Puchheim, May 12, 2020

STEMMER IMAGING publishes figures for the first quarter of 2020: Covid-19 pandemic impacts first quarter - well prepared for a more difficult market environment in the course of the year

- Update Corona situation: Adjustment of business processes successfully implemented and geared to "New Normal".

- Solid order intake of EUR 31.8 million (Q1 PY: EUR 28.8 million); from March 2020 onwards, declines in order intake due to the effects of the Covid-19 pandemic clearly noticeable.

- Revenues increase by 1.8% to EUR 29.2 million (Q1 PY: EUR 28.7 million) due to consolidation of the Infaimon Group. Weak order call-offs burden organic growth.

- EBITDA decreases to EUR 1.0 million (Q1 PY: EUR 3.1 million) due to a decline in organic business volume and exchange rate effects.

- Positive operating cash flow of EUR 1.0 million, cash and cash equivalents of EUR 27.4 million and an equity ratio of 65.8% continue to ensure a stable financial position.

 

Puchheim, May 12, 2020 - STEMMER IMAGING AG (ISIN / GSIN ) today publishes its figures for the first quarter of 2020. The company shows a slight overall growth in turnover over the period. Organic decline in sales and exchange rate effects burden the result.

Business development in the first quarter of 2020 was influenced progressively by the Covid-19 pandemic. Revenues in the first three months of the 2020 fiscal year rose by 1.8% to EUR 29.2 million, slightly above the previous year's figure (Q1 PY: EUR 28.7 million). The overall growth was characterised by the consolidation of the Infaimon Group together with stable or even increasing revenues in France, Denmark, the Netherlands and Switzerland, while weak order call-offs in the UK, Sweden and Germany led to an overall decline in revenues.
The gross profit margin fell slightly in the first quarter of the current fiscal year from 37.4% in the same period of the previous year to 36.9%, due to a shift in revenue shares between different countries and their typical margins within the Group.

The current market environment remains difficult to assess due to the fact that economic sectors are subject to varying regional government restrictions. The lockdown, particularly in China, has not yet led to any major supply bottlenecks, partly due to the company's own measures to maintain supply chains. Inventory was reviewed to meet customer demand and slightly increased.

In course of the Corona related changeover to partial remote working and enhanced digitalisation measures, corresponding investments in the IT area were implemented quickly including cloud solutions and a state-of-the-art cybersecurity infrastructure at a cost of EUR 0.3 million (compared to the full calendar year 2019 EUR 0.3 million). These investments will further increase the company's competitive position.

The operating result (EBITDA) - reported for the first time unadjusted from one-off effects - was significantly lower in the first quarter of 2020 at EUR 1.0 million (EBITDA margin: 3.5%) than the previous year's level of (normalized) EUR 3.1 million (EBITDA margin normalized: 10.7%). Here, the organic decline in sales, as well as the massively increased exchange rate effects in March (net EUR 0.5 million) had a negative impact on earnings. Overall, STEMMER IMAGING continues to be well equipped with liquidity and equity capital thanks to the positive operating cash flow and prudent investment activities.

While the German Association of Machine and Plant Builders (VDMA) reported a slightly improved market environment for machine vision in Asia and the USA in the first quarter of 2020, the European market experienced a double-digit decline in the first quarter following a weak end of year 2019. This market situation and the decline in incoming orders in March 2020 formed the basis for a revised forecast for the 2020 fiscal year published on March 12, 2020, along with cost reduction measures to counter the expected decline, especially in the coming months.

With the publication of the half-year figures to June 30, 2020, the Management Board will provide an update on its published forecast with revenues in the range of EUR 105.0 to 120.0 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 3.0 to 7.0 million.

"The last few weeks have been marked by major disruptions and changes. We would like to thank our employees and business partners for the strong cohesion and good cooperation in this exceptional situation. For the coming quarters, we are expecting an increasingly difficult market environment. Thanks to our broad regional and industry positioning together with our high degree of flexibility, we believe we are well equipped and will decisively take advantage of market opportunities that arise at short notice. At the same time, we will continue to focus on our cost management," says Arne Dehn, CEO of STEMMER IMAGING AG.

STEMMER IMAGING AG's quarterly report as at March 31, 2020, is available for download at in the Investors section.

About STEMMER IMAGING:
STEMMER IMAGING is a leading international machine vision technology provider. With staff located across Europe, Latin America and Asia, the company provides state-of-the-art machine vision solutions, extensive knowledge and outstanding customer service.

Clients value STEMMER IMAGING as a trusted advisor, positioned to deliver tailored solutions. These include components that can be pre-configured where needed, sub-systems designed to reduce time and effort when integrating vertical applications, and customer-specific solutions delivering a competitive advantage to predominantly OEMs - all powered by renowned knowledge and leading software tools including the company's machine vision library "Common Vision Blox".

VISION.RIGHT.NOW. symbolises the STEMMER IMAGING mission to make machine vision easy and accessible, empowering customers to deliver world-class solutions.

 

Contact:
STEMMER IMAGING AG
Arne Dehn
Chief Executive Officer
Gutenbergstr. 9-13
82178 Puchheim
Phone: 6