Oslo, 28.08.2020 at 12:00 CET
Fiven ASA second quarter report 2020 - Stable adjusted EBITDA in spite of revenue decline
- Fiven Group second quarter revenues were impacted negatively by the Covid-19.
- Total revenues reported at EUR 22.3m, down by 31.7% versus second quarter 2019 pro forma numbers.
- The adjusted EBITDA was EUR 5.2m, down by 0.1% versus second quarter 2019 pro forma numbers.
- In spite of the revenue decline, earnings showed a flat evolution quarter on quarter due to favorable impact from sales mix, currency and low raw material prices.
- Fiven's cash balance at quarter two end 2020 was EUR 21.7m versus EUR 10.2m second quarter 2019. The leverage ratio at 2.55 was well inside of bond requirements.
- Lower customer demand has necessitated adaptation in production and organization in all Fiven production units, and a restructuring reserve of EUR 0.5m has been booked in second quarter of 2020.
The visibility into the future is very short and future sales are difficult to predict. Fiven standard product markets are more impacted by the pandemic than the demand for specialty products.
Fiven continues to expect that the markets will remain challenging in the short term, with activity levels likely to remain subdued into Q3 and limited visibility into Q4. However, the strategy remains on track to grow on specialty/customized products.
Under those uncertain conditions, Fiven continues to have a strong focus on costs and cash. This means the group will continue to align production capacity and the supply chain to the level of market demand without compromising on ability to meet customer requirements. The need to reduce administration goes hand in hand with reduction in production and will foster a more efficient and leaner organization fully fit and scalable when the market is coming back.
The full second quarter report 2020 can be downloaded from https://www.fiven.com/company-information/investor-relations/reports/
This information is information that Fiven ASA is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 12:00 CET on 28.08.2020.
For further information, please contact:
Stein Erik Ommundsen, Group CFO and General Manager
+47 975 10 481, Stein.E.Ommundsen@Fiven.com
Stefan Mokros, IR Manager
+49 221 6507 6097, email@example.com
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