Delignit - Gradual recovery ahead

Delignit’s H120 results were clearly affected by the COVID-19 pandemic, with revenues down 20.6% and EBITDA decreasing by 35%. Cost-cutting measures, such as using so-called Kurzarbeit (short-time working arrangements) and reducing temporary work, have somewhat limited the decline in profitability. Delignit’s FY20 guidance assumes a 5–21% y-o-y fall in revenues in H220, which implies at least flat revenue in H2 vs H1. Longer term, Delignit will benefit from expected growth in commercial vehicles, further geographical expansion and broadening its product offering.