SIMONA results for first half of 2014: Significant growth in revenue and earnings
Financial Press Releases
Kirn. In total, the SIMONA Group generated sales revenue of €163.9 million in the first half of 2014.
This represents a year-on-year increase of 16.8 per cent (first half 2013: €140.4 million). In the second quarter of 2014, sales revenue amounted to €86.8 million, up 21.7 per cent on the figure posted in the second quarter of 2013 (€71.3 million).
Revenue performance in the first half of 2014 benefited in particular from the first-time inclusion of the two entities acquired in the United States as well as from considerable forward momentum in Germany. Laminations Inc. was included in the Group financial statements effective from 1 January 2014, while Boltaron Inc. was consolidated as from 1 April 2014.
Against the backdrop of resurgent capital expenditure in the company's target markets, revenue from sales in Germany grew by 14.3 per cent to €48.6 million (prev. year: €42.6 million). The region comprising the Rest of Europe & Africa saw sales revenue increase by 5.2 per cent to €77.7 million in total (prev. year: €73.8 million). As a result of the corporate acquisitions in the United States, the Group saw an increase in sales revenue generated in the region comprising Asia, the Americas and Australia. Revenue for this region amounted to €37.6 million (prev. year: €24.0 million). The region encompassing Asia, the Americas and Australia accounted for 23 per cent of total sales revenue, up from 17 per cent.
"We have already seen the first signs of success from our programme of strategic reengineering," said Wolfgang Moyses, CEO of SIMONA AG. "Two focal points of this strategy are to strengthen our ability to innovate and reduce our reliance on Europe. Having expanded revenue from new products markedly and raised the proportion of sales generated outside of Europe as a result of our two acquisitions in the US, we succeeded in meeting this goal in the first half," said Moyses when commenting on the company's achievements.
The Group's earnings performance was satisfactory in part. EBIT was more than doubled in the reporting period. However, the prior-year comparative base was relatively low, and the Group failed to meet the target margin of 5%. Earnings before interest and taxes (EBIT) at Group level totalled €5.6 million (prev. year: €2.7 million). The EBIT margin was 3.4 per cent (prev. year: 2.0 per cent).
SIMONA anticipates that revenue will total €330-340 million in the financial year 2014 as a whole. From the current perspective, the Group will not be in a position to achieve its targeted EBIT margin of 5 per cent. This is attributable to restructuring expenses associated with the planned amalgamation of sites operated by SIMONA AMERICA Inc. and Laminations Inc. as well as nonrecurring acquisition costs.