Sales of EUR 40.7 million with an EBIT margin of 6.4 per cent; third quarter with significant growth in sales and EBIT compared to difficult second quarter

The SYZYGY Group generated sales of EUR 40.7 million in the first nine-month of the financial year, representing a decrease of 15 per cent compared to the previous year. The core German market saw sales of EUR 33.4 million with a continuing strong EBIT margin of 13 per cent. Sales declined significantly in the international markets, however, particularly in the US and UK, leading to a loss of EUR 0.6 million. This resulted in the proportion of sales generated in Germany rising to more than 81 per cent.

The SYZYGY Group’s operating income (EBIT) came in at EUR 2.6 million, with the EBIT margin declining from 8.7 per cent to 6.4 per cent.

Financial income was negative at EUR -0.6 million, meaning that total net income after taxes is around EUR 1.5 million. Earnings per share are EUR 0.11.

 

Outlook:

The impact of the coronavirus pandemic was apparent from March onwards and reached its peak in the second quarter. Changes in our clients’ spending behaviour led to a downturn in sales and made it more difficult to win new business. The SYZYGY Group took early action and responded to client needs, with the result that the third quarter saw a significant increase in sales and profit compared to the second quarter. This trend is set to continue, so that business can be expected to recover.

SYZYGY is confirming its forecast and expects sales to fall by between 10 and 20 per cent in the 2020 financial year. We anticipate an EBIT margin in the mid single-digit range.

 

The full quarterly report will be available at http://ir.syzygy.de from October 26, 2020.

 

Bad Homburg, October 22, 2020