Syzygy AG: SYZYGY AG confirms provisional figures: Sales of EUR 55.5 million and EBIT of EUR 4.0 million

Outlook 2021: Sales growth of around 10 per cent and an EBIT margin in the high single-digit range

Bad Homburg (pta014/26.03.2021/11:34 UTC+1) . Group sales EUR 55.5 million (-14 per cent compared to previous year)
. Core German market: Sales of EUR 45.5 million (-8 per cent on previous year) and an EBIT margin of 14 per cent
. Operating income of EUR 4.0 million with an EBIT margin of 7.2 per cent; SYZYGY thus exceeds profitability forecast of mid single-digit range
. Net income EUR 2.1 million
. Outlook for 2021: Sales growth of around 10 per cent and an EBIT margin in the high single-digit range
. Virtual Annual General Meeting of SYZYGY AG on May 28, 2021
. Proposed dividend: EUR 0.15 per share

The figures for 2020 as confirmed by the Supervisory Board and the auditor indicate that the SYZYGY GROUP generated sales of EUR 55.5 million, representing a decline of around 14 per cent compared to the previous year.
Operating income (EBIT) came in at EUR 4.0 million, leading to a slight reduction in the SYZYGY GROUP's EBIT margin from 8.6 per cent to 7.2 per cent. Financial income was EUR -0.7 million, meaning that total net income after taxes is EUR 2.1 million. This corresponds to earnings per share of EUR 0.15.

Core German market
A sharp drop in sales in the second quarter of 2020 was followed by a strong recovery, resulting in sales of EUR 45.5 million. This represents a decline in sales of 8 per cent, but with continuing high profitability as demonstrated by a 14 per cent EBIT margin. Within the segment, the technology division grew significantly, while the consulting business reported a drop in sales.

International
International sales were down EUR 4.6 million at around EUR 10.0 million. Although the operating results of SYZYGY London and SYZYGY New York were negative over the full year, positive operating results were generated in the fourth quarter and continued on a stable basis in 2021. The Polish subsidiary posted a drop in sales of approximately 10 per cent. In December 2020, SYZYGY Poland acquired a major new client for e-commerce-related work, meaning that the business prospects for 2021 are positive.

	2020	2019	Change
Sales (kEUR)	55,521	64,243	-14%
EBIT (kEUR)	3,999	5,497	-27%
EBIT margin	7.2%	8.6%	-1.4pp
Financial income (kEUR)	-697	-303	n.a.
Net income (kEUR)	2,083	3,540	-41%
Earnings per share (EUR)	0.15	0.26	-26%

Outlook
SYZYGY AG expects sales growth of around 10 per cent in the 2021 financial year, combined with an EBIT margin in the high single-digit range, representing a significant increase in profitability. The expected sales growth will be delivered by all units, both national and international, with all segments contributing proportionately to profitability.
"Digital transformation is accelerating and affecting almost every aspect of business and daily life. Digital services and products are becoming even more of a priority for clients, consumers and businesses. The SYZYGY GROUP sees this as a great opportunity: we bring people and brands together by creating compelling digital experiences and products that are perfectly matched with needs," said CEO Franziska von Lewinski.

Due to the COVID-19 pandemic, this year's Annual General Meeting, scheduled for May 28, 2021, will be held as a virtual event without the physical presence of the shareholders. The Management Board and Supervisory Board had already decided at the end of January to propose a dividend of EUR 0.15 per share at the Annual General Meeting.

The full annual report for 2020 will be available from March 30, 2021 at http://ir.syzygy.de.

About the SYZYGY GROUP
The SYZYGY GROUP is a leading consultancy and implementation partner for transformation of marketing and sales. The Group designs, creates and orchestrates digital experiences and products for brands, companies and people. Its core services are strategy, products and activation, with technology as the connecting and scaling element.

Founded in 1995, the SYZYGY GROUP is listed on the German stock exchange and employs some 550 people across four countries. It has offices in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw. The WPP Group is the majority shareholder, with a 50.3% stake.

In addition to the main brand, SYZYGY, and strategy agency diffferent, the SYZYGY GROUP includes Polish design studio Ars Thanea. Its clients include prestigious brands such as BMW, Commerzbank, Consorsbank, Daimler, Deutsche Bank, Kyocera, Lufthansa, Mazda, Miles & More, mobile.de, o2, PayPal, Porsche, health insurer Techniker Krankenkasse and Volkswagen.

(end)