s expertise and its
transition to a developer of high-end and sophisticated plastics
solutions”, says Oliver Oechsle, sole Management Board member of Balda AG
and continues: “In view of the current situation, the Supervisory and
Management Boards therefore recommend to approve the offer”.
Note to the publishers:
The Q1 report 2015 / 2016 can now be downloaded from the company’s website
Contact / Contact person
Deekeling Arndt Advisors
tel: +49 (0) 5734 922 2555
mobile: +49 (0) 174 335 8111
Balda (ISIN: DE0005215107) is a provider of high-end plastics solutions
that rely on quality in sophisticated fields of application in the
healthcare, lifestyle, automotive and consumer electronics industry. Balda
operates in Europe and Northern America and has state of the art production
sites at the Oeynhausen headquarters in Germany and in the US. The
company’s success with its about 780 staff worldwide is based on the use of
modern, cost-efficient technologies and the close cooperation with our
customers in a spirit of trust.
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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
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
End of News DGAP News Service