- Net profit for Q2 almost doubled;
net profit for 9M increases by 37% - Higher capacity utilisation in print division
contributes to earnings growth - EBT forecast for FY 2004/5 reaffirmed
Freudenstadt, 11 May 2005 - schlott gruppe has confirmed its preliminary results for the second quarter (January to March) of the 2004/5 financial year, as announced on April 26.
On the back of a highly successful first quarter, net profit was propelled upwards even further in what is traditionally considered to be one of the less buoyant periods of the season. It grew significantly from €0.7 million in Q2 2003/4 to €1.3 million in Q2 2004/5; earnings per share increased from €0.11 to €0.22. In the first half, net profit rose by 37 per cent to €7.0 million, compared with €5.1 million in the same period a year ago; earnings per share for the first six months of the current financial year increased from €0.82 to €1.13. Earnings before taxes (EBT) for Q2 surged by 25.0 per cent to €2.0 million, compared with €1.6 million in the same period a year ago. EBT for the first six months rose by 27% year on year, up from €9.0 million to €11.4 million (comparable figures for previous periods, i.e. adjusted for systematic goodwill amortisation now no longer applicable).The significant improvement in earnings is attributable to the successful business performance recorded within the print division, which achieved higher capacity utilisation compared with the same period a year ago, coupled with a considerable increase in value-added sales and further improved cost structures. On this basis, the company more than compensated for its sluggish direct marketing division.
The weaker than expected performance of direct marketing resulted in a decline in value-added sales for the Group, i.e. sales adjusted for transitory material-related expenses, to €78.8 million in the second quarter, compared with €79.1 million in the same period a year ago. Calculated on the basis of the first six months, value-added sales rose by 0.8 per cent to €171.8 million, after €170.4 million in the same period a year ago. Reported revenue for the Group increased to €138.2 million in the second quarter, compared with €133.1 in Q2 2003/4, mainly as a result of invoices accounted for in the second quarter relating to goods/services completed in the previous quarter. In line with value-added sales, revenue generated in the first half rose by 0.9 per cent from €293.6 million in 9M 2003/4 to €296.2 million.
The outstanding first-half result provides a solid basis for the original EBT forecast issued for the 2004/5 financial year; schlott gruppe has reaffirmed EBT comparable to last year’s figure, despite the fact that additional one-off costs incurred as a direct result of ongoing wage negotiations within the printing industry cannot be ruled out by the Group.
Notes to financial data:
Alongside “revenue/sales”, schlott gruppe uses so-called “value-added sales” as a financial indicator – both in its external communications and as part of its internal controlling mechanisms. Revenue is subject to fluctuations that are attributable to the volume of paper supplied by customers as raw material for certain projects. In contrast to paper purchased directly by the company, paper supplied by customers is not included in the accounts of schlott gruppe. In the 2003/4 financial year, the so-called paper provision ratio was 72.3 per cent. As a financial indicator, “value-added sales” eliminates fluctuations relating to paper supplied by customers, thus reflecting the actual sales performance.
The Group has categorised its activities into three business units: print, direct marketing and corporate services. Revenues and earnings generated by corporate services are derived solely from internal charging for services rendered as well as internal cost allocation. The results for the Group as a whole outlined above are derived from the print and direct marketing business units as well as the corporate services unit and consolidation effects.
All data communicated as part of this release has been presented in a manner that is conducive to comparability, i.e. goodwill amortisation accounted for in the previous year has been added to the results associated with that period on a pro-forma basis. All adjustments have been disclosed in the quarterly report for the purpose of transparency.
Interim Report 2nd quarter 2004/5
