KROMI Logistik AG publishes 2013/2014 annual report

- Revenue up 2.3% to EUR 61,287 thousand

- Marked improvement in operating profit (EBIT) to EUR 1,252 thousand (previous year: EUR 972 thousand)

- Company targets further profitable revenue growth for FY 2014/2015

Hamburg, September 10, 2014 - KROMI Logistik AG, the provider of end-to-end tool logistics solutions for manufacturing companies, has today published its complete report for the 2013/2014 fiscal year (as of June 30, 2014). The company grew its revenue further to EUR 61,287 thousand in the fiscal year elapsed (previous year: EUR 59,923 thousand). KROMI benefited from constantly high production levels at a customer base that is diversified across several sectors and regions. Profitability was also boosted further: operating profit (EBIT) grew by 28.8% to EUR 1,252 thousand.

Changes to the customer base affected business trends during the period under review. In the automotive area, a supply agreement with a large customer of many years' standing was discontinued. The fall in revenue with this customer was nevertheless more than offset by the commencement of supplies to a Spanish machining company, and the optimisation of the existing customer base. Uwe Pfeiffer, CFO of KROMI Logistik, commented as follows: "Although margins are not yet at their target level during this start-up phase, with these measures we have nevertheless not only intensified our international orientation, but also created the foundation for higher-margin business in the future."

As a result of this change, and significant production outsourcing by an important customer, the cost of materials increased from EUR 45,274 thousand to EUR 46,673 thousand. The gross profit margin of 23.8% was also consequently below the previous year's level (24.4%) other operating expenses of EUR 5,242 thousand were 9.8% lower than in the prior-year period (EUR 5,813 thousand). In particular, expenses arising from currency translation in connection with the Brazilian subsidiary of EUR 151 thousand were markedly below the previous year's EUR 556 thousand.

KROMI Logistik reported earnings before taxes (EBT) of EUR 975 thousand (previous year: EUR 675 thousand). After deducting EUR 528 of income taxes, consolidated net income stood at EUR 447 thousand, compared with EUR 100 in the previous year.

"KROMI reported further growth in both revenue and EBIT in the 2013/2014 fiscal year. We have thereby met our forecast. Our strategy of growing incrementally and profitably has succeeded," is how Jörg Schubert, CEO of KROMI Logistik AG, comments on business trends. Despite the aforementioned challenges, KROMI Logistik boosted its EBIT by almost 30%, implementing strategic preparatory measures both in Germany and abroad in the process. "Given these circumstances, our stable business model again proved its strength," adds Schubert.

The Brazilian subsidiary continued to report above-average growth rates. Despite the current cooling of macroeconomic trends, numerous new customers were acquired again, and revenue was up by around 16% on a Euro basis. "Our organisation in Brazil is working highly efficiently, and there are still a number of machining operations that require KROMI know-how. The positive trend over the last two years convinces us that we should continue to focus on this market," notes Schubert.

The current fiscal year, KROMI Logistik consequently plans to continue consistently on its profitable growth path, and to gradually expand its business operations. "We anticipate revenue growth in the upper single-digit percentage range in 2014/2015, which would put us significantly ahead of our target sectors' forecast growth rates," explains Uwe Pfeiffer. The company is also planning continuous improvement in its operating earnings. In particular, the economy, and consequently KROMI customers' production levels, will comprise decisive factors for earnings trends. "Should these factors develop positively, we are aiming for further EBIT growth," concludes Pfeiffer.

Over the course of the day, KROMI Logistik AG will make its full IFRS consolidated financial statements for the 2013/2014 fiscal year available for downloading on its website at www.kromi.de within the Investor Relations area.
 

Company profile:
KROMI Logistik AG offers manufacturing companies end-to-end outsourcing for their supply of precision machining tools, both in Germany and abroad. The company focuses on technically advanced machining tools for metalworking (consumable and cutting tools, e.g. drills). KROMI combines conventional tool retailing with a decentralised tool supply system that includes output machines in the customer's production area and an IT-based tool management and controlling system. KROMI's aim is to sustainably optimise the supply of resources (particularly tools) for its customers and to secure the availability of the appropriate resources at the right time and in the right place. The company is currently represented at four locations in Germany and four abroad (Slovakia, Czech Republic, Brazil and Spain), and is active in five other European countries. To date, KROMI has primarily focused on customers in the machine engineering, automotive suppliers and aerospace sectors as well as marine engine construction.

Visit us online at: www.kromi.de

Investor relations contact:

cometis AG
Janis Blaum
Phone: +49 (0)611-205855-64
Fax: +49 (0)611-205855-66
E-mail: blaum@cometis.de