EQS-Adhoc

edding Aktiengesellschaft: Net loss expected in edding AG's individual financial statements

EQS-Ad-hoc: edding Aktiengesellschaft / Key word(s): Profit Warning/Change in Forecast edding Aktiengesellschaft: Net loss expected in edding AG's individual financial statements 19-Dec-2023 / 17:52 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. Latest published guidance for the consolidated financial statements confirmed

Positive results expected again for 2024 financial year

In an ad hoc announcement on 4 July 2023, it was announced that for the first time in edding’s history the edding Group will report a net loss for 2023 financial year in the consolidated financial statements due to a one-off effect related to the sale of edding Argentina.

A net loss is now also expected for the 2023 financial year in the individual financial statements of edding Aktiengesellschaft in accordance with the German Commercial Code (HGB). The respective forecast corridor of EUR -0.5 to 1.5 million defined in the above-mentioned ad hoc announcement is changed to EUR -4.5 to -2.5 million. The change is due to the valuation of shares in affiliated companies and intercompany receivables. Due to the rise in local interest rates, market values have fallen significantly. This primarily affects our subsidiaries in Turkey and Colombia, which are financed to a large extent by local loans in order to avoid exchange rate losses. In both countries, interest rates have recently risen significantly due to inflation - in Turkey even more so due to a turnaround in central bank policy. However, the operating result (EBIT) of both companies have improved significantly in 2023 compared to last year.

In the consolidated financial statements in accordance with IFRS, sales revenue in the range of EUR 161.0 million to EUR 176.0 million and Group EBIT in accordance with IFRS of between EUR -4.0 million and EUR -1.0 million are still expected for 2023. Positive results in the consolidated and individual financial statements are expected again for 2024. The forecast corridors for 2024 will most probably be published at the end of March together with the preliminary results of the 2023 annual financial statements.