DGAP-News: Balda reports positive financial performance and announces a further special dividend


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

Balda reports positive financial performance and announces a further

special dividend

12.12.2013 / 07:56


– Substantial increase in sales to just under EUR 60 million

– Comprehensive income of EUR 13.5 million

– Proposal to pay a further special dividend of EUR 1.50 per share

– COO Oliver Oechsle: Our mission is to enable growth for the Balda Group

– CFO Dieter Brenken: Balda has a solid financial foundation

Bad Oeynhausen, 12 December 2013 – The Balda Group showed strong financial

performance in the 2012/2013 financial year. Consolidated sales from

continuing operations amounted to EUR 59.9 million. Adjusted for

extraordinary items, earnings before interest, taxes, depreciation and

amortization (EBITDA) improved by EUR 6.7 million over the 2012 short

financial year to EUR 4.1 million; consolidated EBITDA including

extraordinary items totaled EUR 4.9 million. The Group’s comprehensive

income was EUR 13.5 million.

Selling the shares in TPK Holding generated substantial cash funds for the

Balda Group. These funds will be used for the further implementation of

Balda’s growth strategy and for paying further special dividend. The

Management Board and the Supervisory Board will therefore propose payment

of a special dividend of EUR 1.50 per share to the General Meeting on 28

January 2014. This would correspond to a total dividend payment of EUR 88.3

million, and it would be third dividend paid from the TPK sales since May


‘The focus in the past financial year was on consolidating the Company’s

management. Our mission is to enable further growth for the Balda Group and

to strengthen its position as a quality supplier of complex, customized

plastics solutions,’ said Oliver Oechsle, Chief Operating Officer of Balda


‘Overall, Balda has a solid financial foundation and therefore possesses

the necessary financial capabilities to continue on its growth trajectory.

But in spite of all the progress we have made, we are still some way from

achieving our goals. In order to ensure sustainable profitable growth, we

must significantly increase our effectiveness,’ said Dieter Brenken, Chief

Financial Officer of Balda AG.

Overview of key financial figures

Consolidated sales from continuing operations amounted to EUR 59.9 million.

This figure includes the sales of the US companies Balda C. Brewer and

Balda HK Plastics, which were consolidated from 1 January 2013 and

substantially enhance the Group’s international presence and


Other operating income stood at EUR 9.7 million and includes, among others,

the reversal of a contingent purchase price liability from the acquisition

of Balda C. Brewer in the amount of EUR 3.3 million.

The cost of materials totaled EUR 23.8 million, corresponding to 41.8% of

gross revenue. This compares to a ratio of 52.9% for the 2012 short

financial year. The decrease in the cost of materials in relation to gross

revenue is due to a change in the product mix in the reporting period and a

larger contribution made to revenues by the equipment business.

Staff costs totaled EUR 21.2 million and from 1 January included the

workforce of the acquired US entities. The Balda Group had a total of 856

employees as of 30 June 2013 (30 June 2012: 220 employees).

Depreciation, amortization and impairment losses increased from EUR 1.1

million in the 2012 short financial year to EUR 15.2 million. This increase

is mainly attributable to impairment losses resulting from impairment

testing (EUR 11.5 million) and to higher depreciation and amortization

caused by the initial consolidation of the US companies.

The other operating expenses were EUR 16.9 million after EUR 6.3 million in

the 2012 short financial year. Without the extraordinary items (e.g.

transaction costs, costs for the extraordinary General Meeting), the other

operating expenses amounted to EUR 13.3 million.

Net finance income totaled EUR 29.0 million (2012 short financial year: EUR

268.9 million). As in the previous year, this item was influenced to a

considerable extent by the proceeds from the sale of the shares in TPK


The net loss from discontinued operations of EUR 7.3 million is due to the

net deconsolidation loss from the disposal of Balda Solutions Malaysia in

April 2013.

Comprehensive income for the Group was EUR 13.5 million (2012 short

financial year: EUR 250.7 million). This corresponds to earnings per share

of EUR 0.23.

The Group’s total assets as of 30 June 2013 decreased by EUR 113.7 million

to EUR 359.7 million. The main reason for this change was the payment of a

special dividend of EUR 117.8 million in November 2012.

Balda Group equity amounted to EUR 334.5 million at the end of the

reporting period. This year-on-year decrease by EUR 115.9 million is

primarily due to the dividend payment made. The equity ratio was 93.0% of

total assets (30 June 2012: 95.2%).

Performance of the two operating segments:

The Balda Medical segment generated sales of EUR 49.0 million in 2012/2013

(2012 short financial year: EUR 11.7 million). This includes the revenues

of the two US companies acquired with effect from 1 January 2013. EBITDA

amounted to EUR 6.0 million, corresponding to 12.2% of sales.

The Balda Technical segment was created from the former Electronic Products

segment in the course of the acquisition of US plastics specialist Balda C.

Brewer. This segment posted sales of EUR 10.9 million for the 2012/2013

financial year, comprising the activities of the US entity from its date of

initial consolidation. EBITDA amounted to EUR 1.0 million, corresponding to

8.9% of sales. EBIT stood at EUR -10.7 million in the reporting period,

which was primarily due to the impairment losses mentioned earlier (EUR

11.0 million).


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. Consolidated earnings before taxes are also expected to be

positive on the basis of positive EBITDA.

Note to the editors:

The 2012/2013 Annual Report of the Balda Group is available on the

Company’s website at www.balda-group.com/en.


Michael Pfister

Deekeling Arndt Advisors

Tel. +49 711 504633-40

Fax: +49 711 504633-41

Mail: michael.pfister@deekeling-arndt.de

About Balda

Balda is a provider of first-class solutions for demanding, high-quality

applications in the fields of medical technology, optics, the automotive

industry and other specialist industrial sectors. The Group’s Balda Medical

and Balda Technical operating divisions have operations worldwide, and the

company maintains production facilities in Germany and the USA. The success

of Balda, which employs around 1,000 people, is based on the deployment of

leading-edge, cost-effective technologies, coupled with the trust-based

collaboration with customers. The Balda AG share (ISIN: DE0005215107) is

listed on the SDAX segment of Deutsche Börse.



End of Corporate News


12.12.2013 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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