CENTROTEC SE: further rise in revenue and earnings in third quarter; upgraded full-year forecast confirmed
Brilon, November 13, 2020: As previously reported CENTROTEC SE, Brilon, maintained the positive development of the first half in the third quarter of 2020 and achieved revenue growth of 4.9% to EUR 179.7 million (previous year EUR 171.4 million). In the first nine months of the current year, revenue rose by 6.6% to EUR 502.1 million (previous year EUR 471.1 million). Organic growth amounted to 6.0%. The third-quarter operating result (EBIT) at Group level increased by 13.4% to EUR 15.8 million (previous year EUR 14.0 million) and over the year to date by 47.5% to EUR 32.6 million (previous year EUR 22.1 million). Earnings per share (EPS) climbed to EUR 0.94 (previous year EUR 0.62) in the third quarter, and to EUR 1.37 (previous year EUR 1.04) for the first nine months.
CENTROTEC confirms its latest upgrading of the forecast range for revenue to EUR 690 to 710 million (previously EUR 670 to 690 million) and for EBIT to EUR 43 to 46 million (previously EUR 34 to 36 million). This forecast incorporates an anticipated revenue contribution of around EUR 8 million and a negligible contribution to the operating result (due to capitalisation, depreciation and amortisation under IFRS rules) from the takeover of the PARI Group with effect from October 1. The basis for this upgrading of the forecast is the successful course of the year to date, which it should be possible to maintain thanks to the attractive financial support currently available in Germany for replacement heating systems as well as the reduced VAT rate that applies until the end of the year. However it should be noted that this forecast also includes exceptional cost savings from reduced travel and trade show activities plus to a lesser extent anticipated profit contributions from the sale of air purifiers amounting to some EUR 9 million overall; while this scenario could continue into the first quarter of next year due to the coronavirus pandemic, it is not likely to be permanent. In addition, the impact of the coronavirus pandemic on the construction sector that is relevant for CENTROTEC suggests a rather cautious outlook. Current research indicates that although a solid market development can be expected in new housing construction, incoming orders in the commercial construction segment are already showing a clear downturn. This could adversely affect sales of room ventilation systems. All in all, we expect the market environment to remain highly volatile.
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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