Mensch und Maschine Software SE discloses preliminary 2020 figures

New profit and cashflow records despite Corona

  • High-margin Q4 providing double digit profit growth
  • Cashflow exceeds 200 Cents/share / Dividend 100 Cents
Wessling, February 10, 2021 – Thanks to a high-margin final quarter, Mensch und Maschine Software SE (MUM - ISIN DE0006580806), a CAD/CAM specialist company, achieved new profit records in the Corona year 2020, with cash flows even exceeding 200 Cents per share.

While in Q2 and Q3 the Corona effects had primarily been compensated through cost elasticity, in Q4 margin strength was mainly responsible for a profit gain despite declining sales. Back in Q4/2019 (and Q1/2020), the final sprint in Autodesk’s maintenance to subscription offer had provided an extraordinary peak in reselling revenues, then from Q2/2020 onwards M+M’s high-margin proprietary business retook the lead.

According to preliminary figures for 2020, sales at approx. EUR 244 mln (PY: 245.94 / -0.8%) were slightly below the 2019 record, with approx. EUR 75.6 mln (PY: 75.08 / +0.7%) from M+M Software and approx. EUR 168.4 mln (PY: 170.86 / -1.5%) from VAR Business. After a strong +24.5% in Q1, sales in Q2/Q3/Q4 came in -9.3%/-7.1%/-12% below the previous year.

Operating profit EBITDA grew to a new record of approx. EUR 41.6 mln (PY: 36.55 / +14%), with approx. EUR 25.0 mln (PY: 22.27 / +12%) from Software and approx. EUR 16.6 mln (PY: 14.27 / +16%) from VAR Business. EBITDA margin improved to approx. 17% (PY: 14.9%). 

Net profit after minority shares increased to approx. EUR 18.6 mln (PY: 16.67 / +12%), or 111 Cents (PY: 99) per share. Operating cash flows continued to soar, achieving approx. EUR 35 mln (PY: 26.35 / +33%) or 208 Cents (PY: 157) per share.

M+M Chairman Adi Drotleff is entirely pleased with the performance in a turbulent year 2020 and already commits to a 100 Cents dividend after 85 Cents in the previous year. He is also looking forward to the years to come: “For EPS in 2021, we target a moderate growth to 125-135 Cents, with 115-120 Cents dividend, from 2022 then +18-24 Cents p.a. increase for EPS and +15-20 Cents p.a. for dividend. Keeping the Q1/2020 anomaly in mind, we expect sales to return to our long-term achieved organic +8-12% p.a. growth corridor from 2022 onwards.”
 
Remark: 
The final audited 2020 figures, which will be disclosed in the accounts press conference on March 15, 2021, may differ from the preliminary figures.