DGAP-News: paragon GmbH & Co. KGaA / Keyword (s): Preliminary Results / Personnel
04/27/2021 / 07:00
The issuer is solely responsible for the content of this announcement.
The rapid growth of paragon Automotive continues
– Further positive development of the business situation after the strong second half of 2020
– Sales in the first quarter around 33% compared to the previous year; The EBITDA margin increases to 15%
– Current customer orders around 8% higher than planned
– Prof. Dr. Lutz Eckstein resigns as chairman of the supervisory board after being appointed to the advisory council of the Federal Minister for Transport and Digital Infrastructure – Prof. Dr. Iris Gräßler is available as his successor
Delbrück, April 27, 2021 – Based on preliminary figures for the automotive business, paragon [ISIN DE0005558696] exceeded its own expectations with a 33% increase in sales in the first quarter of 2021 compared to the same period last year. From January to March, the tier 1 supplier achieved sales of € 39.2 million with its automotive customers. The EBITDA margin is 15.4% and is therefore at the upper end of the forecast range. With a sales increase of 29%, paragon Automotive significantly exceeded the first quarter of 2019, the year before the coronavirus. Due to the positive development of customer orders, management also expects the second quarter to significantly exceed the reference period from 2019 onwards.
“After our company had the best second half of its history in 2020, the paragon Automotive rally is accelerating further,” says Klaus Dieter Frers, founder and CEO of paragon.
As the company already reported on the basis of preliminary figures, sales in the fourth quarter of 2020 developed better than originally forecast. Accordingly, paragon’s automotive business exceeded expectations for 2020 as a whole, with sales of around € 127 million. The strong development was accompanied by a significantly higher EBITDA margin in the second half of the year, which was 13.5%. The margin for the full year was 10.8%, which accounts for coronavirus-related plant closings in the spring.
Management regards the developments in the second half of 2020 and the prospects for the current financial year as a strong sign that the measures to increase earnings and cost efficiency are as effective as desired and, above all, sustainable. In addition, the sales level shows paragon’s potential in the automotive business.
“The rapid and impressive recovery of our business after the onset of the coronavirus has given paragon’s success story a new impetus. Our operational performance is more protected than ever from negative factors. The further increase in the first quarter is further proof of our efficiency. ” emphasizes Dr. Matthias Schöllmann, Managing Director Automotive at paragon.
There are signs of a change in paragon’s Supervisory Board. Prof. Dr. Lutz Eckstein told the management that he regretted having to leave the office of chairman of the supervisory board early from this year’s general meeting. The reason for his departure is his appointment as federal advisor to the Federal Minister for Transport and Digital Infrastructure, a position that requires a lot of time and neutrality. Prof. Dr.-Ing. Iris Gräßler will be proposed as her successor at the Annual General Meeting. The professor for product development has held a chair at the Heinz Nixdorf Institute at the University of Paderborn since 2013. Before that, from 2000 to 2013 she held various management positions at Robert Bosch GmbH, responsible for product development and production systems and change management, among other things. Prof. Gräßler received his doctorate in 1999 and obtained his doctorate in 2003 at the chair for production engineering at the machine tool laboratory at RWTH Aachen University.
“Of course we respect Prof. Eckstein’s decision. We would like to thank him very much for his work as Chairman of the Supervisory Board of paragon over the past seven years. At the same time, my management colleague Dr. Schöllmann and I are delighted that Prof. Dr. Gräßler is ready to provide evidence.” Bringing expertise to paragon’s development on the Supervisory Board in the coming years, “says Klaus Dieter Frers.
Paragon Automotive expects sales of around 145 million euros for the current fiscal year. Compared to the data from industry-specific, renowned market research institutes on the development of the automotive market in 2021, the company expects growth to be 4.9% higher than the overall market. The management also reiterates its expectations for an EBITDA margin of 12 to 15% and a free cash flow of around € 12 million for the full year 2021. The company does not assume that any material bottlenecks will have a material impact on the performance. Currently known bottlenecks fall below the planned tolerance values.
Following consultation with the auditor, the company published the key figures for the completed annual financial statements of paragon Automotive for the 2020 financial year on March 30, 2021. The transmitted figures can still be confirmed with € 127.2 million and an EBITDA margin of 10.8%. Due to delays in the examination of the consolidated financial statements of Finanzinvestition Voltabox AG, the publication of the consolidated financial statements of paragon GmbH & Co. KGaA has been postponed. The company will publish the consolidated financial statements immediately after the publication of the Voltabox AG financial statements. The same applies to an update of the financial calendar. You can find more information about paragon GmbH & Co. KGaA at www.paragon.ag.
Profile: paragon GmbH & Co. KGaA
Paragon GmbH & Co. KGaA (ISIN DE0005558696), which is listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, develops, produces and sells pioneering solutions in the areas of automotive electronics, body kinematics and electromobility. As the market-leading direct supplier to the automotive industry, the company’s portfolio includes innovative air quality management in the Electronics operating segment, state-of-the-art display systems and connectivity solutions, as well as high-quality acoustic systems. In the Mechanics operating segment, paragon develops and produces active mobile aerodynamic systems. In addition, the group has a stake in Voltabox AG (ISIN DE000A2E4LE9), a subsidiary that is also listed on the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt aM and is active in the electromobility segment with state-of-the-art lithium -ion battery systems Developed for industrial use in-house. In the future, paragon will operate independently in the rapidly growing automotive market for battery systems and power electronics.
In addition to the company headquarters in Delbrück (North Rhine-Westphalia), paragon GmbH & Co. KGaA and its subsidiaries operate locations in Suhl (Thuringia, Germany), Landsberg am Lech, Neu-Ulm and Nuremberg (Bavaria, Germany). , St. Georgen (Baden-Württemberg, Germany), Limbach (Saarland, Germany), Aachen (North Rhine-Westphalia, Germany) as well as in Kunshan (China), Bangalore (India), Oroslavje (Croatia) and Austin (Texas), USA ).
You can find more information about paragon at www.paragon.ag.
Capital market & press contact
paragon GmbH & Co. KGaA
Stefan Westemeyer
Bösendamm 11
33129 Delbrück, Germany
Phone: +49 (0) 52 50 – 97 62-141
Fax: +49 (0) 52 50 – 97 62-63
Email: investor@paragon.ag
Additional functions:
File: Prof. Dr.-Ing. Iris Graessler
04/27/2021 Distribution of a company news, transmitted by DGAP – a service of EQS Group AG.
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