Mensch und Maschine Software SE discloses Q1 report
Best Q1 ever in the 32-year company history
- Sales +18% / EBITDA +37% / Net profit +78%
- Ambitious targets for 2016 underlined
Wessling, April 25, 2016 – Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, started 2016 with the best Q1 ever in the 32-year history of the company: While sales and gross margin had double digit growth, all earnings figures increased highly disproportionately: Operating earnings EBITDA grew by 37%, while net profit after minority shares showed a significantly higher +78% jump.
Sales climbed to EUR 50.37 mln (PY: 42.80 / +18%), with M+M Software contributing EUR 11.52 mln (PY: 10.34 / +11%) and the VAR Business contributing EUR 38.85 mln (PY: 32.45 / +20%). Gross margin increased to EUR 24.60 mln (PY: 21.92 / +12%), with contributions of EUR 11.13 mln (PY: 9.88 / +13%) from Software and EUR 13.47 mln (PY: 12.04 / +12%) from the VAR Business. The growth drivers were M+M’s proprietary software technology, mainly CAM, and the Autodesk software license business where there were pull effects in advance of the transition to a rental model.
Operating profit EBITDA before depreciation, amortization, interest and taxes grew to a disproportionate EUR 5.28 mln (PY: 3.85 / +37%), with EUR 2.92 mln (PY: 2.45 / +19%) coming from Software and EUR 2.36 mln (PY: 1.40 / +69%) from the VAR Business.
Net profit after minority shares jumped by 78% to EUR 2.26 mln (PY: 1.27), or 14 Cents (PY: 8) per share. The net profit calculation is based on an expected 35% tax rate for 2016, while the previous year was restated to the actual 43.3% annual tax rate. Operating cash flows remained on a strong level at EUR 6.14 mln (PY: 6.67).
Group headcount at March 31, 2016, just grew moderately to 745 (PY: 725 / +2.8%). M+M keeps up strict cost discipline to turn the good growth momentum to a maximum economy of scale effect in earnings.
M+M CEO Adi Drotleff believes that the ambitious EBITDA target of approx. EUR 16 mln (PY: 12.8 / +25%) is comfortably underlined by the first quarter business development, as well as the targeted doubling of net profit after minority shares to approx. EUR 8 mln (PY: EUR 3.87 mln) and of EPS to about 50 Cents (PY: 24), as from Q2/Q3 onwards more PPA amortisation will be lapsing.