Further significant increases in earnings
Q2-EBIT rises by 53% compared to EUR 6.1 million in previous year
- 30.6 % increase of half-year EBIT 2007 to EUR 11.1 million against comparable previous-year period
- New leap in earnings with Heycom acquisition from second half-year of 2007
- Earnings per share up to over EUR 1 in 2009 (2006 EUR 0.35)
D+S europe AG (ISIN: DE0005336804), a leading solutions provider for integrated and value-oriented e-commerce and customer contact management, once again distinctly increased turnover and earnings in the second quarter of 2007. D+S europe AG’s turnover increased by 25.6% from EUR 38.7 million in the same quarter a year before to EUR 48.6 million in the second quarter of 2007. EBITDA went up by 45.9% to EUR 8.9 million compared to EUR 6.1 million in the previous-year period. EBIT rose overproportionally by 52.5% from EUR 4.0 million in the comparable period of the previous year to EUR 6.1 million thus clearly exceeding the previously communicated expected EBIT of EUR 5.5 million. Consequently, the EBIT margin increased to 12.6% compared to 10.3% in the corresponding previous year’s quarter. Earnings per share rose from 8 cents in the second quarter of 2006 to 9 cents in the second quarter of 2007.
Due to the strong operative growth in the first as well as the second quarter of 2007, Group turnover increased by 23.3% from EUR 74.7 million in the same period of the previous year to EUR 92.1 million in the first half-year of 2007. EBITDA of the first half-year of 2007 rose by 36.0% to EUR 16.8 million compared to EUR 12.3 million in the previous-year period. In the first half-year of 2007 D+S europe AG increased its EBIT by 30.6% to EUR 11.1 million compared with EUR 8.5 million in the comparable period a year before. The EBIT margin of the first half-year thus rose to 12.1% compared to 11.4% in the same period in 2006. After earnings per share in the first quarter of 2007 were burdened by 1 cent per share due to special expenses in connection with the Heycom acquisition, adjusted EpS rose by 4 cents up to 18 cents in the first half-year of 2007 compared to the same period in the previous year. In the first half year of 2006 EpS adjusted by one-off tax effects had amounted to 14 cents.
The 100-percent takeover of the e-commerce service provider Heycom as of July 1, 2007 in connection with a continuing strong organic growth will lead to another clear leap in earnings in the second half-year of 2007. To be precise, the Group expects an EBIT of more than EUR 22 million in the second half-year, i.e. a doubling of the EUR 11.1 million EBIT of the first half-year of 2007. In future the new segment D+S e-commerce and fulfillment will be one of the strongest growth drivers of the Group. By integrating customer contact management and e-commerce D+S europe AG will clearly benefit in an overproportional degree from the growth of this market.
For the entire business year of 2007 D+S europe AG expects an increase in turnover of 45% from EUR 164.8 million in 2006 to about EUR 240 million. Moreover, the Group plans an over-proportional EBIT increase by 75% to over EUR 33 million in 2007. Given this development, adjusted earnings per share (EpS) will amount to between 50 and 55 cents in the current business year compared to 35 cents in 2006. As first announced at the Annual General Meeting of 2007, the corporate tax reform effective from 2008 will result in a one-time adjustment of deferred taxes from our losses carried forward. This will lead to a non-cash relevant decrease in our earnings per share by 5 cents. Since D+S europe AG at Group level generates about 90% of its turnover in Germany, it will clearly benefit from the corporate tax reform as early as next year.
For 2008, after initial full-year consolidation of the Heycom Group, D+S europe AG anticipates a turnover of over EUR 320 million. For 2009, turnover is expected to reach more than EUR 390 million. In 2008 a further increase in EBIT of about 50% compared to 2007 to between EUR 48 and 50 million is expected. In 2009 EBIT is planned to reach EUR 60 million. In 2008, due to the positive effects of the corporate tax reform, D+S europe AG anticipates earnings per share of over 80 cents instead of the previously planned 70 or 75 cents. Then, in 2009 for the first time D+S europe AG expects earnings per share to reach over EUR 1.00.
Dipl.-Ing. Achim Plate, Chairman of the Board of D+S europe AG, comments: “We had a very successful first half-year. From the second half-year onwards our Heycom acquisition, which crucially adds to our positioning as integral provider for customer transactions, will be an enormous growth driver taking our performance to a new dimension. The field of e-commerce will be the spearhead of our future successful Group development securing long-run high growth rates in turnover and earnings“.