2020

Corporate News: SYZYGY generates sales of EUR 26.9 million in first half of year, with EBIT margin of 5.7 per cent; operating profit posted in second quarter

 

  • Sales of EUR 26.9 million in first half of the year (-15 per cent compared to previous year)
  • EBIT margin of 5.7 per cent (previous year 8.9 per cent)
  • Sales in core German market down by 6 per cent, with EBIT margin of per cent (-3 pp compared to previous year)
  • Operating income EUR 1.5 million
  • Net income EUR 0.8 million
  • Outlook for 2020:

The SYZYGY Group generated sales of EUR 26.9 million in the first six months of the financial year, representing a decrease of 15 per cent compared to the previous year. The core German market saw sales of EUR 22.3 million with a continuing strong EBIT margin of 11 per cent. Sales declined significantly in the international markets, however, particularly in the US and UK, leading to a loss of EUR 0.5 million. This resulted in the proportion of sales generated in Germany rising to more than 80 per cent.

The SYZYGY Group’s operating income (EBIT) came in at EUR 1.5 million, with the EBIT margin declining from 8.9 per cent to 5.7 per cent.

Financial income was negative at EUR -0.4 million, meaning that total net income after taxes is around EUR 0.8 million. Earnings per share are EUR 0.06.

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. As governments ease their restrictions, it is expected that value added, consumer spending and investment will all recover markedly in the second half of 2020.

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.

  Q2-2020 Q2-2019 Change H1-2020 H1-2019 Change
Sales in kEUR 12,024 15,877 -24 % 26,948 31,566 -15 %
EBIT in kEUR 451 1,365 -67 % 1,547 2,807 -45 %
EBIT margin 3,8 % 8,6 % -4,8 pp 5,7 % 8.9 % -3.2 pp
Financial income in kEUR -249 -10 n.a -387 -18 n.a.
Earnings before tax in kEUR 202 1,355 -85 % 1,160 2,789 -58 %
Net income in kEUR 139 1,017 -86 % 819 2,092 -61 %
Earnings per share in EUR 0.01 0.07 -86 % 0.06 0.15 -60 %
Operatiing cash folw in kEUR 2,172 3,048 n.a. 4,510 -6,220 n.a.

The full six-monthly report will be available at http://ir.syzygy.de from August 7, 2020.