Corporate | 28 August 2018 07:00
VARTA AG: Profitable growth continues at VARTA AG with strong first half of 2018
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DGAP-News: VARTA AG / Key word(s): Half Year Results/Half Year Results
Corporate News Ellwangen, August 28, 2018 Profitable growth continues at VARTA AG with strong first half of 2018 – Group sales up 12% to EUR134 million – Adjusted EBITDA increases 33% – a very significant improvement compared to the previous year – Adjusted EBITDA margin expands by 3,0 percentage points to 19.2% – Microbatteries and Power & Energy segments both make a positive contribution to the strong first half of 2018 – The Power & Energy segment reaches break-even point and is now profitable – Right on track with investment program – capital expenditures (CapEx) in first half of year more than three times as high as previous year
Group Sales in the first half of the year once again saw double-digit growth of 12% to EUR134 million. At EUR25.8 million, Adjusted EBITDA was 33% higher than in the same period of previous year. Due to the scaling of the business model, the operating profit once again increased at a greater rate than sales. The EBITDA margin expanded by 3.0 percentage points to 19.2% compared to sales. It is particularly encouraging to see that the Microbatteries and Power & Energy segments both made a positive contribution once again and continued their excellent development. Herbert Schein, CEO of VARTA AG: “We’re consistently and successfully executing our growth strategy. Our figures demonstrate that our massive investment program to expand production capacity is moving in the right direction. We’re particularly pleased with the results from the Stiftung Warentest consumer organization for our hearing aid batteries, which is further proof of our technological leadership in this sector. This development confirms our strategic focus and reinforces our plan to continue investing heavily in profitable growth.”
The Microbatteries and Power & Energy segments both delivered very significant growth in sales and Adjusted EBITDA. Sales in the Microbatteries segment rose by 8% to EUR108.8 million. Growth in lithium-ion batteries continues to be very strong thanks to the sustained demand for wireless lifestyle products, such as premium headsets, and other wireless applications. Adjusted EBITDA increased from EUR22.7 million to EUR24.8 million, equating to a rise of 9.4% compared to the previous year.
Sales in the Power & Energy segment grew by 30.5% to EUR24.6 million. The segment once again recorded very strong growth in energy storage solutions, particularly in the residential energy storage market. Power & Energy reached the break-even point in the first quarter of 2018 and achieved a positive adjusted EBITDA of EUR1.5 million in the first half of 2018. The operating profit thus increased by EUR4.6 million compared to the previous year. The Adjusted EBITDA margin is 6.1%. “Our strategy of growing profitable in energy storage solutions is bearing fruit,” says Schein. Profitable growth is expected to continue in the second half of the year. VARTA AG Group once again forecasts double-digit growth of around 11-13% for the fiscal year 2018 compared to the previous year and an adjusted EBITDA of approximately EUR48-50 million.
28.08.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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| Language: | English |
| Company: | VARTA AG |
| Daimlerstraße 1 | |
| 73479 Ellwangen | |
| Germany | |
| Phone: | +49 (0)791-921-0 |
| E-mail: | info@varta-ag.com |
| Internet: | www.varta-ag.com |
| ISIN: | DE000A0TGJ55 |
| WKN: | A0TGJ5 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |