Ringmetall significantly increases revenues and profitability in the first quarter

DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): Quarter Results
07.05.2020 / 07:00
The issuer is solely responsible for the content of this announcement.

Ringmetall significantly increases revenues and profitability in the first quarter

- Group revenues increase by 13.0 percent to EUR 33.8 million
- EBITDA of EUR 3.8 million up 30.0 percent on previous year
- Second quarter business performance stable so far - guidance remains realistic

Munich, 7 Mai 2020 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, was able to increase revenues and earnings in the first quarter of 2020 significantly compared to the previous year. Even in the month of March, which was influenced by COVID-19 in the overall economy, the business development of the Ringmetall Group across all sales regions was extremely robust and largely characterized by sales growth.

Consolidated revenues rose by 13.0 percent to EUR 33.8 million in the first quarter (Q1 2019: EUR 29.9 million). Compared with the prior-year basis, this includes the revenues of the subsidiary Tesseraux, which has been consolidated since 1 July 2019, and the production of Sorini, which was taken over on 31 December 2019. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased disproportionately and were 30.0 percent higher than in the previous year at EUR 3.8 million (Q1 2019: EUR 2.9 million). This development was positively influenced by a favorable development of steel prices, a lower utilization rate of temporary staff and an overall improvement in production efficiency. The EBITDA margin increased accordingly, and at 11.2 percent was again in the double-digit percentage range.

The key performance indicators for the period under review are as follows:

IFRS, in EUR m Q1 2020 Q1 2019 ∆ [abs.] ∆ [%]
Group revenues 33.8 29.9 3.9 13.0%
Gross profit * 16.1 14.5* 1.7 11.4%
EBITDA 3.8 2.9** 0.9 30.0%
EBITDA margin 11.2% 9.7%    
EBIT 2.3 1.8 0.5 3.9%
EBIT margin 6.7% 6.0%    
*Gross profit defined as: Group revenues including changes in inventories less cost of raw materials, consumables and supplies and purchased services; purchased services Q1 2019 reduced by cost of temporary workers (EUR 0.9 million), as this is reported under personnel expenses upon publication of the 2019 Annual Report
**EBITDA Q1 2019 adjusted for effect of IFRS 16 in the amount of EUR 0.4 million

A separate analysis of the effects of steel price developments, inorganic and organic growth had the following effects on segment sales in the reporting period:
Industrial Packaging
- Effect of steel price development on segment revenues: -5.2 percent
- Effect of corporate acquisitions on segment revenues: +13.9 percent
- Effect of organic business development on segment revenues: +5.7 percent
Industrial Handling
- Effect of organic business development on segment revenues: +0.1 percent

Revenues in the Industrial Packaging segment rose by 14.4 percent to EUR 30.8 million. (Q1 2019: EUR 26.9 million), while EBITDA increased by 28.4 percent to EUR 4.0 million (Q1 2019: EUR 3.1 million). Despite the generally tense economic environment, the division thus developed extremely robustly. On the one hand, the significantly less cyclically sensitive product mix as a result of the expansion of the product portfolio to include inliners had a positive effect on the development of revenues. On the other hand, falling demand in some end-customer industries, such as the automotive industry, was offset by rising demand from other manufacturing industries, such as the pharmaceutical, food and consumer goods industries. Due to the classification of production sites as system-relevant supplier companies, the Ringmetall Group is also affected only to a very small extent at most by production restrictions resulting from the pandemic legislation.

Although the Industrial Handling segment is still more clearly affected by the economic downturn, however, compared to the rather subdued year-end business in 2019, business picked up noticeably in the first quarter. Segment revenues and EBITDA were back at the previous year's level at EUR 3.0 million and EUR 0.3 million respectively, and showed a positive basic dynamic. In particular, sales to manufacturers of agricultural machinery increased significantly, as well as demand from the material handling equipment industry.

In detail, the segment development in the period under review was as follows:

IFRS, in EUR m Q1 2020 Q1 2019 ∆ [abs.] ∆ [%]
Industrial Packaging        
Revenues 30.8 26.9 3.9 14.4%
EBITDA 4.0 3.1 0.9 28.4%
Industrial Handling        
Revenues 3.0 3.0 0.0 0.0%
EBITDA 0.3 0.3 0.0 0.0%

"Overall, it turns out that we are currently coming through this crisis well. The course of the second quarter so far has also been stable", explains Christoph Petri, Spokesman of the Management Board of Ringmetall AG. "Nevertheless, we are observing the developments around the globe very closely and are prepared to be confronted with a more significant economic slowdown at any time. However, we still consider our targets for 2020 to be well achievable".

The Management Board will discuss details of business development in the first quarter of 2020 in a conference call for analysts, institutional investors and journalists today at 12:00 CET. Registration for this conference call will be made by e-mail via Anja Brabec (brabec@ringmetall.de).

Additional information on the Ringmetall Group and its affiliated subsidiaries can be found at www.ringmetall.de.

Ingo Middelmenne
Investor Relations
Ringmetall AG
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@ringmetall.de

About Ringmetall Group
Ringmetall is a leading international specialist in the packaging industry. The Industrial Packaging business offers highly secure closures and inliners for industrial drums for the chemical, petrochemical, pharmaceutical and food processing industries. The Industrial Handling business unit develops application-optimized vehicle components for the handling and transport of packaging units. In addition to the Group headquarters in Munich, Ringmetall has worldwide production and sales offices in Germany, France, Great Britain, Spain, Italy, Turkey, the Netherlands, China and the USA. Worldwide Ringmetall generates more than EUR 120 million in revenues.

07.05.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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