edding AG reported preliminary H1 numbers today. While H119 revenues were up slightly by 2% year-on-year to €69.7m, EBIT dropped by 50% to €3.2m, coming in significantly weaker than expected just a month ago, according to the company.
Last month, edding AG, a producer of marking, writing and visual communication products, had already warned that H1 results would be significantly weaker than last year. However, at the time it still confirmed the full year outlook for a moderate increase in revenues to €145m-155m and an EBIT in a corridor of €12-15m. The main reason for the drop in earnings is the negative development of the Argentinian subsidiary, which is now expected to generate a PBT loss of €3m, vs. an originally expected break even result. A weaker business in Eastern Europe and delays in new product launches add to the problems.
Following the very weak EBIT in H1, the company now indicates full year 2019 revenues in a range of €140-150m and an EBIT in the range of €7-11m. The company also cut its outlook for 2020, now indicating an EBIT range of €11-15m vs. a previous target of €14-18m.
Author: Christian Breitsprecher