DGAP-Adhoc: STS Group AG publishes preliminary figures for first half of 2020: significant decline in revenues and earnings due to COVID-19

STS Group AG publishes preliminary figures for first half of 2020: significant decline in revenues and earnings due to COVID-19

Hallbergmoos/Munich, August 3, 2020. STS Group AG (ISIN: DE000A1TNU68), listed in the Prime Standard of the Frankfurt Stock Exchange, achieved considerably lower revenues and earnings in the period from January 1 to June 30, 2020 than in the previous year, due to the effects of corona pandemic, on the basis of preliminary figures. According to preliminary calculations, in the first half of 2020, the revenues amounted to 136.0 mEUR compared to 193.8 mEUR in the previous year (minus 29.8%). The decline in revenues is mainly due to the slowdown in the European business and to the plant closures in France and Italy caused by the pandemic, which could not be fully compensated by the strong sales growth in China.

Preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) developed in line with the revenue decline, falling to minus 3.9 mEUR in the first half of 2020 (H1/2019: 10.1 mEUR). According to preliminary calculations, the operating result (adjusted EBITDA) adjusted for restructuring and severance costs was also significantly lower than in the previous year at minus 2.2 mEUR (H1/2019: 10.1 mEUR). Furthermore, depreciation and amortization expenses of 14.7 mEUR occurred in the second quarter of 2020 (Q2/2019: 4.7 mEUR). This includes an impairment of 9.8 mEUR in connection with the effects of COVID-19 pandemic. In total, depreciation and amortization in the first half of 2020 increased to 20.9 mEUR (H1/2019: 9.1 mEUR). The preliminary consolidated result for the first half of 2020 is minus 27.7 mEUR, which is significantly lower than in the previous year (H1/2019: minus 2.3 mEUR), due to current developments in the context of the COVID-19 pandemic.

Cash and cash equivalents increased to 22.8 mEUR as of June 30, 2020 (December 31, 2019: 17.2 mEUR), mainly due to the conclusion of loans guaranteed by the government in France.

In view of the high level of uncertainty concerning the development of the COVID-19 pandemic, the Management Board expects a significant decline in revenues for the 2020 fiscal year compared to the previous year. Despite the Company having already initiated extensive cost reduction measures, the Management Board expects a declining adjusted EBITDA margin in line with the decline in revenues.

STS Group AG will publish its half-year report of 2020 on August 6, 2020.

STS Group AG
Stefan Hummel
Head of Investor Relations
Zeppelinstrasse 4
85399 Hallbergmoos
+49 (0) 811 124494 12
[email protected]
www.sts.group