DGAP-News: Deufol SE: Half-year result - Strategic orientation bears fruit even during the Coronavirus pandemic

DGAP-News: Deufol SE / Key word(s): Half Year Results/Interim Report
Deufol SE: Half-year result - Strategic orientation bears fruit even during the Coronavirus pandemic

08.09.2020 / 09:49
The issuer is solely responsible for the content of this announcement.

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PRESS RELEASE

Hofheim am Taunus, September 7, 2020

Half-year result - Strategic orientation bears fruit even during the Coronavirus pandemic

The Deufol Group delivers a respectable performance in the first six months of 2020, in what was a very difficult environment. Besides the trend of reduced industrial goods production and export activity, which has been apparent since 2018, the Deufol Group's sales and income trend has been mainly shaped by the Coronavirus crises. This trend notwithstanding, Deufol has continued to pursue the process which it initiated in 2019 of concentrating on its four core segments: (1) packaging & logistics, (2) production & sales of packaging goods, (3) IT solutions and (4) infrastructure solutions. The dynamic development of the group and its business workflows, optimization of its usage and mix of materials and active cost management have successfully countered the effects associated with the prevailing economic environment and have resulted in a slight increase in the group's market shares. The current pandemic has nonetheless had an impact on Deufol too.

Following this development, these are the results for the first half 2020:

* Sales € 106.4 million (prior year € 128.2 million)
* EBITDA € 14.6 million (prior year € 13.2 million)
* EBIT(A) € 3.8 million (prior year € 3.1 million)
* Net result € 1.4 million (prior year € 2.0 million)


Sales development
In the first half of 2020, sales were at € 106.4 million, which is 17.0% or € 21.8 million below prior year's number. Changes in sales are partly caused by the end of our business relationship with one customer in the American consumer goods packaging sector. However, low demand on packaging services in the industrial goods sector caused by the global Corona pandemic also influenced the sales development.
There were no material changes in the scope of consolidation. Changes in currency exchange rates did not affect the numbers.

Increased operative result for the period

The operative result (EBITA) amounted to € 3.8 million, compared to € 3.1 million in the first six months of 2019. Despite challenging economic circumstances, Deufol was able to stabilize its operational profitability. However, the increasing operational result in 2020 was mainly caused by a one-off transaction where Deufol sold one of its European properties and made a considerable profit. Without this effect, Deufol's operative result would be lower than last year's EBITA.

The result for the period decreased to € 1.4 million after € 2.0 million in prior year. After adjusting the non-controlling interests, the net profit for the Shareholders of Deufol SE was at € 1.5 million, after € 2.0 million in prior year's period. Due to this trend, the earnings per share decreased from € 0.046 in 2019 to € 0.034 in 2020.

Increased operational cash flow and slightly reduced balance sheet total
The operative cash flow of the Deufol-Group amounted to € 10.9 million and was above prior year's level (€ 9.4 million). Due to high investments into our new site in Hungary, liquid funds decreased to € 26.2 million after € 31.6 at the end of 2019. Deufol reduced its balance sheet total by € 0.9 million to € 266.8 million. The equity total increased by € 1.4 million to € 114.2 million. Accordingly, the equity ratio grew from 42.1% at the end of 2019 to 42.8% at the end of June 2020.

Overview of the first 6 months:

Figures in € Thousand	6M 2020	30.6.2020	6M 2019	31.12.2019	Change (%)
Sales	106,397		128,185		-17.0
EBITDA	14,564		13,211		-10.2
EBIT(A)	3,770		3,063		23.1
EBT	2,771		2,065		34.2
Result for the period	1,403		1,975		-29.0
Thereof noncontrolling interests	-65		-41		-58.5
Thereof shareholders of the parent company	1.468		2,016		-27.2
Earnings per share (€)	0.034		0.046		-26.1
Cashflow from operating activities	10.915		9,399		16.1
Cashflow from investing activities	-5,829		-520		n/a
Net financial liabilities		69,926		68,525	2.0
Equity ratio (%)		42.8		42.1	1.7
Employees		1,980		2.170	-8.8

Confident outlook despite the economic uncertainty associated with the Coronavirus pandemic
The global economy suffered an unprecedented collapse in the second quarter of 2020. This also affected Deufol, but only moderately by comparison with the sharp fall suffered by the economy.
Deufol has implemented extensive measures in response and is prepared for further effects of the pandemic. These measures will already make themselves felt in the remainder of 2020. In addition, extensive initiatives have been launched in order to attract new business, and Deufol
has already acquired its first new customers at various locations, with a substantial volume of business for 2020 and 2021. This notwithstanding, it is not possible to provide a reliable forecast either in relation to the further development of our customers' business, the development of the market for packaging and logistics services or, in this context, our level of success in securing market shares. In this environment, Deufol still does not consider itself able to provide a reliable forecast for fiscal year 2020 as a whole.

The mid-term report is also available under https://www.deufol.com.

About the Deufol Group:
The Deufol Group is a global player in supply chain solutions, industrial packaging and related services. Its range of services includes export & industrial packaging, logistics services and innovative IT solutions along the supply chain. Deufol, with its headquarters in Hofheim (Wallau) near Frankfurt am Main, has 84 operations in 12 countries and employs around 2,000 people. In 2019, the Group achieved annual sales of EUR 247 million.

Contact:
Deufol SE
Claudia Ludwig
Johannes-Gutenberg-Strasse 3-5
65719 Hofheim (Wallau)
Tel.: [phone]
E-mail: [e-mail]

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08.09.2020 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.

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