OSRAM Q1 Financial Report: Performance Plan Delivers Results, Achieves Growth

After a challenging fiscal year 2019, OSRAM achieved a strong start in fiscal year 2020. On a comparable basis, overall revenue for the first quarter of fiscal year 2020 (October to December 2019) grew by 0.5% to €873 million. The adjusted EBITDA margin (earnings before interest, taxes, depreciation and amortization) was 13%, an increase of nearly two percentage points on a comparable basis. The semiconductor business segment performed particularly well, with margins showing a significant recovery; adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose by approximately 22% within one year, reaching €114 million.

The growth in the first quarter of this year was mainly due to the performance improvement plan launched by OSRAM in the previous fiscal year, which effectively increased production capacity. At the same time, adjustments to the new international leasing standard (IFRS16) also had a positive impact on financial reporting results. Dr. Olaf Berlien, CEO of OSRAM, stated: "The performance improvement plan implemented by OSRAM starting last year has had a sustained positive impact in the first quarter of the new fiscal year."

During the first quarter of the 2020 fiscal year, the development of all major sales markets for OSRAM met expectations. Among them, revenue in the optoelectronic semiconductor business segment remained stable at €359 million. The operating profit margin for this business segment in the first quarter also matched earlier forecast data. The adjusted EBITDA margin reached 24.5%, representing a significant increase from 19.5% in the same period of the previous year.

In the digital business segment, revenue grew by 2% over the full year to reach €217 million, and the adjusted EBITDA margin reached the break-even point.

In the automotive business segment, despite an unfavorable economic climate and weak overall market conditions, revenue grew by 0.7% to €480 million. Adjusted EBITDA was €47 million, flat compared to the same period last year.

Given that economic prospects and relevant industry market conditions remain uncertain, OSRAM maintains its forecast for the current fiscal year's performance. Compared to the previous year, revenue is expected to fluctuate between plus or minus 3%, adjusted EBITDA margin is projected at approximately 9% to 11%, and free cash flow is expected to be positive, potentially in the double digits.