August 9, 2019

Press release

Half-year financial results 2019

Rosenbauer Group posted strong growth in the first six months of 2019

•    Revenues rose by 12% to € 394.6 million by period comparison
•    Incoming orders also clearly top the previous year’s figure at € 571.1 million
•    Preparation for further increase in production in the second half of the year affects profitability, EBIT falls to € 5.2 million
•    Management is continuing to aim for revenues above € 950 million and an EBIT margin of approximately 5.5% for the current financial year

 

GROUP KEY FIGURES

 

1-6/2018

1-6/2019

Revenues

€ million

352.7

394.6

EBIT

€ million

10.1

5.2

Net profit for the period

€ million

5.3

1.6

Cash flow from operating activities

€ million

-39.4

-115.7

Equity in % of total assets

 

31.7%

25.1%1

Earnings per share

0.1

-0.4

Headcount as of June 30

 

3,471

3,683

Order backlog as of June 30

€ million

1,030.5

1,229.4

 

The Rosenbauer Group once again posted strong growth in the first six months of 2019. Group revenues rose by 12% year-on-year from € 352.7 million to € 394.6 million. In particular, deliveries to North America, Central Europe and Asia were higher, while especially the Middle East  recorded declines. At € 571.1 million, new orders were also significantly higher than the previous year (1-6/2018: € 525.4 million). On the other hand, higher expenses for staff and materials in anticipation of the planned increase in output in the second half of the year, negatively affected profitability and resulted in EBIT dropping to € 5.2 million (1-6/2018: € 10.1 million). Despite this interim result, the Rosenbauer Executive Board believes that the company is still within the target corridor and is anticipating revenues above € 950 million and an EBIT margin of approximately 5.5% for the year as a whole.

Revenues and result of operations
Global economic growth continued to lose momentum in the first half of 2019. The International Monetary Fund (IMF) took the most recent national publications on the economy and inflation as grounds to again downscale the economic forecast for the global economy it had already lowered in April and reduce it from 3.3% to 3.2% for this year. The global firefighting industry generally lags economic performance and reported unchanged, robust demand in this environment.

The Rosenbauer Group generated total revenues of € 394.6 million in the first half of 2019 (1-6/2018: € 352.7 million). These are currently divided across the segments as follows2: 33% in the CEEU area, 10% in the NISA area, 8% in the MENA area, 14% in the APAC area, 32% in the NOMA area, and 3% in the Stationary Fire Protection segment.  As shown from past experience, the first six months of the year are characterized by the build-up of inventories and a comparatively lower result, because the majority of vehicle deliveries are made in the second half of the year.

At € 5.2 million, EBIT for the first six months of 2019 was well below the corresponding figure from the previous year (1-6/2018: € 10.1 million). This was due to higher expenses for staff and materials. There was also a “short” June, which had fewer working days in production than in the previous year and finally ended with an EBIT of € -1.0 million (June 2018: € 3.7 million). Consolidated EBT for the reporting period amounted to € 2 million (1-6/2018: € 6.1 million).

Incoming orders developed extremely dynamically in the first six months at € 571.1 million (1-6/2018: € 525.4 million). By far the strongest year-on-year growth was reported in the Central and Eastern Europe sales area. The order backlog was € 1,229.4 million (1-6/2018: € 1,030.5 million).

Financial and net assets position
For reasons specific to the industry, the structure of the Rosenbauer Group's statement of financial position as of the end of the half-year is characterized by high trade working capital. Total assets increased to € 900.8 million by period comparison (June 30, 2018: € 696.2 million), which can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2018. The first-time application of IFRS 16 contributed to an extension of the balance sheet total in the amount of € 24.7 million.

The major changes result from inventories and current receivables. Inventories increased to € 466.1 million (June 30, 2018: € 328.6 million). The current receivables were above the previous year's level at € 207.3 million (June 30, 2018: € 160.2 million).

The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) increased year-on-year to € 396.8 million (June 30, 2018: € 245.5 million). Owing to the high level of trade working capital – due to an increase in inventories – the intra-year cash flow from operating activities was still negative at € -115.7 million (1-6/2018: € -39.4 million).

Outlook
The IMF recently again reduced its global growth forecast. International trade conflicts, Brexit and geopolitical tensions are slowing trade. Next year, growth should therefore stabilize and the global economy should be able to move up again by 3.5%.

As shown from past experience, the firefighting industry follows the general economy at a delay of several months. Demand is robust and, not least thanks to full order books, the sector is holding its ground despite slowing economic growth. A consistently vital international project landscape should also support further market growth and prolong the successful development of the sector. In particular North America, Europe and Asia should expand their volume.

 


1 Without IFRS 16: 25.8%
2 CEEU: Zentral- und Osteuropa; NISA: Nordeuropa, Iberien, Südamerika, Afrika; MENA: Mittlerer Osten und Nordafrika; APAC: Asien, Pazifik, Australien, China; NOMA: Nord- und Mittelamerika

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