Stemmer Imaging revenue down 10%, but expects 2020 to pick up

Share this on social media:

Stemmer Imaging has seen revenue decline by 10.3 per cent to €52.2m in the first half of 2020, because of difficult market conditions during the Covid-19 pandemic.

The company said that shifts in demand, particularly in the areas of sports and entertainment, infrastructure and automotive, had a negative impact.

But that medical and life sciences, pharmaceutical, food, logistics and packaging all showed stable to growing order patterns.

'Due to shifts on the demand side in the second quarter, the Covid-19 pandemic has also left a clear mark on our business,' commented Arne Dehn, CEO of Stemmer Imaging. 'However, we are convinced that Stemmer Imaging will emerge stronger from this crisis. We have used this period of change to review our strategic focus on the emerging post-Covid-19 trends and further sharpen our priorities in line with our growth strategy. At the same time, we have been able to cushion the temporary downturn in business with intelligent cost management and will align our organisation even more clearly to our future goals with a dedicated programme in the second half of the year.'

Stemmer Imaging's gross profit margin fell slightly in the first half of the current fiscal year from (normalised) 36.8 per cent in the same period of the previous year to 36.5 per cent, due to the shift in the regional distribution of sales.

The operating result (EBITDA) in the first half of 2020 was €2.3m (EBITDA margin: 4.4 per cent), significantly below the previous year's level of (normalised) €6.0m (EBITDA margin normalised: 10.3 per cent). Here, the organic decline in sales and, in addition, the massively increasing currency effects from March onwards (net €0.8m) had a negative impact on earnings.

Stemmer Imaging had positive operating cash flow of €3.0m in the second quarter.

The future prospects for the business of the Infaimon Group – Stemmer Imaging acquired the firm in 2019 – particularly in Latin America, are considered to have deteriorated significantly in view of the ongoing Covid-19 pandemic and its economic impact. This leads to a value adjustment of €4.3m on the goodwill of the Infaimon Group in the consolidated financial statements for the first half of the year.

Stemmer Imaging said that while supply chain bottlenecks were well balanced in the first half of the year, demand in the second quarter was characterised by cautious demand planning and liquidity management on the part of the company's customers. This shift in demand had a significant impact on order intake.

Stemmer Imaging assumes that there will be a certain catch-up effect from the second quarter of 2020 on incoming orders in the further course of the year, which will be reflected in increasing revenue recognition in the second half of 2020.

The company expects continued positive development in the medical and life science, pharmaceutical, food, logistics and packaging sectors in the second half of 2020. The outlook for the automotive sector, on the other hand, predicts a continued weak development in demand.

For the sports and entertainment segment, the company expects to be able to make up for the loss of sales in the first half of the year in the second half on the basis of the order backlog. Overall, the company expects a slight delay in the resumption of incoming orders.

Stemmer Imaging expects revenues to be in the range of €105.0m to €120.0m for 2020, and earnings before interest, taxes, depreciation and amortisation (EBITDA) of €3.0m to €7.0m.

Related news

25 March 2021

The effects of the pandemic were felt by Stemmer Imaging in the 2020 fiscal year, however, with revenue at €105.2m compared to €120.6m in 2019

02 March 2021

Revenue for the company's Industrial Technologies unit was $1.16bn, an increase of 5.9 per cent compared to the prior year, largely because of demand for elevated skin temperature solutions

Image: Martial Red/

06 July 2021

The involvement by Sinovation and its founder Dr Kai-Fu Lee strengthens Prophesee's presence in China

Investment in automation equipment is being made in battery production. Credit: Kuka

14 June 2021

The VDMA pointed to a number of green technologies – including plans for the sixth largest solar power plant in the world to be built in Turkey – that are driving growth in automation equipment sales

12 May 2021

Basler saw bookings up 27 per cent, but the company is 'suffering from the global shortage of semiconductor components'

07 May 2021

The company recorded $239m in revenue, which is also a 7 per cent increase over the fourth quarter of 2020