KROMI Logistik AG: KROMI Logistik AG increases sales and optimizes strategy
- First nine months of 2017/18 with 13.8 % jump in sales by comparison with previous year
- Operating earnings boosted by 31.5 %
- Strategic optimization puts emphasis on maximizing benefit to customers
Hamburg, May 8, 2018 – KROMI Logistik AG, an independent expert in optimizing tool availability and tool deployment in machining operations, achieved sales growth of 13.8 % by comparison with the previous year in the first nine months of the 2017/2018 financial year. Between July 1, 2017 and March 31, 2018, the company generated revenues of KEUR 61,765 (previous year: KEUR 54,269). KROMI succeeded in boosting EBIT – adjusted to take account of non-operating effects not impacting the cash position – by 31.5 % to KEUR 1,679 in the same period (previous year: KEUR 1,277).
Developments in the first nine months of the 2017/2018 financial year reflect the high business potential of KROMI’s attractive business model. KROMI succeeded in increasing sales revenues in its domestic business by 11.6 % to KEUR 36,887 (previous year: KEUR 33,051). Business in European countries outside Germany also showed positive growth with sales of KEUR 19,358 (previous year: KEUR 17,372). In addition, business in Brazil once again exhibited particularly dynamic performance. In the first nine months, this segment contributed KEUR 5,520 towards sales (previous year: KEUR 3,846) which corresponds to growth of 43.5 %.
“KROMI has been growing significantly faster than the market for some time. Numerous, promising dialogs with potential new customers confirm our impression that more and more companies now discern and appreciate the benefit of working with KROMI. As a specialist in machining technology and as a data manager for our customers, we see ourselves as excellently positioned, particularly with regard to Industry 4.0”, reports Bernd Paulini, spokesman for KROMI’s Management Board.
The cost of materials increased in the first nine months of 2017/2018 to KEUR 47,467 (previous year: KEUR 40,821) which results in a higher cost of materials ratio of 76.9 % (previous year: 75.2 %). As a consequence, the gross margin on sales (gross profit margin) has dropped to 23.1 % (previous year: 24.8 %). This development is essentially due to the winding up of a supply contract with a major customer. By comparison with the same period in the previous year, personnel costs rose from KEUR 7,934 to KEUR 9,419 which corresponds to a higher personnel cost ratio of 15.2 % (previous year: 14.6 %). This development is due to the one-off special effect of a provision not impacting liquidity in the wake of the departure of former Chairman Jörg Schubert. Adjusted to take account of this special item, the personnel cost ratio fell to 13.4 %. Depreciation amounting to KEUR 602 in the first nine months of 2017/2018 was slightly below the level of the previous year of KEUR 625.
Operating earnings, i.e. EBIT adjusted to take account of non-operating effects with no effect on the cash position, increased by 31.5 % from KEUR 1,277 in the previous year to KEUR 1,679. Operating earnings (EBIT) amounted to KEUR -23 following KEUR 1,659 in the previous year. These changes are due to the unscheduled personnel cost provision already mentioned and to imputed foreign exchange losses of KEUR 568 (previous year: foreign exchange gains of KEUR 382). Taxes on income fell to KEUR 351 (previous year: KEUR 396). Overall, this resulted in consolidated earnings of KEUR -660 for the first nine months of 2017/2018 (previous year: KEUR 952).
“In spite of the high potential of our business, we have had to adjust our earnings forecast for the 2017/2018 financial year due to unscheduled events within the reporting period. We are now expecting operating earnings to come in at breakeven or to show a slight profit before extraordinary, non-operating items resulting from foreign currency translation and the provision in connection with the departure of the former Chairman of the Board Jörg Schubert. In terms of sales in 2017/2018, we are still forecasting growth in the upper single-digit percentage range by comparison with the previous year”, says CFO Uwe Pfeiffer commenting on the results.
As Bernd Paulini adds: “Together with the Supervisory Board, we in KROMI’s management team have decided to place even greater emphasis on maximizing customer benefits in our actions to enable us to exploit the existing potential even more efficiently in the future. As an expert in optimizing the availability and deployment of tools in machining operations which has no allegiance to any particular manufacturer, we analyze customers’ processes and data in detail. The aim is to identify improvement potentials for customers and incorporate tool supply with all requisite services to the best possible effect. This also includes analyzing our own processes and process costs to make them leaner and develop alternative price models to enable us in the future to offer our customers models that are even more transparent and customized.”
In the course of the day, KROMI will provide the complete report for the first nine months of 2017/2018 prepared in accordance with IFRS on its website www.kromi.de in the Investor Relations section for downloading.
KROMI Logistik AG (KROMI), Hamburg, is an independent expert in optimizing the availability and deployment of tools in machining operations. As a trustworthy and transparent partner to industry, KROMI combines machining technology, data management and lean logistical processes to form winning overall solutions. By providing networked, automated dispensers in the customer’s manufacturing area with simultaneous, digital stock control, KROMI ensures optimum use and availability of the necessary equipment in the right place at the right time. The aim of KROMI’s activities is to offer machining operations in the core markets of Europe and Brazil the highest benefit to customers at all times. To this end, the customer’s processes are analyzed in detail, opportunities and potential for improvement identified and tool supply with all requisite services thus incorporated to the best possible effect. KROMI currently maintains facilities in Germany, Slovakia, Czech Republic, Spain and Brazil. KROMI also operates in five other European countries.
On the internet at: www.kromi.de
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