Datron - Recovering after a challenging FY20

Datron’s FY20 results were negatively affected by the market slowdown triggered by COVID-19 (sales down 22% y-o-y to €42.1m and EBIT down 45% y-o-y to €2.1m), but its performance has gradually recovered in Q420 and Q121 amid increasing economic activity. Management comfortably delivered its Q121 guidance but for now remains cautious with respect to full-year forecasts. Datron’s performance in 2021 should be assisted by improving demand in the German machine tools industry, which is expected to increase production by 6% y-o-y in FY21, according to the German Machine Tool Builders’ Association (VDW) data.