Linz. 09.05.2019. The S&T AG group (www.snt.at) strongly set forth its growth in revenues and earnings in the first quarter of 2019. Revenues increased by almost 11% to EUR 225.1 million (PY: EUR 203.6 million), with gross profit rising by some 15% to EUR 85.3 million (PY: EUR 74.1 million). That translated into an increase in gross margin to 37.9% (PY: 36.4%). The positive development of business – with this primarily ensuing from the "IoT Solutions Europe” segment – caused EBITBA to climb by 24% to EUR 21.2 million (PY: EUR 17.1 million). With this largely being due to the first time adoption of the new IFRS 16 financial reporting standard (leases), depreciation rose in the first quarter to EUR 10.4 million – as compared to the fourth quarter of 2018’s EUR 8.3 million. The result after minority interests rose by some 27% to EUR 9.4 million (PY: EUR 7.4 million). Earnings per share increased in the first quarter of 2019 to 14 cents – as opposed to the 12 cents earned in the previous year.
In particular, the "IoT Solutions Europe" and "IT Services" segments developed positively in the first quarter of 2019. Prior to the performance of consolidation of figures, the "IT Services” segment realized EUR 102.5 million and the "IoT Solutions Europe“ EUR 110.1 million in revenues. This corresponds to increases over the previous year of some 8% ("IT Services“) and some 24% ("IoT Solutions Europe”). The "IoT Solutions America” segment’s revenues came to EUR 37.8 million, a figure some 1% below that of the previous year. The numerous new design wins and the positive development of business produced by the exploitation of synergies between Kontron America and Kontron Canada are causing S&T AG to expect this segment to register a substantial increase in results during the remainder of financial year 2019.
S&T has focused its business on providing the IoT and Industry 4.0 areas with such technologies as the SUSiEtec IoT software platform and real-time networking. The results prove that S&T is on course for further technological leadership and thus for business growth. These results include the facts that the S&T Group set new corporate records with design wins and new customers. This, in turn, caused the project pipeline to rise to EUR 1.766 billion (PY: EUR 1.293 billion). The order backlog had increased as of the end of the first quarter of 2019 to EUR 629.0 million (PY: EUR 501,5 million).
S&T’s assets and liquidity manifested – as had been the case in previous financial years – seasonal effects in the first quarter of 2019. Notwithstanding the initial recognition of expenditures for rent and for leases stipulated by IFRS 16, equity rose to 44.8% (December 31, 2018: 43.3%). Cash amounted as of March 31, 2019 to some EUR 144.5 million (December 31, 2018: EUR 171.8 million). The bonded loan issued in April 2019 and amounting to EUR 160 million will further significantly increase S&T’s liquidity. The operating cash flow of the first quarter of the current financial year increased from the first quarter of 2018’s minus EUR 25.8 million to this year’s minus EUR 13.0 million
"S&T’s story of success is now in its ninth year,” states Hannes Niederhauser, S&T AG’s CEO. "The latest chapter in this story was written in the first quarter of 2019, in which we were once more able to record double-digit rises in revenues and earnings, and in which we were able to secure many new clients. The driver of these successes is our unwavering focus on making sustainable investments in cutting edge technologies. We will especially profit from this in the years to come. We are confirming the objectives that we set for 2019: revenues of EUR 1.1 billion and a profitability of more than EUR 100 million (EBITDA). We are also planning to make further acquisitions, and they will come on top of revenues. We are proceeding upon the implementation of our "Agenda 2023” program. With it, we have firmly set our sights of realizing in 2023 revenues of EUR 2 billion and an EBITDA of at least EUR 200 million!”