According to preliminary figures, Group sales revenue of EUR 125.7 million (previous year EUR 141.8 million) was achieved in the 2020 financial year. This is within the most recently announced corridor of EUR 122.0 to 132.0 million; the decrease of 11.3% is due to the effects of the COVID 19 pandemic. Subject to the final results of the Group audit, the Group's operating result (EBIT) of EUR 8.1 million is 16.4% below the previous year's figure of EUR 9.7 million; here the forecast corridor was last announced as EUR 6.5 to 9.5 million. The significantly lower gross profit, mainly due to the decline in turnover, is largely offset by lower personnel expenses and lower other operating expenses as well as non-recurring income; these include the planned sale of our property in Wunstorf, short-time work and the reduction of holiday provisions as well as the postponement or suspension of projects. The net profit for the year in the individual financial statements of edding AG according to German commercial law is slightly above the last guidance of EUR 1.0 to 4.0 million and amounts to EUR 4.2 million (previous year EUR 4.1 million). Here, the one-off effect from the sale of the property in Wunstorf in particular contributed to the fact that the result did not decline.
After the dividend was roughly halved in the previous year, the Management Board will propose to the Annual General Meeting a significant increase in the dividend to EUR 1.84 per preference share and EUR 1.80 per ordinary share (previous year EUR 1.23 and EUR 1.20 respectively). In the opinion of the Management Board, a return to the pre-crisis level would be too early.
After the corona-related drop in 2020, we want to return as soon as possible to the sales revenue level we had before the outbreak of the pandemic and are planning a significant increase in sales revenues to EUR 133.0 to 148.0 million in 2021. Due to a planned realignment of the edding Group as part of the Strategy 2025, this increase in sales will not yet be reflected in Group EBIT, which we expect to be in the range of EUR 5.0 to 9.0 million.
In terms of net profit in the individual financial statements of edding AG, we will feel the after-effects of the COVID 19 pandemic in the sense that in 2021 the dividends regularly received in recent years from certain foreign subsidiaries will not be paid out due to losses incurred in 2020. We therefore expect the Group's parent company to generate a lower result, which is likely to be between EUR 0.5 and 3.5 million.
About edding AG
The company was founded in 1960 and generated consolidated sales of EUR 125.7 million in 2020 with an average of 679 employees. The edding Group stands for two brands with different expertise: Under the edding brand, products are developed and sold that apply long-lasting colour to surfaces, from permanent markers to spray cans, compact printers and digital codes. Classic and electronic visual communication products are marketed under the Legamaster brand.
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 profit management in the edding Group. No adjustment has been made for any extraordinary income or expenses.