DGAP-News: Mutares SE & Co. KGaA: Record figures in the financial year 2019 for Group revenues, Group EBITDA and adjusted EBITDA - increased net profit (EUR 22.5 million, +12%) - dividend proposal at previous year's level of EUR 1.00 per share
DGAP-News: Mutares SE & Co. KGaA
/ Key word(s): Annual Results
Mutares SE & Co. KGaA: Record figures in the financial year 2019 for Group revenues, Group EBITDA and adjusted EBITDA - increased net profit (EUR 22.5 million, +12%) - dividend proposal at previous year's level of EUR 1.00 per share
The past financial year 2019 of Mutares Group was marked by growth and success. The high acquisition activity with a total of ten acquisitions (seven of which were legally completed in 2019) as well as operational progress in various portfolio companies should be highlighted. Group annual revenues of EUR 1,015.9 million (+17%) in 2019 exceeded the billion-euro mark for the first time and the group EBITDA climbed to a record level of EUR 79.2 million (+61%). Adjusted EBITDA, which adjusts EBITDA for special effects that the transaction- and restructuring-oriented business model regularly causes, also increased by 67% to EUR 7.5 million and reflects the operational progress of various portfolio companies of Mutares Group. In order to allow shareholders to participate in the business success, the Management Board and Supervisory Board will propose to the Annual General Meeting on 18 May 2020, against the background of an increased net profit of Mutares SE & Co. KGaA of EUR 22.5 million (+12%), a dividend of EUR 1.00 per share as in the previous year. This proposal to continue the long-term sustainable dividend policy of Mutares Group is made by the Management Board and Supervisory Board in joint confidence in the long-term sustainability of the Mutares business model. The Automotive & Mobility and Goods & Services segments were strengthened by a total of six platform investments namely TréfilUnion, Plati Group, keeeper Group, KICO Group, BEXity Group and PrimoTECS. A further four transactions were implemented as add-on acquisitions for the expansion and further development of existing investments. The Donges Group has successfully completed two add-on acquisitions with the purchase of Normek and FDT. The completion of the acquisition of Ruukki Building Systems Oy, which was agreed in July 2019, is still pending as a further highlight of the Donges Group. In addition, the first add-on for the keeeper Group, which was only acquired in summer 2019, has already been won with Metsä's napkin business in December 2019. The financial year 2020 got off to a successful start with the signing of the acquisition of the Italian postal business of PostNL and the takeover of Loterios as an add-on for the Balcke-Dürr Group. Including the seven acquisitions legally completed in the financial year 2019, consolidated annual revenues in 2019 exceeded the billion-euro mark for the first time in the Company's history: The Mutares Group achieved consolidated revenues of EUR 1,015.9 million in 2019, an increase of 17.4% (previous year: EUR 865.1 million); on an annualized basis including the acquisitions, consolidated revenues already exceed EUR 1.5 billion. Mutares also recorded positive successes in 2019 in terms of earnings development. The Group EBITDA reached a record level of EUR 79.2 million (previous year: EUR 49.1 million) with an increase of 61%.
1) Diluted and undiluted According to the Mutares Group business model, which is based on transactions and restructuring, the portfolio companies usually undergo the Group's three operational phases of realignment, optimization and harvesting during their participation.
2) Closing on Januar 31, 2020 The adjusted EBITDA, a figure used for corporate controlling - in which special effects related to the business model are adjusted - differs significantly along these three phases. As expected, the platforms acquired in the financial year 2019 make a negative contribution (EUR -13.6 million) to the adjusted EBITDA in their realignment phase. However, the positive contributions from the optimization (EUR 1.4 million) and the harvesting (EUR 25.3 million) phases result in a positive adjusted EBITDA for the Group. The 67% growth in the Group adjusted EBITDA over the previous year clearly shows the positive operating performance of the Mutares Group in the year 2019.
3) According to the new leasing regulations of IFRS 16, a distinction between operating and finance leases is no longer required and all leases must be recognized in the balance sheet with only a few exceptions.
In the Automotive & Mobility segment, revenues for the financial year 2019 increased to EUR 450.4 million (previous year: EUR 437.0 million) due to the first-time inclusion of the new platform investments. The EBITDA of this segment amounts to EUR 13.6 million (previous year: EUR 10.5 million). As expected, adjusted EBITDA, which is adjusted for special effects, declined to EUR 15.6 million (previous year: EUR 17.5 million) due to the still negative earnings contributions from the segment's new platform acquisitions. The Engineering & Technology segment became the largest segment of Mutares Group in terms of revenues in the financial year 2019. Revenues climbed significantly to EUR 482.0 million (previous year: EUR 298.6 million). This strong increase is the result of the full-year effect of the acquisitions of Kalzip and Gemini in 2018 and the add-on acquisitions for the Donges Group (Normek and FDT) completed in 2019. EBITDA decreased to EUR - 3.8 million (previous year: EUR 24.0 million) results, on the one hand, from the current losses of the newly acquired companies and, on the other hand, from a lower earnings effect from the acquisitions compared with the previous year (profits from favorable acquisition, "bargain purchase"). However, the adjusted EBITDA rose to EUR 4.7 million (previous year: EUR - 1.0 million) and thus reflects, in particular, the very positive annual course of the restructuring measures at Kalzip and Gemini. Revenues of the Goods & Services segment, which was expanded through the three platform investments TréfilUnion, keeeper and BEXity, amount to EUR 83.5 million in the financial year 2019 (previous year: EUR 48.7 million). BEXity does not yet generate any revenues for the Group since the transaction was closed at the end of the financial year. Benefiting from the income from bargain purchases in connection with the three transactions mentioned above, EBITDA amounted to EUR 79.5 million (previous year: EUR 2.9 million). Adjusted EBITDA for the financial year 2019 was burdened by the negative earnings contributions of the new investments and amounted to EUR - 7.3 million (previous year: EUR 3.3 million). The development of the platform investment keeeper Group, which achieved important milestones of the restructuring plan in the financial year 2019, was very favorable. The further development of keeeper Group will be positively accelerated by the integration of the napkin business (renamed "keeeper Tableware"), acquired from Metsä. This proposal for the continuation of the long-term sustainable dividend policy of the Mutares Group for the completed financial year 2019 is made by the Management Board and the Supervisory Board, despite the outlook marked by uncertainty due to the Corona pandemic, in joint confidence in the long-term sustainability of the Mutares business model. Given the ongoing COVID-19 pandemic, it is not yet possible to make a reliable statement on its economic impact on the Mutares Group. However, a significant decline in profitability can be selectively assumed for some portfolio companies. On the other hand, additional opportunities in the area of M&A on the purchase side can be expected in the second half of the year at the latest. Thanks to the strong focus on restructuring, the current crisis also represents significant opportunities for Mutares' business model, for which Mutares is well prepared with its growing team of international transaction and restructuring experts. The annual result of Mutares is based on various factors, on the one hand, from increasing consolidated revenues and the resulting income from the consulting business, on the other hand from dividends from portfolio companies and exit proceeds from the disposal of participations. Even in an operationally difficult year for many portfolio companies, Mutares generally considers itself in a position to achieve a high enough net income for the year to be able to continue its long-term sustainable dividend policy. Against this background, Mutares continues to see the chance to carry on its long-term and sustainable dividend policy of EUR 1.00 per share in the current financial year 2020, which is characterized by the coronavirus pandemic. The financial report 2019 is available on the website of Mutares for download at https://mutares.de/investor-relations/downloads/. Company profile of Mutares SE & Co. KGaA Mutares SE & Co. KGaA Contact Press
09.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Mutares SE & Co. KGaA |
Arnulfstr.19 | |
80335 Munich | |
Germany | |
Phone: | +49 (0)89-9292 776-0 |
Fax: | +49 (0)89-9292 776-22 |
E-mail: | [email protected] |
Internet: | www.mutares.de |
ISIN: | DE000A2NB650 |
WKN: | A2NB65 |
Indices: | Scale 30 |
Listed: | Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange |
EQS News ID: | 1019035 |
End of News | DGAP News Service |
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1019035 09.04.2020
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