Group sales revenue and Group EBIT 2022 within the most recently announced forecast corridors
According to preliminary figures, Group sales revenues of EUR 159.2 million (previous year EUR 148.6 million) were achieved in the 2022 financial year. This is still just within the most recently announced guidance of EUR 145.0 to 160.0 million; the increase is partly due to the further recovery from the COVID 19 pandemic impact; in particular, the Collaboration @ Work (COWO) Business Unit with its main brand "Legamaster" exceeded the pre-Corona level for the first time. But also the Business Units Office & Industry Supplies (OFIS) and Creative & Home (CREHO) were able to grow significantly. Regionally, the overseas markets, which suffered the longest from the effects of the COVID 19 pandemic, contributed overproportionally to this.
The Group's operating result according to IFRS (EBIT) is - subject to the final result of the audit of the consolidated financial statements - at EUR 4.0 million around 40.0 % considerably below the previous year (EUR 6.9 million). We had already announced the expected decline in earnings in our ad hoc announcement of 17 December 2021. With the outbreak of the Ukraine war and the discontinuation of our Russian business, we reduced the EBIT guidance for 2022 to EUR 2.0 to 5.0 million on 28 February 2022. The result is now just in the upper third of the forecast corridor.
The net income for the year in the individual financial statements of edding AG according to German commercial law amounts to EUR 1.0 million (previous year EUR 5.2 million) and is in the lower third of the last guidance of EUR 0.5 to 3.5 million. The previous year's result is dominated by a positive one-off effect from the release of a pension provision and would have been EUR 1.8 million without this effect.
Due to the lower earnings, the Management Board will propose to the Annual General Meeting a reduced dividend of EUR 1.02 per preference share and EUR 1.00 per ordinary share.
For the 2023 financial year, we are again planning a moderate increase in sales revenues to between EUR 166.0 and 181.0 million. We expect Group EBIT to be in the range of EUR 3.0 to 6.0 million and net income in the individual financial statements of edding AG to be between EUR 1.0 and 3.0 million.
About edding AG: Founded in Hamburg in 1960, the company generated Group sales revenues of EUR 159.2 million in 2022 with an annual average of 735 employees. Under the edding, Legamaster and Playroom brands, the company offers long-lasting, high-quality products and solutions for private and commercial use. The portfolio includes markers and writing instruments, visual communication products such as flipcharts, whiteboards and e-screens, innovative digital applications as well as tattoo ink. The company's fundamental values embrace responsibility towards the environment and society. edding wants to empower people to express their personality, ideas and thoughts and make them visible on a wide variety of surfaces.
Explanation of EBIT as an alternative performance indicator: EBIT is the abbreviation for “earnings before interest and taxes”. Total output less cost of materials, personnel expenses and depreciation and amortisation (including rights of use within the meaning of IFRS 16), plus other operating income and less other operating expenses. EBIT is the most important key figure for profitability management in the edding Group. No adjustment has been made for any extraordinary income or expenses.
Ahrensburg, 28 February 2023
edding Aktiengesellschaft
The Management Board