Today, POLYTEC Holding AG published its annual financial statements and business report for the 2019 financial year, including the outlook for the 2020 financial year. The formulation of the outlook is based on market assumptions and estimates as at 5 March 2020. The consolidated and POLYTEC Holding AG financial statements for the 2019 financial year were prepared in January and February 2020. They were examined by the external auditor and the internal auditing committee at the beginning of March 2020 and subsequently released for publication. The content of the annual financial statements and business report published today corresponds entirely with the audited and released versions and no alterations were undertaken.
During the past two weeks, the spread of the Covid-19 virus has developed into a global pandemic and the numerous crisis countermeasures initiated by national governments have had a considerable impact upon the global economy.
The influence of the corona crisis also means that conditions within the economic framework are constantly changing and the POLYTEC GROUP is also equally subject to these effects, which are beyond its control. However, the POLYTEC management has reacted immediately to these changed circumstances and has implemented the measures prescribed by the authorities for the protection of the workforce and the general public.
Important POLYTEC customers in the automotive industry have announced temporary halts to production at numerous European and international plants, which have already been partially put into practice. In consultation with the customers, POLYTEC has also partly or totally reduced its production and at the affected locations has introduced requirement-oriented, short-time working and the corresponding personnel measures.
The POLYTEC plant in Tianjin, China, is excluded from this shutdown and has resumed full capacity working. In addition, at the moment output from the industrial plants in Marchtrenk (Austria) and Bochum (Germany) remains largely unaffected. Another pleasing special case is the plant in Ebensee (Austria), where the manufacture of logistics boxes for food retailers is continuing. Through this important production, the POLYTEC GROUP is making an indirect contribution to the maintenance of the food supply in Austria, as for example the boxes are employed for the transport of fruit and vegetables.
With an equity ratio of around 42% and cash and cash equivalents of more than EUR 50 million, the POLYTEC GROUP is currently in a strong position. In order to maintain liquidity, in particular for a situation in which the halt to production will be longer than is currently foreseen, the offers of support from individual national governments, which include the assumption of a share of liabilities and the deferment of tax prepayments, are under consideration and if appropriate will be made use of. The company is in constant close contact with its customers and suppliers, in order that this challenging period and the resumption of production can be mastered jointly.
The outlook of the POLYTEC GROUP’s executive management at the beginning of March 2020 read as follows:
“At the moment, it is too early to offer a reliable outlook concerning the development of POLYTEC GROUP results for the 2020 financial year. In particular, extreme economic volatility and market shifts relating to the drive technology of passenger cars make predictions problematic. Even in the short-term, concrete customers requirements are difficult to plan and the effects of the further spread of the coronavirus cannot be estimated. In addition, production capacity must be adapted to match both the current and pending market situation. The connotations of such measures also represent a further obstacle to an assessment of the outlook.”
In the meantime, owing to the accelerated spread of the corona pandemic and the continual shifts in general conditions, at present any estimate of the economic consequences for the POLYTEC GROUP would be even less reliable. Nonetheless, it may be assumed that depending upon the duration of the disruption and especially the shutdown of production in the automotive industry, POLYTEC GROUP sales revenues and income will be subject to negative effects.
Appropriation of profits and proposed dividend
The suggestion for the appropriation of profits and a dividend of EUR 0.25 per eligible share for the 2019 financial year was tabled at the Supervisory Board meeting on 12 March 2020 and approved. However, the Board of Directors and the Supervisory Board reserve the right to reconsider the appropriation of profits and the proposed dividend in the light of developments regarding Covid-19. Any change will be made known upon the convening of the Annual General Meeting.
Postponement of the Annual General Meeting for a currently undetermined period
Owing to the ban on gatherings imposed by the Austrian federal government, the 20th Ordinary Annual General Meeting of POLYTEC Holding AG, which was originally planned for 18 May 2020, will not take place and has been postponed for an indefinite period. A new date for the AGM will be announced following an assessment of further developments. The invitation will be published well in advance in the Official Gazette of the “Wiener Zeitung” and made known via the electronic communications media. Timely information will also be provided on the group website.
POLYTEC: 2019 financial year
- Consolidated sales revenues down by 1.5% at EUR 627.1 million
- EBITDA amounts to EUR 68.4 million, the EBITDA margin to 10.9%
- EBIT totals EUR 32.6 million, the EBIT margin to 5.2%
- The result after income tax stands at EUR 23.1 million
- Earnings per share amount to EUR 1.02
- The equity ratio falls by 1 percentage point to 41.7%
As opposed to the preceding year, consolidated POLYTEC GROUP sales declined by 1.5% to EUR 627.1 million (2018: EUR 636.4 million). For several quarters, the POLYTEC GROUP’s core business has been subject to reductions in call-offs and sales revenue losses caused by the significant changes in the automotive industry.
In the passenger cars & light commercial vehicles market area, which with 62.0% (2018: 61.0%) is the strongest sales area within the POLYTEC GROUP, as compared to the preceding year sales rose by 0.2% to EUR 388.8 million (2018: EUR 387.9 million). This figure includes revenue of EUR 19.2 million from the initial consolidation on 1 September 2019 of POLYTEC CAR STYLING Weierbach GmbH, which is continuing the automotive operations of the insolvent Wayand AG.
In comparison with the preceding year, sales revenues in the commercial vehicle market area (25.3%; 2018: 27.4%) fell by a sizeable 9.3% from EUR 174.7 million to EUR 158.4 million. Approximately 60% of the POLYTEC GROUP’s truck-related revenues were obtained in the first half of 2019, while the second six months were characterised by markedly lower call-off figures.
In 2019, the smart plastic & industrial applications market area recovered, due mainly to increased call-offs from a major non-automotive customer. Sales were 8.3% up at EUR 79.9 million and this raised the market area’s share in the POLYTEC GROUP’s consolidated sales revenues from 11.6% to 12.7%.
In the 2019 financial year, earnings from the disposal of fixed assets contributed to a rise in POLYTEC GROUP EBITDA to EUR 68.4 million (2018: EUR 67.1 million). In comparison with the previous year, the EBITDA margin climbed by 0.4 percentage points to 10.9%. Group EBIT in 2019 totalled EUR 32.6 million (2018: EUR 40.1 million). In comparison with 2018, the EBIT margin fell by 1.1 percentage points to 5.2%.
The financial result totalled minus EUR 3.8 million (2018: EUR –3.3 million). In terms of a yearly comparison, group net profit declined by 23.1%, or EUR 6.7 million, to stand at EUR 22.4 million (2018: EUR 29.1 million). This corresponds with earnings per share of EUR 1.02 (2018: EUR 1.32).
In 2019, the group’s balance sheet total increased by EUR 48.0 million to EUR 605.6 million. As at 31 December 2019, the equity ratio amounted to 41.7%, which was one percentage point lower than on the balance sheet date of the previous year.
The annual financial statements and business report of POLYTEC Holding AG as at the 31 December 2019 closing date are available on the group website under “publications”.