Syzygy AG: SYZYGY generates sales of EUR 26.9 million in first half of year, with EBIT margin of 5.7 per cent

Operating profit posted in second quarter

Bad Homburg (pta030/23.07.2020/14:17 UTC+2) -
- Sales of EUR 26.9 million in first half of the year (-15 per cent compared to previous year)
- EBIT margin of 5.7 per cent (previous year 8.9 per cent)
- Sales in core German market down by 6 per cent, with EBIT margin of 11 per cent (-3 pp compared to previous year)
- Operating income EUR 1.5 million
- Net income EUR 0.8 million
- Outlook for 2020: forecast confirmed with sales set to fall by 10 to 20 per cent and positive EBIT margin in the mid single-digit range expected

The SYZYGY Group generated sales of EUR 26.9 million in the first six months of the financial year, representing a decrease of 15 per cent compared to the previous year. The core German market saw sales of EUR 22.3 million with a continuing strong EBIT margin of 11 per cent. Sales declined significantly in the international markets, however, particularly in the US and UK, leading to a loss of EUR 0.5 million. This resulted in the proportion of sales generated in Germany rising to more than 80 per cent.

The SYZYGY Group's operating income (EBIT) came in at EUR 1.5 million, with the EBIT margin declining from 8.9 per cent to 5.7 per cent.

Financial income was negative at EUR -0.4 million, meaning that total net income after taxes is around EUR 0.8 million. Earnings per share are EUR 0.06.

Outlook:
The impact of the coronavirus pandemic was apparent from March onwards and reached its peak in the second quarter. Changes in our clients' spending behaviour led to a downturn in sales and made it more difficult to win new business. As governments ease their restrictions, it is expected that value added, consumer spending and investment will all recover markedly in the second half of 2020.

SYZYGY is confirming its forecast and expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.

	Q2 2020	Q2 2019	Change	H1 2020	H1 2019	Change
Sales (kEUR)	12,024	15,877	-24%	26,948	31,566	-15%
EBIT (kEUR)	451	1,365	-67%	1,547	2,807	-45%
EBIT margin	3.8%	8.6%	-4.8 pp	5.7%	8.9%	3.2 pp
Financial income (kEUR)	-249	-10	n.a.	-387	-18	n.a.
Earnings before tax (kEUR)	202	1,355	-85%	1,160	2,789	-58%
Net income (kEUR)	139	1,017	-86%	819	2,092	-61%
Earnings per share (EUR)	0.01	0.07	-86%	0.06	0.15	-60%
Operating cash flow (kEUR)	2,172	3,048	n.a.	4,510	-6,220	n.a.

The full six-monthly report will be available at http://ir.syzygy.de from July 30, 2020

About SYZYGY Group:
SYZYGY is a leading consultancy and implementation partner for transformation of marketing and sales. SYZYGY designs, creates and orchestrates digital experiences and products for brands, companies and people. The Group's core services are strategy, products and activation, with technology as the connecting and scaling element.
Founded in 1995, the SYZYGY Group employs some 600 people across four countries. It has offices in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw.
In addition to the main brand, SYZYGY, and strategy consultancy firm diffferent, the Group includes Polish design studio Ars Thanea. Its clients include prestigious brands such AVIS, BMW, comdirekt Bank, Commerzbank, Consorsbank, Daimler, Deutsche Bank, Kyocera, Lufthansa, Mazda, Miles & More, mobile.de, o2, Paypal, Porsche, Techniker Krankenkasse und Volkswagen.

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