Dornbirn (pta008/01.09.2020/07:30) - The development of revenues at the Zumtobel Group, the international lighting corporation (ISIN AT0000837307), was also influenced by the Covid-19 pandemic in the first quarter of the new 2020/21 financial year (1 May to 31 July 2020): Group revenues fell by 15.4% year on year to EUR 250.8 million (previous year: EUR 296.4 million). Adjusted for foreign exchange effects, the decline was 15.2%.
However, the Zumtobel Group was able to generate a profit during this quarter: Adjusted Group EBIT was positive at EUR 9.1 million and the return on sales reached 3.6% (previous year: 5.6%). Overall, net profit came to EUR 3.1 million.
"That is not something to be taken for granted under the current exceptional circumstances, but the result of effective crisis management and strict cost control," emphasised Alfred Felder, CEO of the Zumtobel Group.
Covid-19-related revenue decline in both segments
The Lighting Segment and the Components Segment recorded revenue declines of 14.8% and 18.1% respectively during the first quarter of 2020/21. Many customers, above all in the Components business, increased their stocks at the beginning of the lockdown measures in the fourth quarter of 2019/20, which had an added negative effect on revenues in the following months and led to substantially lower order levels in the first quarter of the current financial year.
The revenue decline in the German-speaking countries (the DACH region), a key market for the Zumtobel Group, was limited to the single-digit per cent range. However, the core markets of Italy, Great Britain and France were particularly hard hit with double-digit revenue declines.
The sharp drop in revenues was offset to a substantial degree by systematic cost controls. Strict cost management led to savings, among others, in the selling and administrative areas, where costs were cut by EUR 10.3 million to EUR 71.1 million in Q1 2020/21.
Solid balance sheet
The balance sheet structure has remained nearly unchanged since 30 April 2020. The equity ratio stood at 28.2% as of 31 July 2020. Net debt increased by EUR 13.6 million over the level on 30 April 2020 to EUR 179.2 million as of 31 July 2020.
"In total, our results for the first quarter of 2020/21 show that the Zumtobel Group now has a much
more robust position thanks to the measures implemented in the last two financial years," commented CEO Felder.
The company reacted quickly to the economic impact of the Covid-19 pandemic with the support of effective crisis management. Management's objective for the coming quarters is to position the Group as best as possible to quickly resume the sound pre-crisis development. Activities will concentrate on the steady implementation of the FOCUS strategy and related medium-term measures to strengthen the company's competitive ability and develop new market opportunities. The Zumtobel Group is also continuously working on the development of innovative lighting generations.
No guidance at the present time
The extent and duration of the worldwide economic downturn are also difficult for the Zumtobel Group's management to estimate. The Management Board has therefore decided not to issue any guidance on the development of revenues and earnings for the 2020/21 financial year at the present time.