EQS-News: R. STAHL with strong growth and significant increase in profitability in the first quarter of 2023

R. STAHL with strong growth and significant increase in profitability in the first quarter of 2023

• Order intake increases by 28.7% to 96.7 million Group sales up 28.0% to 78.1 million
• Strongly improved earnings from January to March EBITDA pre exceptionals increase by 7.4 million to 10.4 million This resulted in an EBITDA margin pre exceptionals of 13.3% (previous year: 5.0%)
• For 2023, R. STAHL expects sales to increase to between 305 million and 320 million and EBITDA pre exceptionals to improve to between  30 million and 36 million.

Waldenburg, 10 May 2023 R. STAHL had a dynamic start to financial year 2023. Demand for the companys products and services was very high in all regions and industries in the first quarter of 2023. Not only that, but the negative impact from disrupted supply chains is gradually weakening. The expert in explosion protection was thus able to improve almost all important financial key figures in the first three months of the year.

Order intake increases by 28.7% order backlog reaches new record level of  125.7 million
The continued high level of customer willingness to invest led to a year-on-year increase in order intake of 28.7% to 96.7 million in the period from January to March 2023. The main drivers of this increase included the Central region (Africa and Europe excluding Germany) with a plus of 48.7% as well as Germany with a plus of 25.0%. Both regions benefited from a substantial increase in order intake from the oil and gas industry (including LNG) as well as higher order intake from the chemical industry. Due to strong demand in the first three months of 2023, the order backlog increased to a record level of  125.7 million as of 31 March (31 December 2022: 109.4 million).

All regions contribute to sales growth of 28.0% to 78.1 million
An increasingly relaxed supply chain and a further increase in demand from all areas resulted in sales growth in the first quarter. R. STAHL thus increased sales from January to March 2023 by 28.0% to 78.1 million. The company recorded double-digit growth rates in all sales regions. The main sales drivers here too were the chemical and pharmaceutical industries as well as the oil and gas sector (including LNG).

Significant increase in profitability EBITDA pre exceptionals up 7.4 million to  10.4 million
R. STAHL compensated for rising material prices in the reporting period with price adjustments and temporary Inflation surcharges. This, combined with the higher utilization of production capacities, led to a sharp increase in profitability. At 10.4 million, EBITDA pre exceptionals was 7.4 million higher than the prior-year figure of 3.0 million. The company increased its profitability as measured by the EBITDA margin from 5.0% in the previous year to an extraordinarily high 13.3%. Net profit also improved significantly to  3.9 million (Q1 2022: -5.4 million). This corresponds to earnings per share of  0.60 (Q1 2022: -0.84).

The significantly increased volume of business from January to March led to an increase in inventory and receivables and thus to an increase in working capital of 15.3 million (Q1 2022: 9.8 million). This had a negative impact on free cash flow, which at 8.7 million was 1.4 million lower than in the previous year (Q1 2022: -7.3 million). As a result, the equity ratio of 26.7% was almost stable (31 December 2022: 27.5%).

Strong first quarter 2023 confirms outlook for full year 2023
For 2023, the company expects a further recovery in the relevant key markets based on the overall economic and industry-specific forecasts. The high order backlog as well as the positive first quarter of 2023 mean that R. STAHL can look ahead to full year 2023 with confidence. Forecast uncertainties remain, however, mainly due to procurement bottle­necks especially for semiconductor products as well as continuing high inflation rates and unpredictable developments and consequences of the Russia-Ukraine conflict.

For the current financial year, the Executive Board forecasts growth in Group sales in the low double-digit percentage range to between 305 million and 320 million. Profita­bility is expected to improve significantly year-on-year on the basis of a general improve­ment in procurement markets and due to increased cost efficiency. EBITDA pre exception­nals should increase significantly and be within a corridor of between 30 million and  36 million (2022: 22.3 million). In terms of free cash flow, R. STAHL forecasts a low single-digit positive million euro amount in 2023.

The first quarter of 2023 confirmed the strategy we are pursuing. What we have to do now is efficiently process the high order intake while simultaneously continuing to take advantage of the growth opportunities in our markets in order to grow profitably in the long term, says Dr. Mathias Hallmann, CEO of R. STAHL.

Key figures of R. STAHL Group for Q1 2023 pursuant to IFRS

¹⁾ Africa and Europe without Germany
²⁾ Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects, M&A costs as well as profit and loss from the disposal of assets no longer required for business operations
³⁾  Payments for investments in intangible assets and property, plant & equipment
⁴⁾ excl. pension provisions and without lease liabilities
⁵⁾ excl. apprentices

Percentages and figures in may include rounding differences. The signs used to indicate rates of changes are based on mathematical aspects. Rates of changes > +100% are shown as >+100%, rates of change <-100% as n/a (not applicable)

 Note

The interim report Q1 2023 is available for download under the following link: https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports

Financial calendar
29 June 2023  30^th Annual General Meeting
9 August 2023  Interim Report H1 2023
9 November 2023  Interim Report Q3 2023

About R. STAHL www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation.

Typical customers are the chemical and pharmaceutical industry, the oil & gas industry - including LNG applications - as well as the food and beverage industry. Most of the R. STAHL products are also approved for use with hydrogen. In 2022 global sales amounting to around 274 million were generated by 1,676 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

Forward-looking statements
This release contains forward-looking statements based on assumptions and estimates of R. STAHLs management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.