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    DGAP-News  753  0 Kommentare Gigaset returns to profitability

    DGAP-News: Gigaset AG / Key word(s): Half Year Results
    Gigaset returns to profitability

    11.08.2016 / 08:23
    The issuer is solely responsible for the content of this announcement.

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    Press Release
    Munich, August 11, 2016

    Gigaset returns to profitability

    Gigaset AG is back in the black, reporting a positive income from ordinary
    activities (income before taxes) for 2016 of EUR0.6 million after a loss of
    EUR9.3 million in the previous year. EBIT* improved by EUR16.7 million to
    EUR1.4 million. In view of the good first half of the year, the Gigaset AG
    Executive Board is raising its forecast for the whole of fiscal 2016. "We
    now expect to make a positive income from ordinary activities for the
    entire 2016," as Chief Financial Officer Hans-Henning Doerr reports,
    announcing an upward adjustment to the original forecast. The anticipated
    EBITDA is also being raised to approximately EUR20 million for the year as
    a whole. Accordingly, the company's cash position for the whole of 2016
    will hardly change year on year. If tax payments for previous years are
    excluded from the cash flow, the free cash flow will also be well in the
    black this year.

    These financial figures are proof that Gigaset AG's cost-cutting measures
    are having full impact. "We've adopted and rigorously implemented a large
    number of measures," underscores Klaus Weßing. "And even if revenue per se
    fell further in the first half of the year, we nevertheless believe we have
    a good foundation for the future. We now have room again to press ahead
    vigorously with our strategic realignment."

    Key factors in this success are:

    - The gross profit margin was increased despite falling revenue, not
    least due to the fact that price increases were successfully pushed
    through and sales of higher-margin products rose. Individual regions
    were successfully returned to the black thanks to optimization of
    margins.

    - Sales is working to regain market share in the second half of the year.
    Personnel costs were cut as a result of successful conclusion of the
    collective bargaining agreement in the first half of the year.
    Employees have taken a pay cut of up to 10% since April 1, 2016.

    - Further measures to cut costs include focusing on marketing expenses,
    cutting patent costs and IT costs, merging production into one hall at
    the Bocholt factory, as well as reducing consulting services and rental
    and leasing costs at the individual locations.

    The Executive Board sees further potential to improve earnings in the
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    DGAP-News Gigaset returns to profitability DGAP-News: Gigaset AG / Key word(s): Half Year Results Gigaset returns to profitability 11.08.2016 / 08:23 The issuer is solely responsible for the content of this announcement. …