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KROMI Logistik AG publishes FY 2013/2014 Q1 report
- Revenue grows 8.4 % to EUR 14,535 thousand (previous year: EUR 13,409 thousand)
- EBIT of EUR -96 thousand at previous year's level (EUR -103 thousand)
- Further moderate revenue growth accompanied by gradual increase in EBIT margin targeted for current FY 2013/2014
KROMI Logistik AG, a provider of end-to-end tools logistics solutions for manufacturing companies, reports further revenue growth in the first quarter of its 2013/2014 fiscal year (July 1 to September 30, 2013). The company generated 8.4 % revenue growth to EUR 14,535 thousand (previous year: EUR 13,409 thousand) despite traditionally lower demand during the July and August holiday months. This is pleasing insofar as, along with the stable situation on the company's domestic German market, revenue with customers in European countries outside Germany, and especially with those located in Brazil, registered significant growth. The earnings before interest and tax (EBIT) of EUR -96 thousand were approximately at the previous year's level (EUR -103 thousand) due to a (from a current perspective) weaker margin situation.
KROMI benefited in its business development from a well-balanced customer structure that is diversified across several sectors and regions. Along with the stable situation within the German customer base, Brazil and European countries, in particular, contributed to revenue growth during the first three months of the 2013/2014 financial year. "Our Brazilian subsidiary achieved remarkable revenue growth of around 37 % - this increase was even more significant at around 64 % when expressed in Brazilian reals. This expansion supported our positive Group growth, and the subsidiary consequently remains clearly on its growth course," is how Jörg Schubert, CEO of KROMI Logistik AG, assesses the development of this Group subsidiary.
The rate of increase of the cost of materials slightly exceeded that of revenue growth, rising from EUR 10,089 thousand to EUR 11,168 thousand, with the cost of materials ratio registering a year-on-year increase from 75.2 % to 76.8 %. The increase in this ratio is attributable to somewhat random consumption of low-margin products during the period under review. KROMI CFO Uwe Pfeiffer explained as follows: "Our experience shows that this intra-year effect evens out over the course of a full fiscal year, and previous years show that quarters that are more impacted by seasonal fluctuations and effects relating to reporting dates can be drawn upon to only a limited extent to gauge our overall performance."
The staff cost fell slightly from EUR 1,873 thousand to EUR 1,866 thousand, with the staff cost ratio being further reduced to 12.8 % (previous year: 14.0 %). "This change shows that, compared with the prior-year period, additional new customers can also be served efficiently with almost constant staff cover," is how Uwe Pfeiffer appraised these figures.
The faster rise in expenses compared to revenues fed through to a loss at the EBIT level of EUR -96 thousand (previous year: EUR -103 thousand). Pure operating earnings adjusted for unrealised valuation losses on currency differences amounted to EUR 63 thousand, reflecting marked growth compared with the previous year's result (EUR 27 thousand). At the bottom line, KROMI Logistik reported consolidated net earnings of EUR -199 thousand (previous year: EUR -165 thousand).
"We look back with satisfaction on the first quarter of our 2013/2014 fiscal year. Along with our stable European business, the growth at our Brazilian subsidiary was particularly pleasing. We are also convinced that our achievable margins will rise gradually over the further course of the year, allowing us to continuously boost our profitability," commented Jörg Schubert. As a consequence, the Managing Board is confirming its forecast of realising revenue growth in the single-digit percentage range on a full-year view. KROMI is also aiming for further EBIT growth, given stable economic trends."As a consequence, the EBIT margin will prospectively remain within the lower to mid single-digit percentage range," Schubert added by way of conclusion.
Over the course of the day, KROMI Logistik AG will make its full report for the first quarter of the 2013/2014 fiscal year available for downloading on its website at www.kromi.de within the Investor Relations area.
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