KROMI Logistik AG publishes 6 month report 2015/2016
- Revenue increased by 10.3% to KEUR 32,927 (previous year: KEUR 29,855)
- Adjusted, underlying operating result improved by more than 50% to KEUR 715
- Outlook confirmed: further revenue growth in the upper single digit percentage range and gradual increase in operating earnings (EBIT) targeted for the current financial year
Hamburg, February 17, 2016 – KROMI Logistik AG, supplier of integrated tool logistics solutions for manufacturing companies, today published its report for the first six months of the financial year 2015/2016 (July 1 to December 31, 2015). The report shows that the company has succeeded in increasing revenue by 10.3% to KEUR 32,927 (previous year: KEUR 29,855). Revenue in the relevant target sectors showed positive growth. The operating result (EBIT) before foreign exchange effects associated with the fall of the Brazilian Real against the Euro, saw an exceptional increase in the reporting period.
In the first six months of the 2015/2016 financial year, KROMI Logistik succeeded in expanding its customer base in existing markets and intensifying its collaboration with existing customers, in line with its strategic objectives. In the process, the company benefited from having a well-balanced customer structure spread across several sectors and markets at home and abroad. In Germany, KROMI Logistik not only successfully expanded its business with existing customers in the reporting period but was also able to win new customers in different sectors. As a result, revenue in its home market in the 2015/2016 reporting period grew by 6.3%, increasing from KEUR 19,406 in the previous year to KEUR 20,619. Outside Germany, the operating business also showed very good overall growth: revenue abroad reached KEUR 12,308 which represented an increase of 17.8% over the previous year (KEUR 10,449).
Jörg Schubert, CEO of KROMI Logistik AG, commented as follows: “We are proud to have succeeded in increasing our overall revenue at home and abroad in spite of the economic challenges in Brazil. This means that we were able to compensate for the decline in revenue in Brazil very successfully. In view of the new customers won by our Brazilian subsidiary, we continue to see potential in the Brazilian market.” Uwe Pfeiffer, CFO of KROMI Logistik AG added: “We are very happy with the development of the operating business in the reporting period. This is also reflected by the exceptional increase of our operating results. In view of this development we see ourselves as well positioned for the current 2015/2016 financial year.”
The cost of materials increased in absolute terms from KEUR 22,416 in the previous year to KEUR 25,037 due to the expansion of operating activities. The cost of materials ratio stood at 76.0% in the reporting period (previous year: 75.1%). The gross margin on revenue (gross earnings margin) reflected this development and stood at 24.0% (previous year: 24.9%). Overall, therefore, the gross earnings margin remains within KROMI Logistik’s target corridor.
Personnel expenditure increased from KEUR 4,414 in the previous year to KEUR 4,919. The personnel cost ratio was therefore 14.9% which was only slightly higher than for the previous year (14.8%). “The rise in personnel costs was due to new appointments for customers who are in the preparatory or start-up phase of supply. They were therefore not able to make a full contribution towards revenue”, explains Pfeiffer.
KROMI is posting an operating result (EBIT) of KEUR -288 for the first six months of 2015/2016 following KEUR 130 in the previous year. Adjusted to take account of expenditure arising from the unrealized impairment losses of the Brazilian business, the underlying operating result is KEUR 715 which represented an increase of 56.5% over the previous year (previous year: KEUR 457). Bottom line consolidated earnings stood at KEUR -694. Adjusted to take account of the foreign exchange effects of the Brazilian Real against the Euro which do not impact the cash position, the consolidated result amounts to KEUR 309.
“In the first six months of 2015/2016, we were able to significantly increase both revenue and the underlying operating result before foreign exchange effects by comparison with the previous year. This reflects the substance and stability of our business model. For the future, we plan to further internationalize the company, after carefully weighing up the opportunities and risks, to consolidate markets and to systematically refine our business model. In this way, we want to grow profitably and establish further unique selling points”, says Schubert. In this connection, the Board confirms its forecast of achieving revenue growth for the year in the upper single digit percentage range. In addition, KROMI Logistik is targeting further increases in its EBIT figure – assuming stable economic developments.
In the course of the day, KROMI Logistik AG will provide its complete report for the first six months of 2015/2016 prepared in accordance with IFRS on its website www.kromi.de in the Investor Relations section and available for downloading.
KROMI Logistik AG offers manufacturing companies end-to-end outsourcing for their supply of precision machining tools, both in Germany and abroad. The company focuses on technically advanced machining tools for metalworking (consumable and cutting tools, e.g. drills). KROMI Logistik combines conventional tool retailing with a decentralised tool supply system that includes output machines in the customer’s production area and an IT-based tool management and controlling system. KROMI Logistik’s aim is to sustainably optimise the supply of resources (particularly tools) for its customers and to secure the availability of the appropriate resources at the right time and in the right place. The company is currently represented at four locations in Germany and four abroad (Slovakia, Czech Republic, Brazil and Spain), and is active in six other European countries. To date, KROMI Logistik has primarily focused on customers in the machine engineering, automotive suppliers and aerospace sectors as well as marine engine construction.
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