10.11.2017 | Austria
A strong third quarter leads S&T AG to raise its forecast for EBITDA in 2017 to EUR 60 million- Y-on-y sales growth of 95% brings nine months of 2017's total sales to EUR 587.3 million
(Q1-3/2016: EUR 301.3 million)
- Nine months EBITDA increases 122% over previous year, rising to EUR 43.0 million
(Q1-3/2016: EUR 19.4 million)
- Lifting of EBITDA forecast for 2017 to EUR 60 million
S&T AG further substantially increased on a y-on-y basis in the first three quarters of 2017 its sales and EBITDA. S&T's total sales – with these including those from the Kontron group – for the first nine months of 2017 came to EUR 587.3 million (Q1-3/2016: EUR 301.3 million). This represented a y-on-y rise of 95%. Gross earnings and gross margins performed even better on a y-on-y basis, with the former increasing from 2016's EUR 104.9 million to EUR 220.6 million, and the latter from 34.8% to 37.6%. The prime driver of these increases was, as was the case in the previous quarters of 2017, the increased share of sales stemming from the high-margin products provided by the “IoT Solutions” segment, which accounted for 37% of consolidated sales and for 49% of its EBITDA.
EBITDA developed even better, increasing by some 122 % to EUR 43.0 million (Q1-3/2016: EUR 19.4 million). Major causes of the rise were the increase in gross margin and the successful implementation of cost-cutting measures, with this especially applying to the Kontron group. Consolidated income came for the first nine months of 2017 to EUR 15.4 million (Q1-3/2016: EUR 11.0 million).
The strong third quarter of 2017 and the large amount of orders on hand – with this having risen during the first nine months of 2017 from EUR 306 million to EUR 452 million – have joined to cause S&T AG to increase its forecast for EBITDA for financial year 2017 as a whole. The original forecast had been for an EBITDA of “more than EUR 50 million”. This has now been raised to EUR 60 million.
Hannes Niederhauser is satisfied with S&T's performance in the third quarter. “The progress that we have been achieving on the IoT and Industry 4.0 markets has manifested itself in our business successes. We are confirming our forecast of S&T's realizing sales of at least EUR 860 million for 2017. And we are increasing our EBITDA target to EUR 60 million. We are also confirming our goal of setting forth our growth in 2018, a year in which our sales are set to increase to EUR 1 billion. We are ready to take on and master challenges, as doing such this will enable us to remain at the cutting edge of Internet of Things and Industry 4.0 market!!“