POLYTEC GROUP - The 2018 Financial Year

• Group sales revenues fell by 5.9% to EUR 636.4 million
• EBITDA amounted to EUR 67.1 million, EBITDA margin 10.5%
• EBIT totalled EUR 40.1 million, EBIT margin declined from 8.1% to 6.3%
• Earnings after tax reached EUR 30.0 million
• Earnings per share EUR 1.32
• Equity ratio was 0.6 percentage points up at 42.7%
• Proposed dividend per share EUR 0.40, (previous year EUR 0.45)

In the 2018 financial year, as opposed to the excellent level of the preceding year, consolidated POLYTEC GROUP sales revenues fell by 5.9% to stand at EUR 636.4 million (previous year: EUR 676.4 million).

The consequences of the transition to the new WLTP exhaust gas and fuel consumption standard, which since September 2018 has been mandatory, worsened during the second half of the year. As a result, important POLYTEC GROUP customers cut their vehicle production which led to the aforementioned reductions in call-offs and sales revenue losses. Moreover, the decline in consumer demand prompted weak diesel car product call-offs throughout the whole of 2018.

Compared to 2017, sales revenues in the passenger car market area, which with 61.0% (previous year: 64.2%) represents the strongest sales area within the POLYTEC GROUP, were down by around 10.6% at EUR 387.9 million (previous year: EUR 434.1 million). Sales in the commercial vehicle market area (27.4%, previous year: 24.4%) continued to develop in a positive manner and in comparison to those of 2017, rose by around 5.9% from EUR 165.0 million to EUR 174.7 million. In spite of a decline as compared to 2017, the non-automotive market area contributed 11.6% to POLYTEC GROUP consolidated sales revenues and thus remained at roughly the 11.4% level of the previous year.

In the 2018 financial year, POLYTEC GROUP EBITDA amounted to EUR 67.1 million (previous year: EUR 82.3 million). As compared to the preceding year, the EBITDA margin fell by 1.7 percentage points from 12.2% to 10.5%. Group EBIT in 2018 totalled EUR 40.1 million and therefore failed to emulate the operating result of EUR 55.1 million achieved in the previous year. In comparison with 2017, the EBIT margin fell by 1.8 percentage points from 8.1% to 6.3%.

The financial result amounted to minus EUR 3.3 million (previous year minus EUR 3.0). The POLYTEC GROUP tax ratio in the 2018 financial year amounted to 18.4% and was thus 6.8 percentage points down on the previous year. In terms of a yearly comparison, group net profit declined by EUR 9.1 million, to stand at EUR 29.1 million (previous year: EUR 38.2 million). This corresponds with earnings per share of EUR 1.32 (previous year: EUR 1.74).

The Board of Directors and the Supervisory Board will propose the distribution of a dividend of EUR 0.40 (previous year: EUR 0.45) per eligible share to the 19th Ordinary Annual General Meeting to be held on 10 May 2019.

In 2018, the group’s balance sheet total increased by EUR 41.2 million to EUR 557.6 million. The equity ratio as at 31 December 2018 was 0.6 percentage points up on that on the balance sheet closing date of the preceding year at 42.7%. As opposed to the 31 December 2017 balance sheet date, net debt went up by EUR 23.1 million to EUR 101.8 million.

Outlook:
From a current perspective, the POLYTEC GROUP executive management anticipates that in the 2019 financial year, group sales revenues and EBIT will emulate the level of the previous year. The fulfilment of this outlook will depend largely upon successful negotiations concerning outstanding claims against customers, which have been and will continue to be caused largely by the sales losses relating to the WLTP and higher material prices. In addition, the effects of a possible Brexit also constitute a significant factor in connection with outlook realisation.

 
Links:     Annual Report 2018     Annual Financial Report 2018 (art. 124 BörseG)

All other reports of POLYTEC HOLDING AG see  Publications

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