DGAP-News

KROMI Logistik AG publishes 2014/2015 annual report - Seite 2

with our business development and growth during the reporting period given
the challenges we had to face. Brazil exerted a considerable impact on our
business with existing customers, while at the same time we discontinued
our business involvement in Italy in March 2015. This fed through to a
year-on-year reduction of around EUR 3,000 thousand of sales revenue
contribution for us. When adjusted by this figure, revenue growth generated
with new and existing customers would have been up by around 8.7 % year on
year. For this reason, we are proud that our business model has proved its
worth on the market given these challenges."

Within the customer structure, KROMI has managed to realise a strategic
target in terms of a shift toward large international customers. The
start-up process was nevertheless delayed further at some customers,
frequently multinational groups with complex organisational and
decision-making structures. Correspondingly, these new customers also
failed to make any notable revenue contributions during the 2014/2015
fiscal year. Uwe Pfeiffer, CFO of KROMI Logistik, comments: "Major
multinational groups offer attractive sales revenue potential, and also the
opportunity to drive further ahead with our internationalisation strategy.
But we are also facing some challenges for this reason. We already had to
invest substantially in this new customer business during the past business
year in order to establish the preconditions in terms of personnel for this
business, but the corresponding additional sales revenue contributions will
occur during the course of the current fiscal year."

Such future-oriented investment affected earnings before interest and tax
(EBIT) accordingly. Accounting-driven currency losses deriving from the
fall in the exchange rate of the Brazilian real to the euro placed an
additional burden on EBIT. Given a cost of materials of EUR 47,863 thousand
(previous year: EUR 46,673 thousand) and a corresponding gross profit of
EUR 15,478 thousand (previous year: EUR 14,614 thousand), EBIT amounted to
EUR 578 thousand in the 2014/2015 fiscal year (previous year: EUR 1,252
thousand). When adjusted for expenses arising from unrealised valuation
losses from the Brazilian business, pure operating earnings stood at EUR
1,218 thousand (previous year: EUR 1,403 thousand). KROMI Logistik reported
earnings before tax (EBT) of EUR 358 thousand (previous year: EUR 975
thousand). After deducting income taxes, the consolidated net result
reflected a loss of EUR -153 thousand, compared with a profit of EUR 447
thousand in the previous year.

KROMI Logistik sees clear opportunities for profitable growth during the