Osram raises guidance for FY 2021 after jump in profits
- Revenue returns to pre-crisis level in the first quarter on a comparable basis
- Adjusted EBITDA margin at a very high level over 19 percent
- Strong trend in earnings across all businesses
- Consistent crisis management is carrying the company through the corona pandemic
- Annual guidance has been raised significantly
Despite the corona crisis and recession in many markets, Osram continues to perform well thanks to decisive crisis management and extensive measures. According to preliminary figures, the high-tech company achieved revenues of 840 million euros, comparable to the previous year’s level. Adjusted EBITDA climbed by 42 percent to 162 million euro, which corresponds to an adjusted EBITDA margin of 19.3 percent. Free cash flow at 50 million euro also showed a very positive trend. “The consistent measures that we took at the first signs of the crisis have clearly had a positive effect on the development of our business. It shows that we acted at the right time and with the necessary resolve”, said Olaf Berlien, CEO of OSRAM Licht AG. “We are convinced that this decisive action will enable us to emerge stronger from the crisis.”
Osram is making excellent progress with its initiatives to improve competitiveness. The target of 300 million euro in savings from the various Osram performance programs, initially planned for 2022, will be already achieved in the current fiscal year.
Successful fight against COVID-19
The global crisis plan and the local hygiene and operational concepts to prevent infection with the coronavirus have proved their worth at Osram. The extensive measures taken by the crisis team continue to be very successful. In 57 countries and 22 production plants there have been virtually no infections at the workplace.
Osram is making an important contribution to the fight against the pandemic through specific additions to its product portfolio. The company recently launched several new products, based on UVC light and featuring traditional and completely new LED technology, which can be used for disinfecting air, water and surfaces.
Guidance for 2021 raised
In view of current developments, the Osram Management Board is raising its guidance for the current fiscal year. On a comparable basis, year-on-year sales will grow by 10 to 14 percent. Up to now, the company had assumed a comparable increase in sales of 6 to 10 percent. The adjusted EBITDA margin is now expected to be between 12 and 15 percent; previously it was 9 to 11 percent. Whereas Osram had previously assumed Free Cash Flow to be from balanced to a positive low double-digit million euro for the current fiscal year, it is now expected to be between 70 million and 130 million euro. This guidance is subject to the proviso that the corona crisis and the measures to fight it will not have a significant impact on Osram’s business or supply chains.
Osram will present the full set of quarterly figures on February 9, 2021.
ABOUT OSRAM
OSRAM, based in Munich, is a leading global high-tech company with a history dating back more than 110 years. Primarily focused on semiconductor-based technologies, our products are used in highly diverse applications ranging from virtual reality to autonomous driving and from smartphones to smart and connected lighting solutions in buildings and cities. OSRAM uses the endless possibilities of light to improve the quality of life for individuals and communities. OSRAM’s innovations enable people all over the world not only to see better, but also to communicate, travel, work and live better. OSRAM had approximately 21,000 employees worldwide as of end of fiscal 2020 (September 30) and generated revenue of around three billion euros from continuing activities. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED 400; trading symbol: OSR). Additional information can be found at www.osram.com.
Disclaimer
This document contains statements and information pertaining to our future business and financial performance and future developments that may constitute forward-looking statements – i.e. statements about processes that take place in the future, not in the past. These statements pertaining to the future can be identified by expressions such as "anticipate", "expect", "want", "intend", "plan", "believe", "aspire", "estimate", "will”, "predict" or words of similar meaning. Such statements are based on current expectations and certain assumptions of OSRAM‟s management. They are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond OSRAM’s control, affect OSRAM’s operations, performance, business strategy and results and could cause the actual results, performance or achievements of OSRAM to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historic trends. These factors include in particular, but are not limited to, the matters described in the chapter “Report on Risks and Opportunities” in the Annual Report of OSRAM Licht Group. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of OSRAM may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. OSRAM neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures they reference.