CENTROTEC SE: increased revenue and operating result despite coronavirus pandemic; annual forecast for 2020 readily achievable
Brilon, August 13, 2020: CENTROTEC SE, Brilon, increased its revenue for the first six months of the 2020 financial year by 7.6% to EUR 322.3 million (previous year EUR 299.7 million), as pre-announced on July 17, 2020.
Organic growth amounted to 6.6%. The figures saw the operating result (EBIT) more than double from EUR 8.1 million to EUR 16.7 million. However the sharply negative financial result for the first quarter kept earnings per share (EPS) flat at the prior-year level of EUR 0.43.
The pace of growth therefore slowed noticeably in the second quarter, in particular due to the coronavirus pandemic. In the second quarter, revenue reached EUR 156.0 million (previous year EUR 152.5 million). This represents growth of 2.3%. Organic growth came to merely 1.2%. The EBITDA operating result was nevertheless increased from EUR 4.0 million to EUR 7.7 million in the second quarter.
The major coronavirus-related downturns in many international sales markets such as France, Spain, Italy and the USA were offset by the generally robust development in the home markets Germany and the Netherlands, as well as in Eastern Europe. In addition, the marked scaling-back of costs for travel, entertainment, marketing and trade shows due to the pandemic had a substantial positive impact on the first-half earnings performance.
Based on the positive revenue and earnings performance in the first half of 2020 – despite the noticeable impact of the coronavirus pandemic – and provided there are no further significant market disruptions from a second wave of the coronavirus in the autumn, CENTROTEC anticipates that it could achieve or even exceed the full-year forecast, issued with reservations, of revenue of EUR 670 to 690 million and an expected EBIT of EUR 34 to 36 million. The latter nevertheless continues to represent a significant risk amid a generally fragile market environment worldwide. CENTROTEC expects the market situation at home and abroad to stabilise in the second half of the year. Looking ahead, however, the commercial climate control and ventilation systems area is likely to be adversely affected by the general downturn in the commercial and industrial construction sector.
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.
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