17.05.2018
Francotyp-Postalia Holding AG DE000FPH9000
DGAP-News: Francotyp-Postalia Holding AG: FP maintains its transformation path in Q1 2018
DGAP-News: Francotyp-Postalia Holding AG / Key word(s): Quarterly / Interim
Statement/Quarter Results
Francotyp-Postalia Holding AG: FP maintains its transformation path in Q1
2018
17.05.2018 / 08:00
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
FP maintains its transformation path in Q1 2018
- Medium-term profitable growth trend intact - Q1 2018 one of the strongest
quarters in revenue and earnings in the company's history
- Adjusted for currency effects, revenue achieves EUR 54.9 million
- Adjusted for currency effects and the ACT-project JUMP, EBITDA increased
by 5.3 % to EUR 8.7 million
- Adjusted free cash flow achieved EUR 3.4 million
- Forecast for 2018 as a whole confirmed
Berlin, 17 March 2018 - Francotyp-Postalia Holding AG (FP), the expert in
secure mail business and secure digital communication processes, published
its figures for the first quarter of 2018 today. In the first three months,
the company has developed operationally as planned. Revenue and earnings are
among the strongest in the company's history. Adjusted for currency effects,
revenue achieved EUR 54.9 million (previous year: EUR 55.5 million).
Adjusted for currency effects and initial expenses for the ACT-project JUMP,
EBITDA increased by 5.3% to EUR 8.7 million.
The strong Euro, in particular against the US dollar (+15.4 % compared with
the same period of the previous year), is reflected in the reported figures
for Q1 2018. The exchange rate effects across all currencies were negative,
totalling EUR 2.0 million in Q1 2018. Taking account of exchange rate
effects, the FP Group generated revenue of EUR 53.0 million. The medium-term
growth trend remains intact. Since Q1 2016, the average annual growth rate
has amounted to 3.4 % (CAGR at constant exchange rates).
In Q1 2018, revenue in the Franking Systems segment amounted to EUR 32.1
million at current exchange rates compared to EUR 33.8 million in the first
three months of 2017. Adjusted for currency effects, revenue in the core
business increased to EUR 34.0 million. FP continues to perform well in the
industry and repeated the strong success of the previous year. In the first
three months of the current year, FP therefore continued to gain market
share worldwide. The company grew particularly in its domestic market of
Germany, and the development was also positive in the strategically key
foreign markets in the US and France.
The announced realignment in the Mail Services and Software segment is in
full swing and business is stabilising. Following the decline in processed
mail volume in the 2017 financial year, revenue in the Software segment
achieved EUR 3.8 million in Q1 2018 again, reaching the level of the same
quarter of the previous year. In Q1 2018, revenue in the Mail Services
segment, the business division for professional document management and
logistics, amounted to EUR 17.1 million, compared with EUR 17.8 million in
the same period of the previous year. The volume of processed letters in the
consolidation business was stable. The decline in revenue as against the
same quarter of the previous year is due primarily to the largely completed
realignment of this product area and to changes in the customer and product
mix.
FP is constantly expanding its product and service range with digital
solutions as planned. Sales partnerships are a key element in achieving the
accelerated growth in this segment which is planned as at 2019. Just 18
months after the start of the ACT growth strategy, further key milestones
were reached. In Q1 2018, new collaborations were concluded, for example
with Bundesdruckerei GmbH for the legally-binding digital signature solution
FP Sign. With the FP Secure Gateway, a key component for secure data
transmission in the Internet of Things (IoT), FP has now since very recently
also become a technology partner of Amazon Web Services Inc., the world's
leading provider of Cloud services.
Rüdiger Andreas Günther, CEO of the FP Group, explains: "Despite some
challenges, we are consistently continuing with our transformation
trajectory. We are gaining market share in the franking machine business. At
the same time, we are working at high pressure to develop our digital
solutions and expand our sales teams to ensure the planned growth targets
for 2020 are met. Thanks to our innovative technologies, we are proud that
we are already being included in the circle of cooperation partners by the
leading companies in their sectors."
Another sub-project of the ACT growth strategy also reaches a new milestone.
As a result of the implementation of the brand strategy, the company's new
claim and vision will also be presented at the company's Annual General
Meeting on 29 May 2018. The brand strategy is expected to create and
considerably increase recognition and acceptance of the FP brand among
customers and other stakeholders worldwide.
Adjusted EBITDA above previous year's level
In Q1 2018, FP generated EBITDA of EUR 7.4 million compared with EUR 8.3
million in the previous year, corresponding to an EBITDA margin of 14.1% (Q1
2017: 15.0%).
With the JUMP project, a key sub-project within the ACT growth strategy, the
company is being realigned to accelerate revenue growth and raise
profitability to the targets communicated by 2020. The project is about to
be completed as planned which is essential for the upcoming implementation
of the key "Decide & Design Phase"; in Q1 2018, the expenses incurred for
this wer e still at a low level at EUR 0.2million. For the 2018 financial
year overall, non-recurring expenses of EUR 6.0 - 8.0 million are planned,
which will result in annual improvements of EUR 6.0 million as at 2020.
Adjusted for these JUMP expenses and for currency effects of
EUR -1.1 million, EBITDA was as much as EUR 8.7 million (corresponding to
15.9 % EBITDA margin on consolidated revenue adjusted for currency effects).
Consolidated net income at the level of the previous year
In Q1 2018, depreciation declined both in absolute terms and in relation to
revenue as against the previous year and EBIT totalled EUR 3.2 million after
EUR 3.4 million in the previous year. As in the same period of the previous
year, consolidated net income totalled EUR 2.2 million. Thus, earnings per
share (EPS) remained at the previous year's level and achieved EUR 0.14.
Günther explains: "FP has started the 2018 financial year with good results.
We are on the right track with ACT but we have to be even more agile and
faster in many areas. Therefore, in the following quarters, we will continue
to consistently implement the JUMP project that has already been announced
to align our entire organisation on the profitable growth trajectory for the
coming years."
As announced, FP is significantly investing in its new products. In the
first three months of 2018, investment was slightly below the level of Q1
2017. However, in the previous year, this also included expenses of EUR 1.4
million for the acquisition of a customer list.
In the first three months, the company generated free cash flow of EUR 2.6
million (Q1 2017: EUR 1.9 million). Adjusted for investments in finance
lease assets and M&A, the FP Group generated free cash flow of EUR 3.4
million as against EUR 4.3 million in the same period of the previous year.
The FP Group confirmed its forecast for the 2018 financial year. The company
expects revenue to increase slightly year on year. Adjusted for the expenses
of the ACT-project JUMP, the FP Group also expects a slight year-on-year
increase in EBITDA. Owing to growing investment in ACT and new products, the
company expects free cash flow for 2018 to be positive but well below the
previous year when adjusted for M&A and investments in finance lease assets,
and before payments in connection with the JUMP project.
The planned payments for JUMP for the quarters to come will contribute
significantly to the planned growth rates. It enables the company to
generate faster revenue growth with significantly improved profitability.
Günther says: "We intend to increase revenues to EUR 250 million and achieve
an EBIDA margin of 17% by 2020. We are seeking to achieve earnings per share
of more than EUR 1 for the period after 2020. We are convinced that we will
meet these ambitious targets. Q1 2018 is another step in this direction."
The anticipated development of financial performance indicators for the 2018
financial year is based on the assumption of constant exchange rates.
Key figures at a glance:
in EUR million Q1 2018 Q1 2017 Change
Revenue 53.0 55.5 -4.5%
Cost of materials 26.7 27.5 -2.9%
Staff costs 14.9 15.2 -1.8%
Other expenses 8.6 8.0 8.3%
EBITDA 7.4 8.3 -10.3%
EBIT 3.2 3.4 -8.1%
Consolidated net income 2.2 2.2 -0.1%
Earnings per share (in EUR, basic) 0.14 0.14 2.1%
Earnings per share (in EUR, diluted) 0.14 0.13 2.6%
Free cash flow 2.6 1.9 35.7%
Adjusted free cash flow 3.4 4.3 -19.7%
For press enquiries, please contact:
Dr Joachim Fleϊng, Head of Investor Relations
Tel.: +49 (0)30 220 660 410
E-mail: [email protected]
Karl R. Thiel, VP Corporate Communications
Tel.: +49 (0)30 220 660 123
E-mail: [email protected]
Follow us on social media:
Facebook, LinkedIn, Twitter, Xing and YouTube. Or subscribe to our RSS feed.
About Francotyp-Postalia (FP)
The FP Group, a listed international company headquartered in Berlin, is an
expert in secure mail business and secure digital communication processes.
As the market leader in Germany and Austria, the FP Group offers products
and services for efficient mail processing, consolidation of business mail
and digital solutions for businesses and authorities with its product
segments "Franking and Inserting", "Mail Services" and "Software". The Group
generated revenue of more than EUR 200 million in 2017. Francotyp-Postalia
is represented in ten countries with its own subsidiaries and in a further
40 countries via its own network of dealers. Thanks to a history spanning
more than 95 years, FP has a unique DNA in the fields of actuator and sensor
technology, cryptography and connectivity. It has a share of over 11% in the
global market for franking systems.
You can find out more at www.fp-francotyp.com.
Contact:
Francotyp-Postalia Holding AG
Media Relations
Telephone: +49 (0)30 220 660 410
Telefax: +49 (0)30 220 660 425
E-Mail: [email protected]
---------------------------------------------------------------------------
17.05.2018 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.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Francotyp-Postalia Holding AG
Prenzlauer Promenade 28
13089 Berlin
Germany
Phone: +49 (0)30 220 660 410
Fax: +49 (0)30 220 660 425
E-mail: [email protected]
Internet: www.fp-francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich,
Stuttgart, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
686857 17.05.2018
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
Francotyp-Postalia Holding AG ISIN: DE000FPH9000 können Sie bei EQS abrufen
Spezialmaschinenbau , FPH900 , FPH , XETR:FPH