DGAP-News: Balda reports strong sales increase in the first quarter of 2013/2014


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

0.5 million.

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

reporting period.


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

financial year.


Michael Pfister

Deekeling Arndt Advisors

Tel: +49 (0) 5734 922 2555

Mail: michael.pfister@deekeling-arndt.de

End of Corporate News


19.12.2013 Dissemination of a Corporate News, transmitted by DGAP – a

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Language: English

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

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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