PRESS RELEASES & AD-HOC

Half-year figures 2022/23: Sales up 12% to 150.9 million euros – Operating profit up on previous year

Hamburg, May 30, 2023

• Group sales increased by 12% year-on-year to 150.9 million euros

• Normalized¹⁾ Group EBIT increased by 11% to 12.5 million euros

• License income correction compared to previous year with an effect of 1.4 million euros before taxes

• Normalized¹⁾ net income for the half-year increased by 4% to 7.0 million euros

Edel SE & Co. KGaA (WKN 564950) from Hamburg was able to increase its sales by a further 12% in the first half of the 2022/23 fiscal year (October 01, 2022 – March 31, 2023). The company generated sales of 150.9 million euros compared with 135.2 million euros in the first half of the previous fiscal year 2022. Net income for the half year fell to 6.0 million euros from 7.7 million euros (-22%) and, after deducting minority interests, to 5.7 million euros from 7.3 million euros (-23%).

In this year’s half-year financial statements, it was necessary for the first time to correct incorrectly booked digital license income from the first half of fiscal year 2021/22 in the amount of EUR 1.4 million before taxes and EUR 1.0 million after taxes. After the internal control system disclosed the erroneous booking, the company immediately took measures to strengthen optimized controls over financial reporting, which also did not come to the attention of the external body in the annual financial statements. Following this correction, the Company was able to achieve an operating profit for the year of EUR 7.0 million, an increase of EUR 0.3 million compared with the normalized prior-year figure of EUR 6.7 million.

The results of the interim consolidated financial statements in detail:
EBITDA was 9% down on the previous year at 15.8 million euros (first half of previous year: 17.3 million euros), while EBIT also fell by 13% to 11.0 million euros (first half of previous year: 12.6 million euros). Consolidated net income (before minority interests) amounted to 6.0 million euros, compared with 7.7 million euros in the first half of the previous year. Consolidated net income after minority interests was 5.7 million euros (first half of previous year: 7.3 million euros). Earnings per share for the first half of the year amounted to 0.27 euros, compared with 0.34 euros in the first half of the previous year. The equity ratio increased to 25.6%.

Cash flow from operating activities increased by 6.0 million euros to 13.5 million euros (first half of previous year: 7.5 million euros). Cash flow from investing activities fell from -9.2 million euros to -6.3 million euros. Due to the repayment of loan liabilities and increased interest costs for drawn credit lines, cash flow from financing activities amounted to -5.5 million euros (first half of previous year: -0.5 million euros).

In the first half of the year, optimal media was able to compensate for increases in energy and material costs in vinyl production through price increases. This led to renewed sales growth of 20% with a constant contribution margin under challenging general conditions. At the same time, digital sales grew again by 15% compared to the previous year. This success is reflected in Kontor New Media’s distribution business as well as in all strategic content divisions, including Edel Kids, Edel Motion, Edel Kultur Classics, Pandastorm Pictures and earMUSIC.

Dr. Jonas Haentjes, CEO: “In the first half of 2022/23, together with our partners* and artists*, we were once again able to leverage market growth and significantly increase our revenues. I am particularly proud that we succeeded in doing this with our employees under such challenging conditions, especially in the energy supply. For the second half of the year, we are vigilant and expect a slight slowdown in consumption for physical media products, but at the same time we are strongly positioned in the overall market and well prepared.”

¹⁾Normalizations = key figure + license revenue correction