POLYTEC HOLDING AG: H1 2024: sales on stable level, positive progress confirmed in Q2

[ Report ]

Hörsching (pta015/14.08.2024/07:55) - .

The POLYTEC GROUP's consolidated sales revenues in the first half of 2024 amounted to EUR 349.6 million, up 3.0% on the same period of the previous year (H1 2023: EUR 339.6 million).

As announced in the outlook for the full year 2024 when the 2023 annual figures were published, a significant improvement in the earnings situation was expected for the first quarter of 2024. The positive development continued in the second quarter.

EBIT rose from EUR 0.3 million in the first half of 2023 to EUR 3.5 million in the first six months of 2024. The EBIT margin increased by 0.9 percentage points from 0.1% to 1.0% compared to the same period of the previous year.

From today's perspective, the management of POLYTEC Holding AG furthermore expects planned consolidated sales revenues in the range of EUR 660 million to EUR 710 million for the 2024 financial year and is targeting an EBIT margin of around 2% to 3%. The rising sales trend will be strengthened by the ramp-up of new projects, which are a consequence of the high order intakes of previous years.

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Key figures H1 2024

* Group sales revenues amounted to EUR 349.6 million (H1 2023: EUR 339.6 million)

* EBITDA amounted to EUR 19.1 million (H1 2023: EUR 17.0 million)

* EBITDA margin 5.5% (H1 2023: 5.0%)

* EBIT totalled EUR 3.5 million (H1 2023: EUR 0.3 million)

* EBIT margin 1.0% (H1 2023: 0.1%)

* Earnings after tax minus EUR 2.7 million (H1 2023: minus EUR 3.7 million)

* Earnings per share minus EUR 0.11 (H1 2023: minus EUR 0.18)

* Equity ratio at 41.0% (31.12.2023: 41.4%)

* Net debt amounted to EUR 71.1 million (31.12.2023: EUR 79.5 million)

* Employees (FTE incl. leasing personnel, as at 30.06.2024): 3,906 (30.06.2023: 3,933)

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In the Passenger Cars & Light Commercial Vehicles market area, which with 73.2% (H1 2023: 74.0%) is the POLYTEC GROUP's strongest revenue area, sales revenues of EUR 255.8 million were generated in the months of January to June 2024, up 1.8% or EUR 4.4 million on the same period of the previous year (H1 2023: EUR 251.4 million).

Since the first quarter of 2024, sales revenues in the Smart Plastic & Industrial Applications market area have shown a pleasing development. During the first half-year 2024, sales revenues in this market area increased very significantly by 51.9% or EUR 14.8 million to EUR 43.3 million (H1 2023: EUR 28.5 million). The share of this market area in the POLYTEC GROUP's consolidated sales rose by 4 percentage points year-on-year, to 12.4%.

Sales revenues in the Commercial Vehicles market area (share 14.4%; H1 2023: 17.6%) decreased by 15.4% year-on-year, from EUR 59.7 million to EUR 50.5 million.

The EBITDA of the POLYTEC GROUP increased by 12.7% in the first six months of 2024 compared to the same period of the previous year, from EUR 17.0 million to EUR 19.1 million. The EBITDA margin increased by 0.5 percentage points year-on-year to 5.5%.

The financial result in the first half-year of 2024 amounted to minus EUR 5.8 million (H1 2023: minus EUR 3.6 million). Consolidated earnings after tax in the months January to June 2024 amounted to minus EUR 2.7 million (H1 2023: minus EUR 3.7 million). This corresponds to earnings per share of minus EUR 0.11 (H1 2023: minus EUR 0.18).

As of 30 June 2024, the group's balance sheet total decreased by EUR 1.5 million to EUR 531.5 million compared to 31 December 2023. The equity ratio was 41.0%, and thus 0.4 percentage points below that of the last annual balance sheet date and shows a solid level for years.

Net debt amounted to EUR 71.1 million as of 30 June 2024, and decreased by EUR 8.4 million compared to the balance sheet date of 31 December 2023 (EUR 79.5 million). The key figure for the fictitious debt repayment period was reduced from 2.98 to 2.47 years. The gearing ratio decreased from 0.36 at the last balance sheet date to 0.33 as of 30 June 2024.

End of June 2024, the POLYTEC GROUP disposed over cash and cash equivalents of EUR 46.6 million (H1 2023: EUR 38.0 million).

On the 30 June 2024 reporting date, POLYTEC had a total of 3,906 employees (including leasing personnel, FTE full time equivalents), which was on the level of the previous year's reporting date (30 June 2023: 3,933 FTE).

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Outlook 2024 financial year

From today's perspective, the management of POLYTEC Holding AG expects planned consolidated sales revenues in the range of EUR 660 million to EUR 710 million for the 2024 financial year and is targeting an EBIT margin of around 2% to 3%.

The rising sales trend will be strengthened by the ramp-up of new projects, which are a consequence of the high order intakes of previous years.

In the 2024 financial year, the POLYTEC GROUP expects passenger car production figures for Europe to be roughly at the previous year's level. While the production of heavy commercial vehicles is expected to decline slightly, the call-off figures are expected to rise in the Smart Plastic & Industrial Applications market area.

However, the achievement of this outlook is subject to uncertainty. The automotive industry continues to be characterised by a volatile market environment, uncertain demand, and the general transformation towards e-mobility.

The earnings situation of the POLYTEC GROUP in the 2024 financial year will be negatively impacted by the high level of wage and material costs, which have already been taken into account in the outlook. Measures introduced in the previous year to increase operational efficiency, especially for two plants, are already showing improvements. However, their full implementation may still take time.

In the medium-term, the POLYTEC GROUP considers itself to be in a solid strategic position with regard to its ability to transform the changes in the automotive sector into increasing economic success for itself. The high volume of new orders received in recent financial years indicates that with its product portfolio, particularly in the area of e-mobility, but also outside the automotive sector, the POLYTEC GROUP possesses a very good market standing and can face the future with confidence.

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The half-year financial report of POLYTEC Holding AG as at 30 June 2024 closing date is available for downloading on the investor relations, publications section of the group's website.

https://www.polytec-group.com/en/investor-relations/publications

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