25. Oct 2019

WashTec AG: EBIT margin at 10.1% in third quarter

DGAP-News: WashTec AG / Key word(s): 9 Month figures

25.10.2019 / 08:30
The issuer is solely responsible for the content of this announcement.


  • Third quarter revenue EUR309.1m (prior year: EUR312.7m); key account cumulative revenue to September 2019 significantly behind expectations due to delays; revenue from direct sales business continues double-digit growth on prior year
  • EBIT at EUR20.3m in third quarter (prior year: EUR33.2m)
  • Order backlog as of September 30, 2019 larger than in prior year
  • For 2019, WashTec is aiming for a stable revenue performance with an EBIT margin of now around 9% before extraordinary expenses

Augsburg, October 25, 2019 - The WashTec Group - the leading provider of innovative solutions for carwash worldwide - generated revenue of EUR110.1m in the third quarter of the year, a slight decrease (by 2.2%) on the prior-year period (prior year: EUR112.6m).

Revenue as of September 30, 2019 came to EUR309.1m, 1.2% down on the prior year (EUR312.7m). As in the first half year, revenue performance saw double-digit growth in direct sales business at the same time as a decrease in the key account business. The Company expects that the key account business will recover in the fourth quarter. Its order backlog as of September 30, 2019 is above the prior-year figure. The Chemicals business generated positive revenue performance in the third quarter. WashTec reported over 9% revenue growth in this business.

EBIT was EUR11.1m in the third quarter (prior year: EUR14.9m), with an EBIT margin of 10.1% (prior year: 13.2%). EBIT in the first nine months was EUR20.3m (prior year: EUR33.2m). The announced cost-reduction measures have started and are showing initial effects. The aim is to cut other operating expenses and to reduce the WashTec Group headcount to around 1,820 as planned. This will cause additional expenses in the full year. The EBIT margin of around 9% does not include any such extraordinary expenses.

The new digital SmartCare gantry carwash, which was presented internationally with great success for the first time at industry trade fairs in 2019, has been installed at selected locations with the first test machines in order to gain experience under real operating conditions in the field. This highly innovative gantry carwash marks a step into the future - and ahead of the competition - with digital technology offering major benefits for customers.


"Our long-term strategy of actively driving the expansion of the high-potential international direct sales business in machinery and chemicals through a highly efficient sales and marketing network continues to deliver in 2019. It is only by pursuing this strategy that we have been able to offset the significant delays in placing orders in the key account business. At the same time, we will be significantly extending our global technology leadership with our innovative SmartCare series from 2020", said Dr. Günter Blaschke, CEO of WashTec AG.


General risk information
Any outlook is subject to uncertainties that could have a material effect on forecast revenue and earnings performance.


The extensive Q3 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 more than 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:
 
EURm, IFRS Q1 - Q3 2019   Q1 - Q3 2018 Change in %  
Revenue 309.1 312.7 -1.2
EBIT 20.3 33.2 -38.9
EBIT margin in % 6.6 10.6 -
EBT 19.9 32.7 -39.1
Consolidated net income 11.6 21.3 -45.5
Earnings per share 1) (in EUR) 0.87 1.59 -45.5
Net cash flow2) 5.5 5.9 -6.8
Free cash flow2) -0.5 2.2 -122.7
ROCE in % 19.8 26.1 -
           
 
EURm, IFRS Sept 30, 19 Dec 31, 18 Change abs.
Balance sheet total2) 271.0 237.2 33.8
Equity 74.2 95.4 -21.2
Equity ratio in % 27.43) 40.2 -
Net operating working capital4) 96.2 82.6 13.6
Employees 1,888 1,870 18

1) Basis: on average 13,382,324 shares
2) Effects in 2019 due to accounting in accordance with IFRS 16
3) In 2019 effect of transition to IFRS 16 of -2,1%-points
4) Trade receivables + inventories -trade payables - prepayments on orders




Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135


25.10.2019 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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