Rosenbauer International AG: Rosenbauer Group improves EBIT by € 43 million year-on-year

Leonding (pta010/14.11.2023/07:00) -
* Operating turnaround continues, with measures to increase efficiency and higher sales prices gradually taking effect
* Revenues up 9.8% on the previous year's high figure to € 699.1 million
* EBIT clearly positive at € 11.2 million after the first three quarters; EBT still negative due to higher interest rates
* Incoming orders show an enormous increase of 24% to € 1,026.5 million
* Group Executive Board expects revenues of € 1.1 billion and an EBIT margin of 3.5% (previously 3.0%) for the financial year

The Rosenbauer Group generated revenues of € 699.1 million in the first three quarters of 2023 (1-9/2022: € 636.7 million). The volume of the Group's business was thus 9.8% higher than in the comparative period of the previous year. The main reason for this are the measures implement to increase efficiency and higher sales prices of the vehicles delivered, which noticeably reflect the cost increases of the last two years. The stronger gross profit, combined with a consistent reduction in structural costs (R&D, sales and administrative expenses), resulted in a positive EBITDA of € 33.7 million (1-9/2022: € -10.3 million) and an EBIT figure of € 11.2 million (1-9/2022: € -31.8 million). EBIT is therefore € 43 million better than in the previous year. Incoming orders reached € 1,026.5 million from January to September (1-9/2022: € 825.4 million), corresponding to an increase of 24% in a recently weaker economic environment.

Revenues and result of operations

The global recovery from the COVID-19 pandemic and Russia's invasion of Ukraine remains slow and uneven. Despite economic resilience earlier this year, with a reopening rebound and progress in reducing inflation, it is too soon to take comfort. According to the International Monetary Fund (IMF), the global economy is expected to grow by 3.0% in 2023, compared to 3.5% in the previous year. Global inflation is forecast to decline steadily, from 8.7% in 2022 to 6.9% this year.

The Rosenbauer Group generated revenues of € 699.1 million in the first three quarters of 2023 (1-9/2022: € 636.7 million). The average price of a firefighting vehicle has risen by 9.8% year-on-year to € 405.1 thousand. The ratio of advance payments for a firefighting vehicle is currently 20% on average. This figure is set to rise to 30% in order to reduce the need for interim financing during order processing.

Four out of five segments increased their business volume in the reporting period. Consolidated revenues are currently divided across the sales areas as follows: Europe area 46%, Middle East & Africa area 8%, Asia-Pacific area 11%, Americas area 31% and Preventive Fire Protection segment 4%.

At € 1,026.5 million, incoming orders from January to September 2023 were significantly higher than in the previous year (1-9/2022: € 825.4 million). With the exception of the Preventive Fire Protection segment, all sales areas increased their incoming orders. The order backlog also increased and amounted to € 1,757.9 million at the end of the third quarter of 2023 (September 30, 2022: € 1,360.5 million).

Financial and net assets position

Total assets increased year-on-year to € 1,198.6 million (September 30, 2022: € 1,083.9 million). The value of inventories rose to € 641.9 million (September 30, 2022: € 561.0 million), and receivables and other assets also increased to € 256.7 million (September 30, 2022: € 196.1 million). Trade working capital amounted to € 516.0 million for the reporting period (1-9/2022: € 466.5 million), which was slightly lower in relation to the anticipated revenues of € 1.1 billion compared to the previous year.

The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) increased to € 484.2 million (September 30, 2022: € 444.7 million) due to the higher working capital figures compared with the same period of the previous year.

The increase in inventories and receivables put cash flow from operating activities at € -154.2 million at the end of the first three quarters of 2023 (1-9/2022: € -132.1 million).

Outlook

According to the latest outlook by the IMF, global growth is expected to slow from 3.5% to 3.0% in the current year and then dip again slightly to 2.9% in 2024. The projections remain well below the historical average of 3.8% for the years 2000 through 2019. Forecasts for global growth over the medium term, at 3.1%, are at their lowest in decades, and prospects for countries to catch up to higher living standards are weak. According to the IMF, global inflation is set to fall further from 6.9% to 5.8% in 2024.

The firefighting industry's order books are full to bursting, which means that the industry can again generally expect to achieve growth in revenues in 2023. The strongest growth in revenues should be possible in Rosenbauer's core markets in Europe and North America, where sales prices were adjusted and order intake remains strong.

On the basis of the increasing impact of the efficiency-enhancing measures under the "Refocus, Restart" program and the higher sales prices of vehicles in production, the Executive Board anticipates revenues of € 1.1 billion in the current financial year (previously: over € 1 billion). At the same time, the EBIT margin is expected to be around 3.5% (previously: around 3%), which corresponds to a roughly 20% improvement in the operating result.

(Ende)