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2021

SYZYGY GROUP boosts sales by 11 per cent to EUR 30 million in first half of 2021 / Earnings forecast for full year raised

 

  • Sales of EUR 30 million in first half of year (+11 per cent on prior-year period)
  • SYZYGY GROUP’s operating income rises to EUR 3.1 million (+100 per cent on prior-year period), EBIT margin of 10.3 per cent (+4.6pp on prior-year period)
  • Strong sales growth quarter-on-quarter, up 25 per cent compared to Q2 2020
  • Core German market: Sales increase to EUR 23.6 million (+6 per cent on first half of 2020) with an EBIT margin of 14 per cent
  • Robust performance in UK: Sales of EUR 4.3 million (+41 per cent on first half of 2020) with an EBIT margin of 18 per cent
  • Strong recovery in other segments (Poland and US): Sales of EUR 2.8 million (+32 per cent on first half of 2020) with an EBIT margin of 21 per cent
  • Outlook for full-year 2021: Sales growth of around 10 per cent and raising of profitability target to an EBIT margin of around 10 per cent (previously: EBIT margin in the high single-digit range)

 

The SYZYGY Group generated sales of EUR 30 million in the first six months (January to June) of the 2021 financial year, representing an increase of 11 per cent compared with the same period in the previous year. The 25 per cent sales growth in the second quarter of 2021 was particularly strong compared to the second quarter of 2020, which was severely impacted by the COVID-19 pandemic.

The SYZYGY GROUP’s business continues to see steady growth in the core German market, with a strong recovery being evident compared to the previous COVID-impacted quarters of 2020. Sales amounted to EUR 23.6 million in the first half of the year, representing a 6 per cent increase, while there was a sharp rise in profitability (EBIT) of 14 per cent.

The robust performance of the international companies also gained pace in the second quarter compared to the first quarter of 2021. In the UK, sales rose 41 per cent to EUR 4.3 million. Sales in the other non-German markets likewise made strong gains of 32 per cent, driven in particular by the performance of the company in Poland.

The SYZYGY GROUP’s operating income (EBIT) came in at EUR 3.1 million in the first half of the year, with the EBIT margin rising from 5.7 per cent to 10.3 per cent compared with the same period of the previous year. All the operating units in the SYZYGY GROUP successfully contributed to profits.

Financial income was negative at EUR -0.4 million, meaning that total net income after taxes is around EUR 2.1 million. Earnings per share are EUR 0.15.

Outlook

SYZYGY AG is raising its profitability forecast to an EBIT margin of around 10 per cent (previously: EBIT margin in the high single-digit range) and is confirming its sales forecast for growth of some 10 per cent. The expected sales growth will be delivered by all units, both national and international, with all segments also contributing to profitability.

“The SYZYGY GROUP is continuing its strong growth and expanding its market position. Successful business with existing clients and the acquisition of new clients demonstrate the effectiveness of our digital experience strategy. We firmly believe that digital experience will play an increasingly key role for companies and brands. We see this as a further opportunity for growth of our innovative and value adding solutions in marketing and sales,” said CEO Franziska von Lewinski.

  Q2-2021 Q2-2020 Change H1-2021 H1-2020 Change
Sales in kEUR 14,977 12,024 25 % 30,037 26,948 11 %
EBIT in kEUR 1,534 451 240 % 3,100 1,547 100 %
EBIT margin 10,2 % 3,8 % 6.4 pp 10,3 % 5.7 % 4.6 pp
Financial income in kEUR -235 -249 6 % -394 -387 2 %
Earnings before tax in kEUR 1,299 202 543 % 2,706 1,160 133 %
Net income in kEUR 1,027 139 639 % 2,097 819 156%
Earnings per share in EUR 0.07 0.01 600 % 0.15 0.06 150 %
Operatiing cash folw in kEUR -475 2,174 -122 1,439 4,510 -68 %

The full six-monthly report will be available at http://ir.syzygy.de from August 4, 2021.