KROMI publishes 2017/2018 annual report
- Revenue exceeds EUR 80 million mark for the first time
- Result from operations (EBIT) of EUR -1,037 thousand burdened by special effects
- Purely operative profit (EBIT before special effects) at EUR 1,346 thousand
- Strategic realignment forms the basis for sustainable value for customers
Hamburg, September 28, 2018 – KROMI, a manufacturer-independent expert in optimising tool availability and tool deployment in machining operations, generated revenue of EUR 80,384 thousand in the 2017/2018 fiscal year (previous year: EUR 74,306 thousand). With 8.2 % year-on-year revenue growth, revenue thereby exceeded the EUR 80 million mark for the first time. Operating profit (EBIT adjusted for non-operative effects) amounted to EUR 1,346 thousand (previous year: EUR 2,324 thousand). At the same time, KROMI is further developing the company’s strategic position under its new claim “Tooling – One step ahead”, in order to extend its market penetration and thereby lay the foundation for further growth.
The significant revenue growth in the 2017/2018 fiscal year reflects the high capacity utilisation in the company’s diversified sectors and markets. Revenue in the core market of Germany grew by 3.3 %, from EUR 44,414 thousand in the previous year to EUR 45,892 thousand. Revenue in European markets outside Germany was up by 10.5 %, from EUR 24,381 thousand in the previous year to EUR 26,947 thousand. The Brazil business improve further, achieving 36.9 % revenue growth to EUR 7,544 thousand (previous year: EUR 5,511 thousand).
The result from operations (EBIT) amounted to EUR -1,037 thousand in the 2017/2018 reporting year (previous year: EUR 2,042 thousand). This change is mainly attributable to special effects in connection with the stepping down from office of the former CEO as of December 31, 2017 (EUR 1,245 thousand), accounting-based currency losses in connection with the business in Brazil (EUR 1,138 thousand), as well as project-related expenses for the further development of the business model. Adjusted for the special effects, operating profit amounted to EUR 1,346 thousand (previous year: EUR 2,324 thousand).
Bernd Paulini, Managing Board Spokesman, comments: “Despite pleasing revenue growth, we report an unsatisfactory earnings trend due to greater margin pressure. With the further development of our product strategy and the launching of important structural measures to secure growth, we fully expect a significantly improved cost structure that secures good and stable profitability. This necessitated extraordinary expenses last year, which will continue to burden our earnings in the current 2018/2019 fiscal year. I am convinced that the new product and service strategy developed under our claim “Tooling – One step ahead” will lead to extended market penetration. With the competency areas of Tools, Technology, Logistics and Data, customers are to be offered a spectrum of top technical performance, maximum availability and comprehensive transparency. Customers can then select the most economically viable option to suit their needs.”
CFO Uwe Pfeiffer adds: “We will grow significantly with both existing and new customers. However, the loss of revenue which becomes fully effective for the first time in this current fiscal year and which arose from the ending of a supply contract with a key customer will not be fully offset.”
For this reason, the Managing Board assumes a year-on-year decrease in sales revenue in the mid single-digit percentage range for the 2018/2019 fiscal year. Given the burdening effects of strategically necessary one-off expenses for the further development of the business model, the Managing Board anticipates a negative result from operations in the low six-digit range.
Over the course of the day, KROMI will make its full report for the 2017/2018 fiscal year available for downloading on its website at www.kromi.de within the Investor Relations area.
KROMI, Hamburg, is a manufacturer-independent expert in optimising tool availability and tool deployment in machining operations. As a reliable and transparent partner to industry, KROMI combines machining technology, data management and streamlined logistics processes to form compelling all-round solutions. Thanks to interconnected dispensers in customers’ production areas in combination with digital inventory controlling, KROMI ensures the optimal utilisation and availability of the requisite working resources at the right time and in the right place. The activities of KROMI aim to always offer maximum value for customers’ machining operations in its core markets of Europe and Brazil. This entails analysing in detail processes on the customer side and identifying opportunities and potential improvements, in order to optimally integrate tool supplies with all requisite services. KROMI currently has sites in Germany, Slovakia, the Czech Republic, Spain and Brazil. KROMI is also active in five further European countries.
Visit us on the Internet at: www.kromi.de
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