Interim report (Q1 and Q3)
HansaMatrix Consolidated Interim Financial Report for the third quarter and 9 months of 2019
During the third quarter of 2019 HansaMatrix unaudited consolidated net turnover increased by 22% compared to the third quarter of 2018 and reached historically highest 6.118 million EUR volume; reported EBITDA result was 21% higher, and reached 0.942 million EUR, net loss amounted to 0.028 million EUR. In the reporting period quarterly EBITDA margin of 15.40% was achieved.
During the period of 9 months of 2019 unaudited consolidated net turnover reached 17.999 million EUR, up by 12%; reported EBITDA result was 3.018 million EUR, up by 8% and net profit was 0.118 million EUR, decrease by 89% in comparison with 9 months of 2018. Results represent 9 month EBITDA margin of 16.8% and 9 month net profit margin of 0.7%.
During the third quarter of 2019 the Company reported historically highest quarterly turnover of 6.118 million EUR –increase by 22% in comparison to the same period of 2018. The third quarter of 2019 sales results showed 2% sales volume increase in comparison with previous quarter – 2019 Q2.
During first 9 months of 2019 the Company reported sales volume increase by 12% compared to the same period of 2018 and reached turnover of 17.999 million EUR.
During 2019 Q3 the Company reported quarterly EBITDA result of 0.9452 million EUR and slight quarterly net loss result of 0.028 million EUR. The reported EBITDA result showed 21% increase in comparison with Q3 2018 and 2% decrease compared to previous quarter of 2019 Q2. In Q3 2019, the Company was operating with a small loss and net profit margin was negative. The reporting period results represent quarterly EBITDA margin of 15.40%.
During first 9 months of 2019 (“9m”) the Company reported historically highest 9m EBITDA result of 3.018 million EUR and net profit result of 0.118 million EUR. The reported EBITDA result shows 8% increase in comparison with 2018 9m. The 9 month net profit results for 2019 demonstrate 89% decrease in comparison with 2018 9m. Results represent 9 month EBITDA margin of 16.8% and 9 month net profit margin of 0.7%.
EBITDA margin in 2019 9m remains at comparably high level, determined by product with higher added value proportion in the total sales volume. Net profit margin exhibits decreasing trend, explained by the increased capital equipment depreciation, interest payments, where interest payment provisions for European Investment Bank financing is included and explained by the increased share of losses included in the consolidated financial statements from the associate companies due to increased ownership.
Both EBITDA and net profit margins in 2019 were also influenced by significant direct manufacturing labor wage increases.
Profitability in 2019 Q3 at smaller than expected degree was negatively influenced by the planned and executed warehouse reorganization, inventory count as well as introduction of a new warehouse inventory control system. Successful reorganization process required a one-week interruption of the production process.
2019 Q3 R&D turnover increased by 51% compared with 2018 Q3 R&D turnover but decreased by 15% compared to the previous quarter Q2 2019 turnover, and is accounting for 8% share of Company’s consolidated sales in 2019 Q3. R&D grant income has not been included in reported R&D sales figures.
Substantial increase in R&D sales volumes in 2019 Q3 is explained by R&D manufacturing department substantially increasing production of high-tech optical devices and by working on several other R&D projects.
Trailing Twelve Months (TTM) - 12 month period sales (period starting in October 1, 2018 and ending with September 30, 2019) at 2019 Q3 reported to be at historically highest level of 23.061 million EUR, showing 5.07% increase compared to TTM sales for the period ended at 2019 Q2. EBITDA result for the TTM 12 month period reported to be 3.535 million EUR, an increase of 4.92% in comparison with 12 month period ended at 2019 Q2. Net profit for TTM period reported slightly negative 0.068 million EUR. Averaged EBITDA margin for TTM period is reported to be 15.3%.
HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 9 Month Period Ended September 30, 2019
The definitions of alternative performance indicators (APIs) used in the news release can be found on page 33 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.
Investor and media contact:
Māris Macijevskis, CFA
Management Board Member, Finance director
Phone: (+371) 6780 0002
HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments and other services to high added value business segments. In addition to complete manufacturing services of OEM products, the company offers an ODM business model to both start-up and established companies that seek product development partnerships.