D.Logistics AG: Adjusted operating results 2007 rises by more then 45 %

Hofheim, (PresseBox) - .
- Sales up 4.8 % to € 337.7 million
- Operating cash flow increased by 26 % to € 16.0 million
- Adjusted operating earnings (EBITA) increased by more then 45 %
- Net result of € 2.8 million
- Earnings per share were € 0.07

D.Logistics AG today published its annual accounts for the year 2007 and looks again back on a successful business year.

Organic sales growth of around 5 %

The positive business development was particularly influenced by the industrial goods packaging segment, which became the strongest segment for the first time. We recorded significant growth trends here in 2007 and important operational successes.

Due to the positive business trend for industrial goods packaging and successful acquisitions, in the course of the year we were able to outperform the original sales and EBITA targets. In the re-porting period sales increased by 4.8 % on the previous year to € 337.7 million. The upper target for the year of € 335 million was therefore slightly exceeded. If the sales trend is adjusted for the changes in the scope of consolidation, this shows organic growth of 4.9 %. If one also takes into consideration the US dollar s depreciation against the euro in excess of eleven cents, on average, the increase is around 6.6 %.

Adjusted EBITA increased by more then 45 %

In the past fiscal year the gross profit increased by 4.0 % to € 39.6 million. The gross margin re-mained almost unchanged at 11.7 %, compared to 11.8 % in 2006. Earnings before interest, taxes, depreciation and amortization (EBITDA) were € 20.8 million, compared to € 26.4 million in the pre-vious year. The EBITDA margin reached 6.2 %, compared to 8.2 % in 2006. It must thereby be borne in mind that EBITDA and therefore also EBITA in 2006 were positively influenced by noncur-rent income from sales of equity investments and successful legal disputes with a total value of € 7.8 million. Accordingly, in adjusted terms there has been two-figure growth. Depreciation of property, plant and equipment and amortization of other intangible assets fell 16.7 % to € 8.5 mil-lion.

In the reporting period, at € 12.3 million. EBITA reached the upper limit of our forecast range. The previous-year EBITA, which was higher due to the above-mentioned special items, was € 16.1 million. The EBITA margin was 3.6 % in 2007, compared to 5.0 % in 2006. Adjusted for the above mentioned noncurrent income, the EBITA of the group increased by more than 45 % against 2006. The net result was € 2.8 million in the reporting period, compared to € 11.4 million in the same period in the previous year. Earnings per share were € 0.07 in 2007.

Clear increase in operating cash flow

The operating cash flow increased in the reporting period by € 3.3 million to € 16.0 million, and was thus 26.0 % higher than in the previous year. The main reason for this increase was the fact that the cash flow was not subject to an extremely strong increase in trade receivables as in 2006.

Financial result burdened by imputed expenses associated with the convertible bond

At - € 4.4 million, the financial result was considerably lower than in the previous year (- € 2.0 mil-lion). Finance costs rose from € 4.9 million to € 6.5 million. The higher finance costs are mainly due to one-off factors in terms of the significantly increased expenses associated with the convertible bond (€ 1.6 million compared to € 0.9 million in 2006). This was due to the implicit finance expendi-ture resulting from the valuation of option rights.

The higher average financial indebtedness (€ 73.7 million, compared to € 65.4 million in 2006) also led to higher expenses. Financial income decreased from € 2.3 million to € 1.3 million. In 2006, this still included € 0.5 million from the release of the provision resulting from the successful Hövel legal dispute and € 0.4 million from the convertible bond. The profit from associates devel-oped positively, increasing from € 0.55 million to € 0.80 million.

Capital structure still very sound

The sound capital structure is also apparent in terms of the unproblematic handling of our strategi-cally important acquisitions of the Walpa Group, the Logis Group and the 45 % minority interests in the Deufol Tailleur Group. A good part of the € 28.0 million purchase-price payments was financed through cash flow. Net financial liabilities therefore only rose to a disproportionately low extent, from € 41.5 million in 2006 to € 55.4 million in 2007.

Outlook

In fiscal year 2008 the D.Logistics Group expects to achieve sales of between € 325 and 345 million, which corresponds to growth of up to 2.2 %. The operating result (EBITA) will be be-tween € 13.0 and € 14.5 million; this represents a rise from 6.1 % to 18.3 % and a margin of 4.0 % to 4.2 %.

The following factors must be taken into consideration in the sales forecast: In industrial goods packaging in 2008 approx. € 13 million of transport sales will be lost which we previously billed to a single customer. In consumer goods packaging, in Italy we face the loss of nearly € 5 million in material management sales which it is only partially possible to compensate for. In addition, our planning assumes a US-Dollar exchange rate against the Euro of 1.50 (average exchange rate in 2007: USD / € 1.37). This will lead to a fall in target sales of slightly less than € 5 million. Accord-ingly, overall sales losses of around € 23 million will need to be compensated for. Sales increases will result from the consolidation of the Logis Group (€ 11 million) as well as planned organic growth.

The annual report is available on the internet at http://www.dlogistics.com.

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