POLYTEC HOLDING AG: Results 1st half-year 2019

Hörsching (pta010/07.08.2019/07:45 UTC+2) .
* Group sales revenues fell by 2.5% to EUR 320.6 million
* EBITDA amounted to EUR 33.2 million, EBITDA margin 10.4%
* EBIT totalled EUR 16.1 million, EBIT margin declined to 5.0%
* Earnings after tax reached EUR 10.4 million
* Earnings per share EUR 0.46
* Equity ratio was 3 percentage points down at 39.7%, as compared to 31.12.2018

In the first half of 2019, consolidated POLYTEC GROUP sales declined by 2.5% to stand at EUR 320.6 million. For several quarters, the transition to the WLTP exhaust emission and fuel consumption standard has impacted the POLYTEC GROUP, causing reductions in call-offs and sales revenue losses in the passenger car market area. Moreover, this trend was prolonged in the first six months of 2019.

By contrast, as compared to the preceding year, the commercial vehicles market area continued to demonstrate positive development and the non-automotive market area also showed a marked increase in sales over the weak first half of 2018.

In comparison to the same period of the previous year, sales in the passenger car market area, which with 58.4% represents the strongest area within the POLYTEC GROUP, fell sharply by around 10.6% to EUR 187.1 million. Conversely, the commercial vehicles market area increased its share of sales (29.5%) by 7.9% with current half-year revenues amounting to EUR 94.8 million. In the preceding half-year, the share of consolidated POLYTEC GROUP sales revenues from the non-automotive market area was affected by a drastic reduction in call-offs from one major customer. However, the first six months of 2019 saw a marked recovery from 9.6% to 12.1%.

In the first half-year of 2019, POLYTEC GROUP EBITDA amounted to EUR 33.2 million. At 10.4%, the EBITDA margin was down by 0.3 percentage points on the 10.7% of the previous year. In the months from January to June 2019, Group EBIT stood at EUR 16.1 million. As compared to the same period of 2018, the EBIT margin fell by 2.0 percentage points to 5.0%.

The financial result for the first half-year of 2019 amounted to minus EUR 2.1 million. Consequently, the group net profit totalled EUR 10.4 million, which corresponded with earnings per share of EUR 0.46.

As compared to 31 December 2018, at the end of the first half-year of 2019, the balance sheet total was EUR 45.2 million higher at EUR 602.8 million. This increase can be traced primarily to the issue of a further promissory note bond at the beginning of 2019. Equally, the initial adoption of accounting and evaluation methods in line with "IFRS 16 Leases" also exerted an influence upon the balance sheet. The equity ratio as at 30 June 2019 was 3 percentage points lower than the figure for the 31 December 2018 reporting date at 39.7%. Above all, this was due to the dividend payment in May 2019 totalling EUR 8.8 million. Among other factors, owing to the new IFRS 16 standard, as compared to the 31 December 2018 reporting date, net financial debt was EUR 34.5 million higher at EUR 136.3 million.

Outlook
From a current perspective, the POLYTEC GROUP executive management continues to anticipate that group sales revenues and EBIT (operating result before interest and taxes) in the 2019 financial year will emulate those of 2018. The fulfilment of this outlook will depend largely upon successful negotiations concerning outstanding claims against customers, which have been and will continue to be caused primarily by the sales losses relating to the WLTP. However, measures introduced for capacity and cost structure adjustments permit the expectation of an improvement in the earnings level in the second half-year. However, it must be stressed that this outlook does not take into consideration the possibility of serious effects emanating from Brexit, global trade barriers, or political and geopolitical events.

The interim half-year report of POLYTEC Holding AG for the reporting date 30 June 2019 is available on the company's website section Investor Relations, Publications, Financial Reports.
http://www.polytec-group.com/en/Investor-Relations/Publications/Financial-Reports

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Emitter:	POLYTEC HOLDING AG Polytec-Straße 1 4063 Hörsching Austria
Contact Person:	Mag. Paul Rettenbacher
Phone:	+43 7221 701 292
E-Mail:	paul.rettenbacher@polytec-group.com
Website:	www.polytec-group.com
ISIN(s):	AT0000A00XX9 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)