DGAP-News: Balda AG / Key word(s): Quarter Results
Balda reports profitable growth for first nine months of 2012/2013
07.05.2013 / 09:43
Balda Aktiengesellschaft * Bergkirchener Str. 228 * 32549 Bad Oeynhausen
Balda reports profitable growth for first nine months of 2012/2013
– All Group operations in the black following the disposal of the
– Positive earnings trend in operating business stabilized: EBITDA before
extraordinary items at EUR 2.6 million after nine months
– Consolidated sales from continuing operations are EUR 35.6 million, up
– High consolidated profit of EUR 22.2 million (continuing operations)
due to effects from the sale of the remaining shares in TPK Holding
– Integration of the acquired US plastics specialists progresses
– Guidance for the full 2012/2013 year adjusted to new Group structure
Bad Oeynhausen, 7 May 2013 – The Balda Group today announced that the
positive trend in operations seen in the first half of the year stabilized
in the third quarter of the 2012/2013 financial year (1 January 2013 to 31
March 2013). After the disposal of the site in Ipoh/Malaysia with economic
effect as of 31 March 2013, all Group operations are now profitable.
Consolidated sales from continuing operations stood at EUR 35.6 million in
the three quarters, 21.1% higher than the comparative figure recorded in
2011/2012. Profit from operations adjusted for extraordinary items
(adjusted EBITDA) amounted to EUR 2.6 million. Due to the effects from the
sale of the remaining shares in TPK Holding in the third quarter, Balda
shows a consolidated profit from continuing operations of EUR 22.2 million.
Dominik Müser, Chief Executive Officer of Balda AG: ‘Balda is evolving with
increasing speed in terms of growth and value enhancement. Following a
turbulent 2012 calendar year, which was dominated by external
uncertainties, the acquisition of the US companies Balda C. Brewer and
Balda HK Plastics, the disposal of the Malaysian operation and the sale of
the remaining shares in TPK were milestones on this path. The integration
of our new US companies is making good progress. They already made a
significant contribution to sales and earnings in the third quarter. I am
also pleased to see that the capital market does appreciate the strategic
and operational advances made by Balda. After all, the value of our share
adjusted for dividend payments has increased by more than 80 percent since
the start of 2012.’
Remarks on the interim consolidated financial statements as of 31 March
– The US companies Balda C. Brewer and Balda HK Plastics acquired in late
2012 were consolidated as of 31 December 2012. Their sales and earnings
are therefore included in the figures for the third quarter.
– Balda Solutions Malaysia Sdn. Bhd. (BSM), Ipoh/Malaysia, which was sold
with economic effect as of 31 March 2013, is no longer included in the
income statement for continuing operations; the previous year’s figures
were adjusted accordingly. The disposed company’s earnings for the
first nine months are shown separately under earnings after taxes from
discontinued operations. The item for the prior-year period also
includes the MobileCom segment disposed of on 1 December 2011, which
limits the feasibility of making direct comparisons.
Key sales and earnings figures of the Balda Group for the first nine months
– Consolidated sales (continuing operations) in the first nine months of
the 2012/2013 financial year stood at EUR 35.6 million, up 21.1% on the
figure for the prior-year period (EUR 29.4 million). This increase can
be attributed to the contribution to sales from the US companies that
were consolidated in the third quarter for the first time.
– After adjusting for extraordinary items, the consolidated earnings
before interest, taxes, depreciation and amortization (EBITDA) of the
continuing operations in the first nine months amounted to EUR 2.6
million, up from EUR -3.3 million in the comparative period. The
extraordinary items that were incurred mainly in the first half of the
year are non-recurring, non-capitalizable expenses, especially for the
extensive M&A processes (transaction and due diligence costs) carried
out under the Group’s buy and build strategy. Adjusted EBITDA amounted
to EUR 0.6 million in the third quarter (prior-year period: EUR -1.5
– EBITDA including extraordinary items improved to EUR 0.5 million after
nine months (prior-year period: EUR -4.8 million).
– Net finance income totaled EUR 25.1 million after nine months
(prior-year period: EUR 132.7 million). Net finance income in both
periods was influenced to a considerable extent by the proceeds from
the sales of TPK shares. This item also includes positive exchange rate
effects from the translation of foreign currencies from the Group’s
high cash holdings.
– Earnings after taxes from continuing operations were EUR 22.2 million,
down from EUR 124.2 million in the period from July 2011 to March 2012.
Of this amount, EUR 10.6 million is attributable to the third quarter
(January to March 2012: EUR 134.5 million).
– The net loss from discontinued operations, which relates to the sold
Balda Solutions Malaysia Sdn. Bhd. (BSM), amounted to EUR 10.3 million
in the nine-month reporting period. This results from the operating
loss of the Malaysia business as well as from the non-cash write-down
of assets to their fair value. The figure for the prior-year period
(loss of EUR 14.4 million) also included the loss incurred from the
MobileCom operation, which was discontinued as of 1 December 2011.
– Comprehensive income for the Group (sum total of continuing and
discontinued operations) after nine months was EUR 11.9 million, down
from EUR 109.8 million in the period from July 2011 to March 2012.
– Comprehensive income for the first nine months corresponds to earnings
per share (basic EPS and diluted EPS) of EUR 0.20 (prior-year period:
– At EUR 30.3 million, 2012/2013 sales of the Balda Medical segment after
nine months were 3.0% higher than the figure for the prior-year period
(EUR 29.4 million). The sales of the US companies consolidated in the
third quarter for the first time had a positive effect. EBITDA totaled
EUR 4.0 million and was thus approx. 44% higher than the prior-year
figure of EUR 2.8 million. The segment’s operating profit margin
improved from 8.5% to 12.0% of gross revenue.
– The Balda Technical segment posted sales of EUR 5.3 million for the
first nine months of the 2012/2013 financial year (prior-year period:
EUR 0), due exclusively to revenue generated by the new US companies.
Sales from the operations in Malaysia are no longer listed as these
were reclassified to discontinued operations. Segment EBITDA amounted
to EUR 0.3 million in the reporting period.
– The Balda Central Services segment, which mainly comprises the holding
company functions of Balda AG, saw its EBITDA for the first nine months
improve to EUR -3.5 million, compared with EUR -9.6 million in the
2011/2012 comparative period. The streamlining of the Group’s
structures and other cost savings had a positive effect. Earnings
before taxes (EBT) after nine months came in at EUR 21.5 million
(2011/2012 comparative period: EUR 123.7 million). This was due
primarily to income from the sale of the remaining shares in TPK
Holding and net foreign currency gains.
Adjusted outlook for the full 2012/2013 year
The Management Board’s confirms its objective to guide the Balda Group
towards sustainable growth and value enhancement. In the medium term,
efforts will focus on achieving consolidated sales of EUR 150-200 million,
combined with an operating profit margin (in terms of EBITDA) of at least
The Management Board has adjusted its 2012/2013 planning to the modified
Group portfolio. Based on the current portfolio, the Management Board
expects to record
– consolidated sales from continuing operations in the area of EUR 60 to
65 million and
– distinctly positive EBITDA from continuing operations both before and
after extraordinary items.
The Group’s profitability before and after taxes will be strongly boosted
by positive net finance income and the proceeds from the sale of the
remaining TPK stake. As a result, both the earnings after taxes from
continuing operations and the Group’s comprehensive income are expected to
be clearly positive.
Notes to the editors:
The Balda Group’s interim financial statements as of 31 March 2013 can be
downloaded from the company’s website at www.balda.de.
Frank Elsner Kommunikation für Unternehmen GmbH
Tel.: +49 – 54 04 – 91 92 0
Fax: +49 – 54 04 – 91 92 29
The Balda Group at a glance
in EUR million 9 months 9 months Q3 Q3
1.7.2012 – 1.7.2011 – 1.1.2013 1.1.2012
31.3.2013 * 31.3.2012 * – –
Sales, continuing operations 35.6 29.4 19.7 6.0
of which Balda Medical
of which Balda Technical 30.3 29.4 14.4 6.0
5.3 — 5.3 —
Gross revenue 39.9 32.0 18.6 8.6
EBITDA before extraordinary 2.6 -3.3 0.6 -1.5
EBITDA margin before 6.5 -8.3 3.2 -18.6
EBITDA after extraordinary 0.5 -4.8 0.4 -1.6
items 4.0 2.8 2.0 0
of which Balda Medical 0.3 0 0.3 0
of which Balda Technical
of which Balda Central -3.5 -9.6 -1,9 -1.6
EBIT before extraordinary 0,2 -4.8 -0,8 -2.0
EBIT margin in % before 0,5 -15.0 -4.3 -23.3
EBIT after extraordinary items -2.0 -6.3 -1.0 -2.2
Net finance income 25.1 132.7 12.5 136.9
Earnings before tax 23.1 126.4 11.5 134.7
Earnings after taxes, 22.2 124.2 10.6 134.5
Earnings after taxes, -10.3 -14.4 -10.5 -0.9
Comprehensive income, group 11.9 109.8 0 133.6
Earnings per share (EUR) 0.20 1.87 0 2.27
Total assets 377.6 473.4
Equity 340.9 450.5
Equity ratio (%) 90.3 95.2
Employees (number at 949 220
reporting date, continuing
* The comparative figures for the nine-month period correspond to the
second half of the 2011 financial year
and the first quarter of the short 2012 financial year.
** The figures for 2012/2013 have been adjusted for non-capitalizable
non-recurring items for M&A processes
and the modernization of Group IT.
*** 2011/2012: including expenses attributable to the former MobileCom
**** Corresponds to the net profit/loss of Balda Solutions Malaysia Sdn.
Bhd. (sold effective 31 March 2013).
Comparative period 2011/2012 also includes net profit/loss from the
discontinued MobileCom operation.
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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