DGAP-News: Balda AG: further growth within first half of financial year 2013 / 2014

13.02.2014

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

Balda AG: further growth within first half of financial year 2013 /

2014

13.02.2014 / 07:49

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– Sales revenues almost doubled to EUR 34.9 million due to new US companies

– EBITDA of EUR 1.1 million

– EUR 11.1 million net income after tax because of currency effects

– New reporting structure: segmentation according to regions Europe and

America

– Guidance for financial year 2013 / 2014 confirmed: Sales revenues between

EUR 70 million and EUR 80 million accompanied by a profit (without

extraordinary charges)

Bad Oeynhausen, 13 February 2014 – Balda AG was on a profitable growth

course in the first half of the financial year 2013 / 2014. In operating

terms, however, the segment plastics fell behind expectations in the second

quarter, as was the case in the first quarter 2013 / 2014 due to hesitancy

in customer demand.

‘We, the new Management Board, have conducted a thorough inventory-taking

over recent months, and see many growth opportunities for Balda AG due to

its excellent staff, high product and manufacturing expertise. We are

working intensively on turning this potential into performance and hence

into sustainable value enhancement’, states Oliver Oechsle, Chief Operation

Officer of Balda AG.

‘We are well on the way to achieving the targets that we have set for

ourselves, although there is still much to be done in operating terms.

Sales revenues reached EUR 34.9 million in the first half year, and are

thereby within the target corridor for the EUR 70 million to EUR 80 million

of sales revenue that we are aiming for over the course of the full year.

In terms of earnings, we are also on track to achieve a single-digit EBITDA

margin on sales revenue by the year-end’ elaborates Dr. Dieter Brenken,

Chief Financial Officer der Balda AG.

Key sales and earnings figures of the Balda Group for the first half of

financial year 2013 / 2014

Within the first six months of the financial year 2013 / 2014 Balda was

able to almost double its sales revenue from continuing operations and

earned EUR 34.9 million compared to the previous year’s figure of

EUR 19.9 million. The increase is attributable to the complete

consolidation of the US companies since end of 2012.

Balda generated a profit before interest, tax, depreciation and

amortization (EBITDA) from its continuing operations of EUR 1.1 million in

the reporting period following a loss of EUR 1.6 million in the previous

year. After tax, the Group reports EUR 11.1 million of earnings from its

continuing operations (comparable period: EUR 11.6 million), which is

considerably impacted by currency effects within the financial result.

Performance of the operating segments

According to the new reporting structure, the reporting of the operative

segments will be performed by regions. The Balda America segment generated

EUR 20.1 million sales revenue in the first half of 2013 / 2014 (prior year

period: EUR 0 million), and segment EBITDA reached

EUR 1.2 million (prior-year period: EUR 0 million).

The segment Europe generated EUR 14.9 million of sales revenue for the

first half of 2013/2014 (previous year period: EUR 19.9 million). The

segment reported a slight loss of EUR 0.1 million at the EBITDA level

(prior year period: profit of EUR 0.5 million).

General holding company costs led to a slight loss of EUR 0.1 million at

the EBITDA level in the Other segment.

Outlook

The Management Board is retaining the forecasts for the full 2013/2014

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 company assumes that it will

generate consolidated sales revenue in the EUR 70 million to EUR 80 million

range, accompanied by a single-digit EBITDA margin and a profit.

For additional information, please see the section entitled ‘Opportunities

and anticipated developments’ in our Annual Report for the 2012/2013

financial year.

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

AG: www.balda-group.com

Contact

Michael Pfister

Deekeling Arndt Advisors

Tel: +49 (0) 5734 922 2555

Mail: michael.pfister@deekeling-arndt.de

End of Corporate News

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13.02.2014 Dissemination of a Corporate News, transmitted by DGAP – a

company of EQS Group AG.

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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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