Neschen has reported renewed growth for the first half year of 2011. The company has partially achieved some double-figure growth rates in Germany, the USA, northern and eastern Europe. However, due to the delivery problems encountered by some raw material suppliers for new Neschen products as well as disappointing sales figures in the United Kingdom, southern Europe, the Middle East and Japan, the company fell short of its turnover target.
Across the group, Neschen was only able to achieve slight growth in the 2nd quarter of 2011. After an increase in turnover of 4.0 % in the first quarter, growth slowed in the 2nd quarter to 1.2 % compared to the same period of the previous year. This means that the company this time failed to achieve the growth rate of 6% which had been recorded continuously since the 2nd quarter of 2010. In the first half of the year (as at 30.06.2011) Neschen achieved a group turnover of 51.4 million euros. This is 1.3 million euros (= + 2.6 %) more than the turnover of the previous year's period (50.1 million euros).
The EBIT amounts to 0.5 million euros (previous year's period 0.8 million euros), the EBIT margin is 1.0 % (1st half year 2010 1.6 %), the EBITDA amounts to 2 million euros (previous year's period 2.3 million euros), the EBITDA margin amounted to 3.9 % (1st half year 2010 4.6 %). The EBIT has been adversely affected by foreign currency exchange rate fluctuations amounting to 0.3 million euros.
The company Neschen AG achieved a turnover of 29.2 million euros in the first half of 2011 (previous year's period 27.9 million euros). This corresponds to a growth in turnover of 4.6 %. The turnover is therefore only slightly lower than expected. The shortfall in turnover is mainly a result of weak demand in some export regions, particularly southern Europe, UK and Japan.
Neschen AG has achieved an EBITDA of 2.9 million euros (9.6 % EBITDA margin). This is consistent with the EBITDA of the same period last year. The operating profit (EBIT) amounted to 1.7 million euros as at 30.6.2011 (5.6 % EBIT margin) and is also consistent with the figure for the same period of the previous year.
"We have not yet been able to achieve the target figure of five percent growth in group business for the current financial year," said Stefan Zinn, member of the Executive Board. "It is particularly disappointing that very good sales achievements in many countries with double-figure growth rates were virtually counteracted by negative developments in some countries experiencing economic recession such as the UK, Spain or Japan."
"The business outlook is stable but still not satisfactory," concluded Dr. Norbert Dieterich, member of the Executive Board. "Based on our new products, new customers and very good supply capability, we are expecting a good level of business this autumn and so an improvement in earnings and a positive operating result for the current business year, 2011."