Mensch und Maschine Software SE discloses preliminary 2018 figures
M+M closed 2018 with new profit record
Sales +15% / EBITDA +26% / Net profit +36%
Optimistic outlook for 2019
Wessling, February 15, 2019 – Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, has achieved its ambitious 2018 goals with new profit records. Growth drivers were both M+M’s proprietary Software around its flagship CAM offerings as well as the VAR segment, which after the temporary retarding effect of Autodesk’s sales to subscription transition in 2016/17 has strongly rebounded.
According to preliminary figures, sales increased to approx. EUR 185.2 mln (PY: 160.85 / +15%), with the Software segment contributing approx. EUR 55.7 mln (PY: 50.47 / +10%) and the VAR Business approx. EUR 129.5 mln (PY: 110.38 / +17%). Gross margin climbed to a new record amount of approx. EUR 103.8 mln (PY: 94.82 / +9.5%), with approx. EUR 54.4 mln (PY: 48.94 / +11%) from Software and approx. EUR 49.4 mln (PY: 45.88 / +7.7%) from the VAR Business.
Operating profit EBITDA before depreciation, amortization, interest and taxes at approx. EUR 22.7 mln (PY: 18.04 / +26%) marked a new record level, with approx. EUR 14.6 mln (PY: 12.69 / +15%) from Software and approx. EUR 8.1 mln (PY: 5.35 / +51%) from the VAR Business. Group EBITDA margin rose to approx. 12.3% (PY: 11.2%), with approx. 26.2% (PY: 25.5%) in Software and approx. 6.3% (PY: 4.8%) in the VAR Business. EBIT as well marked a new record at approx. EUR 19.6 mln (PY: 15.21 / +29%) and first double digit EBIT margin at approx. 10.6% (PY: 9.5%).
Net profit after minority shares jumped to approx. EUR 11.6 mln (PY: 8.55 / +36%), or approx. 71 Cents (PY: 52.5) per share, which probably allows for a 65 Cents (PY: 50 / +30%) dividend. Operating cash flows at approx. EUR 15.4 mln or 94 Cents per share came in slightly above previous year’s record EUR 15.22 mln or 93.5 Cents.
CEO Adi Drotleff is entirely happy with the 2018 achievements and stays optimistic for 2019: ‘We see further healthy organic growth and are getting additional push by the majority takeover in SOFiSTiK AG, so we expect sales to grow +15-20% to EUR 215-220 mln, EBIT +22-33% to EUR 24-26 mln and EPS +25-34% to 89-95 Cents, with a 77-83 Cents dividend plan.’
The final audited 2018 figures, which will be disclosed in the accounts press conference on March 11, 2019, can differ from the preliminary figures.
According to IFRS16, the majority of leasing expenses have to be shifted to depreciations beginning 2019, creating a virtual EBITDA increase (for M+M by approx. EUR 3-4 mln), while EBIT and net profit remain comparable. Therefore we change our guidance from Gross margin / EBITDA to Sales / EBIT.