CENTROTEC SE: revenue and earnings growth in 2019; annual forecast for 2020 conditional in light of coronavirus crisis
Brilon, March 31, 2020 – The 2019 financial year saw CENTROTEC SE, Brilon, achieve 5.9% growth in consolidated revenue to EUR 651.0 million (previous year EUR 614.7 million), with all three operating segments contributing to this increase. The operating result (EBIT) for the Group rose by 8.8% to EUR 33.1 million (previous year EUR 30.4 million).
Underpinned by Group-wide growth in international and German business, the largest segment Climate Systems with the subsidiaries Wolf and Brink notably increased its operating result. In addition, the positive development in current investments with a gain of EUR 5.1 million (previous year EUR -7.0 million) took the financial result into the black (EUR 0.4 million), in a turnaround from the previous year’s markedly negative figure of EUR -11.2 million. Overall, these effects produced earnings per share (EPS) of EUR 1.48 (previous year EUR 0.74).
However as announced in the previous week, in light of developments concerning the worldwide coronavirus pandemic CENTROTEC has resolved to suspend the dividend payment (previous year EUR 0.30) for the 2019 financial year. The forecast made at the start of February for the 2020 financial year indicating revenue growth to EUR 670 to 690 million with an operating result (EBIT) of EUR 34 to 36 million is equally subject to considerable uncertainty now that the coronavirus pandemic is increasingly also affecting Europe.
The sense of uncertainty caused by the coronavirus has moreover prompted many customers of CENTROTEC to build up stock levels in order to maintain their ability to supply. This is reflected in a healthy sales performance over the first few months of the year. The increased likelihood of a widespread collapse in sales markets, problems in procurement markets and the possibility of official limitations on manufacturing activity could nevertheless prospectively cause a significant disruption to CENTROTEC’s business operations in the second quarter. Individual markets such as Italy and France have already taken a sharp downturn since the start of March. However as matters stand it is not possible to estimate the financial impact of the crisis with sufficient certainty.
CENTROTEC SE enjoys a presence in around 50 different countries through subsidiaries and sales partners. The principal group companies are Wolf, Brink Climate Systems and Ned Air in the Climate Systems segment, specialising in heating, climate control and ventilation technology e.g. in the form of solar thermal systems, CHP units and home ventilation systems with heat recovery, as well as Ubbink and Centrotherm in the Gas Flue Systems segment, with their focus on gas flue and air piping systems. CENTROTEC is consequently Europe's only listed full-service provider of heating and climate control technology, solar thermal systems and energy-saving solutions for buildings.