Drägerwerk AG & Co. KGaA: preliminary result for the third quarter. Business development considerably above prior year. Middle to upper end of the guidance for 2020 expected.

Drägerwerk AG & Co. KGaA / Key word(s): Preliminary Results/9 Month figures
Drägerwerk AG & Co. KGaA: preliminary result for the third quarter. Business development considerably above prior year. Middle to upper end of the guidance for 2020 expected.

14-Oct-2020 / 19:26 CET/CEST
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Ad-hoc notification in accordance with Sec. 17 of the MAR

Drägerwerk AG & Co. KGaA: preliminary result for the third quarter. Business development considerably above prior year. Middle to upper end of the guidance for 2020 expected.

On the basis of preliminary figures, Dräger recorded an increase in order entry of 13.0 percent (net of currency effects; nominal: 7.5 percent) in the third quarter compared to the same quarter of the previous year. Net sales increased by 35.7 percent (net of currency effects; nominal: 30.1 percent) to around EUR 862.5 million (Q3 2019: EUR 662.9 million). EBIT for the third quarter stood at around EUR 127 million, considerably above the level of the prior year (Q3 2019: EUR 9.3 million). The higher earnings were caused by considerably higher net sales volume and a higher gross profit margin of around 48.2 percent (Q3 2019: 42.9 percent).

In the first nine months of 2020, order intake increased by 54.1 percent year-on-year (net of currency effects; nominal: 50.7 percent). Group net sales increased by 23.6 percent (net of currency effects; nominal: 20.7 percent) to around EUR 2,291 million (9 months 2019: EUR 1,898.8 million). The gross profit margin was around 47.5 percent (9 months 2019: 42.6 percent). Total EBIT stood at approximately EUR 228 million (9 months 2019: EUR -2.9 million).

Dräger expects net sales growth for fiscal year 2020 to be between 14 percent and 22 percent (net of currency effects) and the EBIT margin to be between 7.0 percent and 11.0 percent. At least for the current financial year, Dräger is still assuming strong demand in the wake of the COVID-19 pandemic. Therefore, Dräger is now assuming that it will reach the middle to upper end of the guidance for 2020.

At this point in time, Dräger expects that net sales volume and thus also earnings in the following year will be below the current level. In addition to the further development of the demand for products in connection with the COVID-19 pandemic, this also depends on the general economic development, which has an impact on many industries and thus on important parts of Drägers business. Dräger will publish a guidance for 2021 once the business figures for fiscal year 2020 are available.

Dräger will publish its full results for the first nine months of the fiscal year on October 29, 2020.

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23558 Lübeck, Deutschland
www.draeger.com

Investor Relations:
Thomas Fischler
Tel. +49 451 882-2685
thomas.fischler@draeger.com

Corporate Communications:
Melanie Kamann
Tel. +49 451 882-3998
melanie.kamann@draeger.com

Disclaimer
This ad hoc report contains statements on the future development of Dräger Group. These forward-looking statements are based on the current expectations, presumptions, and forecasts of the Executive Board as well as the information available to date. They were compiled to the best of the company's knowledge. Dräger does not provide any warranty nor assume any responsibility for the future developments and results described above. These are dependent on a number of factors. They entail various risks and contingencies outside of the company's influence and are based on assumptions which could prove to be incorrect. Dräger does not assume any responsibility for updating the forward-looking statements contained in this report. This does not infringe any legal stipulations on the adjustment of forecasts. Please go to Investor Relations / Definitions of financial indicators at www.draeger.com for information on alternative performance measures used.

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