Munich, March 7, 2017 - Gigaset AG expects a profit of €4 million on the basis of the provisional unaudited figures with an overall turnover of €282 million for fiscal year 2016 due to the successful realignment of the company. EBITDA* increased from €11 to €28 million. For the first time in several years, the company will also generate a pos-itive free cash flow of €7 million, which is due to cost savings and a shift in expenditures and taxes to the year 2017.
Gigaset increased its EBITDA in 2016 from €11 to €28 million. The main reason for this positive develop-ment were successfully implemented cost savings. As a result of the company’s realignment, personnel costs decreased from €94 to €76 million. Other expenses could also be reduced significantly. The good result also originates of the fact that Gigaset was able to increase the gross profit margin, i.e. the ratio of sales minus material expenses to sales, from 48 % to 51 %. With a share of total turnover of more than 60 % outside Germany, Gigaset was able to improve market share as well as the result in the consumer area in a number of foreign markets. In addition, the division for business solutions was further expanded. However, an exceptional drop in sales by the single major customer led to that in total only the margin, but not sales as such, could be increased.
Gigaset generated a positive free cash flow for the first time since 2011. The cash inflow from operating activities was increased from €5 to over €18 million due to the positive operating performance. In 2016 expected tax payments of the previous years shifted to 2017. Gigaset continues to invest significantly in the construction of new products and areas of business spending around €11 million in 2016. In sum, this led to a free cash flow of plus €7 million in 2016 compared to a negative figure of minus €10 million in the previous year.
"With these figures Gigaset proves that the company is able to progress and prosper on its own again," says the Management Board of Gigaset AG.
Further details as well as the full audited financial statements will be presented by the company on April 21, 2017 at the annual press conference.
* EBITDA i.e. result from core business before scheduled depreciation.