Linz, May 7th, 2020. The technology group S&T AG delivers the 45th record quarter in a row with the first quarter of 2020. This is despite the fact that the Corona crisis is currently having a major impact on the global economy and everyday life.
S&T Bulgaria EOOD, established as a subsidiary of the Austrian joint stock company S&T AG and a part of the S&T Group, confirms positive results in Q1 2020 and points to growth potential in the field of communications and medical technologies. The functions of F&A Director of the Bulgarian company are taken over by Ms. Lyubima Manova, a specialist with many years of experience in the field of corporate finance. The rapid reorganization of the work teams in the new conditions, providing them with the necessary technological equipment and continuous communication between management, employees and partners are factors contributing to the good management of the situation.
07.05.2020 | Austria
- Sales growth of 20% to EUR 270 million (previous year: EUR 225 million)
- EBITDA increases by 18.2% to EUR 25 million (previous year: EUR 21.2 million)
- Operating cash flow greatly improved by EUR 19.4 million to EUR 6.4 million (previous year: minus EUR 13 million)
- New guidance 2020: sales EUR 1,150 million and EUR 115 million EBITDA
Linz, May 7th, 2020. The technology group S&T AG delivers the 45th record quarter in a row with the first quarter of 2020. This is despite the fact that the Corona crisis is currently having a major impact on the global economy and everyday life. Both sales and profitability increased further compared to the same quarter of the previous year. Sales increased by around 20% to EUR 270 million (previous year: EUR 225 million), the gross profit rose from EUR 85.3 million to EUR 107.8 million and thus reached a new one at 39.9% Record value. EBITDA increased by a gratifying 18.2% to EUR 25 million (previous year: EUR 21.2 million). Earnings per share increased by 7% to EUR 15 cents (previous year: 14 cents).
The PEC (“Profit Efficiency Cash”) program, which was launched in summer 2019, continues to have an effect: the operating cash flow in the first quarter of 2020 improved by EUR 19.4 million from EUR 13 million to EUR 6.4 million a sustained strong financial situation of the S&T Group, which despite further share buybacks and the ongoing repayment of financial liabilities, has liquid funds in the amount of EUR 276.1 million.
The first quarter was therefore very positive for S&T AG, but from March was burdened by the first significant influences of the Covid-19 pandemic. While industries such as aviation, entertainment and tourism are currently completely disappearing, the S&T Group sees growth in communications and medical technology as well as online trading. Overall, the Covid-19 pandemic that started in Asia at the beginning of the year and its effects on the supply chains had a negative impact on the S&T Group's result of around EUR 1.8 million, otherwise the increase in earnings would have been correspondingly higher.
S&T AG cannot completely escape current developments in the short term, but sees itself as one of the winners of the Corona crisis in the medium term. With its broad customer base, S&T is well diversified and resistant. The high level of cash and other unused credit lines make the S&T Group financially strong and crisis-proof. This strength can and should be used to cheaply take over financially weaker competitors in the crisis.
Based on the strengths mentioned, the figures for the first quarter of 2020 and the latest forecasts, the Executive Board of S&T AG considers business development above the level of the previous year to be probable in spite of the Corona crisis. This is supported by the order backlog, which increased further to EUR 873 million (December 31, 2019: EUR 841 million). In 2020, around EUR 1,150 million in sales and in profitability around EUR 115 million EBITDA should be achieved. Both values are around 3% above the 2019 financial year, which means that, contrary to the massive upheavals in the global economy, the S&T Group will continue to grow profitably. In 2020, despite the corona pandemic, an EBITDA margin of 10% is to be achieved for the first time. “In the medium term, S&T will be a winner of the crisis. We therefore reaffirm our ambitious Agenda 2023 goal of EUR 2 billion in sales with an EBITDA of EUR 220 million! ”, Hannes Niederhauser, CEO of S&T AG.