POLYTEC HOLDING AG: Results 3. Quarter 2024

[ Report ]

Hörsching (pta010/14.11.2024/07:44) - .

The POLYTEC GROUP's consolidated revenue in the months of January to September 2024 amounted to EUR 507.1 million, up 4.5% on the same period of the previous year (Q1-Q3 2023: EUR 485.2 million).

The POLYTEC GROUP's EBIT amounted to EUR 1.4 million in the first nine months of 2024 (Q1-Q3 2023: minus EUR 2.7 million). The EBIT margin was 0.3% in the current reporting period (Q1-Q3 2023: –0.6%).

The earnings situation of the POLYTEC GROUP was and will be burdened in the 2024 financial year by the high level of wage and material costs as well as interest. The management is adjusting its outlook and, from today's perspective, expects consolidated sales revenues of around EUR 660 million and an EBIT margin of around 1% for the full financial year 2024.

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Key figures Q1-Q3 2024

* Group sales revenues amounted to EUR 507.1 million (Q1-Q3 2023: EUR 485.2 million)

* EBITDA amounted to EUR 24.9 million (Q1-Q3 2023: EUR 22.3 million)

* EBITDA margin 4.9% (Q1-Q3 2023: 4.6%)

* EBIT totalled EUR 1.4 million (Q1-Q3 2023: minus EUR 2.7 million)

* EBIT margin 0.3% (Q1-Q3 2023: –0.6%)

* Earnings after tax minus EUR 7.4 million (Q1-Q3 2023: minus EUR 8.7 million)

* Earnings per share minus EUR 0.32 (Q1-Q3 2023: minus EUR 0.40)

* Equity ratio at 40.1% (31.12.2023: 41.4%)

* Net debt reduced to EUR 68.5 million (31.12.2023: EUR 79.5 million)

* Cash and cash equivalents at EUR 45.9 million (30.09.2023: EUR 38.2 million)

* Employees (incl. leasing personnel, FTE) as at 30.09.2024: 3,865 (30.09.2023: 3,906)

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In the Passenger Cars & Light Commercial Vehicles market area, the POLYTEC GROUP's strongest revenue area with 72.7% (Q1-Q3 2023: 74.0%), sales revenues of EUR 368.4 million were generated in the months of January to September 2024, up 2.6% or EUR 9.3 million on the same period of the previous year (Q1-Q3 2023: EUR 359.1 million).

Since the beginning of 2024, sales revenues in the Smart Plastic & Industrial Applications market area have shown a pleasing development. Sales revenues in the first nine months of 2024 increased very significantly year-on-year by 60.3% or EUR 25.8 million to EUR 68.6 million (Q1-Q3 2023: EUR 42.8 million). The share of this market area in the POLYTEC GROUP's consolidated sales increased by 4.7 percentage points to 13.5% compared to the nine months of 2023.

Sales revenue in the Commercial Vehicles market area (share 13.8%; Q1-Q3 2023: 17.2%) decreased by 15.8% year-on-year, from EUR 83.3 million to EUR 70.1 million.

The POLYTEC GROUP's EBITDA amounted to EUR 24.9 million in the first nine months of 2024 (Q1-Q3 2023: EUR 22.3 million). The EBITDA margin rose by 0.3 percentage points to 4.9% compared to the same period last year.

The financial result for the first nine months of 2024 amounted to minus EUR 8.3 million (Q1-Q3 2023: minus EUR 5.7 million). Earnings after tax for the months of January to September 2024 amounted to minus EUR 7.4 million (Q1-Q3 2023: minus EUR 8.7 million). This corresponds to earnings per share of minus EUR 0.32 (Q1-Q3 2023: minus EUR 0.40).

As of 30 September 2024, the Group's balance sheet total decreased by EUR 0.8 million to EUR 532.2 million compared to 31 December 2023. The equity ratio was 40.1% and thus 1.3 percentage points below that of the last annual balance sheet date and shows a solid level for years.

Net debt amounted to EUR 68.5 million as of 30 September 2024, a decrease of EUR 11.1 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 shortened from 2.98 to 2.34 years. The gearing ratio fell from 0.36 at the 2023 balance sheet date to 0.32 as of 30 September 2024.

As of 30 September 2024, the POLYTEC GROUP had cash and cash equivalents of EUR 45.9 million (30.09.2023: EUR 38.2 million).

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Outlook 2024 financial year

At the time of the publication of the half-year results for the 2024 financial year, the management of POLYTEC Holding AG assumed planned sales revenues of between EUR 660 million and EUR 710 million and aimed for an EBIT margin of around 2% to 3%.

The third quarter is usually lower in sales revenues than quarters without such effects due to factory vacations for customers. In the Q3 reporting period, sales revenues had fallen short of expectations due to short-term reductions in call-off volumes. Due to the volatile market environment, it is currently not possible to clearly estimate how demand will develop in the fourth quarter.

The earnings situation of the POLYTEC GROUP was and will be burdened in the 2024 financial year by the high level of wage and material costs as well as interest. The management is adjusting its outlook and, from today's perspective, expects consolidated sales revenues of around EUR 660 million and an EBIT margin of around 1% for the full financial year 2024.

However, the achievement of this outlook is subject to uncertainties and also depends on the outcome of ongoing customer negotiations.

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The Q3 2024 interim report of POLYTEC Holding AG as at 30 September 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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