EQS-News: SMT Scharf AG publishes results for the first 6 months of 2024 

SMT Scharf AG publishes results for the first 6 months of 2024 

• Consolidated revenue of EUR 28.4 million in the first half of 2024
• Operating earnings (EBIT) at EUR -0.8 million
• Orders won in the Tunnel Logistics segment create exceptionally high order book, providing tailwind for the second half of the year
• Management Board confirms revenue and earnings forecast for 2024 

Hamm, 28 August 2024 – SMT Scharf AG (WKN A3DRAE; ISIN DE000A3DRAE2), one of the world’s leading suppliers of bespoke transport solutions and logistics systems for underground mining, is today publishing its figures for the first half of 2024. In the first six months of fiscal year 2024, the SMT Scharf Group achieved consolidated revenue of EUR 28.4 million. This equates to a decline of 10.4 % by comparison with the prior year period (H1 / 2023: EUR 31.7 million). In the first half of this year, SMT Scharf encountered subdued activity overall in the relevant mining markets. In particular, this reflected reticence with respect to investments in fleet servicing and maintenance. The new equipment business, however, showed positive signs, resulting in SMT Scharf boosting revenue by an appreciable 30.6% against the first half of 2023. 

Earnings from operating activities (EBIT) in the first half of 2024 amounted to EUR -0.8 million (H1 / 2023: EUR -1.8 million). External services and higher personnel costs were the main contributory factors to this result. In addition, orders on which work has started are only recognized in revenue later in the year. This resulted in an improved, but negative EBIT margin (in relation to total operating revenue) of -2.0% in the reporting period by comparison with -4.5% in the same period in the previous year.

“The SMT Scharf Group has exhibited sound business growth in the first half of 2024. As a leading provider of monorails, we see SMT Scharf as well positioned to benefit from the mega trends in mining on a long term, sustainable basis. This is further underlined by the significant growth of almost 30% in new equipment business. In the first half of the year, we vigorously pursued our initiatives in the development of innovative transport solutions, in production as well as sales & marketing. In the second half of the year, we will focus primarily on lending fresh impetus to the after-sales business,” as Volker Weiss, CFO of SMT Scharf AG, stated.

In its new equipment business, SMT Scharf lifted its revenue in the first six months of 2024 to EUR 11.1 million following EUR 8.5 million in the first half of 2023. By contrast, revenue in the spare parts business declined noticeably to EUR 13.3 million (H1 / 2023: EUR 19.1 million). While revenue in the Service segment was down marginally year on year to EUR 3.9 million (H1 / 2023: EUR 4.0 million), the Miscellaneous segment generated revenue of EUR 0.1 million, level with the prior year period. 

Turning our attention to the core international markets, Poland was the most important sales market for SMT Scharf in the first six months of 2024. Revenue there amounted to EUR 6.3 million, which represents a fall by comparison with the prior year period (H1 / 2023: EUR 7.3 million). Two markets, each with EUR 6.2 million, generated SMT Scharf’s second highest revenues: China (H1 / 2023: EUR 10.6 million) and Russia (H1/ 2023: EUR 6.8 million). Furthermore, SMT Scharf recorded revenue of EUR 4.6 million in Africa in the first half of 2024 (H1 / 2023: EUR 3.2 million), EUR 0.6 million in America (H1/ 2023: EUR 1.3 million) as well as EUR 1.6 million in Germany, in line with the prior year period.

Broken down by segment, coal mining remained the strongest segment with 74% of total revenue. However, this represented a significant decline by comparison with the prior year period (H1 / 2023: 81%). Instead, SMT Scharf succeeded in boosting the Mineral Mining and Tunnel Logistics segments’ shares of consolidated revenue by comparison in each case with the prior year period. At 19%, mineral mining represented the second most important segment (H1 2023: 14%). The Tunnel Logistics segment contributed 4% to total revenue (H1 / 2023: 1%) as did the Other Industries segment (H1 / 2023: 4%).

Reinhard Reinartz, CEO and COO of SMT Scharf AG, explains: “Our tunnel logistics business enjoyed very successful growth in the first half of the year. We received one major order in the low double-digit euro millions range from a new customer in the Middle East for a significant infrastructure project. This makes the order one of the largest in the company’s history. With this order, we are driving the targeted transformation into areas outside the coal business. Orders in the tunnel market are also creating an excellent order book and positive prospects for the second half of the year. With our solutions in tunnel logistics, we would like to derive even greater benefits in future from the forecasted global growth of the tunnel market.” 

Thanks to the major orders received in the Tunnel Logistics segment, the order intake of EUR 53.8 million in the first half of 2024 exceeded the figure for the prior year period of EUR 43.2 million by a considerable margin. Accordingly, as of the reporting date of 30 June 2024, the order book stood at EUR 48.0 million (30 June 2023: EUR 34.4 million).

With a look to the 2024 financial year, the Managing Board of SMT Scharf AG is reiterating its forecast and anticipates consolidated revenue of between EUR 74 million and EUR 79 million, based on conservative estimates. In addition, the Managing Board continues to expect operating earnings (EBIT) of between EUR 1.5 million and EUR 2.5 million in 2024.

The full report for the first half of 2024 will be published today in the course of the day at www.smtscharf.com in the Investor Relations section.
Company profile

The SMT Scharf Group develops, manufactures and services transportation equipment for underground mining as well as for tunnel construction. The main products include captivated railway systems that are deployed worldwide primarily in hard coal mines as well as in mines for gold, platinum and other metals. They are needed to transport material and personnel with payloads of up to 48 tonnes and on routes with gradients of up to 35 degrees. In addition, SMT Scharf supplies the mining sector with chairlifts. Since 2018, SMT Scharf’s diverse portfolio has also included rubber-tyred diesel and electric vehicles for mining and tunnelling, including loaders, scissor lifts and underground trucks. As part of the further diversification of the business, the product range has been successfully expanded since 2019 to include electronic components and control systems for mining and other industries. Overall, the SMT Scharf Group operates its own subsidiaries in seven countries and has agents around the world. Further information about the SMT Scharf Group can be found online at www.smtscharf.com.
Contact

Investor Relations
cometis AG
Thorben Burbach
Tel: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
Email: burbach@cometis.de