CENTROTEC SE: third quarter exceeds expectations; annual forecast for 2020 raised
Brilon, October 15, 2020: The positive development of CENTROTEC SE in the first half continued in the third quarter despite the coronavirus pandemic. Provisional figures indicate that CENTROTEC increased its third-quarter revenue to EUR 179.7 million (previous year EUR 171.4 million). The operating result at EBIT level climbed from EUR 14.0 million to EUR 15.8 million. Consequently, the revenue for the first nine months was EUR 502.1 million (previous year EUR 471.1 million) and the operating result (EBIT) reached EUR 32.6 million (previous year EUR 22.1 million).
While the coronavirus pandemic continues to weigh on international sales markets such as France, Spain and Italy, the home markets of Germany and the Netherlands remain very robust. Although initial negative effects of the pandemic on the commercial construction sector are evident in the level of orders for commercial room ventilation systems, the continuing strength of the sales market for heating and home ventilation more than compensates for this.
In addition, the scaling-back of costs for travel, entertainment, marketing and trade shows due to the pandemic at a level of EUR 1.4 million likewise had a substantial positive impact on the earnings performance in the third quarter. Publication of the full quarterly report is scheduled for November 13, 2020.
In view of the attractive financial support still available this year for replacement heating systems and the reduced VAT rate, we now expect the strong sales market in Germany to continue until the end of the year provided no full lockdown is necessitated by a second wave of infections. Meanwhile the current rise in infection rates means most travel and trade show activities will remain suspended. The market context as a whole remains highly volatile due to the coronavirus. Based on this exceptional environment we anticipate full-year revenue in the order of EUR 690 million to 710 million and an EBIT operating result in the range of EUR 43 million to 46 million. Pari Group, that was taken over effective October 1, 2020, is expected to contribute about EUR 8 million to the revenue, but will not have significant impact on the operating result, due to capitalizations and depreciations required under IFRS.
CENTROTEC SE enjoys a presence in around 50 different countries through subsidiaries and sales partners. The principal group companies are Wolf, Brink Climate Systems and Ned Air in the Climate Systems segment, specialising in heating, climate control and ventilation technology e.g. in the form of solar thermal systems, CHP units and home ventilation systems with heat recovery, as well as Ubbink and Centrotherm in the Gas Flue Systems segment, with their focus on gas flue and air piping systems. CENTROTEC is consequently Europe's only listed full-service provider of heating and climate control technology, solar thermal systems and energy-saving solutions for buildings.