Datron - Market headwinds persist

Datron’s subdued performance in H120 (sales down 17% y-o-y to €22m, and EBIT down 82% y-o-y) reflects the challenging market situation exacerbated by the COVID-19 outbreak. Its guidance released in August 2020 implies broadly comparable sales and order intake in H220 vs H120 and assumes persistent pressure on the EBIT margin (1–3% for the full year vs 1.5% in H120 and 7.2% in FY19). Having said that, Datron retains a solid balance sheet, with a net cash position of €9.4m at end-H120 (vs €8.5m at end-FY19).