DGAP-News: KAP WITH SOLID BUSINESS DEVELOPMENT IN THE FIRST HALF OF THE YEAR DESPITE COVID-19 BURDENS - MANAGEMENT BOARD SUBSTANTIATES OUTLOOK 2020
Fulda, 21 September 2020 - The first half of the 2020 financial year was challenging for KAP AG, a publicly listed, mid-sized industrial.
DGAP-News: KAP AG / Key word(s): Half Year Results KAP WITH SOLID BUSINESS DEVELOPMENT IN THE FIRST HALF OF THE YEAR DESPITE COVID-19 BURDENS - MANAGEMENT BOARD SUBSTANTIATES OUTLOOK 2020 21.09.2020 / 16:13 The issuer is solely responsible for the content of this announcement. KAP WITH SOLID BUSINESS DEVELOPMENT IN THE FIRST HALF OF THE YEAR DESPITE COVID-19 BURDENS - MANAGEMENT BOARD SUBSTANTIATES
Fulda, 21 September 2020 - The first half of the 2020 financial year was challenging for KAP AG, a publicly listed, mid-sized industrial. This was particularly due to considerably weaker business development in Q2 compared to the previous year as a result of the COVID-19 pandemic. In contrast, the diversified investment portfolio was able to partially cushion the impact. Revenue decreased by 14.6% to EUR 170.3 million in the first half of the year (previous year: EUR 199.5 million). Adjusted earnings before interest, taxes, depreciation and amortisation ("adjusted EBITDA") declined to EUR 17.6 million and were thus EUR 0.8 million below the previous year's figure (EUR 18.4 million). The adjusted EBITDA margin thus increased by 1.6 percentage points to 10.8% (previous year: 9.2%). EBITDA rose by 8.3% to EUR 18.3 million (previous year: EUR 16.9 million). During the first half of the year, measures to cut personnel costs were taken at an early stage in response to the COVID-19 pandemic. This includes temporary shutdowns of production sites in Germany, China, India, Hungary, Poland, Portugal and the USA as well as short-time work at a number of sites in Germany and one site in Sweden. In order to protect employees and curb the further spread of COVID-19, employees in large parts of the Group worked from home as far as possible. In addition, staff training was conducted on minimising the risk of infection. To date, only 6 employees in the KAP Group has been infected with COVID-19. "The COVID-19 pandemic presented us with major challenges in the first half of 2020. Because of our diversified segment strategy, we were, nevertheless, able to generate revenues of around EUR 170 million and, in fact, significantly improve our operating profitability. We will continue to monitor the course of the pandemic closely. We remain committed to our long-term goals and are thus creating the conditions for sustainable business success," says Eckehard Forberich, Spokesman of the Management Board of KAP AG. Automotive-focused segments more affected by the COVID-19 pandemic In the flexible films segment, the effects of the pandemic were only partially felt thanks to its broad diversification and high flexibility. Revenue increased by 5.4% to EUR 50.9 million in the first half of the year (previous year: EUR 48.3 million). The decline in the automotive business areas was more than offset by growth in other areas and the creation of new sales opportunities. EBITDA increased by 39.7% to EUR 8.1 million due to a significant improvement in the profit margin (previous year: EUR 5.8 million). In the surface technologies segment, which mainly operates in the automotive sector, revenue fell by 26.7% to EUR 25.2 million in the first half of 2020 (previous year: EUR 34.4 million). However, thanks to the swift implementation of measures, high personnel costs could be saved. EBITDA increased by over 100 % to EUR 10.8 million (previous year: EUR 5.2 million) due to non-recurring effects totaling EUR 5.6 million. Adjusted EBITDA was EUR 3.4 million (previous year: EUR 5.8 million). In the precision components segment, revenue decreased by 30.3% to EUR 18.6 million in the first half of 2020 (previous year: EUR 26.7 million). The first three months of the year were shaped, among other factors, by the establishment of a new segment organisation (particularly in sales), the intensification of sales activities and the definition of sales channels. In addition, COVID-19 was a decisive factor for the segment's development because more than 90% of the segment's deliveries involve the global automotive sector. EBITDA fell by EUR 3.1 million to EUR 0.1 million (previous year: EUR 3.2 million). In the it/services segment, revenue increased by 2.9% to EUR 10.6 million in the first half of 2020 (previous year: EUR 10.3 million). This positive development is due to the accelerated trend towards digitalisation, the sale of software subscriptions and newly awarded projects. Furthermore, the segment was awarded a major project in Austria in the field of data analytics, which will be implemented during the year. EBITDA grew to EUR 1.8 million (previous year: EUR 1.3 million). Forecast for the 2020 financial year The complete 2020 half-year report is available on the company's website at https://www.kap.de/en/investor-relations/reports/half-year-reports. [1] Adjusted for non-recurring effects of insured losses in 2019, restructuring and severance payment costs and transaction-related advice fees in a net amount of EUR 0.7 million. Kirchhoff Consult AG
21.09.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | KAP AG |
Edelzeller Straße 44 | |
36043 Fulda | |
Germany | |
Phone: | 06611030 |
Fax: | 0661103830 |
E-mail: | [email protected] |
Internet: | www.kap.de |
ISIN: | DE0006208408 |
WKN: | 620840 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange |
EQS News ID: | 1134515 |
End of News | DGAP News Service |
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1134515 21.09.2020