The SBS Group's revenue decreased from
DKK 682 million to DKK 664 million.
The SBS Group's EBITDA (recurring) remained
unchanged at DKK 63 million.
(DKK 7 million increase due to the
introduction of IFRS 16)
EBITDA RECURRING MARGIN
The EBITDA recurring margin increased
from 9.2% to 9.5%.
(1,1% increase due to the
introduction of IFRS 16)
SBS GROUP'S PERFORMANCE IN 2019
The SBS Group has established a robust platform for SBS Automotive, and this platform ensured sound performance for the division in very difficult markets in 2019. SBS Friction realised sound growth in its global niche in 2019 and is well-positioned to continue its growth in both the open aftermarket and the OEM market.
The Group's revenue decreased by 3% compared to 2018, amounting to DKK 664 million, and revenue was thus in the high end of the most recently announced expected range of DKK 650-670 million (see company announcement no. 07-2019).
SBS Friction's revenue increased by 6% due to progress in both the aftermarket and the OEM market. SBS Automotive's revenue decreased by 5% due to pricing pressure and changes to the product mix, while volumes remained largely unchanged.
Operating profit before depreciation, amortisation, impairment losses and special items (EBITDA recurring) amounting to DKK 63 million remained unchanged relative to 2018. IFRS 16 had a positive effect of DKK 7 million on EBITDA in 2019.
Thus, the operating profit slightly exceeded the most recently announced expected range of DKK 55-60.
SBS Friction's earnings exceeded expectations, and the division realised its best operating profit to date, totalling DKK 29 million. SBS Automotive's earnings met expectations, totalling DKK 41 million,in markets that were characterised by continued transformation, consolidation and pricing pressure.
In June 2019, the credit agreement with the Group's banks was extended by an additional 2 years and now covers the expected financing requirements up until April 2022.
Equity was negative by DKK 145 million at year end against negative equity of DKK 150 at the end of 2018.
Net interest-bearing debt increased to DKK 512 million. The increase is partly due to the introduction of IFRS 16 (new financial reporting standard regarding leases) and partly due to a temporary increase in funds tied up in inventories of easily marketable finished goods. The inventories are expected to be sold in 2020.
OUTLOOK FOR 2020
The SBS Group has had a good start to 2020. Performance for the first two months was in line with expectations, and at present, the development appears to have continued in March with stable production, delivery and operations as well as a satisfactory order book.
Due to the global coronavirus outbreak, revenue and earnings for the period March to December 2020 are, however, subject to considerable uncertainty. The restrictions imposed on the markets mean that SBS cannot at present quantify the effect of the coronavirus outbreak on our performance. However, as soon as our suppliers' and customers' response to the outbreak can be quantified, the SBS Group will present its expectations of 2020.