Mutares in the first half of 2020 with revenue growth of 40% due to brisk transaction activity, COVID-19 with negative impact on profitability
DGAP-News: Mutares SE & Co. KGaA
/ Key word(s): Half Year Results
Mutares in the first half of 2020 with revenue growth of 40% due to brisk transaction activity, COVID-19 with negative impact on profitability - Group revenues of EUR 620.5 million (H1 2019: EUR 443.2 million) - loss of revenues due to COVID-19 in the portfolio - Group EBITDA of EUR 41.5 million (H1 2019: EUR 67.1 million) - four completed transactions lead to a gain on bargain purchases of EUR 65.8 million - Adjusted EBITDA at Group level EUR -16.7 million (H1 2019: EUR 0.0 million) - negative earnings contributions from acquired companies and COVID-19 effects - Cash and cash equivalents increase to EUR 109.3 million (31 December 2019: EUR 79.7 million) and offer scope for further value-enhancing investments - Continued brisk transaction activity expected in the second half of 2020 and consolidated revenues of more than EUR 1.5 billion for the full year
Brisk transaction activity in first half of 2020 Operational successes in some areas despite challenges caused by COVID-19 The Engineering & Technology segment was much less affected by the corona pandemic but experienced a temporary slump in demand in some areas and delays in the completion of projects. Nevertheless, the Engineering & Technology segment generated revenues of EUR 241.6 million in the first six months of the financial year 2020 (H1 2019: EUR 208.2 million²). The add-on acquisitions of the Donges Group made in the previous year and the acquisitions of Loterios for Balcke-Dürr and Ruukki for Donges, both completed in the first half of 2020, contributed to this result. The increase in EBITDA to EUR 23.1 million (H1 2019: EUR 1.5 million) is mainly due to these two add-on acquisitions. The positive development of the Adjusted EBITDA from EUR -7.2 million (H1 2019) to EUR 0.7 million reflects the positive operational progress of the investments, in particular of the Donges Group. Revenues of the Goods & Services segment increased significantly in the first half of 2020 to EUR 162.5 million (H1 2019: EUR 20.5 million²). The strong increase in revenues is due to the new platform investments of keeeper Group and BEXity in the previous year. EBITDA amounts to EUR 23.2 million (H1 2019: EUR 55.9 million), benefiting from the add-on acquisition for keeeper Group. With the exception of TréfilUnion, all investments generated a positive Adjusted EBITDA, that amounts to EUR -1.5 million (H1 2019: EUR -1.7 million) for the segment as a whole.
Cash and cash equivalents amounted to EUR 109.3 million as of 30 June 2020 (31 December 2019: EUR 79.7 million). The equity ratio of Mutares Group decreased to 16.3% (31 December 2019: 24.5%) mainly due to the balance sheet extension as a result of the high acquisition activity as well as the successful bond placement in February 2020 and the decrease in equity as a consequence of the negative net result. In June, Mutares published a further developed communication strategy that focuses on transparency with clear key figures. In addition to increasing revenues in the Group and the holding company, Mutares is aiming for a multiple on the Capital Invested (ROIC) of at least 7-10. Both components contribute to the Company's leading position in dividend yield and to create maximum shareholder value in the future. 1) Adjusted EBITDA is a key EBITDA performance indicator adjusted for special effects in order to present the operating developments of the subsidiaries in a transparent manner and to make operating earnings power comparable. The calculation is based on reported Group EBITDA adjusted for transaction-related income (bargain purchases), restructuring and other one-time expenses as well as deconsolidation effects. EBITDA differs significantly along the three phases of value creation that investments typically go through during their membership in Mutares Group (realignment, optimization and harvesting). 2) For better comparability, the previous year's figures of La Meusienne are allocated to the Engineering & Technology segment, although the integration into the Balcke-Dürr Group did not take place until December 2019.
The half-year report 2020 is available for download on the Mutares website at mutares.de/investor-relations/downloads/. Company profile of Mutares SE & Co. KGaA For further information: Contact Press
11.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Mutares SE & Co. KGaA |
Arnulfstr.19 | |
80335 Munich | |
Germany | |
Phone: | +49 (0)89-9292 776-0 |
Fax: | +49 (0)89-9292 776-22 |
E-mail: | ir@mutares.de |
Internet: | www.mutares.de |
ISIN: | DE000A2NB650 |
WKN: | A2NB65 |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange |
EQS News ID: | 1114549 |
End of News | DGAP News Service |
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1114549 11.08.2020