PRESS RELEASES & AD-HOC

Half-year figures: Sales slightly higher, earnings below previous year

  • Group sales increased by 3% to EUR 111.4 million
  • EBITDA (-2%) almost constant
  • EBIT (-6%) and net income (-6%) below the previous year
  • Net income after minorities of EUR 2.6 million (-8%)

Hamburg, 14 May 2020

The Hamburg-based media group Edel SE & Co. KGaA (WKN 564950), listed on the Scale Segment of the Frankfurt Stock Exchange, achieved a 3% increase in revenues to EUR 111.4 million in the first half of 2019/20 (1 October 2019 – 31 March 2020) compared to the same period last year (EUR 108.1 million). Net income for the first half fell from EUR 3.2 million to EUR 3.0 million and after deduction of minority interests from EUR 2.8 million to EUR 2.6 million.

The results of the consolidated interim financial statements for the first half of the fiscal year in detail:

EBITDA in the first half of 2019/20 was slightly below the previous year’s level at EUR 10.2 million (first half of previous year: EUR 10.5 million), while EBIT fell to EUR 5.6 million (first half of previous year: EUR 5.9 million). Consolidated net income (before minority interests) amounted to EUR 3.0 million in the first half of 2019/20, compared with EUR 3.2 million in the first half of the previous year. Consolidated net income after minority interests amounted to EUR 2.6 million (first half of previous year: EUR 2.8 million). Half-year earnings per share amounted to EUR 0.12 after EUR 0.13 in the first half of 2018/19. Equity rose from EUR 32.3 million as at 30 September 2019 to EUR 35.3 million. The equity ratio remained unchanged at 20%. Cash and cash equivalents rose to EUR 29.8 million (30 September 2019: EUR 9.6 million), among other things due to the precautionary greater use of current account credit lines in the course of the Covid-19 pandemic. Cash flow from operating activities amounted to EUR 4.0 million (first half of the previous year: EUR 8.3 million). Cash flow from investing activities declined from EUR -6.7 million to EUR -2.7 million. Partly due to the repayment of liabilities, cash flow from financing activities amounted to EUR -5.2 million (first half of previous year: EUR -3.1 million). While the production business of CDs and DVDs declined in the first half of the year, optimal media GmbH was able to develop other business areas such as vinyl production, distribution and printing services positively. With slightly declining sales overall, optimal media was able to increase its earnings compared to the first half of 2018/19.

The business of the group subsidiary Kontor New Media GmbH, which specializes in the distribution of digital media content to platforms such as Spotify, Amazon and Apple Music, again grew strongly compared to the first half of last year. ZS Verlag GmbH and, among others, the entertainment division Edel Kids, which is managed by Edel Germany GmbH, also developed positively in the first half of 2019/20.

The effects of the Covid 19 pandemic have affected parts of the Edel Group from the 2nd half of March 2020. This was mainly due to the closure of the stationary retail trade and the accompanying decline in sales of physical products such as books, CDs and DVDs and the decline in orders for the production of physical data carriers at optimal media GmbH. Thanks to quickly introduced countermeasures in the form of short-time work and strong cost control as well as the reopening of the stores which has taken place in the meantime, the management is currently confident that it will be able to limit the effects to a large extent. However, the assessment of the development of the coming months remains difficult and must be reviewed regularly.

Dr. Jonas Haentjes, CEO: “The first half of 2019/20 was also marked by the Covid 19 pandemic from mid-March onwards, following a very good start in the fourth calendar quarter. In order to protect our employees in Hamburg, Munich and Berlin, we sent them to the home office as far as possible and in areas dealing with physical products, some of them were on short-time work. At optimal media in Röbel, we have introduced extensive hygienic measures in addition to short-time work. The current business development shows that our diversification and thus the spreading of risk via physical and digital sales channels makes the Edel Group relatively crisis-resistant in the market.”

The Edel SE & Co. KGaA plans to distribute another profit distribution to its shareholders for the past 2018/19 financial year. The Annual General Meeting scheduled for 18 May 2020 will vote on a proposed dividend of 10 cents per share. The dividend will be paid out from the tax deposit account (Section 27 of the German Corporation Tax Act) and is generally not subject to taxation for German shareholders.

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