Quarterly Report • Nov 10, 2023
Quarterly Report
Open in ViewerOpens in native device viewer
Based on a jointly developed vision for GESCO as a group of "hidden champions", the NEXT LEVEL 25 strategy defines key points for the further development of the Group.
In 2022, GESCO expanded the strategic framework with the NEXT LEVEL 25 strategy and specified the objectives for 2025: The Industrial Group is to be expanded to 3 anchor holdings and numerous basic holdings, with the aim of generating a 10% EBIT margin. The targeted sales growth is to be achieved both through market share gains in the existing company portfolio and through inorganic growth.
The established excellence programmes to expand market share and increase operating performance are supplemented by digitalisation activities as part of the DIGITEX programme. Both digital business models and digital workflows to increase efficiency are increasingly being focussed on. As a further element, the ESG strategy is becoming increasingly important at GESCO Group and in the markets addressed.
Key figures
| in T€ | 01/01/2023 ‒ 09/30/2023 | 01/01/2022 ‒ 09/30/2022 | Change (in %) |
|---|---|---|---|
| Incoming orders | 417,322 | 459,306 | - 9.1 |
| Sales | 430,729 | 435,422 | - 1.1 |
| EBITDA | 44,456 | 54,367 | - 18.2 |
| EBIT | 31,164 | 40,838 | - 23.7 |
| EBIT margin (in %) | 7.2 | 9.4 | - 214 bp |
| EBT | 28,815 | 41,114 | - 29.9 |
| Group earnings1) | 19,564 | 26,323 | - 25.7 |
| Earnings per share (in €) | 1.80 | 2.43 | - 25.9 |
| Closing price (in €)2) | 21.10 | 21.50 | - 1.9 |
| Employees3) | 1,904 | 1,841 | 3.4 |
1) After minority interests. 2) XETRA closing price on the balance sheet date. 3) Number as at the balance sheet date.
Source: Onvista, share price trends indexed and in %.
In the first half of 2023, we were still able to report that GESCO Group companies were performing well overall and that we were cautiously optimistic about the second half of the year with the prospect of an economic recovery. In recent weeks, however, economic conditions in Germany have barely improved, even if inflationary pressure has eased recently. At the end of October, the Federal Statistical Office announced that the German economy had contracted in the third quarter and that there were no signs of a short-term recovery. Consumers' reluctance to spend is leading to a decline in demand in the German economy, which is now also having a significant impact on our subsidiaries in some cases.
In light of this difficult situation, GESCO Group's key earnings figures in the third quarter in particular fell significantly compared to the previous year. At € 138.6 million, Group sales in the third quarter of 2023 were only moderately below the previous year's level (Q3 2022: € 144.1 million) and resulted in Group sales of € 430.7 million in the first nine months of 2023 (9M 2022: € 435.4 million). Group EBIT only totalled € 8.3 million in the third quarter of 2023
(Q3 2022: € 15.0 million). For the first nine months, the Group generated Group EBIT of € 31.2 million (9M 2022: € 40.8 million). Overall, the Group generated earnings of € 5.8 million in the third quarter (Q3 2022: € 10.0 million) and Group earnings after minority interests of € 19.6 million for the first nine months (9M 2022: € 26.3 million).
The main reasons for the decline in sales and, above all, earnings are the poor performance in the construction industry and the significant fall in material prices. The fall in material prices for energy, paper and steel, among others, led to a decline in sales at individual subsidiaries due to price adjustments. A closer look at our subsidiaries reveals a clearly heterogeneous picture. Unsurprisingly, companies that are already market leaders in their relevant markets are coping with the challenges much better than companies that have to deal with tough competition from a large number of rivals.
Our subsidiaries AstroPlast Kunststofftechnik and Franz Funke Zerspanungstechnik are particularly affected by the poor situation in the construction industry – in September 2023, the business climate in the residential construction sector surveyed by the Ifo Institute fell to its worst level since the survey began in 1991.
In light of this and other current information on the development of, non-cash impairments of the investments are unavoidable. The impairments will be recognised in
the 4th quarter. The necessary impairments and the slowdown in business momentum in the third quarter have prompted the Executive Board to adjust the forecast corridor for the current financial year 2023. The Executive Board now expects consolidated sales of € 555–575 million for the 2023 financial year (previously: around € 600–620 million) and net profit after minority interests in a range of € 19.5–21.5 million (previously: € 32–34 million) after non-cash impairments of € 5–6 million.
Wuppertal, November 2023
Strategic development
So far, the current year has not developed as we expected. Nevertheless, this development should be perceived for what it is: a temporary dip in a sustained upward trend that has manifested itself since the turn of 2019/2020.
Over the past few months, we have continuously driven forward our strategic development: The aim is to diversify our base and tap into new markets and regions in order to become even more independent of individual market and economic cycles and thus generate sustainable business growth. Our broader positioning is already reflected in our increasingly higher share of foreign sales.
We remain convinced of the underlying medium and longterm growth opportunities of the majority of our subsidiaries. The excellence programmes are taking effect and have
CEO CFO
Ralph Rumberg Andrea Holzbaur
In January 2023, SVT GmbH acquired 100% of the shares in the steel construction division of its long-standing Hungarian supplier BAV Tatabánya Kft. The acquired division of BAV, which was founded in 1992, employs around 60 people.
The previously non-consolidated company Connex SVT Inc., Houston, USA, also a subsidiary of SVT GmbH, was included in the scope of consolidation in January 2023.
In May 2023, Doerrenberg Specialty Steel Corp. acquired 100% of the shares in Tremblay Tool Steels, LLC in Ohio, USA. Tremblay Tool Steels has been a sales partner of the Dörrenberg Group in the USA since 2014 and is a supplier of special steel for various industries.
In May 2023, GESCO SE acquired the 5% share in Dörrenberg Edelstahl GmbH held by the former managing partner Mr Gerd Böhner. GESCO SE now holds 100% of the shares in the company.
In addition to the macroeconomic environment, GESCO Group's business development is also strongly influenced by the development of individual sectors. These include mechanical engineering in particular, but also the infrastructure, construction and healthcare sectors. The latter sectors in particular are currently experiencing a significant slowdown in economic activity.
While global economic development is on a slow recovery path in 2023 with an average of 3.0% according to the OECD, Germany is the only economically relevant country in recession. The Ifo Institute is forecasting a decline in economic output of 0.4% for the current year and expects only moderate growth of 1.4% and 1.2% in 2024 and 2025 respectively.
GESCO Group must now also pay tribute to this gloomy business environment. While business development in the first half of 2023 could be described as challenging but still good overall, the conclusion for the third quarter is sobering. The subdued order intake since the beginning of the year is continuing and is now leading to a slight decline in sales in the Group for the first time.
Incoming orders at GESCO Group totalled € 417.3 million in the reporting period, down on the previous year's figure of € 459.3 million (- 9.1% compared to Q3 2022). Group sales declined by 1.1% to € 430.7 million compared to the same period of the previous year (Q3 2022: € 435.4 million). This puts the book-to-bill ratio at 0.97 (Q3 2022: 1.05).
Material prices continued to fall in the third quarter compared to the previous quarter. On the one hand, this led to a decline in sales at some subsidiaries due to price adjustments. On the other hand, this results in a slightly lower cost of materials ratio of 58.7% compared to 59.4% in the 9-month comparison. However, this was still 64.4% in the first quarter and 60.3% in the second quarter.
The personnel expenses ratio rose to 22.2% (previous year: 21.0%) due to higher personnel expenses, partly as a result of a larger number of employees, not least due to the acquisition of BAV and the inflation adjustment premium paid. Other operating expenses increased by € 1.7 million to € 48.5 million, mainly as a result of the acquisition of the equity investments. EBITDA totalled € 44.5 million in the reporting period (Q3 2022: € 54.4 million).
Depreciation and amortisation decreased moderately to € 13.3 million (Q3 2022: € 13.5 million). At € 31.2 million, EBIT in the reporting period was 23.7% lower than in the same period of the previous year (Q3 2022: € 40.8 million).
Group earnings after minority interests totalled € 19.6 million. This corresponds to a decrease of € 6.8 million compared to the previous year (Q3 2022: € 26.3 million). Earnings per share therefore totalled € 1.80 (Q3 2022: € 2.43).
In the Process Technology segment, the uncertainty among market participants regarding future economic developments is particularly evident. Due to the pronounced reluctance to place orders, incoming orders fell to just € 70.7 million in the reporting period (Q3 2022: € 92.4 million). This resulted in an order backlog of € 66.3 million as at the reporting date (Q3 2022: € 71.8 million).
Segment sales fell minimally by 0.8% from € 76.3 million in the first nine months of the previous year to € 75.7 million. EBIT totalled € 7.3 million in the reporting period after € 9.2 million in the same period of the previous year, which corresponds to an EBIT margin of 9.6% (Q3 2022: 12.1%). The decline is due to higher personnel expenses and cost of materials as well as slightly higher depreciation and amortisation.
For the remainder of the 2023 financial year, we continue to see stable development in the mechanical and plant engineering sector, supported by the still solid order backlog. Compared to the previous year, we expect sales for the segment for the full year to be slightly above the previous year's level, but with a lower contribution to earnings.
The Resource Technology segment continued to perform robustly in the reporting period, although the decline in material prices had a significant impact on the key figures. Incoming orders totalled € 247.5 million, a decrease of 3.3% compared to the same period of the previous year (Q3 2022). Sales increased slightly by 0.1% from € 248.6 million (Q3 2022) to € 248.9 million. Segment EBIT totalled € 23.9 million after € 30.2 million in the same period of the previous year. In addition to the decline in material prices, lower alloy surcharges in particular played an important role here. Alloy surcharges are now back at the level seen at the end of 2021. The segment's EBIT margin fell accordingly from 12.1% (Q3 2022) to 9.6%.
The somewhat subdued demand in the tool and strip steel area, as well as an absolute increase in personnel costs compared to the previous year, are having a moderate negative impact on the outlook in this segment. However, we have initiated product expansions and won new projects with our MAPEX programmes. We are also stepping up our expansion into non-European countries. Overall, we expect sales and earnings for the full year to be below the previous year with lower profitability.
The companies in the Healthcare and Infrastructure Technology segment experienced very mixed business development in the first nine months of 2023. Paper stick production continues to play a special role and is benefiting from the global demand for sustainability. Falling paper prices are leading to sales at around the previous year's level. However, profitability is not suffering as a result. The situation is different for the other companies in the segment. A significant drop in incoming orders led to a lower order backlog and thus to inefficient utilisation of production capacities. A number of measures were therefore implemented over the course of the year, including personnel adjustments. This is also reflected in the 7.4% reduction in the number of employees at compared to the previous year.
Incoming orders in the segment fell by 10.6% year-on-year to € 99.2 million. The decline reflects the restraint in the construction and healthcare sectors. In this segment, orders are generally awarded as longer-term framework agreements and are therefore subject to market cyclicality. The fact that incoming orders were lower than sales is a visible sign of the difficult market conditions and creates corresponding pressure to adjust. The Executive Board is vigorously supporting this process. In line with the lower order intake, the order backlog also fell to € 33.8 million at the end of the reporting period (Q3 2022: € 48.7 million).
At € 106.1 million, sales in the reporting period were 4.0% below the previous year's level (Q3 2022: € 110.5 million). EBIT decreased to € 8.3 million (Q3 2022: € 10.3 million); the segment's EBIT margin fell accordingly from 9.3% to a weak 7.8%. Although personnel adjustments were made early on in this segment, with the exception of paper rod production, these were deliberately not reduced to the same extent as the decline in sales at the companies concerned. As a result, personnel costs increased relative to sales and the likewise reduced operating performance.
The selective cost-cutting measures that have been introduced will be continued in the current quarter with the aim of achieving the optimum balance between earnings contribution and rapid ramp-up capability.
The continued solid development in the production of paper sticks cannot compensate for the difficult situation of the other companies in the segment. For the year as a whole, sales and earnings are expected to be below the previous year's level.
At € 509.6 million, total assets on the balance sheet date were 7.5% higher than the level at the beginning of the financial year of € 473.9 million. Non-current assets remained virtually unchanged, while current assets increased by around 11.3% from € 288.1 million to € 320.8 million. Inventories increased by 14.4% to € 184.0 million, primarily due to higher inventories of finished goods and work in progress. However, they are at a very similar level compared to the same time last year (Q3 2022: € 180.0 million).
Trade receivables fell minimally by 1.0% to 81.4 million. The increase in other assets is mainly due to tax receivables. At € 44.0 million, cash and cash equivalents are higher than at the beginning of the year (€ 36.3 million) and at the same time in the previous year (€ 30.1 million).
The balance sheet ratios remain extremely solid and the gearing ratio is low. While equity increased in absolute terms, the equity ratio of 54.7% as at the reporting date was below the figure reported as at 31 December 2022
(58.0%), primarily due to the increase in total assets. Non-current liabilities increased by 32.1%; this is mainly due to the higher liabilities to credit institutions (+€ 20.1 million).
In line with the significant increase in current assets, current liabilities also increased by 11.6% compared to the beginning of the year to € 144.7 million. Compared to 30 June 2023, however, this represents a decrease of € 21.0 million or 12.7%. Trade payables (+37.8%) had the main influence here.
The workforce in the Healthcare and Infrastructure Technology segment was significantly reduced in the reporting period, while the reduction in the Process Technology segment was moderate. The workforce in the Resource Technology segment increased significantly. This development was mainly due to the takeover of its long-standing Hungarian supplier BAV-Tatabánya Kft. by SVT and the acquisition of Tremblay Tool Steels, LLC by Doerrenberg Specialty Steel Corp.
As at the reporting date, GESCO Group employed a total of 1,904 people (30 June 2023: 1,889). Compared to the figure of 1,841 as at 31 December 2022, the Group workforce increased by 3.4% in the reporting period as a result of these acquisitions.
The general statements on opportunities and risks as well as the presentation of specific individual risks in the consolidated financial statements as at 31 December 2022 essentially remain valid and we therefore refer to the detailed presentation in the annual report for the 2022 financial year. The report can be accessed online at www.gesco.de/ en/investor-relations/financial-reports.
The uncertainties due to the macroeconomic conditions in 2023 remain high.
The uncertainties include, in particular, the ongoing tense geopolitical situation and its potential impact on global trade flows. Added to this are high inflation rates and the increased interest rates to combat them. The less dynamic development of the global economy and the recession in Germany are an additional burden on companies. All of these factors have a major impact on the business development of the GESCO Group. The exact extent of the factors and the interactions between them are difficult to assess, meaning that the resulting overall risk remains difficult to calculate.
Despite the difficult macroeconomic and still volatile geopolitical conditions, the GESCO subsidiaries are well positioned not only to maintain their market positions, but also to further expand them.
The current development of business figures is characterised by the recession in Germany and the unstable global situation, which is leading to a strong reluctance on the part of customers. Our subsidiaries have been affected to varying degrees by these adverse market conditions. While the companies in the Resource Technology and Process Technology segments continue to achieve good EBIT margins, the Healthcare and Infrastructure Technology segment is suffering from the very tense situation in the construction industry, which is confronting the companies AstroPlast and Franz Funke in particular with considerable challenges.
Incoming orders are currently declining in all segments; this is particularly noticeable in the Process Technology segment.
Against the backdrop of the unfavourable market conditions in Germany and other current information on the development of individual subsidiaries, non-cash impairment losses of around € 5–6 million are to be recognised in the Healthcare and Infrastructure Technology segment as part of the annual impairment test.
The impairments at the investments and the slowdown in business momentum in the third quarter have prompted the Executive Board to adjust the forecast corridor for the current financial year 2023 as follows. The Executive Board now expects consolidated sales of € 555–575 million for the 2023 financial year (previously: around € 600–620 million) and consolidated net income after minority interests of € 19.5–21.5 million (previously: € 32–34 million).
The forecast is fundamentally subject to uncertainties. These may result from a possible intensification of current conflicts (including in Ukraine and the Middle East), a significant deterioration in the economic conditions in key sales markets or the opportunities and risks compared to current expectations as described above.
This forecast does not take into account planned transactions.
On 3 November 2023, GESCO SE published insider information with a new forecast for financial year 2023. The forecast includes non-cash impairment losses of approximately € 5–6 million. The market position of individual subsidiaries does not yet fulfil GESCO's expectations and, in connection with the current economic development in the construction industry, is leading to non-cash impairment losses on the investments in the Healthcare and Infrastructure Technology segment. These impairment losses will be precisely calculated and recognised in the fourth quarter once the final parameters are available.
No other events of particular significance occurred after the end of the reporting period.
| in T€ | 09/30/2023 | 12/31/2022 |
|---|---|---|
| Assets | ||
| A. Non-current assets | ||
| I. Intangible assets 1. Industrial property rights and similar rights and assets as well as licences to such rights and assets |
22,357 | 24,683 |
| 2. Goodwill | 38,950 | 38,935 |
| 3. Advance payments made | 2 | 148 |
| 61,309 | 63,766 | |
| II. Tangible assets | ||
| 1. Land and buildings |
56,165 | 55,482 |
| 2. Technical equipment and machinery | 29,892 | 28,050 |
| 3. Other equipment, operating and office equipment | 14,859 | 14,861 |
| 4. Prepayments made and assets under construction | 9,859 | 6,906 |
| 110,775 | 105,299 | |
| III. Financial investments | ||
| 1. Shares in companies recognised at equity |
2,275 | 2,424 |
| 2. Investments | 156 | 156 |
| 3. Other loans | 9,371 | 9,371 |
| 11,802 | 11,951 | |
| IV. Other assets | 12 | 12 |
| V. Deferred tax assets | 4,887 | 4,807 |
| 188,785 | 185,835 | |
| B. Current assets | ||
| I. Inventories |
||
| 1. Raw materials and supplies |
42,056 | 40,083 |
| 2. Work in progress, unfinished services | 33,753 | 27,770 |
| 3. Finished products and goods | 107,241 | 92,359 |
| 4. Advance payments made | 901 | 542 |
| 5. Advance payments received | 4 | 0 |
| 183,955 | 160,754 | |
| II. Receivables and other assets | ||
| 1. Trade receivables |
81,394 | 82,219 |
| 2. Receivables from affiliated companies | 0 | 1,698 |
| 3. Receivables from companies recognised at equity | 392 | 392 |
| 4. Other assets | 8,209 | 5,444 |
| 89,995 | 89,753 | |
| III. Cash in hand and bank balances | 44,026 | 36,251 |
| IV. Accounts receivable and payable | 2,798 | 1,320 |
| 320,774 | 288,078 | |
| 509,559 | 473,913 |
| in T€ | 09/30/2023 | 12/31/2022 |
|---|---|---|
| Equity and liabilities | ||
| A. Equity | ||
| I. Subscribed capital |
10,839 | 10,839 |
| II. Capital reserve | 72,433 | 72,433 |
| III. Revenue reserves | 191,081 | 184,442 |
| IV. Other result | - 2,787 | - 3,114 |
| V. Minority interests (corporations) | 7,000 | 10,106 |
| 278,566 | 274,706 | |
| B. Non-current liabilities | ||
| I. Provisions for pensions |
9,383 | 10,209 |
| II. Other non-current provisions | 467 | 597 |
| III. Liabilities to banks | 45,623 | 25,557 |
| IV. Leasing liabilities | 14,164 | 15,404 |
| V. Other liabilities | 427 | 995 |
| VI. Deferred tax liabilities | 8,108 | 6,421 |
| 78,172 | 59,183 | |
| C. Current liabilities | ||
| I. Other provisions |
6,781 | 10,220 |
| II. Liabilities | ||
| 1. Liabilities to banks |
51,056 | 50,800 |
| 2. Leasing liabilities | 3,420 | 3,228 |
| 3. Trade payables | 25,107 | 18,224 |
| 4. Advance payments received on orders | 20,727 | 17,717 |
| 5. Liabilities to affiliated companies | 0 | 478 |
| 6. Other liabilities | 44,388 | 39,202 |
| 144,698 | 129,649 | |
| III. Accruals and deferrals | 1,342 | 155 |
| 152,821 | 140,024 | |
| 509,559 | 473,913 |
| in T€ | 01/01/2023 – 09/30/2023 |
01/01/2022 – 09/30/2022 |
|---|---|---|
| Sales revenues | 430,729 | 435,422 |
| Change in inventories of finished goods and work in progress | 5,594 | 11,537 |
| Other own work capitalised | 317 | 460 |
| Other operating income | 4,614 | 5,744 |
| Total output | 441,254 | 453,163 |
| Cost of materials | - 252,676 | - 258,703 |
| Personnel expenses | - 95,446 | - 91,654 |
| Other operating expenses | - 48,515 | - 46,817 |
| Impairment losses on financial assets | - 161 | - 1,622 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 44,456 | 54,367 |
| Amortisation of intangible assets and tangible assets | - 13,292 | - 13,529 |
| Earnings before interest and taxes (EBIT) | 31,164 | 40,838 |
| Earnings from investments | 0 | 1,034 |
| Earnings from companies recognised at equity | 406 | 521 |
| Income from loans of financial assets | 270 | 270 |
| Other interest and similar income | 129 | 7 |
| Depreciation on financial assets | 10 | 0 |
| Interest and similar expenses | - 3,164 | - 1,578 |
| Third-party profit shares in partnerships | 0 | 22 |
| Financial result | - 2,349 | 276 |
| Earnings before taxes (EBT) | 28,815 | 41,114 |
| Taxes on income and earnings | - 8,298 | - 12,749 |
| Group earnings | 20,517 | 28,365 |
| thereof | ||
| Minority interests in companies | 953 | 2,042 |
| Attributable to GESCO shareholders | 19,564 | 26,323 |
| Earnings per share (€) | 1.80 | 2.43 |
| in T€ | 07/01/2023 – | 07/01/2022 – |
|---|---|---|
| 09/30/2023 | 09/30/2022 | |
| Sales revenues | 138,594 | 144,058 |
| Change in inventories of finished goods and work in progress | - 3,898 | 7,994 |
| Other own work capitalised | 99 | 134 |
| Other operating income | 2,000 | 1,476 |
| Total output | 136,795 | 153,662 |
| Cost of materials | - 76,405 | - 88,211 |
| Personnel expenses | - 31,614 | - 30,549 |
| Other operating expenses | - 15,978 | - 15,277 |
| Impairment losses on financial assets | - 30 | - 100 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 12,768 | 19,525 |
| Amortisation of intangible assets and tangible assets | - 4,448 | - 4,560 |
| Earnings before interest and taxes (EBIT) | 8,320 | 14,965 |
| Earnings from companies recognised at equity | 257 | 41 |
| Income from loans of financial assets | 90 | 90 |
| Other interest and similar income | 92 | 2 |
| Interest and similar expenses | - 1,189 | - 540 |
| Financial result | - 750 | - 407 |
| Earnings before taxes (EBT) Taxes on income and earnings |
7,570 - 1,818 |
14,558 - 4,509 |
| Group earnings | 5,752 | 10,049 |
| thereof | ||
| Minority interests in companies | 491 | 543 |
| Attributable to GESCO shareholders | 5,261 | 9,506 |
| Earnings per share (€) | 0.49 | 0.88 |
| in T€ | 01/01/2023 – 09/30/2023 |
01/01/2022 – 09/30/2022 |
|---|---|---|
| Group earnings | 20,517 | 28,365 |
| Revaluation of defined benefit obligations not affecting net income | 698 | 2,619 |
| Items that cannot be reclassified to the Profit and Loss account | 698 | 2,619 |
| Currency conversion difference | ||
| Change in value not affecting Profit or Loss | 117 | 2,602 |
| Difference from currency conversion of companies valued at equity | ||
| Change in value not affecting Profit or Loss | - 507 | - 249 |
| Market valuation of hedging instruments | ||
| Change in value not affecting Profit or Loss | 18 | 289 |
| Items that can be reclassified to the Profit and Loss account | - 372 | 2,642 |
| Other earnings | 326 | 5,261 |
| Total earnings for the period | 20,843 | 33,626 |
| of which minority interests in companies | 952 | 1,967 |
| of which attributable to GESCO shareholders | 19,891 | 31,659 |
| in T€ | 01/01/2023 – 09/30/2023 |
01/01/2022 – 09/30/2022 |
|---|---|---|
| Profit for the period (including minority interests in the profit of corporations) | 20,517 | 28,365 |
| Amortisation of intangible assets and depreciation of tangible assets | 13,292 | 13,529 |
| Impairment losses on non-current assets | - 10 | 0 |
| Earnings from companies valued at equity | - 406 | - 521 |
| Share of earnings attributable to minority shareholders | 0 | - 22 |
| Decrease in non-current provisions | - 1,603 | - 272 |
| Other non-cash income / expenses | 776 | 15 |
| Cash flow for the period | 32,566 | 41,094 |
| Losses from the disposal of tangible assets / intangible assets | 4 | 279 |
| Gains from the disposal of tangible assets / intangible assets | - 120 | - 102 |
| Increase in inventories, trade receivables, and other assets | - 18,948 | - 74,649 |
| Increase in trade payables and other liabilities | 10,667 | 21,508 |
| Cash flow from operating activities | 24,169 | - 11,870 |
| Proceeds from disposals of tangible assets / intangible assets | 382 | 755 |
| Payments for investments in tangible assets | - 11,608 | - 6,197 |
| Payments for investments in intangible assets | - 489 | - 1,026 |
| Proceeds from disposals of financial assets | 13 | 0 |
| Payments for the acquisition of consolidated companies and other business units | - 4,343 | 0 |
| Cash flow from investing activities | - 16,045 | - 6,468 |
| Payments to shareholders (dividend) | - 10,839 | - 10,601 |
| Payments for the purchase of own shares | 0 | - 865 |
| Payments to minority interests | - 967 | - 1,049 |
| Payments for the acquisition of non-controlling interests | - 6,368 | - 6,639 |
| Proceeds from the taking up of (financial) loans | 35,833 | 21,479 |
| Payments for the redemption of (financial) loans | - 15,511 | - 10,251 |
| Payments for the redemption of lease liabilities | - 2,497 | - 1,685 |
| Cash flow from financing activities | - 349 | - 9,611 |
| Cash-effective change in cash and cash equivalents | 7,775 | - 27,949 |
| Change in cash and cash equivalents due to exchange rate fluctuations | 0 | 300 |
| Cash and cash equivalents as at 01/01 | 36,251 | 57,714 |
| Cash and cash equivalents as at 09/30 | 44,026 | 30,065 |
| in T€ | Subscribed Capital |
Capital reserves | Retained earnings |
Own shares | |
|---|---|---|---|---|---|
| As at 01/01/2022 | 10,839 | 72,398 | 164,479 | 0 | |
| Dividends | - 10,601 | ||||
| Acquisition of own shares | - 865 | ||||
| Acquisition of shares in subsidiaries | - 3,161 | ||||
| Sale of shares in subsidiaries | |||||
| Group net earnings for the period | 26,323 | ||||
| As at 09/30/2022 | 10,839 | 72,398 | 177,040 | - 865 | |
| As at 01/01/2023 | 10,839 | 72,433 | 184,442 | 0 | |
| Dividends | - 10,839 | ||||
| Changes in scope of consolidation | 1,016 | ||||
| Acquisition of shares in subsidiaries | - 3,102 | ||||
| Group net earnings for the period | 19,564 | ||||
| As at 09/30/2023 | 10,839 | 72,433 | 191,081 | 0 | |
| in T€ | Process Technology |
Resource Technology |
Healthcare and Infrastructure Technology |
||||
|---|---|---|---|---|---|---|---|
| 01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
||
| Order backlog | 66,288 | 71,754 | 108,690 | 121,218 | 33,779 | 48,716 | |
| Incoming orders (consolidated) | 70,690 | 92,352 | 247,452 | 256,017 | 99,180 | 110,937 | |
| Sales revenues | 75,738 | 76,332 | 248,928 | 248,564 | 106,070 | 110,533 | |
| of which with other segments | 0 | 0 | 9 | 7 | 0 | 0 | |
| Depreciation and amortisation (annual accounts) | 1,636 | 1,371 | 3,735 | 3,725 | 3,500 | 3,085 | |
| EBIT | 7,258 | 9,200 | 23,947 | 30,192 | 8,251 | 10,297 | |
| Investments | 3,365 | 1,498 | 5,501 | 2,893 | 3,205 | 2,791 | |
| Employees (number / reporting date) | 531 | 537 | 851 | 739 | 503 | 543 |
| Equity | Minority interests in corporations |
Total | Hedging instruments |
Revaluation of pensions |
Currency adjustment item |
|---|---|---|---|---|---|
| 255,734 | 12,466 | 243,268 | - 14 | - 3,215 | - 1,219 |
| - 11,614 | - 1,013 | - 10,601 | |||
| - 865 | - 865 | ||||
| - 6,639 | - 3,340 | - 3,299 | - 117 | - 21 | |
| 33,626 | 1,967 | 31,659 | 289 | 2,546 | 2,501 |
| 270,242 | 10,080 | 260,162 | 275 | - 786 | 1,261 |
| 274,706 | 10,106 | 264,600 | 4 | - 2,011 | - 1,107 |
| - 11,806 | - 967 | - 10,839 | |||
| 1,016 | 1,016 | ||||
| - 6,193 | - 3,091 | - 3,102 | |||
| 20,843 | 952 | 19,891 | 18 | 678 | - 369 |
| 278,566 | 7,000 | 271,566 | 22 | - 1,333 | - 1,476 |
| Process Resource Healthcare and Technology Technology Infrastructure Technology |
GESCO SE / other companies |
Reconciliation | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 01/01/2023 ‒ 01/01/2022 ‒ 01/01/2023 ‒ 01/01/2022 ‒ 01/01/2023 ‒ 01/01/2022 ‒ 09/30/2023 09/30/2022 09/30/2023 09/30/2022 09/30/2023 09/30/2022 |
01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
01/01/2023 ‒ 09/30/2023 |
01/01/2022 ‒ 09/30/2022 |
|||
| 66,288 71,754 108,690 121,218 33,779 48,716 |
0 | 0 | 0 | 0 | 208,757 | 241,688 | |||
| 92,352 247,452 256,017 99,180 110,937 |
0 | 0 | 0 | 0 | 417,322 | 459,306 | |||
| 76,332 248,928 248,564 106,070 110,533 |
1,591 | 1,340 | - 1,598 | - 1,347 | 430,729 | 435,422 | |||
| 9 7 0 0 |
1,591 | 1,340 | - 1,600 | - 1,347 | 0 | 0 | |||
| 3,735 3,725 3,500 3,085 |
53 | 75 | 4,368 | 5,273 | 13,292 | 13,529 | |||
| 30,192 8,251 10,297 |
- 6,464 | - 6,655 | - 1,828 | - 2,196 | 31,164 | 40,838 | |||
| 2,893 3,205 2,791 |
1 | 43 | 1,494 | 1,339 | 13,566 | 8,564 | |||
| 503 543 |
19 | 22 | 0 | 0 | 1,904 | 1,841 | |||
The report on the 9-month period (1 January to 30 September 2023) of financial year 2023 (1 January to 31 December 2023) of GESCO Group was prepared based on the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB).
Unless otherwise stated, the accounting and valuation principles applied correspond to those of the consolidated financial statements as at 31 December 2022. The preparation of the financial statements is influenced by recognition and valuation methods as well as assumptions and estimates that affect the amount and presentation of the assets, liabilities and contingent liabilities recognised as well as the income and expense items. Sales-related items are recognised on an accrual basis during the year.
Publication of Quarterly Statement Q3/2023
36th MKK – Munich Capital Market Conference
German Equity Forum
Peter Alex Head of Investor Relations GESCO SE Johannisberg 7 42103 Wuppertal Germany
Phone +49 202 24820-18 Fax +49 202 24820-49
[email protected] www.gesco.de
If you would like to receive regular updates, please contact us by e-mail or telephone. Or use the order function on our website at: www.gesco.de/en/investor-relations/ service-ir-contact/.
We will gladly add you to our permanent mailing list.
This 9-month report contains forward-looking statements that are based on the current assumptions and forecasts of the Executive Board of GESCO SE. These statements are therefore subject to risks and uncertainties. The actual results and business development of GESCO SE and GESCO Group may differ materially from the estimates given in this interim statement. GESCO SE assumes no obligation to update such forward-looking statements or to conform them to future events or developments.
This 9-month report is also available in English; in the event of deviations, the German version of the 9-month report shall prevail.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.