POLYTEC HOLDING AG: Results 3. quarter 2020

Hörsching (pta015/06.11.2020/07:59 UTC+1) .
As opposed to the same period of the previous year, the consolidated sales revenues of the POLYTEC GROUP fell by 19.3% to EUR 379.4 million (Q1-Q3 2019: EUR 470.3 million).

In the passenger cars and light commercial vehicles market area, which with a 63.8% (Q1-Q3 2019: 60.7%) share of total sales represents the strongest area within the POLYTEC GROUP, sales revenues in the months from January to September 2020 were considerably lower and as compared to the identical period of the previous year fell by 15.2% to EUR 242.1 million (Q1-Q3 2019: EUR 285.5 million).

By comparison with the first nine months of 2019, the share of sales in the commercial vehicles market area (22.8%; Q1-Q3 2019: 27.0%) showed the sharpest decline, dropping by 32.0% from EUR 126.9 million to EUR 86.3 million. However, while in the first and second quarters of 2020 the sales of parts for trucks and other commercial vehicles fell markedly, the third quarter witnessed a marginal recovery from EUR 32.0 million to EUR 34.8 million.

In the first three quarters of 2020, the smart plastic and industrial applications market area accounted for a 13.4% (Q1-Q3 2019: 12.3%) share of POLYTEC GROUP consolidated sales. Despite the sales revenues from the production of logistics boxes for the foods industry, which were also generated during the months affected by COVID-19, in the first nine months of 2020 non-automotive products fell by a total of 11.9% to EUR 51.0 million (Q1-Q3 2019: EUR 57.9 million).

In the first three quarters of 2020, POLYTEC GROUP EBITDA amounted to EUR 20.6 million (Q1-Q3 2019: EUR 47.8 million). As in the first half-year, this fall can be traced primarily to the COVID-19 related weakening of demand. As compared to the same period of the previous year, in the first nine months of 2020 the EBITDA margin declined by 4.8 percentage points from 10.2% to 5.4%. Moreover, by comparison with Q3 2019, in Q3 2020 the EBITDA margin fell by only 2.6 percentage points from 9.8% to 7.2%.

Group EBIT in the third quarter of 2020 amounted to EUR 0.9 million and was thus slightly positive (Q3 2019: EUR 6.1 million). This figure corresponded with an EBIT margin of 0.6% (Q3 2019: 4.0%). In terms of the months from January to September 2020, EBIT totalled minus EUR 6.2 million (Q1-Q3 2019: EUR 22.2 million), which equated to an EBIT margin of minus 1.6% (Q1-Q3 2019: 4.7%).

The financial result for the first nine months of 2020 amounted to minus EUR 2.4 million (Q1-Q3 2019: minus EUR 2.9 million). Group net profit stood at minus EUR 10.4 million (Q1-Q3 2019: EUR 14.1 million), which corresponded with earnings per share of minus EUR 0.50 (Q1-Q3 2019: EUR 0.62).

On 30 September 2020 the group's balance sheet total amounted to EUR 585.0 million, which as compared to the figure for 31 December 2019 represented a slight fall of EUR 20.6 million. By comparison with the 31 December 2019 reporting date, the equity ratio on 30 September 2020 stood at 40.5% and thus remained at a healthy level. Net debt amounted to EUR 157.1 million and stayed at the level on the 31 December 2019 reporting date.

As compared to the 31 December 2019 reporting date, the POLYTEC GROUP was able to raise its liquid assets by 10.3% and on 30 September 2020 disposed over cash and cash equivalents amounting to EUR 61.3 million and hence sees itself as being in a solid position.

Outlook
In view of the gradual improvement in the business trend since June 2020, the POLYTEC GROUP management remains cautiously optimistic with regard to the final quarter of the year and on the basis of the currently communicated call-offs, anticipates sales revenues of around EUR 520 million.

Earnings before interest and taxes (EBIT) will probably be balanced prior to special effects, which include the positive result of the sale of the participation in POLYTEC Industrial Plastics GmbH and possible negative impacts that in particular could result from countermeasures against the COVID-19 pandemic. Furthermore, the actual realisation of this result outlook depends upon the possible consequences of Brexit and other political and geopolitical events.

The interim report of POLYTEC Holding AG for the reporting date 30 September 2020 is available on the group website under Investor Relations, publications.
https://www.polytec-group.com/en/investor-relations/publications

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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)