financial results of the es-system group for q1

Warsaw, 20 March 2013
Press Release
FINANCIAL RESULTS OF THE ES-SYSTEM GROUP FOR Q1-Q4 2012
FINANCIAL RESULTS FOR THE YEAR 2012 IN ACCORDANCE WITH THE PLAN,
STABLE ORDER PORTFOLIO AND PROSPECTS FOR FURTHER DEVELOPMENT
Item Item description (values in PLN k)
1.
Revenues from sales of products, goods
and materials
2.
Operating profit (EBIT)
3.
Return on profit EBIT
4.
Net profit
5.
Return on net sales (profit)
Q4 2012
Q4 2011
Change
Q4 2012
to 2011
Q1 – Q4
2012
Q1 – Q4
2011
Change Q1Q4 2012 to
2011
52 996
49 549
6.96%
169 323
169 661
-0.20%
4 857
3 616
34.32%
5 596
14 410
-61.17%
9.16%
7.30%
4 085
2 492
7.71%
5.03%
63.92%
3,30%
8.49%
4 318
11 678
2.55%
6.88%
-63.02%
THE GROUP’S STABLE REVENUES IN 2012
Revenues from sales of the ES-SYSTEM Group in Q4 2012 increased by 6.96% yoy to a level PLN 53 M.
Cumulatively at the end of December 2012 the Group’s revenues amounted to PLN 169.3 M, which is a
symbolic decrease by 0.20% yoy.
MAINTAINING SHARE IN THE DOMESTIC MARKET DESPITE UNFAVORABLE SITUATION IN THE SECTOR
In Q4 2012 the Group completed the sale in the domestic market at a level PLN 39.99 M, which means an increase
by 0.95% yoy
Total domestic sale in 2012 increased by 0.16% you to a level PLN 131.91 M. The ES-SYSTEM Group in 2012
maintained its market share despite sustaining economic slump in the sector. Sale of lighting in technology LED in
2012 constituted 7.48% of the domestic sale.
More important domestic projects of the ES-SYSTEM Group in Q4 2012:
•
•
•
•
Ethnographic Museum (Warsaw)
Office building Łopuszańska Ghelamco (Warsaw)
Shopping Center Europa Centralna (Gliwice)
Bialystok Science & Technology Park
HISTORICALLY THE HIGHEST LEVEL OF EXPORT SALE IN Q4 2012
In Q4 2012 the Group’s export sales reached a level of PLN 13 M that is an increase by 30.9% yoy. It was an effect
of very intensive marketing actions in the last period, and also the effect of final settlements of a few large projects.
Cumulatively at the end of December 2012 the Group recorded an inconsiderable decrease of export by 1.46% yoy
to a level PLN 37.42 M. Export constituted about 22% of the Group’s total sale.
The EU countries remain for the Group the biggest export market with about 73% share in sale in 2012. Due to
economic slowdown in those countries the Group activates operation in eastern markets, mainly in Russia and Arab
countries. Russia second year in the row records more than twofold sale’s increase and is second biggest export
market. Sale in Sweden in 2012 was also developing well (16% share in the Group’s sale in 2012).
Because of changes in offered assortment of lighting fixtures, especially definite broadening of the offer of
luminaires with high quality LEDs, ES-SYSTEM is currently perceived by foreign trade partners as one of the most
technologically advanced producers. Sale of lighting systems based on LED constituted 9.97% of the total export
sale in 2012.
Selected export projects of the Group in Q4 2012:
www.essystem.pl
[email protected]
ES-SYSTEM S.A. z siedzibą w Krakowie, ul. Przemysłowa 2, 30-701 Kraków wpisaną przez Sąd Rejonowy dla Krakowa – Śródmieścia w Krakowie Wydział XI Gospodarczy KRS do Rejestru
Przedsiębiorców Krajowego Rejestru Sądowego pod numerem 0000113760, o numerze NIP 679-25-51-640 i numerze REGON 351610904, o kapitale akcyjnym 14.145.000, 21 zł (w całości
wpłaconym), o zarządzie w składzie: Prezes Zarządu – Romuald Wojtkowiak, Wiceprezes Zarządu – Leszek Ciupiński, Wiceprezes Zarządu – Mirosław Butryn
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•
•
•
•
•
Shopping center (Jeddah, Saudi Arabia)
Office building Gasterra (Groningen, Netherlands)
Hospital (Kazan, Russia)
Shopping center Aquarelle (Volgograd, Russia)
Ford car show-room (Ukraine and Russia)
SUSTAINING PRICE PRESSURE AND COSTS WEAKEN MARGINS
In Q4 2012 the Group’s the operating profit increased by 34.32% yoy to an amount PLN 4.9 M. Margin EBIT in Q4
2012 amounted to 9.16% in comparison with 7.3% in Q4 2011. In Q4 2012 the Group recorded increase of the net
profit by 63.92% yoy to a level PLN 4.09 M, return on net sales amounted to 7.71%. It resulted from final settlements
of a few large projects in Q4 2012, for which deliveries were completed in previous periods.
Despite considerable improvement of the result in Q4 2012 the Group’s profits remained under the pressure of
costs’ increase and the economic slump in the sector. Cumulatively at the end of December 2012 the Group’s
operating profit decreased by 61.17% yoy to a level PLN 5.6 M that is 3.30% margin EBIT. In the discussed period
the net profit amounted to PLN 4.32 M and was lower by 63.02% yoy, return on net sales reached a level of 2.55%.
Decrease of the Group’s profits is a derivative of higher dynamics of operational costs increase with a decrease of a
gross profit from sale in 2012. In the discussed period a general administration cost decreased by PLN 0.6 M and
sale costs increased by about PLN 2.5 M.
For results’ comparability it should be kept in mind that the operating profit of the ES-SYSTEM Group in 2011 was
affected by one-time occurrence in Q3 2011 that is a remission of liabilities of the subsidiary ES-SYSTEM NT
Sp. z o.o. towards the general contractor of the investment in the amount about PLN 2.5 M. After excluding the
one-time occurrence the Group’s operating profit for 2011 would have amounted to PLN 11.85 M.
Optimization program put into operation at the beginning 2012 brought intended results in a form of limiting scale of
the Group’s costs increase: in Q1 2012 costs increased by 19.3% yoy, in Q2 increased by only 12.9% yoy, in Q3
costs decreased by 4.05% yoy and in Q4 decreased by 7.15% yoy. Cumulatively at the end of June 2012 increase
of costs was at a level of 16%, at the end of September at a level of 8.48% and at the end of December at a level of
only 3.80%. The Management Board does not assume further considerable increase of costs in the current year.
PROSPECTS OF THE GROUP’S DEVELOPMENT IN 2013
H1 2013 will bring worsening of the economic situation in the sector in the country and abroad and further
margin pressure. Signals of market stabilization may appear not until the second half of 2013.
Within realization of the development strategy the Management Board plans development of the product offer
and further expansion on the wholesale market, and at the same time maintaining sales in the investment
sector. H2 2013 should bring the first financial results of those sale actions. H1 2013 will also be dedicated to
building ES-SYSTEM’s position on selected export markets. Effect of those strategic operations in export
should be noticeable by the end of 2013.
ES-SYSTEM enters 2013 with a moderate optimism. Number of pending projects (under construction with
completion date in 2013) authorizes to – despite awareness of price pressure and a risk of margin decrease and
potential threats resulting from postponing projects due to lack of financing and payment problems. The goal of the
Group in Q1 2013 will be maintaining results from the same period of the previous year.
Additional information:
Anna Przyczyna
Administrative Office of ES-SYSTEM S.A.
Tel. +48 (12) 295 80 39
e-mail: [email protected]
ES-SYSTEM S.A. is the largest Polish company in the lighting sector in the section of professional lighting technology for constructions: general, architectural,
residential, industrial, specialist and exterior. The Company forms specialist Capital Group with its own three production plants. The Group determines
direction of the branch’s development in the areas of innovatory technological solutions, energy saving and design. Development strategy of the Group
assumes strengthening the position of the national leader in the sector and dynamic increase in export sales on the EU market and other highly developed
countries.
www.essystem.pl
[email protected]
ES-SYSTEM S.A. z siedzibą w Krakowie, ul. Przemysłowa 2, 30-701 Kraków wpisaną przez Sąd Rejonowy dla Krakowa – Śródmieścia w Krakowie Wydział XI Gospodarczy KRS do Rejestru
Przedsiębiorców Krajowego Rejestru Sądowego pod numerem 0000113760, o numerze NIP 679-25-51-640 i numerze REGON 351610904, o kapitale akcyjnym 14.145.000, 21 zł (w całości
wpłaconym), o zarządzie w składzie: Prezes Zarządu – Romuald Wojtkowiak, Wiceprezes Zarządu – Leszek Ciupiński, Wiceprezes Zarządu – Mirosław Butryn
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