Financial News

LBack to Financial News Overview

STS Group AG doubles its revenue in the first half of 2018 and consistently continues its growth path

2018| Sep| 26
Financial News
P

DGAP-News: STS Group AG / Key word(s): Half Year Results

26.09.2018 / 07:30
The issuer is solely responsible for the content of this announcement.


STS Group AG doubles its revenue in the first half of 2018 and consistently continues its growth path


- Revenue doubled to 218.2 mEUR (previous year: 109.1 mEUR)

- Adjusted EBITDA more than tripled to 16.5 mEUR (previous year: 5.2 mEUR)

- Forecast for 2018: Group sales at least 30% above prior-year level and Adjusted EBITDA significantly above prior-year level expected


Hallbergmoos/Munich, September 26, 2018. STS Group AG (ISIN: DE000A1TNU68), the global system supplier for the automotive industry, focusing on the commercial vehicle industry and listed in the Prime Standard of the Frankfurt Stock Exchange, has presented its first half-year report since its IPO on June 1. Based on the successful integration of acquisitions and a good order situation with orders from nearly every significant geographical market, revenue doubled in the first half of 2018 to 218.2 mEUR compared with 109.1 mEUR in the first half of the prior year. In the reporting period, the STS Group tripled its adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) to 16.5 mEUR (prior year: 5.2 mEUR). EBITDA was adjusted primarily for integration costs and expenses for the IPO and the conversion of Group accounting to International Financial Reporting Standards (IFRS) that this required. All four business units - Acoustics, Plastics, China and Materials - contributed to the positive overall development.

The successful development in the reporting period underscores the importance of the acquisitions made in the prior year and the 2016 financial year, which mean that the STS Group now has 17 locations in seven countries on four continents. The various technologies now available, namely acoustics, injection molding and SMC composites, combine to form an attractive product portfolio with great cross-selling potential. The significant expansion of the product portfolio and the market presence in China and North America also provide a strong foundation for further growth in a constantly growing market and potential synergies from the integration of the acquired companies.

After the end of the half-year reporting period, the STS Group rigorously continued the growth and internationalization strategy it announced at the time of the IPO. This is reflected in the new orders received at the beginning of the second half of the year. In the next few years, the STS Group will supply a major European commercial vehicle manufacturer with front modules in a high-volume order worth 150 mEUR. With the entry into the significant North American commercial vehicle market, the order for the delivery of driver's cab parts for heavy trucks to one of the major North American OEMs from the second half of 2021 is of strategic importance. The STS Group is thus reaching a milestone in the corporate targets prioritized in connection with the IPO. Also at the beginning of the second half of 2018, the STS Group acquired a new order from a Chinese customer to supply a battery cover for a model of electric vehicle. As a Tier 1 supplier for a manufacturer of electric vehicles (EV OEM) in China, the STS Group has thus convincingly demonstrated the attractiveness of its products for future technologies. The Group is already represented in China, the world's largest automotive market, with a development center and two plants - a third is under construction. Production is scheduled to begin in the first quarter of 2019. The STS Group will open its new Chinese headquarters in Wuxi at the end of 2018. The expansion of the presence in Eastern Europe is also important in terms of the growth strategy. From the point of view of growth strategy, the plant in Poland should also be mentioned, where production is currently ramping up and which thus serves as a starting point for expanding the company's presence in Eastern Europe.

"Looking at the figures and our successful IPO in a challenging market environment, we have performed remarkably. We want to continue this success story and, following our strategy, invest the funds raised from the IPO in growth and thus in the future viability of our Company. With our innovative technologies, our high vertical integration and our global footprint, we are in a very good position to grow in a sustainable manner," says Andreas Becker, CEO of STS Group AG.

The STS Group raised a gross amount of 24 mEUR from the capital increase as part of the IPO, which form a strong basis for the implementation of strategic goals.

With sales and earnings figures for the first half of 2018, STS Group AG is on target. The current course of business shows continued robust demand for the STS Group's products and services. Based on the acquisitions made in the second half of 2017, the Management Board currently expects consolidated revenue to be at least 30% above the prior-year level of 310 mEUR. With regard to the Adjusted EBITDA, the Management Board expects a significant increase compared to the Adjusted EBITDA of the 2017 financial year of 14.2 mEUR.

The full 2018 half-year report can be downloaded from the Investor Relations section of the website www.sts.group.


About the STS Group:
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading global commercial vehicle system supplier to the automotive industry for soft and hard trim. The Group, which can look back on a tradition and expertise since 1934, employs more than 2,500 people worldwide and generated pro forma revenue of more than 425 mEUR in 2017. At its 16 plants in total in France, Italy, Germany, Poland, Mexico, Brazil and China, the STS Group produces plastic and acoustic components, such as solid and flexible vehicle trim, noise and vibration-damping materials and entire interior and exterior trim systems. STS is considered a technology leader in the manufacture of plastic injection molding, specialty acoustic products and components of sheet molding compounds (SMC). STS has a strong footprint with plants in China, Europe, Mexico and Brazil. The customer portfolio comprises leading international commercial vehicle and automotive manufacturers.

STS Group AG
Zeppelinstrasse 4
85399 Hallbergmoos
www.sts.group

Investor Relations
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Tel.: +49 (0)89 89827227
E-mail: sh@crossalliance.com

Contact Financial Press
Newskontor - Agency for communication
Marco Cabras
Tel.: +49 (0)172 2142968
E-mail: marco.cabras@newskontor.de



26.09.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



show this