EQS-News: 2G Energy AG boosts EBIT by 23 % to EUR 22.0 million in 2022 according to preliminary figures (previous year: EUR 17.9 million)

2G Energy AG boosts EBIT by 23 % to EUR 22.0 million in 2022 according to preliminary figures (previous year: EUR 17.9 million)

• Group sales of EUR 312.6 million (previous year: EUR 266.3 million) exceed forecast
• Total turnover grows by EUR 69.9 million to EUR 338.8 million (previous year: EUR 268.9 million, + 26 %).
• EBIT margin improves to 7.0 % (previous year: 6.7 %)
• Management Board reiterates sales forecast (EUR 310 to 350 million) and expects an EBIT margin between 6.5 % and 8.5 % for 2023

Heek, March 30, 2023 According to preliminary figures, 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) systems, boosted Group sales by 17 % to EUR 312.6 million (previous year: EUR 266.3 million) in the past financial year of 2022, growing Group EBIT by EUR 4.1 million to EUR 22.0 million (previous year: EUR 17.9 million). This equates to an EBIT margin improvement to 7.0 % (previous year: 6.7 %).

Even if the subject of material price rises has still not abated, we can nevertheless state that material supplies are back on track, says COO Ludger Holtkamp. This means the numerous measures implemented in the last few years to introduce collaborative, quality-driven workflows and processes have now been able to unleash their full potential.

2G has succeeded in significantly expanding its total Group turnover by EUR 69.9 million or 26 % to EUR 338.8 million.

Service business to be further expanded

With sales rising by 28 % to EUR 148.1 million (previous year: EUR 115.6 million), the companys service business made a disproportionately high contribution to consolidated sales growth. Overall, 47 % of consolidated sales revenues were generated by services and the sale of spare parts. A total of EUR 2.6 million was generated by SenerTec-Center GmbH, Schweinfurt, that was fully consolidated for the first time.

Sales of CHP systems rise, predominantly in Europe

Sales revenues from the sale of CHP systems increased by EUR 13.7 million or 9 % to reach EUR 164.5 million. Sales in Germany were more or less unchanged from the previous year, with growth resulting primarily from a rise in sales in other European countries. Overall, some 50 % of sales revenues were generated for the first time from the sale of CHP systems abroad.

In order to build on this successful growth trajectory, the diversity of usable fuels and expansion of international business remain essential for us, states CEO Christian Grotholt. The distribution of sales in the past year clearly shows that this strategy is bearing fruit and will remain viable in the future.

Sales of CHP systems increased primarily in Europe and gratifyingly in regions which to date have been regarded as tough in spite of intensive efforts. For example, signs in Central Eastern Europe indicate that the energy scene has entered a phase of upheaval which 2G has succeeded in exploiting for additional sales through its existing partner network.

New sales and service company in the Netherlands

Mention should also be made of the Benelux states in which there is intense competition for CHP systems. Nevertheless, sales of CHP systems was up by EUR 11.7 million. In response to this situation, 2G set up a sales and service company based in Oldenzaal / NL in January 2023, raising the prospect of achieving market shares in this region to match those in the companys home market.   

The overall distribution of sales revenues can be seen in the following table:

Cost of materials ratio grows, personnel expense ratio declines

In the course of in some cases significant price increases on the procurement markets, which can often only be passed on in the form of adjusted list prices with a certain delay, the cost of materials ratio advanced by 2.4 percentage points in the reporting year to 66.1 %. It should be noted for the comparison with the previous year that total turnover includes a substantial inventory build-up (EUR + 26.0 million, previous year: EUR + 2.6 million) that does not contain any margin under HGB accounting. On the other hand, the Service share of sales has risen to 47 % which somewhat improves the cost of materials ratio due to higher human resources expenditure in the Service business.

The staff cost ratio dropped to 16.8 % in the past financial year (previous year: 18.4 %; relative to total turnover). Besides further efficiency gains due to the increasing implementation of industrial processes, the higher utilization of indirect company systems, in particular, helped to keep the ratios low; an effect that is also reflected in other operating expenses which are also growing significantly more slowly than the increase in output. 

2G will publish its audited consolidated financial statements and its 2022 annual report on April 27.

Management Board expecting an EBIT margin between 6.5 % and 8.5 % for 2023 with further sales growth

With regard to the current financial year, the order book is well filled at the beginning of 2023 at more than EUR 175 million. In light of this order book position and additional new orders expected from the new systems business in Germany and abroad, as well as the growing service business, the Management Board is expecting consolidated net sales in a range between EUR 310 million and EUR 350 million for the 2023 financial year as already announced.

In spite of the very pleasing corporate growth to date and the positive prospects, the possibility of the tense geopolitical situation or an emerging banking crisis making their presence felt at 2G in the current year in the guise of declining orders, supply bottlenecks or logistical problems and impacting growth in sales and earnings, cannot be ruled out. The earnings forecast for the 2023 financial year therefore provides for a relatively broad corridor of expectations with an EBIT margin between 6.5 % and 8.5 %.

2G company portrait
The 2G Energy AG Group is an internationally leading manufacturer of decentralized energy supply systems. With the development, production and technical installation as well as digital grid integration, the company offers comprehensive solutions in the growth market for highly efficient CHPs. After-sales and maintenance services comprise an important additional performance criterion. The product range especially includes CHP modules in the 20 kW and 4,500 kW range for operation utilizing hydrogen, natural gas, biogas as well as other lean gases. Worldwide, more than 8,000 installed 2G systems in various applications supply electrical and thermal energy to a broad spectrum of customers including companies in the housing industry, agriculture, commercial and industrial companies, public energy utilities, and municipal and local government authorities.

2G benefits from global long-term trends that make efficient and decentralized energy solutions ever more important. These trends include not only rising energy demand but also the need to conserve natural resources. The parallel generation of electrical and thermal energy makes CHP technology more efficient and climate-compatible than conventional power conversion methods, especially when, for example, hydrogen of regenerative origin is harnessed as fuel. 2G power plants can offset wind and solar power plant production fluctuations as required, thereby forming a backbone technology for future supply concepts, especially in the deployment of hydrogen engines. As a consequence, 2Gs customers derive consistent benefits from economically and ecologically highly beneficial innovations that rapidly pay for themselves and create extensive added values.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant technology for hydrogen, Natural Gas and biogas applications, as well as in specific software development. Moreover, in the energy revolutions future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers, and creates a high barrier to market entry for competitors.

2G employs more than 850 employees at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 266 million in the 2021 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the Scale segment of the Frankfurt Stock Exchange.

2023 calendar dates
April 20   Warburg Renewable Conference, Frankfurt
April 27   Consolidated financial statements for FY 2022
May 15-16   Spring Conference, Frankfurt
May 23   Q1 key figures and business trends
June 13   Ordinary AGM, Ahaus
September 04  Key figures H1 2023 and business trends
September 07  Publication of half-year report 2023
November 27  Q3 key figures and business trends
November 27-29  German Equity Forum, Frankfurt

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Phone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de