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2021

Corporate News: SYZYGY GROUP generates sales of EUR 15.1 million in 1st quarter of 2021, with an EBIT margin of 10.4 per cent

 

  • Sales of EUR 15.1 million (+1 per cent on prior-year period, the last pre-coronavirus quarter)
  • Core German market: Sales of EUR 11.9 million (-3 per cent on prior-year quarter) and an EBIT margin of 17 per cent
  • Strong performance in UK: Sales of EUR 2.2 million (+30 per cent on prior-year quarter) and an EBIT margin of 21 per cent
  • Marked recovery in other segments (Poland and US): Sales of EUR 1.3 million (+7 per cent on prior-year quarter) and an EBIT margin of 19 per cent
  • SYZYGY GROUP’s operating income rises to EUR 1.6 million (+43 per cent on prior-year quarter), EBIT margin of 10.4 per cent
  • Outlook for full-year 2021: Sales growth of around 10 per cent and an EBIT margin in the high single-digit range
  • Virtual Annual General Meeting: 28 May 2021

The SYZYGY GROUP started the new 2021 financial year with sales of EUR 15.1 million (period January to March), which corresponds to a 1 per cent increase compared to the same period of the previous year. Q1 2020 was the last quarter not to be affected by the coronavirus pandemic.

The SYZYGY GROUP’s business held up well in the core German market, with a strong recovery compared to the previous pandemic-dominated quarters of 2020. Sales amounted to EUR 11.9 million, representing a 3 per cent decrease, while there was a sharp rise in profitability, as demonstrated by a 17 per cent EBIT margin. The international business posted dynamic sales growth of 21 per cent to reach EUR 3.6 million. The UK and Polish companies in particular experienced very high growth rates, while the US business stagnated.

The SYZYGY GROUP’s operating income (EBIT) came in at EUR 1.6 million, with the EBIT margin rising from 7.4 per cent to 10.4 per cent. All the operating units in the SYZYGY GROUP were successful in contributing to profits.

Financial income was slightly negative at EUR -0.2 million, meaning that total net income after taxes is around EUR 1.1 million. Earnings per share are EUR 0.08.

  Q1 2021 Q1 2020 Change
Sales (kEUR) 15,059 14,925 1%
EBIT (kEUR) 1,566 1,097 43%
EBIT margin 10.4 % 7.4 % +3 pp
Financial income (kEUR) -159 -139 n.a.
Earnings before tax (kEUR) 1,407 958 47%
Net income for the period (kEUR) 1,069 680 57%
Earnings per share (EUR) 0.08 0.05 60%

Outlook

SYZYGY AG is confirming its forecast and expects sales growth of around 10 per cent in the 2021 financial year, combined with an EBIT margin in the high single-digit range. The expected sales growth will be delivered by all units, both national and international, with all segments contributing proportionately to profitability.

“The SYZYGY GROUP got off to a good start in 2021. Our clients have overcome their pandemic-induced caution, while digital transformation is accelerating. We are seeing a further rise in enquiries and it is apparent that our business areas meet a real need,” said CEO Franziska von Lewinski.

Due to the COVID-19 pandemic, this year’s Annual General Meeting, scheduled for May 28, 2021, will be held as a virtual event without the physical presence of shareholders. The Management Board and Supervisory Board decided at the end of January to propose a dividend of EUR 0.15 per share at the Annual General Meeting.

The full quarterly report as at March 31, 2021 will be available at http://ir.syzygy.net from May 7, 2021. (in English language).