DGAP-News

2G Energy AG increases EBIT margin to 6.7 % in FY 2020 (previous year: 6.5 %) - Seite 2

Net sales from services and parts increased by 4 % compared to the previous year. The service division generated a total of EUR 93.3 million (previous year: EUR 89.4 million), or 38%, of consolidated net sales.

Expense ratios almost constant

The cost of materials ratio (65.8 %, previous year: 64.9 %) and the personnel cost ratio (17.4 %, previous year: 17.2 %) rose slightly in nominal terms compared with the previous year. It should be noted in relation to the expense ratios that total operating revenue reflects a considerable increase in inventories (EUR +7.4 million, previous year: EUR -10.3 million), which are valued at production cost in accordance with the accounting principles of the German Commercial Code (HGB). If net sales and changes in inventories were in a similar relationship as in the previous year, the cost of materials ratio and the personnel cost ratio would have remained virtually unchanged. The extensive cost-cutting measures, particularly in the area of engine procurement, have thereby proved to be sustainable. Despite the Covid-19 pandemic and associated protective measures, the "Lead-to-Lean" lead project is clearly continuing to make positive contributions.

In absolute figures, the cost of materials rose to EUR 167.3 million (previous year: EUR 146.8 million), while personnel costs increased to EUR 44.3 million (previous year: EUR 39.0 million).

2G will publish its audited consolidated financial statements and 2020 Annual Report on April 29.

Management Board anticipates further growth in net sales in 2021

In light of the lively start to the year (see the company's announcement of February 25) and given the prospect of further growth in service revenues, the Management Board is confident that consolidated net sales of between EUR 245 million and EUR 260 million can be achieved in the current financial year (previous guidance: EUR 240 million to EUR 260 million). The earnings guidance for the 2021 financial year currently envisages an EBIT margin of between 6.0 % and 7.5 %. Despite the highly pleasing corporate development so far, it cannot be ruled out that the coronavirus pandemic will make itself felt at 2G in the current year in the form of decreasing orders, supply bottlenecks, logistics problems and necessary quarantine measures in production, sales and administration at 2G sites, as well as in the partner network, and that this will impact on net sales and earnings trends.