Financial results of The ES-SYSTEM Group for Q1

Warsaw, November 5, 2015
PRESS RELEASE
FINANCIAL RESULTS OF THE ES-SYSTEM GROUP FOR Q1-Q3 2015
Q3 IN ACCORDANCE WITH EXPECTATIONS WITH INCREASES IN DOMESTIC AND EXPORT SALES,
PERSPECTIVE GROWTH OF RESULTS IN 2015
In milion PLN
Q3 2015
Q3 2014
50.18
19.73
14.51
4.79
9.6%
6.99
13.9%
4.50
9%
Revenue from sales
Gross profit from sales
Operating costs
EBIT
EBIT margin
EBITDA
EBITDA margin
Net profit
Net margin
46.92
18.30
13.84
4.59
9.8%
6.75
14.4%
4.53
9.6%
Change %
7%
8%
5%
4%
4%
-1%
Q1-Q3 2015
132.4
50.3
42.6
6.99
5.3%
13.67
10.3%
7.00
5.3%
Q1-Q3 2014
121.00
46.19
41.6
4.39
3.6%
10.78
8.9%
4.54
3.8%
Change %
9%
9%
2%
59%
27%
54%
Results for Q3 of the current year were achieved in line with expectations, with increases in both domestic and export
sales. Sustaining boom in the sector, as well as growing demand for modern solutions based on the LED technology,
strengthen our believe that we will finish 2015 with a turnover growth – says Rafał Gawrylak, CEO of ES-SYSTEM S.A.
HOME AND EXPORT SUPPORT THE REVENUE GROWTH
Q3 of 2015 has brought a 7% yoy revenue growth of the ES-SYSTEM Group to the level of PLN 50.2 M. Accumulatively
sales in Q1-Q3 amounted to PLN 132.4 M, representing 9% increase yoy. The gross profit on sales in Q3 amounted to PLN
19.7 M, which translates into an increase by 8% yoy. Accumulatively the Group generated PLN 50.3 M of the gross profit
on sales, i.e. 9% increase yoy. In September of the current year a production of electrical equipment increased by 5.7%
yoy. Market recovery was accompanied by an increase in demand for products in LED technology.
DOMESTIC SALE GROWS ACCORDING TO THE PLAN
Q3 of this year has brought an increase in domestic sales by 7.4% yoy to a level PLN 42 M. Accumulatively sales in the
country amounted to PLN 109 M, i.e. 7.7% increase yoy. The increase in the domestic sales is a derivative of, among
others, the recovery in the architectural segment; 18.1% yoy increase in Q3 in comparison with 8.8% increase throughout
2014. Sales of the industrial lighting also increased in Q3 by 27.8% yoy.
INNOVATIVE SOLUTIONS ON THE OFFENSIVE
According to the strategy, another quarter in a row, the sales of lighting in LED technology increase dynamically. In the
period Q1-Q3 2015 LED lighting on the domestic market increased its share in the sale and reached the level 44.1%
compared with 27.6% of domestic sales in Q1-Q3 2014. The value of total sales of solutions in LED technology after 3
quarters of 2015 accounted for 46.9% of the Issuer’s total revenues from sale; for comparison, the same share in the
previous year amounted to 28.4%.
From the beginning of the year, the Company has introduced more than 1.5 thousand of new solutions based on LEDs.
During the discussed period, the Company has completed a number of projects based on LED technology, including
shopping malls in Leszno, Szczecin (Turzyn, Outlet), Panorama in Poznan, Gallery Jurowiecka in Bialystok, and a
production hall in Pniewy, meat processing plants in Krzeszyce or factory Faurecia in Gorzow Wielkopolski.
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 – Rafał Gawrylak, Wiceprezes Zarządu – Mirosław Butryn
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Currently ES-SYSTEM can offer customers almost 10 thousand products based on this technology. Close to be completed
are other new implementation based on innovative solutions developed by engineers and technicians of ES-SYSTEM, e.g.
COSMO20, LEDEX 2 TOP, MODERNA2 and a whole range of products for the residential market, for example: ESKIMO,
AMARO, BINGO.
In Q3 of this year the Company basing on all technological solutions has completed, among others, the following projects
(a list of the most important ones):
•
•
•
•
•
•
•
•
•
•
•
Shopping Center Sukcesja, Lodz
Gallery Factory Outlet, Warsaw Ursus
Shopping Center Galena, Jaworzno
Gallery Vivo, Stalowa Wola
Railway Station, Warsaw West
Panorama Shopping Mall - modernization, Poznan
Power plant in Turow; construction of blocks 4-6
Ferrero, production hall and high bay warehouse, Belsk Maly near Grojec
The rehabilitation center, Konstancin near Warsaw.
Railway station, Katowice Ligota
Solaris Bolechowo, production hall and management board’s offices, Bolechowo near Poznan
EXPORT SALES IN THE BLACK
In Q3 of 2015 the export sales recorded an increase by 4.8% yoy to a level of PLN 7.9 M. Accumulatively the export sales
amounted to PLN 23.3 M, i.e. 18% increase yoy. During this period, the highest increase by 57% was observed on the
OVEC market (Overseas Countries and Scandinavia) and in the DACH region covering Germany, Austria and Switzerland,
where achieved was 47% increase in sales. The decrease in sales by approx. 29% was recorded only on the Eastern
markets (Russia, Ukraine). It was a derivative of continuing stagnation in the region.
In Q3 of the current year the highest share in export sales had the Swedish market (22.1%), Czech (8.8%) and German
(8.5%). The United Arab Emirates and Kuwait kept their high share in the export sales (7.2%).
In Q3 of this year the sale of LED solutions increased by 105% compared with the same period of the previous year and
accumulatively reached 61% share of the total export sales in Q1-Q3 2015 in comparison with 33% in the same period of
the previous year.
Some of the most important export projects in Q3 2015:
•
•
•
•
•
•
Athletic Hall Sätrahallen, Sweden
Deloitte - the company’s seat, Lisbon, Portugal
Británico Hospital, Montevideo, Uruguay
Marinegebauw office and conference building, Amsterdam, Netherlands
University of Nanterre, France
MCL - Marstall-Center Ludwigsburg, Germany
INCREASE OF THE COMPANY’S PROFITS
The Group’s EBIT in Q3 of the current year recorded 4% yoy increase to PLN 4.8 M (9.6% EBIT margin). From January to
September 2015 EBIT amounted to PLN 7 M, which means 59% increase yoy. In Q3 of the current year in comparison with
the same period of the last year, the Group recorded 5% increase in operating expenses to PLN 14.5 M. Accumulatively,
operating expenses amounted to PLN 42.6 M, a symbolic 2% increase yoy. It is the effect of increased cost of sales by 5%
yoy, including commission costs, transport and subcontracting services – a derivative of sales growth. The administrative
expenses decreased in the discussed period by 2% - mainly a result of the reorganization of production plants in Wilkasy
and closure of the plant in Rzeszów.
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 – Rafał Gawrylak, Wiceprezes Zarządu – Mirosław Butryn
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The net profit in Q3 of the current year amounted to PLN 4.5 M. Accumulatively the ES-SYSTEM Group recorded PLN 7 M
net profit (5.3% profitability) compared with PLN 4.5 M a year earlier. At the end of the period, the company had cash
amounting to PLN 14.1 M. In July of this year the Company paid to its shareholders a dividend for 2014 in the amount of
PLN 15 M, i.e. PLN 0.35 per share.
GROWING MARKET, PROGNOSIS FOR A RECORD-BRAKING RESULTS IN 2015
In the discussed period the Management Board has observed that the economic situation on the professional lighting
market is becoming more positive. It is expected that architectural, emergency and outdoor lighting sales will continue to
increase. The upward trend in LED lighting sales is also expected to stay. Based on the results from the third quarter on
the domestic and export markets, as well as the current number of orders and sales plans, the company hopes to achieve
growth in sales volume in 2015.
In exports, the Company is working to diversify the Eastern markets and gain new contracts in the countries of Southern
and Western Europe, in addition to analyzing the development of new concepts for further courses of action, strategic
product and geographic areas, which are set to be determined by the end of this 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 construction:
general, architectural, residential, industrial, specialist and exterior. The Company forms a specialist Capital Group with its own
production plants. The Group determines the directions for the lighting branch’s development in the areas of innovative technological
solutions, energy saving and design. The development strategy of the Group assumes strengthening the position of the national leader
in the sector and the dynamic increase in export sales on the EU market and in other highly developed countries. In 2015 ES-SYSTEM
celebrates its 25th anniversary.
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 – Rafał Gawrylak, Wiceprezes Zarządu – Mirosław Butryn
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