DGAP-Adhoc

H&R GmbH & Co. KGaA: Preliminary results for Q1-2017 stable, as expected - Seite 2

The biggest contribution to the stable operating income came from the ChemPharm division's Refining and Sales segments, which together posted EUR 26.0 million of EBITDA (Q1 2016: EUR 28.8 million). While sales revenues increased from EUR 217.4 million to EUR 254.2 million over the same period, total earnings - although at the upper end of the range of earnings achieved over the past three quarters - nevertheless were slightly (EUR 2.8 million) lower than in the very strong prior-year quarter. Despite lucrative margins, good sales volumes and stable customer demand, the higher level of competitive pressure this year has prevented a repetition of the positive results achieved in the first quarter of 2016.

The Plastics division continued its positive operating performance, achieving a significant improvement in EBITDA to EUR 1.7 million in the first quarter of 2017, compared to EUR 0.2 million in the first quarter of 2016. Sales revenues increased by EUR 2.2 million from EUR 13.5 million in the first quarter of 2016 to EUR 15.7 million in the first quarter of 2017.

During the first quarter of 2017, cash flow from operating activities exhibited volatility related to the business model: net working capital requirements were higher because deliveries of raw materials took place close to the balance sheet date. Cash flow from operating activities totaled EUR -0.3 million in the first quarter of 2017 (first quarter of 2016: EUR 24.4 million); free cash flow totaled EUR -12.4 million (first quarter of 2016: EUR 15.6 million). There was a moderate decrease in the balance sheet total from EUR 648.2 million as of 31 December 2016 to EUR 645.6 million on 31 March 2017. During the same period, shareholders' equity increased from EUR 317.4 million to EUR 331.5 million, causing the equity ratio to improve again slightly (by 2.4 percentage points) from year-end 2016 to 51.4% (31 December 2016: 49.0%).

All in all, the company started the current financial year with stable preliminary figures for the first quarter. Given the sensitivity of market rates and product prices, as well as current social and political challenges, H&R KGaA considers it advisable, for the time being, to confirm its 2017 forecast range of EUR 86.0 to EUR 100.0 million and to refrain from a more specific forecast at this early stage.