DGAP-News

Grammer continuing strong revenue growth with higher profitability

DGAP-News: Grammer AG / Key word(s): 9-month figures
Grammer continuing strong revenue growth with higher profitability

09.11.2016 / 06:46
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Grammer continuing strong revenue growth with higher profitability

Group revenue up almost 20 percent, rising to EUR 1.27 billion in the first
nine months

67 percent increase in EBIT to EUR 49.6 million

Full-year guidance for 2016 confirmed

Amberg, November 9, 2016 - The extremely successful business performance of
the Grammer Group, a global supplier of interior components for passenger
vehicles and seating systems for commercial vehicles, continued in the
third quarter of the current year. In the first nine months of 2016, Group
revenue rose by 19.8 percent to EUR 1.27 billion (2015: EUR 1.06 billion).
This favorable performance was primarily driven by the Automotive Division,
which achieved strong growth in console business, as well as the successful
integration of the former REUM Group. Market conditions in the company's
second division - Seating Systems - remained challenging in some regions,
particularly Brazil, China and the United States. Despite this, the
division posted higher revenue in the first nine months compared with the
same period in the previous year.

The Grammer Group's operating EBIT almost doubled to EUR 47.6 million
(2015: EUR 26.7 million), thus reaching the Group's own expectations and
targets for sustained growth of its enterprise value. This gratifying
performance was particularly due to the positive effects from the
implementation of cost and process optimization measures.

Driven by the successful business operations in both divisions, Group
earnings before interest and taxes (EBIT) grew at a disproportionately
strong rate by 67 percent, rising from EUR 29.7 million to EUR 49.6 million
in the first nine months despite the lower currency-translation gains
compared with the previous year. Reflecting this, the EBIT margin widened
to 3.9 percent (2015: 2.8 percent).

Group net profit after tax also rose very substantially to EUR 25.6 million
(2015: EUR 16.7 million) in the first nine months.

Revenue and EBIT in line with expectations in the third quarter
In the third quarter of 2016, Group revenue came to EUR 404.7 million
(2015: EUR 345.8 million) despite the usual seasonal effects, driven in
particular by growth in the Automotive Division.

Operating EBIT rose to EUR 11.8 million in the third quarter (2015: EUR 8.7
million). In the third quarter, EBIT increased very sharply to EUR 13.2
million (2015: EUR 5.1 million). Group net profit came to EUR 4.3 million