DGAP-News

Ringmetall returns to pre-crisis levels in core business in third quarter and expands margins

DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): Quarter Results/Forecast Ringmetall returns to pre-crisis levels in core business in third quarter and expands margins 05.11.2020 / 07:00 The issuer is solely responsible for the content of this announcement. Ringmetall returns to pre-crisis levels in core business in third quarter and expands margins - Group revenues of EUR 89.9 million in the first nine months slightly down due to steel prices - EBITDA increases significantly by 8.3 percent to EUR 9.0 million, EBITDA margin improves to 10.0 percent - Order situation for the rest of the year characterized by consistently positive trends - Revenue forecast concretized due to steel prices, earnings forecast confirmed

Munich, 5 November 2020 - Ringmetall (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, is increasingly performing better in its core business despite the economic environment characterized by COVID-19 and is already returning to pre-pandemic levels in the third quarter. The company's performance does not yet make up for the shortfall in sales in the first half of the year in comparison to the previous year. However, the order situation is showing increasingly positive trends for the year-end business.

In the first nine months of the fiscal year, consolidated revenues totaled EUR 89.9 million, a decrease of 2.3 percent year-on-year (9M 2019: EUR 92.0 million). The sales development received headwinds from significantly declining steel prices, which weighed more heavily than the acquisition-related sales growth or the more positive organic business development. At the same time, however, the continued systematic cost management and noticeable efficiency improvements in clamping ring production led to an 8.3 percent increase in earnings before interest, taxes, depreciation and amortization (EBITDA) to EUR 9.0 million. The EBITDA margin in relation to total operating performance consequently recovered significantly to 10.0 percent, compared with 8.9 percent in the previous year.