Syzygy AG: SYZYGY GROUP boosts sales by 11 per cent to EUR 30 million in first half of 2021

Earnings forecast for full year raised

Bad Homburg (pta028/20.07.2021/13:07 UTC+2) * Sales of EUR 30 million in first half of year (+11 per cent on prior-year period)
* SYZYGY GROUP's operating income rises to EUR 3.1 million (+100 per cent on prior-year period), EBIT margin of 10.3 per cent (+4.6pp on prior-year period)
* Strong sales growth quarter-on-quarter, up 25 per cent compared to Q2 2020
* Core German market: Sales increase to EUR 23.6 million (+6 per cent on first half of 2020) with an EBIT margin of 14 per cent
* Robust performance in UK: Sales of EUR 4.3 million (+41 per cent on first half of 2020) with an EBIT margin of 18 per cent
* Strong recovery in other segments (Poland and US): Sales of EUR 2.8 million (+32 per cent on first half of 2020) with an EBIT margin of 21 per cent
* Outlook for full-year 2021: Sales growth of around 10 per cent and raising of profitability target to an EBIT margin of around 10 per cent (previously: EBIT margin in the high single-digit range)

The SYZYGY Group generated sales of EUR 30 million in the first six months (January to June) of the 2021 financial year, representing an increase of 11 per cent compared with the same period in the previous year. The 25 per cent sales growth in the second quarter of 2021 was particularly strong compared to the second quarter of 2020, which was severely impacted by the COVID-19 pandemic.

The SYZYGY GROUP's business continues to see steady growth in the core German market, with a strong recovery being evident compared to the previous COVID-impacted quarters of 2020. Sales amounted to EUR 23.6 million in the first half of the year, representing a 6 per cent increase, while there was a sharp rise in profitability (EBIT) of 14 per cent.

The robust performance of the international companies also gained pace in the second quarter compared to the first quarter of 2021. In the UK, sales rose 41 per cent to EUR 4.3 million. Sales in the other non-German markets likewise made strong gains of 32 per cent, driven in particular by the performance of the company in Poland.

The SYZYGY GROUP's operating income (EBIT) came in at EUR 3.1 million in the first half of the year, with the EBIT margin rising from 5.7 per cent to 10.3 per cent compared with the same period of the previous year. All the operating units in the SYZYGY GROUP successfully contributed to profits.

Financial income was negative at EUR -0.4 million, meaning that total net income after taxes is around EUR 2.1 million. Earnings per share are EUR 0.15.

Outlook
SYZYGY AG is raising its profitability forecast to an EBIT margin of around 10 per cent (previously: EBIT margin in the high single-digit range) and is confirming its sales forecast for growth of some 10 per cent. The expected sales growth will be delivered by all units, both national and international, with all segments also contributing to profitability.
"The SYZYGY GROUP is continuing its strong growth and expanding its market position. Successful business with existing clients and the acquisition of new clients demonstrate the effectiveness of our digital experience strategy. We firmly believe that digital experience will play an increasingly key role for companies and brands. We see this as a further opportunity for growth of our innovative and value adding solutions in marketing and sales," said CEO Franziska von Lewinski.

kEUR	Q2 2021	Q2 2020	Change	H1 2021	H1 2020	Change
Sales	14,977	12,024	25%	30,037	26,948	+11%
EBIT	1,534	451	240%	3,100	1,547	100%
EBIT margin	10.2 %	3.8%	6.4pp	10.3%	5.7 %	4,6pp
Financial income	-235	-249	6%	-394	-387	2%
Net income before tax	1,299	202	543%	2,706	1,160	133%
Net income	1,027	139	639%	2,097	819	156%
Earnings per share (EUR)	0.07	0.01	600%	0.15	0.06	150%

The full six-monthly report will be available at http://ir.syzygy.de from July 28, 2021.

About the SYZYGY GROUP
The SYZYGY GROUP creates better experiences through digitisation and transformation. It brings people and brands together, digitises structures and organisations, and develops new products, services and business models. With more than 550 experts for the human experience, consulting, design, technology and performance, the SYZYGY GROUP can craft a digital culture that generates positive change today and tomorrow and takes brands and companies forward.
The SYZYGY GROUP was established in 1995 and has a presence across four countries in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw.
As a public company, SYZYGY AG has been listed on the Prime Standard of the Frankfurt Stock Exchange since 2000.
The SYZYGY GROUP comprises leading consultancy and implementation partner for marketing and sales transformation SYZYGY, enterprise technology specialist SYZYGY Techsolutions, performance marketing and media specialist SYZYGY Performance, VR specialist SYZYGY Xrealities, strategy and business design consultancy diffferent and design studio Ars Thanea.
Together, the SYZYGY GROUP companies support clients such as BMW, Commerzbank, Consorsbank, Daimler, Deliveroo, Eucerin, Frankfurt Book Fair, Kyocera, Lufthansa, Mazda, Miles & More, MINI Deutschland, mobile.de, o2, PayPal, Porsche, health insurer Techniker Krankenkasse and Volkswagen.

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