According to preliminary figures, Hönle Group sales revenue in financial year 2018/2019 was 14.8 % lower than in the previous year at EUR 107,747 thousand. The operating result (EBIT) fell from EUR 30,687 thousand to EUR 17,003 thousand, which corresponds to an EBIT margin of 15.5 % (previous year: 23.9 %).
The decisive factor for the decline in earnings was above all a significantly lower turnover with an application of adhesives in the Sensor Technology segment. Sales and earnings in the Equipment & Systems segment were also lower than in the previous year due to the economic downturn.
Earnings before taxes (EBT) fell from EUR 30,397 thousand to EUR 16,869 thousand. After income taxes, the consolidated result was EUR 12,396 thousand (previous year: EUR 21,726 thousand) and earnings per share were EUR 2.26 (previous year: EUR 3.94).
Outlook
In the past financial year, Hönle established important new customer relationships in the adhesives segment, particularly in the consumer electronics area, and strengthened its business relationships with major customers. In this context, the quality as well as the number and volume of customer projects could be significantly increased compared to the previous year and distributed to a broader customer base. All major smartphone manufacturers are now among Hönle's customers.
The Management Board therefore sees good prerequisites for a strong business development in the coming years, also against the background that revenues with a major customer in the Sensor Technology segment are expected to be lower in the current financial year and may temporarily dampen this year's growth compared to the previous year.
Sales capacities in the adhesives segment will be increased by approximately 35 % in fiscal year 2019/2020. In addition, the Hönle Group is investing in the expansion of research and development capacities.
Following a decline in sales revenues in the Equipment & Systems segment in the year under review, which is attributable in particular to an economic weakness in the printing industry, a positive business development is again expected in this segment for financial year 2019/2020.
Hönle has expanded its product range in the printing segment in order to tap further sales potential in addition to UV drying. Hönle will also add new technologies to the product range in the area of surface disinfection. Increasing sales revenues and cost-saving measures already implemented are expected to contribute to a significant improvement in earnings in the Equipment & Facilities segment.
In the Glass & Lamps segment, it is planned to relocate the Aladin GmbH location from Bavaria to Thuringia to the premises of UV-Technik Speziallampen GmbH. Low-pressure and medium-pressure lamps will then be produced exclusively in Thuringia. In addition, the location was expanded by a new factory building and thus offers significantly higher production capacities for the planned growth, especially in the area of ballast water disinfection.
At Raesch Quarz (Germany) GmbH, successful product qualification and ongoing qualification processes at major customers in the semiconductor and fiber optic markets are expected to contribute to an increase in sales and earnings. It is expected that the currently weaker quartz glass market will pick up in the first half of 2020.
Provided the economic environment does not deteriorate significantly, the Management Board expects revenues of EUR 105 to 115 million and an operating result of EUR 17 to 20 million for the 2019/2020 financial year.
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