DGAP-News: Balda AG reports significant growth during Q1 2014 / 2015

12.11.2014

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

Balda AG reports significant growth during Q1 2014 / 2015

12.11.2014 / 07:59

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– Consolidated revenue at EUR 20.7 million during first three months of

financial year

– EBIT positive at EUR 0.4 million

– Consolidated net profit of EUR 3.0 million in Q1

– CEO Oliver Oechsle: “Efficiency measures taking effect”

– Greater demand for complete solutions

– Forecast for 2014 / 2015 financial year confirmed

Bad Oeynhausen, 12 November 2014 – Balda AG generated EUR 20.7 million of

consolidated sales revenue in the first three months of its 2014 / 2015

financial year, compared with EUR 17.5 million in the equivalent period.

This growth can be regarded as the success of having strengthened sales

activities, and is primarily attributable to a higher level of articles

sales in the Europe segment.

“The first quarter shows that Balda is on the right path, and that last

year’s efficiency measures combined with bolstered sales activities are

taking effect, so that we are reporting organic growth. We are particularly

pleased that we are seeing growing demand for complete product solutions.

What matters now is to make the most of these dynamics and continue to grow

systematically,” is how Oliver Oechsle, CEO at Balda AG, comments on

business trends during the first three months of 2014 / 2015.

Key revenue and earnings figures for the Balda Group in Q1 2014 / 2015

Consolidated revenue was up by 18.3 % to EUR 20.7 million in the July to

September 2014 period. This growth is attributable to above-average

deliveries to customers in the Europe segment, and a related increase in

articles sales. First-quarter business trends exceeded expectations as a

consequence. Balda generated EUR 1.5 million of profit before interest,

tax, depreciation and amortization (EBITDA) (previous year: EUR 1.1

million). At the operating level, the Group achieved EUR 0.4 million of

earnings before interest and taxes (EBIT), compared with an EBIT loss of

EUR 0.3 million in the prior-year period. The EBIT margin amounted to 1.8 %

in the first quarter of 2014 / 2015 as a consequence.

After taxes, the Balda Group reports net income of EUR 3.0 million. This

result falls short of the previous year’s EUR 7.3 million, and is primarily

attributable to a lower net financial result as a consequence of Balda

Investments Singapore having converted its functional currency from US

dollars to euros at the end of last financial year.

Operating segments performance

In its America segment, the Balda Group generated EUR 10.9 million of sales

revenue in the period under review, compared with EUR 10.6 million in the

previous year. Segment EBITDA of EUR 0.7 million was nevertheless

significantly ahead of the previous year’s EUR 0.5 million, a further

indication that the Group’s efficiency measures are taking effect.

The Europe segment registered marked growth of 42.0 % during the first

quarter 2014 / 2015. The segment generated EUR 9.8 million of sales

revenue, compared with EUR 6.9 million in the prior-year period. This very

high expansion rate reflects higher article sales as a consequence of above

average deliveries to customers in the medical business. Segment EBITDA

stood at EUR 0.9 million after the first three months (previous year: EUR

0.8 million). The previous year was positive affected by EUR 0.4 million

non-operating items.

In the Other segment, general holding company costs resulted in a slight

EBITDA loss of EUR 0.1 million (previous-year period: EUR -0.2 million).

Outlook

The Balda AG Management Board has confirmed its forecast for the current

2014 / 2015 financial year: insofar as macroeconomic conditions do not

worsen significantly, and no other unforeseen negative events of

considerable impact for the Balda Group occur, the company is assuming that

its consolidated sales revenue will be recorded between EUR 73 million and

EUR 78 million. The Management Board is also aiming for a positive result

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

percentage range.

For more information, please refer to the “Outlook” section in our annual

report for the 2013 / 2014 financial year.

Further and more detailed information can be found on the website of Balda

AG: www.balda-group.com/de

The latest quarterly report for Q1 2014 / 2015 can be downloaded from the

investor relations area 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 780 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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12.11.2014 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: 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

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296619 12.11.2014