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MIFA publishes preliminary nine-month results: consolidated revenue at the previous year's level and marked operating earnings growth
"Our sales revenues in the summer quarter were not as high as expected due to a customerspecific acceptance delay. In view of the current new order intake, however, we anticipate acceleration during the fourth quarter," comments MIFA CEO Peter Wicht.
The number of bicycles sold was down by 7.6 % to 462,000 units during the nine-month period of 2013 (9M previous year: 500,000 units), while the average sales price rose by 8.2 % from EUR 195 in the prior-year period to currently EUR 211. The sale of e-bikes remains the decisive driver of sales revenues. MIFA generated EUR 30.1 million with ebikes during the first nine months, up 16.2 % compared with the previous-year period
(EUR 25.9 million), with their share of total consolidated revenue advancing to 30.8 % (9M previous year: 26.5 %). As the share of high-priced e-bikes continued to rise, the average sales price reported a marked increase of 20.7 % to EUR 745 (9M previous year: EUR 617), offsetting by far the slight decline in the number of e-bikes sold, which decreased to 40,000 units (9M previous year: 42,000 units). The average sales price of conventional bicycles increased by 2.6 % to EUR 158 (9M previous year: EUR 154). Overall, MIFA sold 422,000 bicycles without electronic motors during the first nine months of the current financial year (9M previous year: 458,000 units). Revenue generated with conventional bicycles declined by 5.1 % to EUR 67.0 million (9M previous year: EUR 72.2 million).
Including significantly higher year-on-year inventory changes of EUR 10.0 million (9M previous year: EUR 2.5 million), total operating revenue grew by 7.7 % to EUR 107.8 million (9M previous year: EUR 100.1 million). The corresponding gross profit margin of 33.4 % is significantly higher than in the previous year (9M previous year: 31.5 %). This change arises from the focus on sales of high-margin bicycle models.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose from EUR 4.2 million in the prior-year period to EUR 7.5 million. In the prior-year period the Group generated EUR 6.9 million of adjusted EBITDA after adjusting the previous year's figures to reflect extraordinary items arising from the migration of the Grace and Steppenwolf operations to the Sangerhausen site. The EBITDA margin on revenue amounted to 7.7 % (9M previous year: 4.3 %; adjusted figure: 7.1 %) - despite the rise in the personnel expenses ratio (expressed in relation to total operating revenue) from 12.2 % to 12.6 %. In the previous-year period, the additional personnel expenses due to the acquisitions realised in the 2012 financial year were reported only pro rata temporis. The increase in personnel expenses is also due to the further boosting of staff qualification levels. The number of employees as of the reporting date rose slightly to 655 (9M previous year: 641 employees).
Depreciation and amortisation were up slightly year-on-year to reach EUR 2.7 million (9M previous year: EUR 2.5 million). This increase arises mainly from the high level of investments in the previous year, when MIFA acquired principally production plants, customer relationships and industrial property rights from Grace and Steppenwolf as part of the acquisitions. Operating earnings (EBIT) of EUR 4.7 million were higher than the previous year's result (9M previous year: EUR 1.7 million; adjusted figure: EUR 4.4 million), and the EBIT margin stood at 4.9 % (9M previous year: 1.7 %; adjusted figure: 4.5 %). At EUR 1.4 million, compared with EUR 2.4 million in the previous-year period, the level of capital investments returned to the Group's long-run average. After deducting the net financial result of EUR -1.5 million (9M previous year EUR -1.8 million) and corporation taxes on income of EUR 0.9 million (9M previous year: EUR 0.0 million), the Group generated EUR 2.3 million of net income during the first nine months of the year (9M previous year:
EUR -0.1 million; adjusted figure: EUR 2.6 million). Earnings per share stood at EUR 0.24
(9M previous year: EUR -0.01), whereby the weighted average number of ordinary shares outstanding as of the balance sheet date was up by around 0.2 million shares year-on-year due to the capital measures realised in the fourth quarter of 2012.
CEO Peter Wicht expressed his overall satisfaction with the results as follows: "The clear improvement in our operating earnings shows that our 'From volumes to margins' strategy is bearing fruit. And EUROBIKE also proved very successful for us: specialist dealers are ordering GRACE and Steppenwolf bikes, which is why we expect our sales revenue to resume year-on-year growth during the final quarter. Given this, I continue to regard the lower end of our 2013 revenue target range as achievable." MIFA aims to generate between EUR 120 million and EUR 130 million of sales revenue in the 2013 financial year, and an EBIT margin between 4 and 5 %.
The 9-month report for the 2013 financial year will be available from 15 November on MIFA's website (under the Investor Relations heading).
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