KROMI Logistik AG publishes H1 report for FY 2013/2014
- Revenue grows 5.3 % to EUR 29,058 thousand (previous year: EUR 27,589 thousand)
- EBIT of EUR 85 thousand slightly above previous year's EUR 68 thousand
- Target: moderate revenue growth accompanied by rising profitability 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 six months of its 2013/2014 fiscal year (July 1 to December 31, 2013). Group sales revenue of EUR 29,058 thousand in the period under review was up by 5.3 % compared with the previous year's level (EUR 27,589 thousand), with this budgeted growth especially reflecting the stable situation among the company's broad customer base in Germany, and considerable revenue gains in Brazil. Higher cost of materials and unrealised currency translation losses fed through to EUR 85 thousand of profit on operating activities (EBIT), up slightly on the previous year's level (EUR 68 thousand).
Overall, KROMI benefited in this context from its well-balanced customer structure that is diversified across several sectors and regions. Along with the stable situation within the German customer base, revenue growth during the first six months of the 2013/2014 financial year was especially generated in Brazil. "With revenue up by a remarkable approximately 31 %, our Brazilian subsidiary again contributed to the Group's growth, and clearly remains on a growth path," notes Jörg Schubert, CEO of KROMI Logistik AG. This sales revenue growth is even more evident when expressed in the Brazilian currency, the real, at around 50 %.
The rate of increase of the cost of materials slightly outpaced that of revenue growth at KROMI Logistik, rising from EUR 20,696 thousand to EUR 21,980 thousand, with the cost of materials ratio registering a year-on-year increase from 75.0 % to 75.6 %."The rise in this ratio is attributable to somewhat chance consumption of low-margin products during the period under review, especially during the first three months of the reporting period," explains KROMI CFO Uwe Pfeiffer. In the second quarter, the cost of materials ratio of 74.4 % was again below the previous year's 74.8 %. As Uwe Pfeiffer continued: "The margin situation registered a positive trend, especially in the second quarter of the reporting period. For example, the gross profit margin was up significantly from 23.2 % in the July to September 2013 months to 24.4 % for the first half of 2013/2014. This is again close to the previous year's level at the time of 25.0 %."
Profit from operating activities (EBIT) between July and December 2013 was up slightly year-on-year, standing at EUR 85 thousand (prior-year period: EUR 68 thousand). EBIT was burdened by currency translation differences necessitated by IFRS accounting, which were up from EUR 179 thousand to EUR 412 thousand. Operating profit would have stood at EUR 497 thousand (previous year: EUR 247 thousand) when adjusted for these unrealised valuation losses. The Group reported a consolidated net loss of EUR 224 thousand, especially after taking into account EUR 164 thousand of taxes on income to be paid on the profit that the company generated on the basis of German commercial code (HGB) accounting principles. KROMI reported a consolidated net loss of EUR 218 thousand in the comparable 2012/2013 period.
"We are satisfied with the course of the first half of 2013/2014. The revenue and EBIT growth that we achieved was in line with our internal planning. Along with stable business in Europe, our Brazilian subsidiary once again proved a growth-driver. We are convinced that our achievable margins will remain on a gradual uptrend over the further course of the year, allowing us to continuously boost our profitability," as Jörg Schubert commented. The Managing Board has confirmed its forecast of realising revenue growth in the single-digit percentage range on a full-year view. Further EBIT growth is also aimed for, although this depends on stable economic growth. "We expect that the EBIT margin will be in the low to mid single-digit percentage range for the current fiscal year," noted Schubert by way of conclusion.
Over the course of the day, KROMI Logistik AG will make its full report for the first half of the 2013/2014 fiscal year available for downloading on its website at www.kromi.de within the Investor Relations area.
KROMI Logistik AG
KROMI Logistik AG offers manufacturing companies end-to-end outsourcing for their supply of precision machining tools, both in Germany and abroad. The company focuses on technically advanced machining tools for metalworking (consumable and cutting tools, e.g. drills). KROMI combines conventional tool retailing with a decentralised tool supply system that includes output machines in the customer's production area and an IT-based tool management and controlling system. KROMI's aim is to sustainably optimise the supply of resources (particularly tools) for its customers and to secure the availability of the appropriate resources at the right time and in the right place. The company is currently represented at four locations in Germany and four abroad (Slovakia, Czech Republic, Brazil and Spain), and is active in five other European countries. To date, KROMI has primarily focused on customers in the machine engineering, automotive suppliers and aerospace sectors as well as marine engine construction.