Francotyp-Postalia Holding AG / Half Year Results/Half Year Results
28.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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FP Group Presents its Half-Year Figures
- Revenue reaches 72.7 million euros in the first half of 2008
- High growth in Mailstream business
- EBITDA reaches 9.8 million euros (11.8 million euros excl.
restructuring costs) in the first half of 2008
- Forecast update for 2008: Sales now expected to reach between 140 to
150 million euros, and EBITDA between 22 to 24 million euros after
restructuring costs
Birkenwerder, August 28, 2008. Francotyp-Postalia Holding AG, a worldwide
service provider for the outgoing mail market, posted revenue of 35.9
million euros in the second quarter of 2008 - slightly down on 37.4 million
euros reported for the same quarter in the previous year. The downturn is
mainly due to the strength of the euro against the US dollar and the
British Pound. Adjusted for currency translation effects, revenue in the
second quarter of 2008 came to 37.9 million euros. Total revenue for the
first six months of 2008 came to 72.7 million euros, compared to 75.1
million euros for the same period in the previous year. The negative
currency effect due to the strong euro accounted for 3.6 million euros in
the first half of 2008. When adjusted for the negative currency effect,
revenue came to 76.3 million euros.
Business in the Mailstream segment continued to grow strongly. During the
second quarter of 2008, the FP Group doubled revenue in this segment to 3.6
million euros, compared to 1.8 million euros in the second quarter of 2007.
The six-month figure for 2008 also nearly doubled to 7.5 million euros,
compared to 3.8 million euros for the same period of the previous year.
This high dynamic growth was mainly due to the success of the subsidiary
freesort, which specializes in the consolidation of outgoing mail: In the
first half of 2008 that business unit processed around 86 million letters -
more mail that in the whole of 2007. However, the iab software (Hybrid
Mail) business proved more sluggish than expected.
Sales in the Mailroom segment reached 32.3 million euros in the second
quarter of 2008, compared to 35.6 million euros for the same quarter last
year. The six-month figure for 2008 for this segment came to 65.2 million,
down on 71.2 million euros reported for the same period in the previous
year. Apart from one-off excess revenue gained in the Netherlands during
2007, this downturn is also explained by adverse currency exchange rates.
Adjusted by currency effects the revenue in franking and inserting business
totalled 34.3 million euros in the second quarter and 68.8 million euros in
the first half year of 2008. The FP Group additionally had to contend with
pressure on prices, both in Germany and in other EU countries.
Restructuring depresses EBITDA for 2008
Unfavourable currency exchange rates, a slowdown in the Mailroom segment
and ongoing restructuring costs all negatively affected results in the
current year. Added to this, compensation payments were charged in the
second quarter of 2008 for two former members of the Management Board,
Hans-Christian Hiemenz und Manfred Schwarze, both leaving the Company on
June 30, 2008. As a result, the FP Group EBITDA for Q2 2008 of 3.1 million
euros (5.0 million euros adjusted for restructuring) comes down on the
previous year's figure of 8.5 million euros. EBITDA for the first six
months of 2008 reached 9.8 million euros (11.8 million euros excluding
restructuring costs), compared to 14.8 million euros for the same period in
the previous year.
Restructuring will result in higher profitability in 2009
'The second quarter was heavily affected by restructuring and other
strategic developments designed to turn the FP Group into an integrated
provider of Mailstream services,' explained CEO Dr. Heinz-Dieter Sluma, in
office since 1st January 2008. The restructuring programme MOVE is
systematically scrutinizing all processes and products within the FP Group
and introducing extensive improvements. Particular attention is being given
to optimising supply chain management. 'By closely streamling sales and
production processes, we can reduce product lead time by around 60%,
greatly cutting back on the need to hold large inventories of finished
products,' said Dr. Sluma.
As things stand right now, MOVE is expected to lead to savings in 2008 of
around one million euros, with those savings increasing in 2009 to between
three to five million euros.
Forecast update for 2008
The weakness of the US dollar and the US economy, together with the
worldwide downturn in growth and correspondingly slowdown Mailroom
business, plus weaker figures from iab, means that forecasts have had to be
slightly adjusted for the full financial year 2008. The FP Group now
expects sales of between 140 to 150 million euros, as against the 150 to
160 million euros previously forecast. Due to these updated revenue
figures, EBITDA before restructuring costs is now expected to reach between
22 to 24 million euros, compared to the previous estimate of between 22 to
26 million euros. Restructuring is expected to cost around 2.0 million
euros net (one-off costs of 3.0 million euros incl. compensation payable to
former members of the Management Board will be offset in 2008 by savings of
1.0 million euros from MOVE). Taking these figures into account, the FP
Group expects EBITDA to reach between 20 to 22 million euros.
'2008 is a year that signals a change of direction for the FP Group,'
explained Dr. Sluma. 'We were aware of this right at the start of the
year.' Pointing to the advances already made by the MOVE program, he added;
'The changes we are making to the Company will enable it to continue
increasing revenue and results, even if the economic environment starts
getting tough.'
Contact
Francotyp Postalia Holding AG
Andreas Drechsler
Tel: +49 (0)3303 525 555
Fax: +49 (0)3303 53707 555
E-Mail: ir@francotyp.com.
The FP Group
Francotyp-Postalia Holding AG (FP Group) is a leading manufacturer of
franking machines covering the whole value added chain in the outgoing mail
market, and is active worldwide. Its products and services range from
franking and inserting machines to the collection, sorting and
consolidation of outgoing mail, as well as electronic hybrid mail solutions
offering 21st century mail processing. Headquartered in Birkenwerder near
Berlin, the FP Group offers businesses of all sizes individually tailored
mailstream services. The FP Group has local branches in many industrialised
countries and currently holds over 9% of the worldwide franking machine
market. With over 80 years of corporate history behind it, today the FP
Group is profiting from the growing liberalisation of mail markets and
greater interest by businesses to delegate outgoing mail operations to
professional service providers. In financial 2007, the Group employed
around 1,100 people worldwide, with reported sales of 145.1 million euros
and an EBITDA of 26.3 million euros.
Contact:
Francotyp-Postalia Holding AG
Media Relations
Telefon: +49 (0)3303 525 777
Telefax: +49 (0)3303 53 70 77 77
E-Mail: pr@francotyp.com
DGAP 28.08.2008
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Language: English
Issuer: Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Deutschland
Phone: +49 (0)3303 525 777
Fax: +49 (0)3303 53 70 77 77
E-mail: ir@francotyp.com
Internet: www.francotyp.com
ISIN: DE000FPH9000
WKN: FPH900
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Düsseldorf
End of News DGAP News-Service
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DGAP-News: Francotyp-Postalia Holding AG: FP Group Presents its Half-Year Figures
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