Financial and press releases
INDUS publishes preliminary figures: Solid business performance in difficult COVID-19 year
- Sales target reached at around EUR 1.56 billion
- EBIT of approx. EUR 25 million supported by recovery at year-end
- Strong operating cash flow
As had been expected, INDUS Holding AG’s key figures for the 2020 financial year are impacted by the effects of the coronavirus pandemic. According to the preliminary, still unaudited figures, INDUS Holding AG generated sales of around EUR 1.56 billion in 2020. Although sales are down by 10.6% on the previous year’s EUR 1.74 billion, INDUS is thus within the range specified in the forecast that was confirmed in the nine-month report (EUR 1.45 billion to EUR 1.6 billion). The decline in earnings before interest and taxes (EBIT) to around EUR 25 million (previous year: EUR 117.9 million) was due in particular to the effects of the COVID-19 pandemic, but also to the structural upheaval in the automotive industry. In view of the positive operating performance in the fourth quarter, INDUS had raised its EBIT forecast on 26 January 2021 and adjusted it to the range of EUR 20 million to EUR 30 million.
Non-cash impairment losses on goodwill, property, plant and equipment and intangible assets totaling EUR 40.6 million were already recognized in the second and third quarters.
At EUR 174.4 million, preliminary operating cash flow exceeds the already high level of EUR 167.7 million reached in 2019. This is mainly attributable to the reduced working capital.
Unimpressed by the crisis, the Construction/Infrastructure segment once again achieved record results and, consequently, a record margin. In the Automotive Technology segment, the difficult structural situation in the sector – in addition to the effects of the pandemic – had a particularly negative impact on sales revenues and earnings. Non-cash impairments and one-time effects resulting from the “INTERIM SPRINT” set of measures implemented to optimize the INDUS portfolio also weighed on the margin. Following a massive market slump in the spring, the Engineering segment has been showing signs of recovery since the middle of the third quarter. In the Medical Engineering/Life Science segment, the first lockdown and – as expected to a somewhat minor extent – also the second one had an adverse effect on companies’ sales opportunities. Sales in the Metals Technology segment came in at a good level. The measures implemented in the context of the beginning shutdown of BACHER AG reduced the operating result.
“The INDUS portfolio once again proved its stability in the crisis year 2020. Despite the adversities, the diversified positioning of our Group, the financial strength and the virtues of our small and medium-sized enterprises ensured a solid business performance on balance,” said Dr. Johannes Schmidt, Chairman of the INDUS Board of Management. “This is why we are confident about the new financial year, even though 2021 will certainly be a year of transition and uncertainty about economic developments remains high. We will continue to aggressively pursue our PARKOUR strategy program, which also provides for further acquisitions in the growth industries defined by us.”
The full financial statements for the financial year 2020 including the forecast for the financial year 2021 will be published on the company’s website on 23 March 2021.
For the 2021 financial calendar, visit www.indus.de.