KROMI Logistik AG publishes 2015/2016 annual report
- Revenue growth of 9.7 % to EUR 69,481 thousand significantly outpaces overall market
- EBIT more than doubles to EUR 1,283 thousand
- Gross profit margin of around 24 % shows high sales quality
- Strategy succeeds in major international customer business
- Further profitable growth aimed for in FY 2016/2017
Hamburg, September 28, 2016 – KROMI Logistik AG, the provider of end-to-end tool logistics solutions for manufacturing companies, has today published its complete report for the 2015/2016 fiscal year (as of June 30, 2016). The company grew its revenue further to EUR 69,481 thousand in the fiscal year elapsed (previous year: EUR 63,341 thousand). This 9.7 % growth lies significantly ahead of the overall market, which only increased by around 3 %, and reflects the good interplay of business model, strategy, customer acquisition successes and a tailwind from the company’s target sectors.
With this business progression KROMI Logistik regards itself as on the right track overall to further develop its growth internationally from its stable and continued promising domestic base. While revenue in Germany advanced by 4.9 % to EUR 42,237 thousand (previous year: EUR 40,260 thousand), export revenue was up by 18.0 % to EUR 27,244 thousand (previous year: EUR 23.081 thousand). On a sector analysis, the revenue growth during FY 2015/2016 was generated across all of the company’s relevant target sectors of automotive suppliers, aerospace and general engineering. The slight decline in marine engine construction was more than offset due to this broad positioning. It is consequently clear that the diversification of sales among different sectors also helps to stabilise and dynamise the business of KROMI Logistik.
The constantly attractive gross profit margin of around 24 % also reconfirmed the consistently high sales quality during the fiscal year elapsed, which arises from strong customer loyalty achieved through the innovative business model of a full service supplier along tools-related steps in preproduction. This growth is also correspondingly reflected in a profitable earnings trend: operating profit (EBIT) improved to EUR 1,283 thousand, representing a more than doubling year-on-year (previous year: EUR 578 thousand). Unrealised currency effects from the Brazilian real compared with the euro also continued to burden earnings, although not to the same extent as in the previous year. Before currency effects, KROMI Logistik reported a marked 22.3 % increase in pure operating earnings to EUR 1,489 thousand (previous year: EUR 1,283 thousand). After deducting income taxes, the consolidated net result reflected a profit of EUR 409 thousand, compared with a loss of EUR -153 thousand in the previous year.
This provides confirmation of the internationalisation strategy of KROMI Logistik with subsidiaries and branch operations in ten Western European countries as well as in Brazil. The aim is to prioritise the acquisition of international groups with attractive sales potential and to drive further expansion from this base. In this context, especially the positive operating development in Spain is to be highlighted. In Spain, KROMI Logistik is observing a growing willingness to invest thanks to the economic recovery, from which KROMI Logistik is also benefiting. The successful acquisition of new customers in Brazil made a further important contribution to the successful progression of business in 2015/2016. Despite a continued fraught economic situation in Brazil, KROMI Logistik succeeded in keeping its revenue stable when expressed in the relevant domestic currency, the Brazilian real. Declining revenues with existing customers were largely compensated with new-customer business.
Jörg Schubert, CEO of KROMI Logistik AG, comments: “We have invested a lot in acquiring internationally active major customers over the past years and expanded our personnel base accordingly. After an extended start-up phase was needed due to normal decision-making processes within corporate groups, we can now also increasingly achieve the revenues that such hiring is anticipated to generate.” The company is correspondingly optimistic for the future too. Uwe Pfeiffer, CFO of KROMI Logistik, comments: “We have not only invested in personnel, but also in our organisation. We have strengthened our management level with additional managers, restructured responsibilities and started to professionalise our IT systems with the launch of SAP. As a consequence, we see good opportunities for further profitable growth for the current 2016/2017 fiscal year.”
With a look to the 2016/2017 fiscal year, the Managing Board assumes that revenue growth will be recorded in the mid single-digit percentage range. Consequently, the Group’s plan outpaces the VDMA’s forecast range of 1 % for the precision tools sub-segment in calendar 2016. KROMI expects a continuous improvement in its operating earnings in this connection, too. Market developments, and consequently KROMI customers’ production levels, will comprise especially decisive factors for the company’s earnings trends. If these perform positively, the Management Board aims for further growth in pure operating earnings before interest and tax (EBIT) as part of its gradual and profitable growth strategy.
Over the course of the day, KROMI Logistik AG will make its full IFRS consolidated financial statements for the 2015/2016 fiscal year available for downloading on its website at www.kromi.de within the Investor Relations area.
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 and plastics (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. The aim of KROMI Logistik 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 sectors of general machine engineering, automotive suppliers, aerospace and marine engine construction.
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