Dornbirn, Austria – Despite a challenging industry environment, the international lighting company Zumtobel Group recorded an improvement in revenue and earnings in the first quarter of the 2019/20 financial year compared with the prior-year quarter.
“The first quarter of the 2019/20 financial year showed us that we are back on the right track. We succeeded in continuing the growth course started in the fourth quarter of the last financial year and closed the first quarter of 2019/20 with a solid increase in earnings,” Zumtobel Group CEO Alfred Felder comments on the results and adds: “We now have to build on this positive trend in the coming months and continue to pursue our path in spite of the further challenging market environment. Our goal for the full 2019/20 financial year is to grow slightly as well as to further improve our profitability.”
Slight increase in revenues
The Zumtobel Group slightly increased Group revenues by 1.1% to EUR 296.4 million in the first quarter of 2019/20, thus continuing the growth course started in the fourth quarter of the previous financial year. This positive result is primarily attributable to the core markets of the DACH region (Germany, Austria, Switzerland) with a 5.6% increase in revenues.
Solid earnings development
Group EBIT adjusted for special effects rose by 58.4% compared with the first quarter of 2018/19 and amounted to EUR 15.8 million. The Zumtobel Group thus increased the adjusted return on sales from 3.4% to 5.3%. The positive development of the Group’s profitability is due to the slight increase in revenues and cost savings. As a result, profit for the period rose from EUR 2.8 million to EUR 10.9 million.
Outlook for FY 2019/20 – medium-term goal confirmed
The Management Board of the Zumtobel Group expects a slight increase in revenues as well as an improvement in the adjusted EBIT margin to between 3 to 5% for the 2019/20 financial year (FY 2018/19: 2.4%) despite a weakening market environment. The medium-term goal to generate an EBIT margin of roughly 6% by the 2020/21 financial year remains intact.
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