CENTROTEC SE: successful first quarter with no major impact from pandemic yet; annual forecast for 2020 remains subject to reservations
Brilon, May 14, 2020: CENTROTEC SE, Brilon, increased its consolidated revenue by 13.0% to EUR 166.3 million (previous year EUR 147.2 million) in the first three months of the current financial year, from predominantly organic growth in all three operating segments.
The operating result (EBIT) was increased from EUR 4.1 million in the previous year to EUR 9.1 million in the first three months of 2020. The positive development was substantially driven by clear growth in the German heating market. Because of the negative contribution from current investments at the balance sheet date, temporarily resulting in an increased effective tax rate, earnings per share (EPS) for the first quarter were reduced to EUR 0.02 (previous year EUR 0.26).
The high uncertainty weighing on the global economy from the coronavirus crisis is not yet evident in the Q1 2020 figures. While the German sales market remains stable at the start of Q2, quite a number of international sales markets have experienced a sharp downturn. In addition, the pandemic led to a significant decline in the Purchasing Managers Index in the real estate sector in March. We anticipate that the restraint affecting new real estate transactions will persist for some months, following the sharp cross-sector economic reversal and the high burden on public-sector budgets. This will adversely affect business for CENTROTEC especially in the second half and next year. Bearing that in mind, reservations apply to the full-year forecast from the start of the year envisaging revenue of EUR 670 to 690 million and with expected EBIT of EUR 34 to 36 million.
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.