INDUS reports good start to new financial year
- Strong increase in first-quarter net profit
Bergisch Gladbach, 30 May 2008 - SDAX–listed INDUS Holding AG had a good start to the 2008 financial year. “Group sales matched the very high level of the previous year and net profit for the first quarter increased sharply,” said a very satisfied Helmut Ruwisch, CEO of the company. The earnings figures underline the success of the optimisation and rationalisation measures initiated at the portfolio companies.
In the first quarter of 2008, Group sales amounted to EUR 218.0 million (previous year: EUR 220.5 million), while total output reached the previous year’s level at EUR 225.1 million (previous year: EUR 225.3 million). As the company was able to roll over the higher commodity and energy prices into prices, the total cost of materials and personnel expenses remained constant. At EUR 21.1 million, earnings before interest and taxes (EBIT) exceeded the high level of the previous year’s first quarter (previous year: EUR 20,7 million). Despite the somewhat lower financial result, which was attributable to the IFRS-mandated non-cash adjustment of derivative interest-hedging instruments, net profit for the first quarter improved significantly due to the reduction in taxes payable. Net profit after minority interests rose by 18.3 percent to EUR 8.4 million (previous year: EUR 7.1 million). Overall, the quarterly figures were fully in line with the budget.
In spite of the sometimes difficult conditions prevailing in the commodity and capital markets, the Management Board confirmed the positive projections for the full year. Based on the good operating performance of the existing portfolio, sales and EBIT are projected to increase further. “We will not only continue to optimise our portfolio companies with the aim of achieving a sustainable improvement in margins, but also want to make further acquisitions now that the valuations of small and medium-sized manufacturing companies are returning to normal,” said Ruwisch, who envisages an expansion of the portfolio. As a result of the strategic restraint shown in recent years, INDUS is well positioned to seize attractive opportunities in the equity investment market as soon as the valuation multiples decline again.
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