Despite moderate start in Q1, Mühlbauer Group forecasts continuing positive business development
The technology group’s sales decrease to EUR 34.6 million , corresponding to a decline of 7.5% as compared to the same quarter of the previous year (37.4), was largely attributable to numerous project postponements. Results were also impacted by the significant increase in production cost and investments made for the setting up of new locations abroad, where expenses are not set-off by earnings during the start-up phase. Therefore, the Mühlbauer technology group achieved earnings before interest and taxes (EBIT) of EUR 3.9 million in the reporting period, 4.0 million less than in the same quarter of the previous year (7.9). Earnings before taxes amounted to EUR 4.2 million and benefited from the positive financial result of EUR 0.2 million (0.6), however, they fell significantly short of the previous year’s value of EUR 8.5 million. In the first quarter, the profit margin came to 12.1% as compared to 22.8% in the previous year. Net earnings came to EUR 2.5 million (5.6), which corresponds to basic earnings of EUR 0.16 per share (0.39).
At EUR -0.1 million, free cashflow was EUR 1.6 million below the level of the previous year (+1.5), largely due to outflows for last year’s modernization and extension of the asset portfolio, as well as investments for the set-up of the new development and production location in Malaysia. At EUR 46.1 million, working capital virtually remained the same year-on-year (45.5). The equity ratio came to 80.2% and thus hovered at the level of the previous year (80.1%).
The order income of the Mühlbauer group amounted to EUR 33.7 million (37.8) in the first quarter, a decline of 10.6% in comparison to the previous year’s quarter. While Mühlbauer in its core business SmartID was able to benefit from the predominant interest in the Cards & TECURITY® sector and slightly expand its order income with EUR 17.8 million (17.6), the order income in the Semiconductor Related Products area amounted to EUR 7.7 million and thus remained below last year's level (12.2), which was characterized by the acquisition of numerous technology solutions. The area Traceability was not quite able to achieve the high order standard of the previous year (3.8), but noted a similar level at EUR 3.4 million. Meanwhile, the area Precision Parts & Systems further continued its positive development and generated an order income of EUR 4.8 million EUR (4.2). This corresponds to an strong plus of 15.3% as compared to the same period of the previous year. At the end of the reporting period, the order backlog was at EUR 75.8 million (80.8), 6.3% short of last year's value.
Due to the preparedness of many states to make major investments for the implementation of reliable technology and software solutions for the implementation of security-oriented ID systems Mühlbauer expects an increasing demand in its core area SmartID. Growth potential for RFID-Smart Labels is undisputed as well. With our mature technology solutions for the production of RFID Smart Labels, the company can see an opportunity to benefit strongly from the intensification of growth expected in this area. In the further course of the year, technology group expect the overall positive business development to continue. Subject to timely decision and prompt implementation of ID projects planned globally, Mühlbauer is optimistic about its ability to top last year’s sales based on our good positioning in the market.
Discover the smart world of TECURITY®
Mühlbauer is a global and independent consultant and manufacturer of technologically innovative security solutions in a market segment the company refers to as the TECURITY® market. With more than 1600 employees and a global network of sales and services, Mühlbauer is the leading supplier of production equipment for the Smart Card industry.
Mühlbauer system solutions are suitable for the manufacture of any card type. They are used in the production of ID cards, ePassports, eVisa, contact and contactless cards, dual interface cards and multimedia cards. The products are, above that, suitable for the manufacture of Smart Labels for the security, supply chain, textile and retail industries.
Mühlbauer Holding AG & Co. KGaA
Mühlbauer ist ein global agierender, unabhängiger Hersteller und Berater von sclüsselfertigen Automatisierungslösungen für die Smart Card, Smart Label, Halbleiter Backend und Vision Industrie. Mit mehr als 1600 Mitarbeitern an 26 Standorten auf fünf Kontinenten ist Mühlbauer der führende Anbieter von Produktionsequipment für die Smart Card und Smart Label Industrie.
Basierend auf der seit 1995 bestehenden RFID Smart Label Erfahrung ist Mühlbauer das weltweit einzige Unternehmen, dass eine komplette schlüsselfertige RFID Smart Label Produktionslösung inklusive, Test Equipment zur Garantie bester Qualität, anbieten kann. Ausgehend von den Rohmaterialien wie Antennen, RFID Chips oder Klebstoffen, über Straps und Smart Inlays bis schließlich zu fertigen konvertierten selbstklebenden Labels, Tickets oder kontaktlosen Karten, werden von Mühlbauer alle Markanforderungen und -teilnehmer auf optimale Weise und aus einer Hand bedient.
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