News

SYZYGY GROUP increases profitability in the first half of 2024, sales performance on target

Published
July 24, 2024
  • Operating income increases to EUR 2.8 million (+27 per cent compared to the first half of previous year) with an operating EBIT margin of around 8 per cent
  • Sales of EUR 35 million according to plan (-3 per cent compared to the first half of previous year)
  • Core German market: Sales of EUR 28.8 million (-1 per cent compared to the first half of previous year) with an EBIT margin of 10 per cent
  • UK and USA segment: Sales of EUR 2.5 million (-42 per cent compared to the first half of previous year) with an EBIT margin of 1 per cent
  • Poland segment: Sales of EUR 3.8 million (+37 per cent compared to the first half of previous year) with an EBIT margin of 18 per cent
  • Outlook for 2024: Sales at the prior-year level with an EBIT margin of around 9 per cent before goodwill write-downs

The SYZYGY GROUP achieved an increase in profitability in the first half of 2024 financial year, while sales declined slightly as planned to EUR 35 million. Operating income rose by 27 per cent to EUR 2.8 million compared to the first half of the previous year, improving the operating EBIT margin to 8.1 per cent (previous year: 6.2 per cent).

In the core German market, sales decline by 1 per cent to EUR 28.8 million with an operating profitability of 10 per cent. This core market thus accounts for approximately 82 per cent of sales.

As expected, sales in the UK and US segment fell by 42 per cent to EUR 2.5 million, with an EBIT margin of 1 per cent. By contrast, sales in the Poland segment increased by 37 per cent to EUR 3.8 million, with an operating EBIT margin of 18 per cent.

The financial income was negative at EUR -0.3 million, meaning that the Group´s total net income after taxes in the second quarter is around EUR 1.8 million. Earnings per share are EUR 0.13.

The economic environment in the markets relevant to the SYZYGY GROUP remains generally subdued. However, we have seen a significant upturn in new business activities in the second quarter. The corresponding expenses for new business development had a negative impact on EBIT.

Frank Wolfram, CEO of the SYZYGY GROUP

Outlook

The SYZYGY GROUP expect sales in the 2024 financial year to be at the previous year’s level, with an EBIT margin of around 9 per cent before goodwill write-downs.

Q2-2024
Q2-2023
Change
H1-2024
H1-2023
Change
Sales
17,371
17,224
1%
34,928
35,992
-3%
EBIT (before goodwill write-downs)
1,216
515
136%
2,837
2,228
27%
EBIT margin (before goodwill write-downs)
7.0%
3.0%
4pp
8.1%
6.2%
1.9pp
EBIT (inc. goodwill write-downs)
1,216
-3,691
n.a.
2,837
-1,977
n.a.
EBIT margin (inc. goodwill write-downs)
7.0%
-21.4%
28.4pp
8,1%
-5,5%
13.6pp
Financial income
-144
-253
43%
-312
-921
66%
Net income before tax
1,072
-3,944
n.a.
2,525
-2,898
n.a.
Net income
768
-3,978
n.a.
1,805
-3,200
n.a.
Earnings per share (EUR)
0.06
-0.30
n.a.
0.13
-0.24
n.a.
Operating cash flow
-2,550
537
n.a.
-249
104
n.a.
* kEUR

The full interim report as at June 30, 2024 (in German language) will be published on July 26, 2023 at investors.

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Investor Relations & Sustainability Susan Wallenborn
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