2020

Corporate News: Sales of EUR 40.7 million with an EBIT margin of 6.4 per cent; third quarter with significant growth in sales and EBIT compared to difficult second quarter

  • Sales of EUR 40.7 million in the mine-month period (-15 per cent compared to previous year)
  • EBIT margin of 6.4 per cent (previous year 8.7 per cent)
  • Sales in core German market down by 8 per cent, with EBIT margin of 13 per cent
  • Operating income EUR 2.6 million
  • Net income EUR 1.5 million
  • Third quarter with significant increase in sales and EBIT compared to second quarter, positive development in all business segments
  • Outlook for 2020: forecast confirmed with sales set to fall by 10 to 20 per cent and positive EBIT margin in the mid single-digit range expected

The SYZYGY Group generated sales of EUR 40.7 million in the first nine-month of the financial year, representing a decrease of 15 per cent compared to the previous year. The core German market saw sales of EUR 33.4 million with a continuing strong EBIT margin of 13 per cent. Sales declined significantly in the international markets, however, particularly in the US and UK, leading to a loss of EUR 0.6 million. This resulted in the proportion of sales generated in Germany rising to more than 81 per cent.

The SYZYGY Group’s operating income (EBIT) came in at EUR 2.6 million, with the EBIT margin declining from 8.7 per cent to 6.4 per cent.

Financial income was negative at EUR -0.6 million, meaning that total net income after taxes is around EUR 1.5 million. Earnings per share are EUR 0.11.

  Q3-2020 Q3-2019 Change 9M-2020 9M-2019 Change
Sales in kEUR 13,737 16,065 -14% 40,685 47,631 -15%
EBIT in kEUR 1,059 1,355 -22% 2,606 4,163 -37%
EBIT margin 7.7% 8.4% -0.7pp 6.4% 8.7% -2.3pp
Financial income in kEUR -167 -102 n.a -555 -121 n.a
Earnings before tax in kEUR 892 1,253 -29% 2,051 4,042 -49%
Net income in kEUR 639 915 -30% 1,458 3,007 -52%
Earnings per share in EUR 0.05 0.07 -29% 0.11 0.22 -50%
Operatiing cash folw in kEUR -962 -65 n.a 3,548 -6,284 n.a

Outlook:

The impact of the coronavirus pandemic was apparent from March onwards and reached its peak in the second quarter. Changes in our clients’ spending behaviour led to a downturn in sales and made it more difficult to win new business. The SYZYGY Group took early action and responded to client needs, with the result that the third quarter saw a significant increase in sales and profit compared to the second quarter. This trend is set to continue, so that business can be expected to recover.

SYZYGY is confirming its forecast and expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.

The full quarterly report will be available at here from November 2, 2020.