KROMI Logistik AG maintained profitable growth in first quarter of 2017/2018
- Significant sales increase of 12.7 %, well above market average
- Profitability improved with gross profit margin of 25.4 %
- Operating earnings (EBIT) more than tripled at EUR 627 thousand
Hamburg, November 9, 2017 – KROMI Logistik AG, supplier of integrated tool logistics solutions for manufacturing companies, has posted a year-on-year increase in sales revenues of 12.7 % in the first quarter of the financial year 2017/2018. Revenues of EUR 19,162 thousand were generated between July 1, 2017 and September 30, 2017 (previous year: EUR 17,004 thousand). Operating earnings (EBIT) rose significantly faster than sales, climbing to EUR 627 thousand (previous year: EUR 199 thousand).
In the first three months of the financial year 2017/2018, KROMI Logistik was again able to build on the successful growth of 2016/2017. In the process, the company maintained the positive trend of the previous year both at home and abroad in all the main branches of industry. As well as good growth in Germany and European countries outside Germany, the Brazilian subsidiary once again displayed a very dynamic performance. Sales in Germany grew by 6.4 %, increasing from EUR 10,655 thousand in the previous year to EUR 11,341 thousand. Sales in European countries outside Germany stood at EUR 6,027 thousand, an increase of 16.3 % over the previous year (EUR 5,183 thousand). This positive trend was also evident in Brazil where KROMI Logistik was able to raise sales by 53.8 % from EUR 1,166 thousand in the previous year to EUR 1,794 thousand.
“KROMI Logistik is growing far faster than the market average for precision and machining tools. This is all the more remarkable as the first quarter of KROMI’s financial year is always affected by the summer holiday phase in which manufacturing industry normally performs weakly. We therefore see ourselves as fully on course to deliver further profitable growth”, explains Jörg Schubert, CEO of KROMI Logistik.
The cost of materials increased in the first quarter of 2017/2018 to EUR 14,302 thousand (previous year: EUR 12,713 thousand) although the cost of materials ratio improved slightly in the reporting period, standing at 74.6 % (previous year: 74.8 %). This results in a corresponding improvement in the gross margin on sales (gross profit margin) of 25.4 % (previous year: 25.2 %). Personnel costs rose slightly from EUR 2,615 thousand in the same period in the previous year to EUR 2,692 thousand. The personnel cost ratio improved markedly to 14.0 % (previous year: 15.4 %). Depreciation amounting to EUR 183 thousand was slightly below the level for the previous year, following EUR 199 thousand in the first three months of 2016/2017.
These pleasing trends in the reporting period are also reflected in earnings. KROMI Logistik was able to increase operating earnings (EBIT) significantly faster than sales with the figure climbing to EUR 627 thousand (previous year: EUR 199 thousand). A tax audit for the years 2011 to 2015 led to an additional income tax liability in the reporting period and therefore to higher income taxes totaling EUR 393 thousand (previous year: EUR 76 thousand). In the first three months of 2017/2018, KROMI Logistik is showing improved consolidated earnings of EUR 123 thousand (previous year: EUR 9 thousand).
Uwe Pfeiffer, CFO of KROMI Logistik, reveals his overall satisfaction: “Buoyed by these exceptionally good results over the first three months, we see KROMI Logistik on course for further growth. We aim to be relentless in exploiting future opportunities. We consider ourselves to be well armed to do so in view of the successful opening of our third facility in Brazil, the growth investment made in our staff and organization as well as the continuing alignment of our range of goods and services with Industry 4.0. We also have sufficient equity and liquidity reserves to maintain stable, profitable growth.”
In the course of the day, KROMI Logistik will provide the complete report for the first three 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 offers companies in the manufacturing sector at home and abroad end-to-end outsourcing to supply them with precision machining tools (“tool management”). The focus is on technically sophisticated machining tools (wearing tools and tool holders, e.g. drills) for processing metal and plastic. KROMI Logistik combines the traditional tool trade with local supply through fully automated tool dispensing in customers’ manufacturing areas, and an IT-based tool management and controlling system. The aim of KROMI Logistik’s business activities is to optimize the supply of operating materials to its customers, particularly tools, on a lasting basis, and to ensure that the right equipment is available in the right place at the right time. The company currently has a presence in four locations in Germany and four abroad (Slovakia, the Czech Republic, Spain and Brazil), as well as operating in six other European countries. KROMI Logistik has so far focused primarily on customers in the sectors of general mechanical engineering, automotive suppliers, aerospace and marine engine construction.
On the internet at: www.kromi.de
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