Half Year financial report
HansaMatrix Consolidated Interim Financial Report for the second quarter and 6 months of 2020
During the second quarter of 2020 HansaMatrix unaudited consolidated revenue decreased by 11% compared to the second quarter of 2019 and reached 5.290 million EUR volume; reported EBITDA result was 45% lower, and reached 0.527 million EUR, net loss amounted to 0.383 million EUR. In the reporting period quarterly EBITDA margin of 9.96% was achieved.
During the period of 6 months of 2020 unaudited consolidated revenue reached 10.474 million EUR, down by 12%; reported EBITDA result was 0.968 million EUR, down by 53% in comparison with 6 months of 2019 and net loss amounted to 0.818 million EUR. Results represent 6 month EBITDA margin of 9.2%.
During the second quarter of 2020 the Company reported quarterly revenue of 5.290 million EUR – decrease by 11% in comparison to the same period of 2019. The second quarter of 2020 revenue results showed 2% volume increase in comparison with previous quarter – 2020 Q1.
During first 6 months of 2020 the Company reached turnover of 10.474 million EUR, resulting in revenue volume decrease by 12% compared to the same period of 2019.
During 2020 Q2 the Company reported quarterly EBITDA result of 0.527 million EUR and quarterly loss of 0.383 million EUR. The reported EBITDA result showed 45% decrease in comparison with Q2 2019 but 19% increase compared to previous quarter of 2020 Q1. In Q2 2020 the Company reported slightly smaller net loss as compared to 2020 Q1 net loss of 0.435 million EUR. Quarterly results represent EBITDA margin of 9.96%.
Sales result, EBITDA margin and net profit margin result was influenced by COVID-19 global spread impacting and creating challenges in such business environment factors as personnel safety issues, supply chain disruptions, and customer demand weakening. COVID-19 has influenced the Company performance already starting with the second half of January, 2020 when the virus gained momentum in China and Asia creating significant disruptions in the Company supply chain from this region.
The Company believes that COVID-19 situation greatest impact on the business volumes concentrated in the period from February, 2020 until May, 2020. Revenue forecasts for the future business volumes indicate certain improvements, nevertheless due to still quite unpredictable development of overall COVID-19 situation it is too early to provide the estimations of the potential impact on HansaMatrix sales in Q3 and Q4 of 2020.
In addition net profit margin is unfavorably influenced by the increased capital equipment depreciation due to recent sizeable investments, interest payments, where 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.
2020 Q2 R&D revenue decreased by 70% compared with 2019 Q2 R&D revenue and decreased by 62% compared to the previous quarter Q1 2020 revenue, and is accounting for 3.3% share of Company’s consolidated sales in 2020 Q2. R&D grant income has not been included in reported R&D sales figures.
In Q2 2020 the Company continued to manufacture the high-tech optical devices and to work on R&D projects, however the quarterly volumes have been influenced by COVID-19 situation, creating challenges in such business environment factors as personnel safety issues, supply chain disruptions, transportation network disruptions.
TTM - 12 month period sales (period starting in July 1, 2019 and ending with June 30, 2020) at 2020 Q2 reached 23.204 million EUR, showing 3% decrease compared to TTM sales for the period ended at 2020 Q1 but 6% increase compared to TTM sales for the period ended at 2019 Q2. EBITDA result for the TTM 12 month period reported to be 2.611 million EUR, a decrease of 14% in comparison with 12 month period ended at 2030 Q1 and 23% decrease compared to TTM sales for the period ended at 2019 Q2. The TTM period resulted in a net loss of 0.756 million EUR. Averaged EBITDA margin for TTM period is reported 11.3%.
The definitions of alternative performance indicators (APIs) used in the news release can be found on page 34 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.
· HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 6 Month Period Ended June 30, 2020
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.