DGAP-News: Balda grows with its US subsidiaries in FY 2013 / 2014 and plans operating turnaround during current financial year
DGAP-News: Balda AG / Key word(s): Final Results
Balda grows with its US subsidiaries in FY 2013 / 2014 and plans
operating turnaround during current financial year
30.09.2014 / 19:42
– Preliminary FY 2013 / 2014 results confirmed: sales revenue EUR 70.5
million, EBITDA EUR 4.0 million
– Consolidated net income EUR 5.9 million
– Outlook: sales revenue between EUR 73.0 million and EUR 78.0 million
and positive EBIT
Bad Oeynhausen, 30 September 2014 – Balda AG grew its revenue by 17.7 % to
reach EUR 70.5 million in the 2013 / 2014 financial year (previous year:
EUR 59.9 million). This revenue growth is mainly attributable to the
full-year consolidation for the first-time of the US companies.
Consolidated earnings before interest, tax, depreciation and amortization
(EBITDA) and before extraordinary items rose from EUR 1.8 million to EUR
4.0 million, with the EBITDA margin increasing accordingly from 3.0 % to
5.7 %. The preliminary figures that werepublished at the end of August have
thereby been confirmed.
“Our past financial year was entirely one of consolidation and
transformation. We have also addressed legacy burdens from our history as
far we can, which enables us to now refocus on the expansion of our
operating business and on our strategic further development. This opens up
new prospects for Balda AG to extend its value creation,” as Oliver
Oechsle, Management Board member of Balda AG commented.
Key financials in overview
In the year under review, the cost of materials increased from EUR 23.8
million to EUR 26.9 million in absolute terms due to the twelve-month
inclusion of the US subsidiaries. The cost of materials ratio reduced from
41.8 % to 38.0 % due to the less materials-intensive injection molding
business of the US sites, and a lower level of materials utilized by Balda
Medical GmbH & Co. KG.
Staff costs rose to EUR 29.3 million, compared with EUR 21.2 million in the
previous year. This increase is also primarily attributable to the
consolidation of the US subsidiaries. The staff cost ratio rose from 37.2 %
to 41.3 %.
Depreciation, amortization and impairment losses fell to EUR 6.7 million,
compared with EUR 15.2 million in the prior-year period,when this item was
strongly impacted by goodwill impairment losses at the US subsidiaries.
Other operating expenses of EUR 16.8 million were above the previous year’s
level. When adjusted to reflect extraordinary items, other operating
expenses were up from EUR 13.3 million in the previous year to EUR 15.2
million in the year under review. The smaller proportional increase in
adjusted expenses (around 14 %) compared with the sales revenue growth
(approximately 18 %) reflects the improved Group structures.
After taking into account depreciation, amortization and extraordinary
items, the company reported a result before interest and taxes (EBIT) of
EUR -4.7 million, compared with EUR -12.6 million in the previous-year
period. Net interest income fell by EUR 0.7 million to EUR 1.6 million due
to the continued phase of low interest rates, and a reduction in the cash
position due to dividend payments.
Earnings before taxes (EBT) of EUR 5.3 million were significantly below the
previous year’s EUR 18.7 million, which included the proceeds from the sale
of the remaining TPK shares.
Balda AG reports consolidated net income of EUR 5.9 million for the full
2013 / 2014 financial year, compared with EUR 13.5 million in the
previous-year period. Earnings per share reduced to EUR 0.10 accordingly
(previous year: EUR 0.23).
Consolidated total assets fell by EUR 96.3 million to EUR 263.3 million 30
June 2014. Equity reported a decline to EUR 241.8 million, compared with
EUR 334.5 million in the prior-year period, mainly due to the dividend
payments that were rendered. The equity ratio was down from 93.0 % to 91.8
“We achieved our planning target with our operating growth during the past
financial year. Management also focused on improving our processes and on
streamlining our structures. Balda is significantly stronger as a result,
and at the bottom line, still stands on a robust financial basis due to its
strong equity ratio of 91.8 % – which establishes a starting point for
further growth,” explains Dr. Dieter Brenken, CFO of Balda AG.
Given the efficiency enhancement programs that have been launched and have
already been implemented, as well as a greater level of cost awareness, the
Management Board expects a positive operating result in the 2014 / 2015
financial year. To the extent that macroeconomic conditions do not worsen
significantly and no currently unenvisaged events occur, the Management
Board of Balda AG expects sales revenue of between EUR 73.0 million and EUR
78.0 million for the current financial year (on the basis of the current
Group portfolio), and consequently also a positive EBIT margin in the low
single digit percentage range.
Note to editors:
The 2013 / 2014 annual financial report is available immediately for
downloading from the company’s website at www.balda-group.com; the complete
2013 / 2014 annual report for the Balda Group can be downloaded from the
Balda website from 10 October 2014.
Deekeling Arndt Advisors
Phone: +49 (0) 5734 922 2555
Mobile: +49 (0) 160 90560506
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.
Balda Group: overview of key figures
(as per IFRS)
In EUR million 01.07.2013 – 01.07.2012 –
Sales revenue 70.5 59.9
of which Europe 31.8 36.0
of which America 38.7 23.9
Total operating revenue 70.9 57.1
EBITDA before extraordinary 4.0 1.8
EBITDA after extraordinary items 1.9 2.6
of which Europe -0.7 -0.2
of which America 2.8 3.3
of which Other -0.2 -0.2
EBITDA margin in % (before 5.7 3.0
EBIT -4.7 -12.6
Net fixed income 10.0 31.3
Earnings before taxes (EBT) 5.3 18.7
Consolidated net income 5.9 13.5
Earnings per share in euros 0.10 0.23
Key balance sheet figures 30.06.2014 30.06.2014
Total assets 263.3 359.7
Equity 241.8 334.5
Equity ratio in % 91.8 93.0
Number of employees on balance 786 856
sheet date (continuing
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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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