Corporate News: SYZYGY boosts sales by 6 per cent and operating income by 34 per cent
- Sales up by 6 per cent to EUR 48.1 million
- Operating income increased by 34 per cent to EUR 4.5 million
- Net income up almost 10 per cent to EUR 3.7 million
- Outlook for 2018: forecast confirmed, double-digit sales growth with rising profitability
The SYZYGY Group remains on its growth trajectory, with a rise in sales of 6 per cent to EUR 48.1 million in the first nine months of 2018. Operating income (EBIT) improved significantly, climbing 34 per cent to EUR 4.5 million, while the EBIT margin rose from 7.5 per cent to 9.5 per cent.
The depreciation of the pound sterling negatively impacted sales performance by EUR 0.5 million. The Germany segment in particular is on track, with 22 per cent growth and a 14 per cent EBIT margin. Restructuring costs at the UK branch adversely affected earnings in the UK segment, with EBIT coming in at just EUR 0.2 million.
Financial income accounted for EUR 0.3 million of the total (previous year EUR 1.4 million). The annualised return on the securities portfolio was 4 per cent. Liquid funds and securities rose from EUR 16.0 million to EUR 17.7 million in the nine-month period. Operating cash flow more than compensated for the outflow of funds resulting from the dividend distribution of EUR 5.2 million.
Earnings before tax rose to EUR 4.9 million, while net income grew to EUR 3.7 million. Earnings per share amounted to EUR 0.27, or EUR 0.10 in the third quarter.
Despite the Brexit-induced uncertainty in the UK, the SYZYGY Group has decided to invest in the market and has gained Ita Murphy, one of the most experienced communications professionals in the country, as UK CEO. Ita includes many years as managing director of media agency Mindshare and she has also held a variety of other senior positions on the client and media side. Ita Murphy has excellent links to the British business community and will primarily drive growth in new business and work on expanding the UK agency.
“The positive performance seen in the current year is an endorsement of the reorganisation measures we took last year. Restructuring and the integration of acquisitions such as diffferent and Catbird Seat are bearing visible fruit. This is paying off especially in Germany, our home market, which is outperforming with impressive growth of 22 per cent. Given the number of new client wins and new business enquiries, we are optimistic about the coming months,” commented Lars Lehne, Chairman of the Management Board of SYZYGY AG.
|Sales in kEUR||15,839||15,093||5%||48,062||45,373||6%|
|EBIT in kEUR||1,751||1,283||36%||4,545||3,389||34%|
|Financial income in kEUR||100||521||-81%||335||1,429||-77%|
|Earnings before tax in kEUR||1,851||1,804||3%||4,880||4,818||1,3%|
|Net income in kEUR||1,369||1,203||14%||3,693||3,371||10%|
|Earnings per share in EUR||0.10||0.11||-10%||0.27||0.31||-15%|
|Operatiing cash folw in kEUR||4,314||5,671||-24%||9,205||2,923||215%|
The SYZYGY Group expects this strong performance to continue in the current year and is confirming the forecast for the full year 2018. The assumption is still of double-digit sales growth and a rise in the EBIT margin in the upper single-digit range.
The full quarterly report will be available here from November 9, 2018.