DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Quarter
Results/Quarter Results
Francotyp-Postalia Holding AG: FP Group grows earnings despite
economic downturn
21.11.2014 / 06:20
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Corporate News
FP Group grows earnings despite economic downturn
- Revenue in the third quarter of 2014 rise to EUR 41.8 million
- EBITDA improves to EUR 5.5 million
- Consolidated net income improves to EUR 1.6 million
- FP will achieve most of its ambitious goals for 2014
Birkenwerder, 21 November 2014. Despite the economic downturn in important
markets during the year to date, the business of Francotyp-Postalia Holding
AG, the multi-channel provider for mail communication, has remained stable.
In the first nine months of 2014, revenue were EUR 126.4 million (previous
year: EUR 126.9 million); adjusted for negative currency effects of EUR 0.7
million, revenue rose to EUR 127.1 million. Quarter on quarter, revenue
rose to EUR 41.8 million, compared with EUR 41.4 million for the third
quarter of 2013.
With stable revenue, FP Group EBITDA (earnings before interest, taxes,
depreciation and amortisation) in the first nine months of 2014 rose to EUR
17.3 million (previous year: EUR 16.9 million); adjusted for negative
currency effects of EUR 0.4 million, EBITDA rose to EUR 17.7 million. In
the third quarter of 2014, EBITDA was EUR 5.5 million, compared with EUR
5.4 million for the same period in 2013. Due to scheduled increased
depreciation and amortisation, EBIT fell EUR 0.1 million to EUR 2.2
million, but consolidated net income rose significantly by EUR 0.8 million
to EUR 1.6 million, thanks to improved financial and net tax results. After
nine months, consolidated net income totalled EUR 4.5 million compared with
EUR 4.0 million in the corresponding prior-year period.
While foreign business grew in the UK and US, the current political crisis
impacted business in Russia and the completed decertification affected
business in Austria more than expected. In addition, the franking machine
business in Germany suffered particularly from the economic slowdown. It
also emerged that establishing a dealership sales channel requires more
time, training and intensive support before it can achieve the expected
sales. Hans Szymanski, FP Group CEO, explains: "The future in the German
market and elsewhere lies in efficiently addressing a large number of
customers, not only through the classic sales channels but also through new
ones. We are therefore expanding the telesales team and indirect
distribution channel, and at the same time cutting back on direct selling."
These measures will have a positive effect, starting from the current year.
Overall, the franking machine business is lagging behind expectations in
the current year, and is not generating the full contribution to revenue
expected at the start of the year in order to reach the ambitious goals for
full-year 2014.
FP expects EBITDA in 2014 of EUR 23-24 million
Despite this deviation and the unexpected economic downturn, the FP Group
expects to achieve over 95% of the goal for revenue set at the start of
2014 and over 90% of the goal for EBITDA. For full-year 2014 the Group
expects revenue of at least EUR 169 million and EBITDA of EUR 23-14
million. Given the deviations due to revenue and currency effects, FP
expects EBIT of EUR 10-11 million.
The FP Group is accordingly maintaining its goal of boosting profitability
in 2014. The extensive restructuring measures of recent years are bearing
fruit, and the cost optimisation measures initiated under the "Aufbruch
2015" project are also working as planned. Even though free cash flow in
the current financial year is likely to reach a one-time low of EUR -3 to
-4 million, due to scheduled higher investment in leasing markets such as
the US and the development of new franking machines, the growing earnings
power accompanied by solid financing is a good basis for the goal of an
attractive target dividend for the current financial year.
FP's CEO Szymanski, says: "We want our shareholders to continue to share
regularly in the growing earnings power of their company." He expects
renewed growth in profitability in 2015: "The further development of
revenue, including in Germany, will already make itself felt in 2015. If
the strong demand in key foreign markets holds up, I'm optimistic about the
coming financial year."
Quarterly figures at a glance:
<pre>
in EUR million Q3 2014 Q3 2013 Change
Revenue 41.8 41.4 +1.1%
EBITDA 5.5 5.4 +1.6%
EBIT 2.2 2.3 -7.2%
Free cash flow -2.9 2.4 n/a
Consolidated net income 1.6 0.8 +92.3%
Earnings per share (EUR) 0.10 0.06 +70.7%
</pre>
Nine-month figures at a glance:
<pre>
in EUR million 2014 2013 Change
Revenue 126.4 126.9 -0.3%
EBITDA 17.3 16.9 +2.2%
EBIT 7.9 8.2 -4.5%
Free cash flow -4.0 2.6 n/a
Consolidated net income 4.5 4.0 +10.9%
Earnings per share (EUR) 0.28 0.26 +5.8%
</pre>
Contact:
Francotyp-Postalia Holding AG
Corporate Communications
Sabina Prüser
Tel: +49 3303 525410
Fax: +49 3303 53707410
Email: s.prueser@francotyp.com
About Francotyp-Postalia Holding AG
The FP Group is the first multi-channel provider for mail communication.
The globally active company offers the entire range of products and
solutions for business and private customers. In addition to standard
machines for franking and inserting mail, its offering includes services
such as the collection of business mail and innovative software solutions
such as the fully electronic letter. The FP Group, based in Birkenwerder
near Berlin, can therefore provide tailored multi-channel solutions. The
Group currently operates its own branches in a number of industrialised
countries and holds a global market share in franking machines of around
10%. With a history dating back 90 years, the FP Group today benefits
across all markets from the increasing liberalisation of postal markets and
the readiness of companies to outsource their business mail to professional
service providers. In the 2013 financial year, the company generated
revenue of EUR 168.9 million. The FP Group employs around 1,100 people
worldwide.
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Language: English
Company: Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Germany
Phone: +49 (0)3303 525 777
Fax: +49 (0)3303 53 70 77 77
E-mail: ir@francotyp.com
Internet: www.fp-francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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298419 21.11.2014
DGAP-News: Francotyp-Postalia Holding AG: FP Group grows earnings despite economic downturn
| Source: EQS Group AG