STS Group AG: Provisional figures for 2018 match forecast / considerable increase in earnings expected in 2019 and publication of medium-term planning up to 2023
-Revenue grew by around 29% year-on-year to 401.2 mEUR in 2018 (2017: 310.0 mEUR)
- Adjusted EBITDA rose by around 67% year-on-year to 23.7 mEUR (2017: 14.2 mEUR)
- Forecast 2019: Adjusted EBITDA at least at prior year's level (2018: EUR 23.7m), EBITDA increased by at least 100% (2018: EUR 11.9m), revenue expected to remain at prior year's level
- Medium-term planning up to 2023 with target revenue of at least 500 mEUR and target EBITDA margin of at least 10%
Hallbergmoos/Munich, February 27, 2019. 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 matched its forecast for 2018 as a whole on the basis of its provisional results.
Provisional figures 2018
According to provisional and unaudited figures, the STS Group increased consolidated revenue significantly from 310.0 mEUR in the prior year to 401.2 mEUR (around 29%). This increase is mainly attributable to non-organic growth in the financial year 2017 and the related expansion in business. In China, the STS Group grew in the reporting year by expanding its own market share even though the market segment as a whole declined. Accordingly, on the basis of provisional and unaudited figures, the Group achieved a significant earnings upturn with an increase in adjusted EBITDA from 14.2 mEUR in the prior year to 23.7 mEUR (around 67%). Adjusted EBITDA is calculated on the basis of reported EBITDA and is mainly adjusted by the expenses for the IPO, the costs of integrating parts of companies that have been acquired and converting the accounting to International Financial Reporting Standards (IFRS). These adjustments came to 11.8 mEUR for 2018. The integration of parts of companies that have been acquired was completely and successfully concluded in 2018 meaning that no additional costs are expected for this purpose.
"In light of a strained market environment, the results achieved match our expectations. On the basis of our solid growth in 2018 and the successful integration of the companies acquired in 2017, which was also achieved more rapidly than we had expected, we believe we have a very sound starting position for the financial year 2019," says Andreas Becker, CEO of STS Group AG.
Forecast for 2019
In a still challenging market environment, STS Group expects stable revenue of around 400 mEUR in 2019 and adjusted EBITDA of at least at the prior year's level (2018: 23.7 mEUR). Following the successful completion of the activities in connection with the IPO and the integration of the acquired parts of companies, no extraordinary effects are planned for 2019. The Executive Board therefore expects the reported EBITDA to increase by at least 100% compared to the prior year (2018: 11.9 mEUR) and thus forecasts a significant increase in net result in the 2019 financial year.
On the assumption of a positive market environment, the STS Group plans revenue of at least 500 mEUR in the medium term up to 2023e. In particular, the Group plans to further increase its market share in the relevant markets, including the USA, and anticipates additional positive impetus from the market based on new emissions targets for commercial vehicles in China and Europe. The STS Group also sees additional potential for growth in the coming years in targeted, non-organic growth.
In the light of these assumptions and a favorable market environment, the STS Group is targeting an EBITDA margin of at least 10% in the next five years (2023e), which is in the upper area of the sector average. As the main driver for a higher EBITDA level, the STS Group expects positive economies of scale based on the planned revenue growth and plans to optimize the product mix by making it more profitable thanks to stronger margins plus to press ahead with expansion in attractive markets like China as well as to make structural costs in Europe sustainable.
Telephone conference on February 27, 2019
At 9:00 am today, February 27, 2019, STS Group AG will hold a telephone conference in English for interested investors and representatives of the press. To register, please e-mail email@example.com.
All figures mentioned here are provisional and unaudited. STS Group AG will publish the detailed and final figures for the financial year 2018 on April 4, 2019.
About STS Group:
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry for soft and hard trim. The Group, which has a history of tradition and expertise dating back to 1934, employs more than 2,500 peopleand generated revenue of more than 400 mEUR in the 2018 financial year. At its 17 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 from 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
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