Einhell, which produces and markets tools for DIY use ranging from power tools, stationary machines to car tools, reported preliminary H119 numbers yesterday. Revenues reached €323m, up 4.3% year-on-year. Despite revenue growth, H119 earnings before tax fell by 14% year-on-year to €20.3m.
The drop in PBT resulted in a narrowing of PBT margins to 6.3% vs. 7.7% in the first half of last year.
Following the weak H1 results, the company is cutting back on its full-year outlook. While the company expects to meet its revenue target of €605m (2918 €577.9m), it is becoming more cautious on margin due to competitive pressures in the market. Einhell stated that the originally planned pre-tax return of 6.6% cannot be reached and that it now expects a pre-tax yield of about 5.5%. This would imply a PBT of around €33.3m in 2019, compared to €36.2m in 2018.