28. Jul 2020

WashTec AG: Business in second quarter affected by impacts of Covid-19 pandemic

WashTec AG / Key word(s): Half Year Results
WashTec AG: Business in second quarter affected by impacts of Covid-19 pandemic

28.07.2020 / 08:00
The issuer is solely responsible for the content of this announcement.

  • Second quarter revenue of €88.1m (prior year: €106.7m) significantly down on prior year; resulting in first half revenue of €175.4m (prior year: €199.1m)
  • Costs cut by 8.5% year-on-year in first half of 2020; further measures under implementation as part of accelerated Performance Program
  • EBIT positive at €3.5m (prior year: €6.6m) in second quarter; half year EBIT of €5.2m (prior year: €9.3m) therefore significantly below prior year
  • Free cash flow up €29.3m to €13.6m (prior year: €-15.7m)
  • Guidance for full year 2020: Fall in revenue between 15% and 20% and decreasing EBIT with an EBIT margin of 3%-5%

Augsburg, July 28, 2020 - Revenue of WashTec Group - the leading supplier of innovative solutions for the carwash business worldwide - were 17.4% lower than in the prior year at €88.1m in the second quarter of 2020 (prior year: €106.7m). Revenue as at 30 June 2020 amounted to €175.4m and were thus €23.7m or 11.9 % below the prior year's level (€199.1m).

While the service and chemicals business recorded only slight declines, sales volumes of equipment sold were sharply lower. The negative revenue trend was caused by the spread of the Covid-19 pandemic. The European market in particular was negatively affected in the second quarter with a 23.9% decline in revenues to €68.2m (prior year: €89.6m). However, the situation in Europe improved significantly in the course of the second quarter. The decline in orders received in June was only in the low single-digit range.

In line with revenue, Group EBIT fell significantly in the second quarter to €3.5m (prior year: €6.6m). The lower EBIT is again due to the Europe region. The second quarter EBIT margin was 4.0% (prior year: 6.2%). Half year EBIT was €5.2m (prior year: €9.3m). The EBIT margin for the half year was 3.0% (prior year: 4.7%).

The order backlog (machines and equipment) at the end of the first half was significantly down year-on-year. In the Asia/Pacific region, the order backlog was slightly larger than in the prior year.

Free cash flow (net cash flow - cash outflow from investing activities) increased to €13.6m (prior year: €-15.7m). In total, cash funds went up relative to December 31, 2019 by €8.7m to €-26.0m. In the same period of the previous year, the increase/ decrease in cash and cash equivalents amounted to €-53.4m, including a dividend payment of €32.8m. No dividend payment was made in the reporting period.

On July 27, 2020, the Company reissued its guidance for fiscal year 2020 and expects a fall in revenues for the Group in a range of 15% - 20% compared to the prior year. EBIT is also expected to decrease compared to the prior year. The Company is aiming for an EBIT margin of 3% - 5% based on the projected revenue performance.

Today, the Annual General Meeting of WashTec AG will take place as a virtual general meeting, at which the Management Board will report on the current business situation.

"The COVID-19 pandemic affects our business. However, we also see 2020 as an opportunity and are accelerating the implementation of the Performance Program that has already started in the prior year. In this way, we are adapting the company's structures and processes to the new challenges and developments in the marketplace. In the medium term, the goal remains to achieve again a double-digit EBIT margin through the implemented measures", says Dr. Ralf Koeppe, CEO/CTO of WashTec AG.

The H1 financial statement and further information about WashTec can be found on: www.washtec.de.

About WashTec:
WashTec Group with its registered office in Augsburg, Germany, is the leading provider of innovative car wash solutions worldwide. The company has about 1,800 employees and is represented with subsidiaries in the major markets of Europe, North America and Asia/Pacific. Moreover, WashTec has an extensive network of independent marketing partners through which it is present in around 80 countries worldwide.

Key figures:
€m, IFRS H1 2020 H1 2019 Change in %
Revenue 175.4 199.1 -11.9
EBIT 5.2 9.3 -44.1
EBIT margin in % 3.0 4.7 -
EBT 4.8 9.0 -46.7
Consolidated net income 2.1 4.4 -52.3
Earnings per share 1) (in €) 0.16 0.33 -52.3
Net cash flow 15.0 -10.9 237.6
Free cash flow 13.6 -15.7 186.6
ROCE in % 16.1 22.3 -
€m, IFRS 31. Jun 20 31. Dec 19 Change abs.
Balance sheet total 260.9 274.9 -14.0
Equity 86.0 84.5 1,5
Equity ratio2) 33.0 30.7 -
Net operating working capital3) 86.5 96.2 -9.7
Employees 1,795 1,874 -79

1) Basis: on average 13,382,324 shares; Basic = diluted
2) Equity /balance sheet total
3) Trade receivables + inventories -trade payables - prepayments on orders

WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 5584 - 0
Fax: +49 (0)821 - 5584 - 1135

28.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: WashTec AG
Argonstraße 7
86153 Augsburg
Phone: +49 (0)821 55 84-0
Fax: +49 (0)821 55 84-1135
E-mail: washtec@washtec.de
Internet: www.washtec.de
ISIN: DE0007507501
WKN: 750750
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1102965

End of News DGAP News Service

1102965  28.07.2020