Nanogate Exceeds 2018 Sales Forecast and Takes Decisive Steps Toward Profitable Growth Course28.02.19
- 2018: Based on preliminary figures, Group sales increased to more than EUR 235 million and thus exceeded the forecast, while the operating result (EBITDA) reached EUR 24 million as predicted
- 2019: Sales expected to grow even further to more than EUR 250 million
- Due to start-up costs for new major orders as well as one-off expenses for the future-oriented NXI program, a consolidated net loss is expected in the current fiscal year; however, the operating result (EBITDA) should remain stable
- Outlook for 2020 to 2025: Clearly profitable course of growth expected as of 2020 – medium-term targets for 2025 confirmed
Göttelborn, Germany, February 28, 2019. Nanogate SE, a leading global technology company for design-oriented, multifunctional components and surfaces, has exceeded its sales target for 2018 and achieved its forecasted operating result (EBITDA). In 2019, the company expects significant organic growth paired with a consolidated net loss in the low single-digit million range due to the extraordinary costs associated with the future-oriented Nanogate Excellence International (NXI) program as well as ongoing major orders. The operating result (EBITDA) should nevertheless remain stable in 2019. The Group’s profitability should improve significantly as of 2020.
Based on preliminary, unaudited figures, Group sales increased to more than EUR 235 million (previous year: EUR 186.2 million) in the past fiscal year, thanks in part to the new sites in Slovakia and Austria as well as the acquisition of the heT design studio. The operating result (EBITDA) increased to EUR 24 million (previous year: EUR 21.5 million) as expected. The international course of expansion in recent years, the capital allocation to the extensive innovation offensive, and the development of capacity are reflected in a significant increase in depreciation, own work capitalized and temporarily higher financing costs. At the end of 2018, Nanogate had cash and cash equivalents of over EUR 38 million (previous year: EUR 20.3 million).
The Group predicts an organically influenced increase in sales to more than EUR 250 million in 2019. In view of increasing start-up costs for numerous new major orders and the implementation of the future-oriented NXI program as well as potential noncash expenses in the 2019 transitional year, a consolidated net loss in the low single-digit million range is expected. EBITDA is nevertheless expected to remain stable.
As of 2020, Nanogate would like to reach a clearly profitable growth course again, and expects significant improvement in operating result (EBITDA) as well as a positive consolidated net income. Accordingly, the Group confirms the medium-term targets already published in November 2018: By 2025, sales should increase to over EUR 500 million, while the operating result (EBITDA) should grow much stronger and reach at least EUR 75 million.
Ralf Zastrau, CEO of Nanogate SE: “Business developed as expected in 2018, whereby the Group was able to increase sales to a higher degree than planned. The start-up costs for new major orders which will take off in the coming months had an impact on the 2018 earnings performance. With the progressing implementation of the innovation offensive and the future-oriented NXI program already underway, 2019 will definitely be a transitional year. We expect to be on a clearly profitable growth course beginning in 2020. Due to the excellent order situation and attractive growth areas such as metallization, new mobility and smart surfaces, we believe we are well positioned to achieve our medium-term targets for 2025.”