KROMI Logistik AG publishes 6-month report for 2016/2017
- Revenue raised to KEUR 33,981 (previous year: KEUR 32,927)
- Stable revenue development in home market with significant growth abroad
- Very positive development in Brazil: revenue in BRL 60 % up on previous year
- Gross profit margin increased to 25.2 % (previous year: 24.0 %)
- Operating result (EBIT) of KEUR 705 generated
Hamburg, 15 February 2017 – KROMI Logistik AG, supplier of integrated tool logistics solutions for manufacturers, today presented its report for the first six months of the 2016/2017 financial year (1 July to 31 December 2016). The report shows that the company succeeded in increasing its revenues by 3.2% to KEUR 33,981 (previous year: KEUR 32,927). The increase in operating result (EBIT) in the reporting period was disproportionately high.
The first six months of the 2016/2017 financial year saw the profitable path of growth maintained even in the traditionally weaker first half of the financial year, with revenue and earnings enjoying positive development. Domestic revenue stood at KEUR 20,623 which was slightly higher than for the previous year (KEUR 20,619) despite considerable falls in revenue from two customers and the fact that the overall business was affected by several national holidays in October 2016. The operating business outside Germany showed very pleasing growth: foreign markets posted revenue of KEUR 13,358 which exceeded the figure for the previous year (KEUR 12,308) by around 8.5%.
Jörg Schubert, CEO of KROMI Logistik AG, commented as follows: “We were able to maintain revenue at a high level in our home market. Growth in international markets was very pleasing, especially in Brazil. Calculated in Brazilian Real, revenue grew by 60% and even by 81.5% in Euros. In view of our Brazilian subsidiary’s great success in winning new customers, we see further great potential in the Brazilian market.” Uwe Pfeiffer, CFO of KROMI Logistik AG, added: “The growth in KROMI Logistik’s earnings must also be highlighted. In the first half of 2016/2017 we posted an EBIT figure of KEUR 705 following KEUR -288 in the previous year. And we are also profitable in terms of the Group’s bottom line net profit of KEUR 356.” In the reporting period 2015/2016, KROMI Logistik had posted net loss of KEUR -694.
Material expenditure only increased marginally by comparison with the previous year, climbing from KEUR 25,037 to KEUR 25,406. The cost of materials ratio fell significantly as a result to 74.8 % (previous year: 76.0 %). Thanks to this development, the gross profit margin rose to 25.2 % (previous year: 24.0 %), once again underlining KROMI Logistik’s consistently high sales quality. This is the result of strong customer loyalty achieved by means of the innovative business model of a full service provider along the tool-intensive stages of pre-production.
Personnel expenditure rose from KEUR 4,919 to KEUR 5,323 by comparison with the same period in the previous year. The personnel cost ratio was 15.7 % which exceeded the figure for the previous year (previous year: 14.9 %). The higher personnel expenditure is primarily due to the extra staff needed in Brazil as a result of its successful new business. By contrast with previous years, foreign currency movements are having a positive effect on operating results, contributing KEUR 289 (previous year: KEUR -1,003). Against this background, KROMI is showing an operating result (EBIT) of KEUR 705 in the first half of 2016/2017 following KEUR -288 in the previous year. The pure operating result before foreign exchange effects amounts to KEUR 416 (previous year: KEUR 715).
For the financial year 2016/2017, the Managing Board is assuming revenue growth in the mid-single digits. This means the Group’s budget is higher than the 1% forecast made by the German Engineering Federation (VDMA) for the precision tools sub-sector in the 2016 calendar year. In this context, the Managing Board is expecting to see continuous improvement, including in operating profit. Decisive factors for the growth of earnings will be, in particular, the economy which will in turn determine the production levels of KROMI’s customers. If these show positive growth, the Managing Board will target a further increase in its operating result (EBIT) as part of its successive, profitable growth strategy.
KROMI Logistik AG will make its full report in accordance with IFRS for the first six months of 2016/2017 available for downloading on its website www.kromi.de in the Investor Relations section in the course of the day.
KROMI Logistik AG offers manufacturing companies at home and abroad an end-to-end outsourcing concept to supply them with precision machining tools (“tool management”), in particular technically sophisticated machining tools (tools subject to wear and tool holders, e.g. drills) for processing metals and plastics. KROMI Logistik combines the traditional tool trade with local supply via fully automated tool dispensing on the customer’s premises and an IT-based tool management and tool controlling system. The aim of KROMI Logistik’s business is to optimize the supply of operating materials to its customers, particularly tools, on a sustainable basis, and to ensure the availability of the right equipment in the right place at the right time. The company currently maintains a presence in four locations in Germany and four abroad (Slovakia, Czech Republic, Spain and Brazil) as well as operating in six further European countries. KROMI Logistik focuses primarily on customers in the sectors of general mechanical engineering, automotive suppliers, aerospace and marine engine construction.
On the internet at: www.kromi.de
Investor Relations contact:
Tel.: +49 (0)611-205855-28
Fax: +49 (0)611-205855-66