Group sales revenue 2023 just below, Group EBIT within the most recently announced forecast corridors

Group sales revenue 2023 just below, Group EBIT within the most recently announced forecast corridors

Forecast for 2024: Group EBIT expected to be positive again

Annual General Meeting 2024: Dividend planned despite annual loss

According to preliminary figures, Group sales of EUR 160.8 million were generated in the financial year 2023 (previous year: EUR 159.2 million). This is slightly below the previously announced corridor of EUR 161.0 million to EUR 176.0 million; the year-on-year increase is mainly generated by the Office & Industry Supplies (OFIS) business unit, while the Creative & Home (CREHO) and Collaboration @ Work (COWO) business units with the main brand "Legamaster" recorded a slight decline in sales.

The consolidated EBIT (consolidated operating result according to IFRS) is negative for the first time in the history of the edding Group and - subject to the final result of the audit of the consolidated financial statements - amounts to EUR -2.4 million (previous year: EUR 4.0 million). This negative EBIT is due to the sale of edding Argentina S.A. and the associated negative deconsolidation effects. Without this - largely technical - effect, Group EBIT would have been positive at EUR 3.1 million. We announced the high negative deconsolidation effect of  EUR 5.6 million, which is reported in a separate item in the consolidated income statement, in an ad hoc announcement on July 4, 2023. In this context, we lowered our forecast corridor for Group EBIT to between EUR -4.0 million and EUR -1.0 million.

The result is exactly in the middle of the forecast corridor.

The net loss for the year in the individual financial statements of edding AG according to German commercial law amounts to EUR -3.4 million (previous year: EUR 1.0 million) and is in the middle of the last forecast of EUR -4.5 to -2.5 million. The negative result is due to the valuation of shares in affiliated companies and receivables within the Group, which we announced in an ad hoc disclosure on December 19, 2023.

The Management Board will propose to the Annual General Meeting a reduced dividend of EUR 0.51 per preference share and EUR 0.50 per ordinary share.

For the 2024 financial year, we are again planning positive results and a moderate increase in sales revenue to between EUR 161.0 million and EUR 176.0 million. We expect Group EBIT to be between EUR 3.0 million and EUR 6.0 million and net income in the individual financial statements of edding AG to be between EUR 0.0 million and EUR 2.0 million.

About edding AG: Founded in Hamburg in 1960, the company generated Group sales revenues of EUR 160.8 million in 2023 with an annual average of 726 employees. Under the edding, Legamaster and Playroom brands, the company offers long-lasting, high-quality products and solutions for private and commercial use. The portfolio includes markers and writing instruments, visual communication products such as flipcharts, whiteboards and e-screens, innovative digital applications as well as tattoo ink. The company's fundamental values embrace responsibility towards the environment and society. As part of its current strategic transformation, the edding Group is focusing even more strongly on sustainable action: as a profit-for-profit company, the edding Group no longer sees economic success as its main target, but as a resource that enables the company to make its contribution to overcoming the major challenges facing our society.

Explanation of EBIT as an alternative performance indicator: EBIT is the abbreviation for “earnings before interest and taxes”. Total output less cost of materials, personnel expenses and depreciation and amortisation (including rights of use within the meaning of IFRS 16), plus other operating income and less other operating expenses. EBIT is the most important key figure for profitability management in the edding Group. No adjustment has been made for any extraordinary income or expenses.

Ahrensburg, 29. February 2024

edding Aktiengesellschaft

The Management Board
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Contact:
edding AG, Sönke Gooss (CFO)
Bookkoppel 7, 22926 Ahrensburg
Phone 04102/808-200, Fax 04102/808-204
e-Mail: investor@edding.de