Mutares AG (MUX); confirms its FY18 preliminary figures

Published on 16-04-2019 15:12:00
Author Milosz Papst

Today Mutares released its final FY18 results, confirming a decrease in sales from €899.7m to €865.1m. EBITDA declined from €67.1m to €49.1m. Adjusted EBITDA increased from -€27.9m to €4.5m and amounted to €14.5m for the continued portfolio.

The automotive segment represented the largest part of the company’s sales, standing at €437m (FY17: €344.1m) and the segment’s adjusted EBITDA increased by 22% to €17.6m. The sectors performance was enhanced by strategic acquisitions made by Mutares’ portfolio company, STS Group AG.

In contrast, revenues in the Engineering & Technology segment decreased from €213.2m to €191.9m, negatively affected by the deconsolidation of Zanders. However, the segment’s adjusted EBITDA improved significantly to €1.8m from negative -€16.4m, thanks to a successful turnaround of another portfolio company, Balcke-Dürr Group.

Sales growth at Eupec, Mutares’ portfolio company, and the sale of another portfolio company, BSL, contributed to a revenues increase in the Construction & Infrastructure segment from €65.1m to €77.7m, as well as an improvement of adjusted EBITDA from negative €5.2m to positive €0.2m. Both Wood & Paper and Consumer Goods & Logistics segments posted sales decline to €124.9m and €98.6m, respectively.

The company’s portfolio NAV decreased to €202.9m in FY18 (FY17: €398.6m), which translated into a NAV per share of €13.32. The segment which experienced the largest decrease in value was Automotive, with a NAV of €56.2m compared to €239.9m at end-2017, which was largely driven by STS Group. Mutares sold a 36% stake in STS during the IPO in June at a price below the company’s end of year 2017 NAV estimate.

Furthermore, STS is currently valued based on its market price, which decreased 62% until the end of 2018 from its IPO. The strongest value appreciation was seen in the Engineering & Technology segment in which the  Balcke-Dürr Group is operates, which increased to €86.3m from €63.6m in FY17.

In FY19 the company has already acquired two companies, Normek and FDT, for its platform investment, Donges Group. Mutares intends to enter into at least three further transactions this year and guides to FY19 revenues of more than €1bn.

Author: Milosz Papst

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