STRATEC Provides Preliminary Q1 Results And Shares FY25 Outlook

(RTTNews) - STRATEC SE announced that, after reviewing their accounting methods with a new external auditor for the 2024 financial year, it is making changes to how they record development co-operations in their financial reports. The adjustments affect how sales are reported (under IFRS 15) and how intangible assets are recorded (under IAS 38).

The company said it does not expect the adjustment in the accounting method to have any material impact on the sales and pre-tax key earnings figures to be reported for the 2024 financial year. The adjustments will thus have a positive effect on the adjusted EBIT margin in 2024 of 0.2 percentage points. By contrast, the change is expected to produce significantly positive effects for 2023, with a corresponding retrospective adjustment to sales and key earnings figures.

Accounting for the new method and based on the current audit status, consolidated sales for the 2024 financial year are expected to amount to 257.7 million euros. A figure of around 12.8% is expected for the adjusted EBIT margin.

STRATEC expects its consolidated sales for the 2025 financial year to grow in a low to medium single-digit percentage range on a constant-currency basis.

Based on preliminary calculations, sales in the first quarter of 2025 will amount to around 60 million euros. The company forecasts a value of 10.0% to 12.0% for its adjusted EBIT margin in the 2025 financial year. The implicit reduction in the margin is attributable to the earnings contributions received in the previous year from higher-margin development and services. These are expected to be lower in the 2025 financial year.

The increased auditing input resulting from the change of external auditors and additional time required for the operative implementation of the new accounting method, which affects numerous aspects of the company's core accounting, will lead to a further postponement in the publication date for the 2024 Annual Report by a few weeks.

STRATEC expects to be able to publish its Annual Report in the second half of May 2025 and its Quarterly Statement Q1|2025 at the latest by May 30, 2025.

Based on current planning, the 2025 Annual General Meeting will now be held in the final week of June.

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