DGAP-News: R. Stahl AG / Key word(s): Quarterly / Interim Statement
11.05.2021 / 07:00
The issuer is solely responsible for the content of this announcement.
Following a soft first quarter, R. STAHL expects to return to sales growth again in 2021
- Sales of €58.2 million in Q1 2021, still down 10.6% or €6.9 million year-on-year (Q1 2020: €65.1 million)
- EBITDA pre exceptionals declines by €2.1 million to €2.7 million (Q1 2020: €4.7 million) - ongoing cost adjustments continue to noticeably cushion impact of weak sales development
- Net profit decreases by €1.9 million to €-2.5 million (Q1 2020: €-0.6 million) and earnings per share to €-0.39 (Q1 2020: €-0.10)
- Negative net profit and ongoing strategy implementation lead to temporary slight increase in net financial debt to €11.6 million
- First signs of market recovery: Demand up by about 13% to €63.9 million in Q1 2021 compared with the average of the three prior quarters
- Forecast for 2021 detailed: Sales between €250 million and €256 million, EBITDA pre exceptionals between €17 million and €19 million
Waldenburg, 11 May 2021 - R. STAHL today publishes full figures for Q1 2021. As already reported, sales declined 10.6% to €58.2 million (Q1 2020: €65.1 million). Still, the business performance was impacted by the COVID-19 pandemic and the resulting low order backlog at the beginning of the year. The sales decline of €6.9 million led to a decrease of earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals, which, due to targeted measures that included labor capacity adjustments, was limited to a decline of €2.1 million to €2.7 million (Q1 2020: €4.7 million). This resulted in an EBITDA margin pre exceptionals of 4.6% (Q1 2020: 7.3%). Net profit fell €1.9 million to €-2.5 million (Q1 2020: €-0.6 million), equivalent to earnings per share of €-0.39 (Q1 2020: €-0.10).
Development of sales and order intake in Q1 2021
Sales declined in all regions in the first quarter 2021. In Germany, sales of €14.6 million were generated (Q1 2020: €16.9 million), a drop of 13.4%. This development mainly reflected the decline in international investment projects, which was also evident in weaker business in the German machinery sector. By contrast, sales in the Central region - which consists of Africa and Europe excluding Germany - fell by a moderate 3.3% year-on-year to €28.2 million in the reporting quarter (Q1 2020: €29.2 million). The comparatively high share of sales in customer industries not directly affected by the decline in demand in the oil and gas sector had a stabilizing effect. By contrast, there was an entirely different trend in the Americas region, where the reluctance to invest in the oil and gas sector resulted in a 33.8% year-on-year drop in sales to €4.8 million (Q1 2020: €7.2 million). This also impacted the Asia/Pacific region. In addition, the postponement of major projects had a negative impact on the development of sales in this region, which resulted in an overall decline in sales of 10.6% to €10.5 million (Q1 2020: €11.8 million).
In contrast, order intake in the first quarter of 2021 was significantly higher than sales. In fact, orders declined by 18.8% to €63.9 million compared to the very strong previous year (Q1 2020: €78.8 million). Compared to the previous quarter, however, this represents an increase of 20% (Q4 2020: €53.3 million). This encouraging performance was driven in particular by follow-up material requirements from major projects, catch-up effects from postponed procurement activities as well as maintenance and repair orders for production equipment in operation. As a result, order backlog increased to €68.9 million compared with the level at the beginning of the year (31 December 2020: €64.5 million).
Development of earnings, financial and asset position in Q1 2021
The €6.9 million drop in sales also led to a decline in earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals in Q1 2021 which, due to targeted measures that included labor capacity adjustments, was limited to a decline of €2.1 million to €2.7 million (Q1 2020: €4.7 million). This resulted in an EBITDA margin pre exceptionals of 4.6% (Q1 2020: 7.3%). At <€-0.1 million, exceptionals remained at a very low level (Q1 2020: €-0.1 million), resulting in EBITDA of €2.6 million in the reporting quarter (Q1 2020: €4.7 million).
Cost of materials decreased by 11.7% to €-21.4 million in the reporting period (Q1 2020: €-24.3 million), resulting in what continues to be a low cost of materials ratio that is at 35.0% of total performance - only slightly higher year-on-year (Q1 2020: 34.5% of total performance).
Personnel expenses fell by 4.7% to €-30.0 million in the reporting period (Q1 2020: €-31.5 million), mainly due to temporarily reduced working hours.
The balance of other operating income and other operating expenses decreased by 26.0% to €-7.2 million in the first quarter of 2021 (Q1 2020: €-9.8 million). This was mainly attributable to lower travel expenses, lower legal and consulting fees, lower expenses for temporary workers and favorable changes in foreign exchange rates. In the first quarter of 2021, net profit fell by €1.9 million to € -2.5 million (Q1 2020: € -0.6 million). This corresponds to earnings per share of €-0.39 (Q1 2020: €-0.10).
In line with our strategic goal of maintaining and expanding our technology leadership and compared with the previous year, increased investments in innovation projects in the first quarter 2021 led to an increase of cash flow from investing activities to €3.2 million (Q1 2020: €2.2 million). Together with the decline of net profit, this resulted in a free cash flow of €-4.5 million in the quarter under review, corresponding to €3.2 million below the prior-year figure (Q1 2020: €-1.3 million).
As of 31 March 2021, the R. STAHL Group had cash and cash equivalents of €17.2 million at its disposal (31 December 2020: €19.9 million). The negative free cash flow resulted in an increase in net debt (excluding pension provisions and leasing liabilities) of €5.8 million to €11.6 million at the end of the reporting quarter compared to the level at the beginning of the year (31 December 2020: €5.8 million). Equity improved by €3.2 million year-on-year to €51.4 million (31 December 2021: €48.1 million). This mainly reflected the beneficial effects of changes in foreign exchange rates and lower provisions for pension provisions. As a result, the equity ratio increased to 20.1% compared to the beginning of the year (31 December 2020: 18.8%).
Detailed outlook for FY 2021
We first presented our assessment of R. STAHL group's expected development in the current year in detail in the forecast of the Annual Report 2020. Accordingly - supported by a significant recovery in all relevant key markets - we anticipated year-on-year sales growth in the low single-digit percentage range for 2021, a development that should gain momentum in the course of the year. In this regard, the continued systematic implementation of our strategic agenda will result in a slight year-on-year decline in EBITDA pre exceptionals. This would lead to a slight reduction in the equity ratio for the year as a whole if the valuation of our pension provisions remains unchanged. We did not anticipate any significant change with regard to the very comfortable liquidity position we had at the beginning of the year. We continue to stand by this assessment and now detail it as follows:
For 2021, we expect sales to increase to between €250 million and € 256 million, with a weaker first half of the year followed by a significantly stronger second half. We expect EBITDA pre exceptionals for the full year to be between €17 million and €19 million.
Alternative performance indicators
The alternative performance indicators EBITDA pre exceptionals and EBITDA margin pre exceptionals that are used in this report are not defined by international accounting standards. R. STAHL uses these indicators to improve the comparability of its business performance over time. EBITDA pre exceptionals is derived from earnings before interest, taxes, depreciation and amortization (EBITDA) less adjustments classified as exceptionals (restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations). EBITDA margin pre exceptionals describes EBITDA pre exceptionals in percentage of sales.
Rounding differences and rates of change
Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on economic aspects. Improvements are indicated by a "+" sign, deteriorations by a "-" sign. Rates of change >+100% are shown as >+100%, rates of change <-100% as "n/a" (not applicable).
|Key figures R. STAHL Group|| || || || || || || || |
|In € million|| || ||Q1 2021|| || ||Q1 2020|| ||Change|
|Sales|| || ||58.2|| || ||65.1|| ||-10.6|
|Germany|| || ||14.6|| || ||16.9|| ||-13.4|
|Central region 1)|| || ||28.2|| || ||29.2|| ||-3.3|
|Americas|| || ||4.8|| || ||7.2|| ||-33.8|
|Asia/Pacific|| || ||10.5|| || ||11.8|| ||-10.6|
|EBITDA pre exceptionals|| || ||2.7|| || ||4.7|| ||-44.0|
|EBITDA margin pre exceptionals|| || ||4.6%|| || ||7.3%|| || |
|EBITDA|| || ||2.6|| || ||4.7|| ||-44.3|
|EBIT|| || ||-1.5|| || ||0.5|| ||n/a|
|Net profit|| || ||-2.5|| || ||-0.6|| ||n/a|
|Earnings per share in €|| || ||-0.39|| || ||-0.10|| ||n/a|
|Order intake|| || ||63.9|| || ||78.8|| ||-18.8|
|Order backlog as of March 31|| || ||68.9|| || ||79.9|| ||-13.7|
|Cash flow from operating activities|| || ||-1.3|| || ||0.9|| ||n/a|
|Depreciation and amortization|| || ||4.1|| || ||4.2|| ||-1.3|
|Capital expenditures|| || ||3.2|| || ||2.3|| ||+37.1|
| || || ||31 Mar. 2021|| || ||31 Dec. 2020|| ||Change|
|Total assets|| || ||255.5|| || ||256.2|| ||-0.3|
|Equity|| || ||51.4|| || ||48.1|| ||+6.7|
|Equity ratio|| || ||20.1 %|| || ||18.8 %|| || |
|Net financial debt 2)|| || ||11.6|| || ||5.8|| ||+99.5|
|Net financial debt incl. lease liabilities pursuant to IFRS 16|| || ||38.2|| || ||33.1|| |
|Employees 3)|| || ||1,679|| || ||1,690|| ||-0.7|
| || || || || || || || || |
1) Africa and Europe excl. Germany
2) excl. pension provision and excluding lease liabilities
3) excl. apprentices
R. STAHL explained the preliminary results of Q1 2021 together with its audited results for FY 2020 already on 16 April, 2021 in an investors' and analysts' conference call. A replay of this conference call is available under https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations/.
Financial calendar 2021
15 July 28th Annual General Meeting
12 August Report on the first half year 2021
10 November Interim Report Q3 2021
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 oil & gas industry, the chemical and pharmaceutical industry and the food industry. In 2020, global sales amounting to €246.5 million were generated by 1,690 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
This release contains forward-looking statements based on assumptions and estimates of R. STAHL's 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.
R. STAHL AG
Dr. Thomas Kornek
Senior Vice President Investor Relations & Corporate Communications
Am Bahnhof 30
74638 Waldenburg (Württ.)
Tel. +49 7942 943-1395[email protected]
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