DGAP-News: Stabilus S.A. / Key word(s): Annual Results/Forecast
Stabilus S.A.: Preliminary figures for FY2020 show recovery of business performance in Q4; Positive growth forecast up to 2025
- According to preliminary figures, revenues in FY2020 at EUR 822.1 million (FY2019: EUR 951.3 million) and adjusted EBIT margin at 11.8% (FY2019: 15.0%)
- FY2020 result at EUR 30.0 million (FY2019: EUR 80.9 million) and free cash flow before acquisitions at EUR 62.3 million (FY2019: EUR 89.9 million)
- Revenue of EUR 850 million to EUR 900 million expected for FY2021 with an adjusted EBIT margin of 12% to 13%; Stabilus aims to achieve average annual revenue growth of 6% up to 2025 and to return to an adjusted EBIT margin of 15%
Luxemburg/Koblenz, November 13, 2020 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, closed the fiscal year 2020, which ended September 30, with a recovery in business performance in the fourth quarter according to preliminary figures.
In an environment that continues to be impacted by the COVID-19 pandemic, revenues in the fourth quarter amounted to EUR 222.8 million (Q4 FY2019: EUR 245.6 million), which was 9.3 percent (organically 4.6 percent) below the same quarter of the previous year. Compared to the second and third quarter of the 2020 fiscal year, a recovery in vehicle production was decisive for the improvement in revenues and margin development. In Q4 FY2020, the adjusted EBIT margin amounted to 13.4 percent, up from 3.9 percent in the third quarter of the fiscal year.
According to preliminary figures, the Group generated revenues of EUR 822.1 million in FY2020, compared to EUR 951.3 million in the previous year (-13.6 percent, organic -3.2 percent year-on-year). As a result, Stabilus exceeded its full-year forecast which was updated in the third quarter and projected revenues of around EUR 800 million and an adjusted EBIT margin of around 11 percent.
Dr. Michael Büchsner, CEO of Stabilus, said: "We look back on an unusual fiscal year. After the first quarter went according to plan, the last three quarters were marked by the pandemic that affected all of our target industries. Nevertheless, we look to the future with confidence. We were able to conclude the year profitably, and we expect revenue growth for the fiscal years 2021 to 2025."
Growth in APAC, pandemic-related declines in EMEA and the Americas
In the EMEA region, revenues amounted to EUR 411.1 million (FY2019: EUR 482.1 million) and in the Americas region to EUR 299.6 million (FY2019: EUR 365.9 million). In both regions, revenues were below the previous year's level due to both a drop in vehicle production and lower demand from industrial customers as a result of the COVID-19 pandemic. In contrast to the EMEA and the Americas regions, in the APAC region the company recorded an increase in revenues compared to the previous year to EUR 111.4 million (FY2019: EUR 103.3 million). The strong development in this region was mainly due to the Automotive Powerise division, which was driven by OEMs and the introduction of new vehicle models.
Powerise and industrial business more robust than Automotive Gas Spring
The share of the Industrial business in total revenues increased from 39 percent in fiscal year 2019 to 41 percent in fiscal year 2020. In the Industrial business unit, the Group generated revenues of EUR 337.1 million (FY2019: EUR 369.9 million), which is 8.9 percent (in organic terms 11.9 percent) less than in the previous year. A good development in the Independent Aftermarket and E-Commerce subsegments did not fully offset lower customer demand in the Commercial Vehicles and Industrial Machinery & Automation subsegments.
Adjusted EBIT margin of 11.8 percent
According to preliminary figures, the adjusted EBIT margin in fiscal year 2020 was 11.8 percent (FY2019: 15.0 percent), and therefore 80 basis points above the forecast of around 11 percent which was published with the 9-month figures.
Net profit amounted to EUR 30.0 million (FY2019: EUR 80.9 million) and was burdened by non-cash impairments of intangible assets with a net effect of around EUR -18 million. Free cash flow before acquisitions (adj. FCF) was EUR 62.3 million, compared to EUR 89.9 million euros in the previous year.
Positive growth forecast up to 2025
For fiscal year 2021, Stabilus expects revenues of EUR 850 million to EUR 900 million and an adjusted EBIT margin in the range of 12 percent to 13 percent. Up to 2025, the company expects average revenue growth of 6 percent per year and a return to an adjusted EBIT margin of 15 percent.
An accompanying presentation on the preliminary figures for fiscal year 2020 can be downloaded from the company's website at Investors / Financial Reports & Presentations / 2020 . The final figures as well as the annual report for fiscal year 2020 will be published on December 11, 2020.
 Cf. definition/calculation of KPI's 'adjusted EBIT' and 'free cash flow before acquisitions (adj. FCF)' provided in our current financial reports and earnings presentations, e.g. in our presentation for the preliminary FY2020 figures, p. 22ff, that can be downloaded from the company's website at Investors / Financial Reports & Presentations / 2020.
As one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives, Stabilus has for eight decades been demonstrating its expertise in the automotive industry and a variety of other sectors. Gas springs, dampers and electromechanical POWERISE drives from Stabilus optimize opening, closing, lifting, lowering and adjusting operations, and also protect against vibrations. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz. According the preliminary figures, Stabilus has reported revenues of EUR 822.1 million in the 2020 fiscal year. Stabilus has a global production network encompassing plants in eleven countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North, Central and South America, and in Asia Pacific. Stabilus S.A. is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the SDAX index.
This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.
13.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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