DGAP-News: Balda AG / Key word(s): Quarter Results
Balda reports strong sales increase in the first quarter of 2013/2014
19.12.2013 / 11:14
– EBITDA at EUR 1.1 million, consolidated EBIT at EUR -0.3 million
– Consolidated earnings after taxes at EUR 7.3 million on the strength of
net finance income
– Consolidated sales increase from EUR 8.1 million to EUR 17.5 million,
due primarily to the new US companies
– Subdued customer demand in the Balda Technical segment
– Guidance for financial year 2013/2014: consolidated sales between EUR
70 million and EUR 80 million and positive earnings
Bad Oeynhausen, 19 December 2013 – The Balda Group today announced that it
continued on its growth trajectory in the period from July to September
2013. Additional orders were acquired in the Balda Medical segment.
Nonetheless, subdued customer demand, especially in the Balda Technical
segment, meant that the segment’s operating earnings failed to meet
expectations. From a strategic perspective, the focus continued to be on
the integration of the two US-based plastics specialists acquired at the
end of December 2012 – Balda C. Brewer and Balda HK Plastics Engineering –
into the Balda Group and on the future growth strategy.
Consolidated sales from continuing operations stood at EUR 17.5 million in
the first three months, up from the prior-year figure of EUR 8.1 million.
The increase is due to financial reporting of the US companies, which were
not yet included in the comparative period. Consolidated earnings before
interest, taxes, depreciation and amortization (EBITDA) of the continuing
operations in the first three months amounted to EUR 1.1 million, compared
with EUR 0.5 million in the comparative period.
After taxes, the Group posted a profit from continuing operations of EUR
7.3 million, which is dominated by the effects of net finance income
(currency gains) (prior-year period: EUR 6.7 million).
‘The performance of Balda AG in the first quarter of the 2013/2014
financial year was uneven. While we are on track in the Balda Medical
segment, we must further improve operations in the Balda Technical segment.
I am confident that we will achieve this goal in the medium term,’ said
Oliver Oechsle, Chief Operating Officer of Balda AG.
‘In pursuing further growth of the Balda Group, a key focus will also be on
our cost structure. We see potential for optimization in all segments and
we will utilize this potential to gradually achieve a considerable
improvement of our EBITDA margin’, said Dieter Brenken, Chief Financial
Officer of Balda AG.
Key sales and earnings figures of the Balda Group for Q1 2013/2014
The consolidated sales from continuing operations in the first three months
of the 2013/2014 financial year were EUR 17.5 million after EUR 8.1 million
in the prior-year period. This considerable increase can be attributed
primarily to the contribution to sales by the US companies that have been
consolidated since the beginning of 2013.
Consolidated earnings before interest, taxes, depreciation and amortization
(EBITDA) rose from EUR 0.5 million to EUR 1.1 million.
Net finance income totaled EUR 7.9 million after three months (prior-year
period: EUR 6.8 million). Net finance income in both the reporting period
and the prior-year period was significantly influenced by positive currency
effects from the reporting date measurement of items denominated in foreign
currencies in the subsidiaries (EUR 7.4 million). Due to the decrease in
cash and cash equivalents compared to the prior-year period as well as a
lower interest level, net interest income fell by EUR 0.3 million to EUR
The consolidated earnings after taxes for the quarter were EUR 7.3 million,
compared with EUR 6.8 million in the prior-year period.
Performance of the operating segments
Sales of the Balda Medical segment after three months of the 2013/2014
financial year were EUR 5.0 million higher than the figure for the
prior-year period (EUR 8.1 million). The share of sales attributable to the
US companies in the reporting quarter was EUR 6.2 million. Adjusted for the
US companies, sales were therefore slightly lower than in the previous
year. After three months, segment EBITDA stood at EUR 1.5 million and was
thus 40.0% higher than the prior-year figure of EUR 1.1 million. In
relation to the segment’s gross revenue, the EBITDA margin declined from
14.0% to 11.3%.
Balda Technical posted sales of EUR 4.4 million for the first three months
of 2013/2014 (prior-year period: EUR 0), due exclusively to revenues
generated by the US companies. The segment’s EBITDA felt the effects of the
low volume of business and was slightly negative at EUR -0.1 million in the
The Management Board continues to adhere to the guidance in the 2012/2013
Annual Report on business performance in the current 2013/2014 financial
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 Management Board aims to achieve,
based on the current portfolio, consolidated sales of EUR 70 million to EUR
80 million and a single-digit EBITDA margin (based on sales) in the
2013/2014 financial year. On this basis, consolidated earnings before and
after taxes are also expected to be positive.
For additional information, please see the section entitled ‘Opportunities
and anticipated developments’ in our Annual Report for the 2012/2013
Deekeling Arndt Advisors
Tel: +49 (0) 5734 922 2555
End of Corporate News
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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: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
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