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.
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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
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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