DGAP-News: Ringmetall Aktiengesellschaft
/ Key word(s): Quarter Results/Quarterly / Interim Statement
Raw material prices and efficiency improvements lead to significant increase in revenues and earnings of the Ringmetall Group
Munich, 6 May 2020 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, started the new year 2021 with a significant growth spurt. A brightening economic environment and investments to increase product quality and efficiency were reflected in significantly improved production capacity utilization and reduced scrap rates.
Group revenues increased by 6.7 percent to EUR 36.1 million in the first quarter (Q1 2020: EUR 33.8 million). In addition to solid organic growth, an increase in steel prices was primarily responsible for the significant expansion in Group revenues. Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped by 21.5 percent to EUR 4.6 million (Q1 2020: EUR 3.8 million). In addition to optimized staff utilization against the backdrop of a noticeably improved and more consistent order situation, the increase is due to the effect of a combination of measures initiated by the company, particularly in the past year. These include measures in quality management, which were reflected in reduced reject and complaint rates. Parts of the production of drum closure systems were also made more efficient by selective relocation to subsidiaries in other European countries, thus achieving cost savings. Despite rising steel prices, the company thus succeeded in significantly expanding its EBITDA margin and, at 12.7 percent (Q1 2020: 11.2 percent), moved back towards the target range of between 12.5 and 15 percent.
The key figures for business development in the reporting period are as follows:
*Gross profit defined as: Group revenue including changes in inventories less cost of raw materials, consumables and supplies, and purchased services.
Detailed analysis of the effects of steel price developments, inorganic and organic growth showed the following effects on segment revenues:
The Industrial Packaging segment benefited in almost all areas from a reviving economic environment. Segment revenues increased by 8.1 percent to EUR 33.3 million (Q1 2020: EUR 30.8 million), with a significant portion of the increase attributable to significantly higher steel prices. The aforementioned efficiency gains were the main factor behind a 25.9 percent increase in segment EBITDA to EUR 5.0 million (Q1 2020: EUR 4.0 million). "The development is all the more remarkable as, against the backdrop of the pandemic-related lockdown in many markets, there were no sales in our high-margin product area of beer tank inliners in the first quarter," explains Christoph Petri, CEO of Ringmetall AG. "On the other hand, our quality management measures are having a lasting effect and allow us to start the new year stronger."
The Industrial Handling segment, which fell noticeably short of expectations last year, is also generating thoroughly positive signals. Although segment revenue was still down 7.6 percent at EUR 2.8 million (Q1 2020: EUR 3.0 million), at the same time there was a clear upward momentum in revenue development in the first quarter. At EUR 0.3 million, segment EBITDA was already back at the level of the previous year (Q1 2020: EUR 0.3 million). Demand from the agricultural machinery segment, which had already risen at the end of 2020, has remained at an increased level in the new year. At the same time, demand from customers in the industrial truck industry picked up again for the first time compared to the year-end quarter of 2020.
In detail, the segment developed as follows in the reporting period:
"The first quarter exceeded our expectations, and it is gratifying that our efforts in recent quarters are now being reflected so clearly in rising earnings," says Christoph Petri. "However, we cannot consider the pandemic issue and its economic upheavals ended just yet. We will continue to monitor the development of business in the current second quarter and then consider whether we can in good conscience adjust our outlook for the full year upwards. Although we see positive signals, our forecast remains unchanged."
The Management Board will discuss details on the business development in the first quarter of 2021 during a conference call for analysts, institutional investors and journalists today at 14:00 CET. Registration for this is via email through Ms. Anja Brabec (firstname.lastname@example.org).
For more information on the Ringmetall Group and its affiliated subsidiaries, please visit www.ringmetall.de.
About the Ringmetall Group
|Innere Wiener Str. 9|
|Phone:||089 / 45 22 098 - 0|
|Fax:||089 / 45 22 098 - 22|
|Listed:||Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1193041|
|End of News||DGAP News Service|