DGAP-News Raw material prices and efficiency improvements lead to significant increase in revenues and earnings of the Ringmetall Group
DGAP-News: Ringmetall Aktiengesellschaft / Key word(s): Quarter Results/Quarterly / Interim Statement
Raw material prices and efficiency improvements lead to significant increase in revenues and earnings of the Ringmetall Group
Munich, 6 May 2020 - Ringmetall AG (ISIN: DE0006001902), a leading international specialist supplier in the packaging industry, started the new year 2021 with a significant growth spurt. A brightening economic environment and investments to increase product quality and efficiency were reflected in significantly improved production capacity utilization and reduced scrap rates.
Group revenues increased by 6.7 percent to EUR 36.1 million in the first quarter (Q1 2020: EUR 33.8 million). In addition to solid organic growth, an increase in steel prices was primarily responsible for the significant expansion in Group revenues. Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped by 21.5 percent to EUR 4.6 million (Q1 2020: EUR 3.8 million). In addition to optimized staff utilization against the backdrop of a noticeably improved and more consistent order situation, the increase is due to the effect of a combination of measures initiated by the company, particularly in the past year. These include measures in quality management, which were reflected in reduced reject and complaint rates. Parts of the production of drum closure systems were also made more efficient by selective relocation to subsidiaries in other European countries, thus achieving cost savings. Despite rising steel prices, the company thus succeeded in significantly expanding its EBITDA margin and, at 12.7 percent (Q1 2020: 11.2 percent), moved back towards the target range of between 12.5 and 15 percent.
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