paragon GmbH & Co KGaA (PGN); preliminary FY18 sales of €187.4m exceed guidance

Published on 08-03-2019 10:47:00
Author Sparks Team

Yesterday, paragon released its preliminary FY18 figures. The company’s sales reached €187.4m, slightly ahead of the guidance of €180-185m and its EBIT margin stood at 8.1%, in line with the forecast.

Voltabox, paragon’s subsidiary from the electromobility operating segment, generated preliminary revenues of c. €66.9m (up by 145.3% y-o-y) and EBIT margin of 8.8%. Its results were driven by the automated mass production of battery modules for use in intralogistics. paragon’s top-line was also assisted by the first-time consolidation of the new Digital Assistance business unit in Q418.

Despite a challenging market situation in the automotive sector connected with an overall economic slowdown, the company’s FY19 forecast remains positive. paragon expects that FY19 sales will increase by c. 25% to €230-240m and EBIT margin will be 8%.

The company anticipates that Voltabox will contribute to group’s FY19 revenues with c. €105-115m, up by 60-70% year-on-year. paragon hopes that the company will benefit from the positive outlook for the global lithium-ion battery systems market, which is expected to grow by 12% this year. Moreover, FY19 results will be driven by the sensor and digital assistance segment of paragon’s automotive business, according to the company.

paragon guides to FY19 CAPEX at c. €40m (FY18: €38.5m), with 35% of the amount attributable to further investments in Voltabox. The company doesn’t plan any significant acquisitions in FY19 and will instead focus on consolidation of the already acquired entities. The company will publish its final FY18 figures on 1 April 2019.

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