Mensch und Maschine Software SE discloses Half year report 2018
Very strong Q2 accelerating growth
EBITDA +29% / Net profit +37% / both segments growing
Ambitious 2018 targets very achievable
Wessling, July 23, 2018 – Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, further accelerated its growth due to a very strong Q2: After +22% in Q1, EBITDA in Q2 increased by +40%, leveraging half year net profit by as much as 37%. Growth drivers were both M+M’s proprietary Software around its flagship CAM offerings as well as the VAR segment, where many Autodesk maintenance contracts were converted to subscription, as expected.
H1 group sales increased to EUR 94.46 mln (PY: 83.59 / +13%), with M+M Software contributing EUR 27.95 mln (PY: 25.22 / +11%) and the VAR Business contributing EUR 66.50 mln (PY: 58.37 / +14%). Q2’s +20% growth was significantly above Q1’s +6.8%, with aid from both segments: Software improved from +9.3% to +12%, VAR Business from +5.9% to +24%. Half year group gross margin increased to EUR 52.39 mln (PY: 48.20 / +8.7%), with EUR 27.35 mln (PY: 24.54 / +11%) from the Software segment and EUR 25.04 mln (PY: 23.67 / +5.8%) from VAR Business.
Operating profit EBITDA before depreciation, amortization, interest and taxes jumped to a H1 record EUR 11.81 mln (PY: 9.13 / +29%), with EUR 7.90 mln (PY: 6.35 / +24%) from Software and EUR 3.91 mln (PY: 2.77 / +41%) from the VAR Business. As for sales, the strong Q1 to Q2 acceleration is supported by both segments: Software from +17% to +34%, VAR Business from +33% to +59%. Net profit after minority shares soared by a sound +37% to EUR 6.09 mln (PY: 4.45), or 37 Cents (PY: 27) per share. Operating cash flows increased to a new H1 record EUR 8.96 mln (PY: 7.65 / +17%).
CEO Adi Drotleff is very happy about the results: ‘The ambitious EBITDA target range of EUR 22-23 mln (PY: 18.04 / +22% to +28%), given in the annual report 2017, should be very achievable after H1/2018, particularly as in Q3 we once more expect strong VAR Business sales from conversions of Autodesk maintenance to subscription contracts. Net profit is also expected in the target range guidance of EUR 11-12 mln (PY: 8.55 mln / +30% to +40%), EPS 67-73 Cents (PY: 52.5). Assuming we achieve these targets we plan to increase the dividend to 62-68 Cents (PY: 50 / +24% to +36%).’