Steady revenue growth and additional margin expansion marked Q3 2015, indicative of strong performance and continued financially advantageous trends.
Company Reports Strong Q3 Earnings, Anticipates Continued Growth
In a recent financial update, the company announced impressive results for the third quarter of 2015. The EBITA margin, excluding one-off costs, stood at 5.8%, marking a 40 basis points increase. This figure represents the company's operating income before amortization, divided by total revenue, expressed as a percentage, and is a non-US GAAP measure.
The gross margin stood at 19.0%, with gross profit increasing organically by 5%. Additionally, revenues increased organically by 4%. Meanwhile, SG&A (selling, general, and administrative expenses, excluding one-off costs) increased organically by 2%.
One-off costs in Q3 2015 amounted to EUR 3 million for integration, while Q3 2014 saw EUR 5 million in one-off costs for restructuring in North America.
However, the company did not provide any specific forecast for future organic revenue growth or EBITA margin in 2016. It is worth noting that in 2015, the expected EBITA margin excluding one-time items is strong at approximately 5.2%, but below the target of >5.5%.
It is also important to mention that the impairment of goodwill, which stands at EUR 740 million, resulted in an operating loss of EUR 425 million. This impairment charge is non-cash and has no impact on the dividend policy.
In conclusion, the company's third-quarter results show a strong performance, with promising signs of continued growth. While the company did not provide a specific forecast for 2016, the anticipation remains for a continuation of current organic revenue growth trends and an EBITA margin similar to the EBITA margin excluding one-offs now expected in 2015.
Investors should be optimistic about the company's business as it anticipates continued growth following its strong Q3 earnings. The company's focus on investing in its operations and finance reflects its commitment to sustaining this growth.
