Dornbirn, Austria – The international lighting company Zumtobel Group recorded year-on-year improvements in revenues and earnings in the first half of 2019/20 despite a challenging industry environment.
“After several very challenging financial years, the current company performance is a confirmation of the path the Zumtobel Group has taken: Despite unfavourable market conditions, we were able to close the first half of the 2019/20 financial year with a slight improvement in revenues and a highly satisfactory earnings increase,” Zumtobel Group CEO Alfred Felder comments on the figures and adds: “For the second half-year, which is always weaker for seasonal reasons, we now have to invest our full effort into maintaining course for profitable growth. All in all, we expect a slight increase in revenues for the 2019/20 financial year and an improvement of the adjusted EBIT margin to 3 to 5% and therefore adhere to the guidance previously communicated.”
D/A/CH region and autumn season drive slight increase in revenues
The Zumtobel Group slightly increased Group revenues by 1.5% to EUR 603.8 million in the first half of 2019/20. This positive result is primarily attributable to the core markets of the D/A/CH region (Germany, Austria, Switzerland), with a 5.5% increase in revenues, and the seasonally strong autumn months.
Positive development of operating result due to slight revenue growth and cost savings
In the first half of the 2019/20 financial year the Zumtobel Group recorded a very positive operating development. Group EBIT adjusted for special effects amounted to EUR 43.9 million, up 77.1% on the first half of the 2018/19 financial year. The company thus increased the adjusted return on sales from 4.2% to 7.3%. The positive development of the Group’s profitability is attributable to the slight increase in revenues and cost savings. As a result, net profit for the period rose from EUR 8.8 million to EUR 24.7 million.
Outlook for FY 2019/20 – medium-term goal confirmed
The Management Board of the Zumtobel Group considers the 2019/20 financial year a year of transformation, in which the focus of activities will return to the continuous improvement of the operating business and growth – in spite of the weakening market environment. The Management Board expects a slight increase in revenues as well as an improvement in the adjusted EBIT margin to between 3 to 5% for the 2019/20 financial year (FY 2018/19: 2.4%). The medium-term goal to generate an EBIT margin of roughly 6% by the 2020/21 financial year remains intact.
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