Puchheim, 13 November 2019
STEMMER IMAGING AG publishes quarterly figures: Significant growth in revenue and earnings; earnings forecast raised
- Revenue increase by 29.7 per cent to EUR 30.5 million in the first three months of the planned short financial year 2019 (previous year: EUR 23.5 million)
- Adjusted operating result (EBITDA) of EUR 4.0 million and an EBITDA margin of 13.1 per cent are significantly above the level of the previous year (EUR 2.3 million / EBITDA margin 9.7 per cent)
- Acquisition of machine learning software algorithms for the further development of the Common Vision Blox software library in the Deep Learning segment
- Announcement of one-time expenses of EUR 1.5 million for Q2 2019 by bringing forward costs from 2020 previously reported as adjusted
- Forecast for planned short financial year 2019: revenue in the range of EUR 59.0 to 65.0 million and EBITDA forecast raised from EUR 5.5 - 7.1 million to EUR 6.0 - 7.5 million
Puchheim, 13 November 2019 - STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ), a leading international machine vision technology provider, today published its quarterly results (July - September 2019).
After a strong final quarter of the 2018/2019 financial year (April - June 2019), the Group reported significant growth of 29.7 per cent in the first three months of the planned short financial year 2019 to EUR 30.5 million (previous year: EUR 23.5 million). The above-average increase is due on the one hand to the revenue of INFAIMON Group, consolidated as of July 2019, and on the other hand to higher revenue contributions of the subsidiaries, particularly in Sweden and France. In a generally weak market environment, the Group again benefited from its broad positioning in Europe and sales across a wide variety of end markets.
At EUR 4.0 million, the adjusted operating result (EBITDA) in the first quarter of the planned short financial year 2019 was significantly higher than in the same period of the previous year (EUR 2.3 million). The improved cost of materials ratio of 60.9 per cent (previous year: 65.3 per cent) is a result of both increased internationalization and stronger project business. For the first time, leases were recognised in the balance sheet in accordance with the IFRS 16 and made a positive contribution of EUR 0.5 million to EBITDA. The result was adjusted by EUR 0.4 million, largely impacted by the purchase price payment for the acquisition of ELVITEC S.A.S. The EBITDA margin of 13.1 per cent was significantly higher than the figure of 9.7 per cent achieved in the same period of the previous year. The adjusted operating result (EBIT) after three months amounted to EUR 3.0 million (previous year: EUR 2.0 million) with the EBIT margin rising from 8.4 per cent in the previous year to 9.7 per cent. Adjusted consolidated earnings in the reporting period amounted to EUR 2.3 million (previous year: EUR 1.5 million).
|Key figures (in EUR million)
||01 Jul 2019 to 30 Sep 2019
(Q1 FSY 2019)
|01 Jul 2018 to 30 Sep 2018
In the first quarter of the planned short financial year 2019, STEMMER IMAGING continued the growth trend of the previous financial year. The integration of INFAIMON Group, which was consolidated as of 1 July 2019, has had a significant impact on the increase in revenue and gross margins as well as the contribution to earnings. The robust organic growth above this is to be emphasised against the backdrop of a weak market environment. This was made possible by broad regional positioning, diversification across many end user industries and enhancement of value-added services, all of which successfully counteracted the pressure on margins in a consolidating market environment. The expertise of staff delivering targeted technical solutions to customers in the project business form the basis for this end.
With the beginning of the short financial year 2019, STEMMER IMAGING Group for the first time adopted the new lease accounting method in accordance with IFRS 16, which led to adjustments in the consolidated income statement and balance sheet. The recognition of operating leases reduced other operating costs by EUR 0.5 million and increased property, plant and equipment by EUR 4.9 million.
With the beginning of the planned short financial year 2019, STEMMER IMAGING Group for the first time applied the new lease accounting method in accordance with IFRS 16, which led to adjustments in the Group's income statement and balance sheet. The recognition of operating leases reduced other operating expenses by EUR 0.5 million and increased property, plant and equipment by EUR 4.9 million.
As of 30 September, equity amounted to EUR 73.5 million (30 June 2019: EUR 71.6 million), corresponding to an equity ratio of 68.4 per cent (30 June 2019: 81.9 per cent). Current assets decreased to EUR 65.8 million (30 June 2019: EUR 73.9 million). The decline was mainly due to the the purchase price payment for INFAIMON Group.
STEMMER IMAGING sees the quarterly results achieved as confirmation of its medium-term strategy, which was only recently presented at the first Capital Markets Day. According to this strategy, the Group is therefore striving to expand its range of services in the direction of artificial vision into new areas of application outside industrial manufacturing and to further expand its contribution in the value chain with its own innovative software and configured vision subsystems. Based on the communicated strategy, the company is expected to grow to a revenue level of more than EUR 200 million with an EBITDA margin of 10 to 12 per cent. The EBITDA target corridor is understood to be sustainable without earnings adjustments.
The action plan on which this strategy is based provides for the acquisition of new forward looking software algorithms in this short financial year in the area of deep learning for inclusion in the Common Vision Blox software library. Furthermore, the management plans to bring forward future expenses in connection with the acquisition of ELVITEC S.A.S. and further organizational adjustments into the planned short financial year. The aim is to report unadjusted results. These one-off expenses are expected to burden the result of the second quarter with approximately EUR 1.5 million.
"In an overall weak market for machine vision, we were again able to achieve sustained growth. The action plan for our further expansion strategy provides for increased business growth and expansion in non-industrial target markets and the development of innovative, scalable vision subsystems. At the same time, we remain aware to the current weak and uncertain market situation in order to be able to react promptly and flexibly to changing conditions," says Arne Dehn, CEO of STEMMER IMAGING AG.
The Management Board confirms the revenue in a range of EUR 59.0 - 65.0 million forecast for the planned short financial year 2019. The previous profit forecast (EBITDA) has been raised from EUR 5.5 - 7.1 million to EUR 6.0 - 7.5 million. In the first half of 2018/2019, STEMMER IMAGING AG generated revenues of EUR 50.7 million and adjusted EBITDA of EUR 4.0 million.
In order to simplify the annual financial statement processes, the conversion of the previous STEMMER IMAGING financial year to the calendar year will be proposed to the Annual General Meeting on 19 November 2019. If the the conversion is approved by the shareholders' meeting, there will be a short financial year in the current second half of 2019 for the period from 1 July 2019 to 31 December 2019. The year 2020 would then be the first STEMMER IMAGING financial year corresponding to the calendar year.
The quarterly statement (July - September 2019) is available for download at www.stemmer-imaging.com in the Investors section.
About STEMMER IMAGING:
STEMMER IMAGING is a leading international machine vision technology provider. With staff located across Europe, Latin America and Asia, the company provides state-of-the-art machine vision solutions, extensive knowledge and outstanding customer service.
Clients value STEMMER IMAGING as a trusted advisor, positioned to deliver tailored solutions. These include components that can be pre-configured where needed, sub-systems designed to reduce time and effort when integrating vertical applications, and customer-specific solutions delivering a competitive advantage to predominantly OEMs - all powered by renowned knowledge and leading software tools including the company's machine vision library "Common Vision Blox".
VISION.RIGHT.NOW. symbolises the STEMMER IMAGING mission to make machine vision easy and accessible, empowering customers to deliver world-class solutions.
STEMMER IMAGING AG
Chief Executive Officer
82178 Puchheim, Germany
Phone: +49 89 80902-196
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