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Einhell Germany AG Interim / Quarterly Report 2024
134_10-q_2024-11-13_c29f4adb-c888-491a-89a0-4aa11f434b46.pdf
Interim / Quarterly Report
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Einhell
QUARTERLY REPORT
30 September 2024
>>> einhell.com
Quarterly notification as of 30 September 2024
Contents
At a glance
Financial figures
Group structure
Revenue, earnings, financial position
Revenue
Earnings
Financial position
Performance by segment
Current strategic developments
Events after reporting date
Outlook
Consolidated statement of financial position
Consolidated income statement
Consolidated statement of cash flows
Segment reporting
Financial calendar and legal company information
At a glance
The Einhell Group generated record revenue and a record profit in the first nine months of the 2024 financial year. Revenue increased not only vis-à-vis the previous year, but also compared to the record year 2022. The Einhell Group generated revenue of EUR 839.3 million from January to September 2024 (previous year: EUR 755.8 million). Revenue growth is driven primarily by the great demand for Power X-Change products. Compared to the same period last year, the revenue share of Power X-Change tools has increased from 45% to around 50%.
The positive result had a very favourable effect on liquidity compared to the same period of the previous year. This means that the Group is debt-free on balance.
Einhell successfully introduced supply chain finance structures in China last year, which also had a very positive impact on the Group's liquidity.
Earnings before taxes and PPA amount to EUR 73.9 million (after PPA: EUR 72.7 million). This corresponds to a margin before taxes and PPA of 8.8% (after PPA: 8.7%). The PPA effects result from the purchase price allocation following the acquisitions of King Canada and Surazinsano Co. Ltd., Thailand.
Financial figures
| in EUR million | Q1-Q3 2024 | Q1-Q3 2023 | Change in % |
|---|---|---|---|
| Revenue | 839.3 | 755.8 | 11.1 |
| EBT | 72.7 | 62.8 | 15.8 |
| EBT before PPA | 73.9 | 64.2 | 15.1 |
| EBIT | 76.4 | 68.0 | 12.4 |
| Net debt (bank liabilities less bank deposits) | -0.2 | 58.8 | -100.3 |
| Q1-Q3 2024 | Q1-Q3 2023 | Change in % | |
| --- | --- | --- | --- |
| Equity ratio in % | 46.3 | 48.2 | -3.9 |
| Earnings per share in EUR | 4.5 | 3.8 | 18.4 |
| Headcount | 2,454 | 2,518 | -2.5 |
Quarterly notification as of 30 September 2024
Group structure
Sale of Einhell Colombia S.A.S.
As at 31 May 2024, Einhell Germany AG sold all of its interests in the wholly owned company Einhell Colombia S.A.S. for EUR 1.9 million, EUR 0.4 million of which have already been paid. The remaining amount (EUR 1.5 million) was recognised under current financial assets. The sale generated a loss of EUR 0.9 million that is recognised in the statement of income in the other expenses item.
Revenue, earnings and financial position
Revenue
In the months January to September 2024, revenue of EUR 839.3 million was significantly (+11%) above the previous year's level. Even the corresponding nine-month period in the record year 2022, when revenue reached the one billion euro mark for the first time, was exceeded (+4.2%).
Earnings
From January to September 2024, the Einhell Group generated profit before income taxes (EBT) of EUR 72.7 million (previous year: EUR 62.8 million). The pre-tax margin is 8.7% (previous year: 8.3%). Adjusted for the effects of the King Canada and Surazinsano Co. Ltd., Thailand PPA, the margin amounts to 8.8%.
Consolidated net income after minority interest amounts to EUR 50.4 million in the period under review (previous year: EUR 42.6 million), which results in earnings per share of EUR 4.5 (previous year: EUR 3.8 per share). A three-for-one share split was carried out in the 2024 financial year, taking the number of shares up to 11,323,200. The comparison figure per share was adjusted in accordance with the share split.
Personnel expenses rose from EUR 97.4 million to EUR 105.7 million compared to the previous year. This is mainly driven by the takeovers of the companies in Thailand and Vietnam.
Depreciation and amortisation increased in the first nine months of 2024 to EUR 14.1 million (previous year: EUR 11.6 million) as substantial capital was expended for property, plant and equipment and right-of-use assets in recent years.
Other expenses increased from EUR 129.6 million to EUR 146.9 million. They mainly comprise costs for warehousing of EUR 12.0 million, outbound freight of EUR 27.7 million and advertising of EUR 61.0 million. Advertising costs also include customer conditions and marketing costs.
The financial result of EUR -3.8 million (previous year: EUR -5.2 million) has improved compared to the prior-year period.
Financial position
The material items in the statement of financial position as at 30 September 2024 and 30 September 2023 are as follows:
| in EUR million | Q1-Q3 2024 | Q1-Q3 2023 |
|---|---|---|
| Non-current assets incl. deferred tax assets | 165.0 | 151.3 |
| Inventories | 369.1 | 333.2 |
| Trade receivables | 207.7 | 175.2 |
| Cash and cash equivalents | 100.5 | 46.5 |
| Equity | 409.3 | 360.4 |
| Liabilities to banks | 100.2 | 105.3 |
In the period under review, the Einhell Group made investments (without right-of-use assets) amounting to EUR 12.6 million (previous year: EUR 9.2 million without right-of-use assets and purchase prices for acquisitions). The majority of this was spent on operating and office equipment, advance payments and assets under construction, and intangible assets. Non-current assets include right-of-use assets for property, plant and equipment under rental and lease
Quarterly notification as of 30 September 2024
contracts amounting to EUR 17.9 million (previous year: EUR 15.6 million).
Goods inventories increased as against the prior-year period to EUR 369.1 million (previous year: EUR 333.2 million).
Trade receivables are shown after deduction of impairment for expected credit losses. Supported by the revenue increase, trade receivables climbed by EUR 32.5 million year-on-year to EUR 207.7 million in the period under review (previous year: EUR 175.2 million).
Cash and cash equivalents amount to EUR 100.5 million as at the reporting date (previous year: EUR 46.5 million). Compared to the previous year, liabilities to banks decreased by EUR 5.1 million from EUR 105.3 million to EUR 100.2 million. These include promissory note loans amounting to EUR 75 million that were issued in December 2021 as well as KfW loans. As at 30 September 2024, cash and cash equivalents are slightly higher than liabilities to banks, as a result of which the Group is debt-free on balance.
Performance by segment
Revenue generated in the first to third quarter 2024 breaks down by segment as follows:
| in EUR million | Q1-Q3 2024 | Q1-Q3 2023 |
|---|---|---|
| Western Europe incl. D/A/CH | 490.6 | 446.7 |
| Eastern Europe | 92.6 | 78.7 |
| Overseas and Other Countries | 209.9 | 196.2 |
| Production and Sourcing Companies | 46.2 | 34.2 |
| Einhell Group | 839.3 | 755.8 |
The profit before income taxes (EBT) amounts to EUR 72.7 million (previous year: EUR 62.8 million).
The development in the individual regions was as follows:
| in EUR million | Q1-Q3 2024 | Q1-Q3 2023 |
|---|---|---|
| Western Europe incl. D/A/CH | 37.0 | 33.7 |
| Eastern Europe | 8.7 | 7.1 |
| Overseas and Other Countries | 22.2 | 16.8 |
| Production and Sourcing Companies | 5.9 | 1.0 |
| Reconciliation | -1.1 | 4.2 |
| Einhell Group | 72.7 | 62.8 |
Western Europe incl. D/A/CH
Revenue in the Western Europe incl. D/A/CH segment increased by EUR 43.9 million to EUR 490.6 million.
The companies with the highest revenues in this segment are Einhell Germany AG with EUR 284.0 million, the subsidiary in France (Einhell SAS) with EUR 47.6 million and Einhell UK with EUR 28.0 million. The companies in the Nordic region, on the other hand, experienced sales difficulties.
Einhell Austria has the largest share of sales of PXC devices at $78.7\%$ (previous year: $72.5\%$ ). Einhell Switzerland and Einhell Germany AG are both at a PXC revenue share of around $63\%$ .
PXC devices accounted for $61.9\%$ of revenue in the UK, which also corresponds to an increase (previous year: $54.8\%$ ).
Quarterly notification as of 30 September 2024
EBT increased by EUR 3.3 million to EUR 37.0 million in the Western Europe incl. D/A/CH segment.
Eastern Europe
Revenue in the Eastern Europe segment increased by EUR 13.9 million compared to the prior-year period. The companies with the highest revenue in the Eastern Europe segment were Einhell Croatia and Einhell Turkey. Despite the difficult economic environment in Turkey, the subsidiary managed to increase its revenue by approx. 31% compared to the previous year's period.
Earnings before taxes (EBT) improved in the Eastern Europe segment. The strong increase in earnings
before taxes (+22.5%) was driven by the strong revenue performance of the segment.
Overseas and Other Countries
Revenue in the Overseas and Other Countries segment increased by EUR 13.7 million compared to the prior-year period. The companies with the highest revenue in this segment were Einhell Australia (formerly: Ozito) with EUR 147.5 million and Einhell Canada with EUR 23.0 million. Since mid-2023, this segment also includes the subsidiary in Thailand. This company contributed EUR 7.6 million to revenue in the period under review.
Earnings before taxes also increased significantly in the Overseas and Other Countries segment, with a year-on-year increase of EUR 5.4 million (+32.1%).
Quarterly notification as of 30 September 2024
Production and Sourcing Companies
Revenue comparison sourcing and production companies (in EUR million)
Revenue of the Production and Sourcing Companies segment rose by EUR 12.0 million compared to the same period in the previous year. The total figure is mainly driven by revenue from our companies in Hong Kong (EUR 40.8 million). Since mid-2023, the company in Vietnam has also been included in this segment.
The companies in Hong Kong contributed substantially to the increase in revenue. They posted year-on-year revenue growth of EUR 12 million.
Operating earnings comparison sourcing and production companies (unconsolidated, in EUR million)
The earnings performance of the Production and Sourcing Companies segment is very positive compared to the same period last year. The EBT increase amounts to EUR 4.9 million.
The increase in revenue is also reflected in the earnings development.
Quarterly notification as of 30 September 2024
Current strategic developments
Power X-Change platform and innovation
The successful Power X-Change product line remains our main focus. With the Power X-Change platform, we aim to become the market leader in the cordless power tool and garden equipment segment.
The Power X-Change platform accounted for approximately 50% of revenue in the first nine months of 2024. At the end of 2023, the Power X-Change family already comprised more than 300 products. This is to be expanded to about 450 products by 2027. We will continue to further develop our technology in this area to achieve our objective of obtaining market leadership for battery-powered systems in all the countries with Einhell subsidiaries.
Cooperation with FC Bayern Munich and Mercedes-AMG PETRONAS F1 team
In order to further optimise awareness of the Einhell brand, we will continue to intensify our marketing measures this financial year. The cooperation with the Mercedes AMG PETRONAS F1 team is a key element of this strategy. Einhell and Mercedes are united in this partnership as two strong international brands that represent the best of technological finesse. The cooperation with the Mercedes-AMG PETRONAS F1 Team is already starting to pay off in terms of awareness and image of the Einhell brand.
The cooperation with FC Bayern Munich will be continued to achieve even more awareness for the Einhell brand.
International expansion
One of our most important strategic measures continues to be the international expansion of our Group. With the acquisition of our subsidiaries in Thailand and Vietnam in 2023, we have succeeded in opening up promising markets with very strong business potential. With the new company in Vietnam, Einhell intends to establish a sourcing structure in order to become less dependent on China. The company in Thailand will be further integrated into the existing structure of the Einhell Group. In order to facilitate the integration, an English-speaking layer of management will be added. The Board is continuing its search for a potential takeover candidate in the US, as the previous candidates did not fully meet the strategic objectives. As the largest DIY market in the world, the United States offer great potential for our Power X-Change battery products.
With the foundation of the new EINHELL Operations GmbH in 2023, the Group has started to establish a battery production facility in Hungary. After having predominantly produced charging devices in the first half of financial year 2024, the company will start to produce batteries in the second half of the year. The production facility in Hungary is an important milestone on the road to greater independence and shorter, more sustainable supply chains, helping to ensure our commercial success in the long term.
The battery production plant in Kunshan/China has already been in operation for some time and shows an excellent operating performance.
The two companies are expected to produce more than one million batteries in 2024.
In financial year 2024, Einhell bought a minority interest in the company Bavaria Stroy Tools GmbH in Kazakhstan. With this equity investment, the Group intends to enter previously untapped segments of the Central Asian markets.
Einhell intends to establish a new company in Greece. This is to be achieved together with a longstanding IT service provider who will be Einhell's partner in a joint venture. Together with this company, the digitalisation of the group is to be further accelerated.
In addition to planning the new company in Colombia, a new company is also to be set up in Uruguay to supply as yet untapped markets in South America.
Events after reporting date
No further events took place after the reporting date that could have a significant impact on net assets, financial position and results of operations.
Outlook
The 2024 financial year to date has been characterised by a difficult market environment. In Germany, the general economy is stagnating. In spite of the current difficult macroeconomic environment, we are optimistic with regard to our performance in the remaining financial year 2024 and in 2025. Moreover, the Einhell Group has succeeded in winning new customers in numerous countries, who have added the Einhell brand to their listings. Due to the very positive business performance in the past three quarters, the forecast for the full year 2024 was adjusted upwards in October.
General consumer sentiment improved only slightly in the first three quarters of 2024 and remains very subdued.
The Einhell Group has a global presence, and the Einhell brand is very well established in many European and non-European markets. Despite the difficult market conditions in this reporting period,
Quarterly notification as of 30 September 2024
Einhell was therefore able to significantly increase revenues compared to the same period last year.
The Board of Directors anticipates a significant year-on-year increase in revenue for financial year 2024. Full-year revenue is expected to amount to EUR 1,070 million (previous year: EUR 972 million). In terms of earnings before taxes, we expect a margin in the range of approx. 8.0% - 8.5% (previous year: 7.8%).
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Quarterly notification as of 30 September 2024
Consolidated statement of financial position (IFRS) as at 30 September 2024
| ASSETS | 30.09.2024
EURk | 30.09.2023
EURk |
| --- | --- | --- |
| Intangible assets | 48,870 | 48,311 |
| Property, plant and equipment | 66,161 | 60,373 |
| Right-of-use assets | 17,942 | 15,635 |
| Non-derivative financial assets | 5,091 | 3,285 |
| Derivative financial assets | 222 | 260 |
| Other non-financial assets | 6,275 | 4,838 |
| Deferred tax assets | 20,452 | 18,593 |
| Non-current assets | 165,013 | 151,295 |
| Inventories | 369,067 | 333,168 |
| Trade receivables | 207,738 | 175,187 |
| Non-derivative financial assets | 2,331 | 1,177 |
| Derivative financial assets | 3,083 | 13,535 |
| Income tax receivables | 2,897 | 2,463 |
| Other non-financial assets | 33,063 | 23,677 |
| Contract assets | 566 | 592 |
| Cash and cash equivalents | 100,451 | 46,529 |
| Current assets | 719,196 | 596,328 |
| Total assets | 884,209 | 747,623 |
Quarterly notification as of 30 September 2024
| EQUITY AND LIABILITIES | 30.09.2024
EURk | 30.09.2023
EURk |
| --- | --- | --- |
| Subscribed capital | 9,662 | 9,662 |
| Capital reserve | 26,677 | 26,677 |
| Retained earnings | 386,910 | 339,627 |
| Other reserves | -27,880 | -30,142 |
| Equity of shareholders of Einhell Germany AG | 395,369 | 345,824 |
| Non-controlling interests | 13,898 | 14,566 |
| Equity | 409,267 | 360,390 |
| Employee benefits | 8,156 | 3,349 |
| Provisions for other risks | 526 | 582 |
| Liabilities from debt capital | 88,137 | 93,391 |
| Non-derivative financial liabilities | 19,028 | 20,753 |
| Derivative financial liabilities | 4,880 | 16,478 |
| Lease liabilities | 11,468 | 8,529 |
| Other non-financial liabilities | 932 | 0 |
| Deferred tax liabilities | 4,825 | 5,760 |
| Non-current liabilities | 137,952 | 148,842 |
| Employee benefits | 25,670 | 26,406 |
| Provisions for other risks | 29,111 | 26,790 |
| Income tax liabilities | 14,294 | 9,414 |
| Liabilities from debt capital | 12,101 | 11,929 |
| Non-derivative financial liabilities | 44,764 | 39,649 |
| Derivative financial liabilities | 11,402 | 10,797 |
| Trade payables | 182,027 | 93,167 |
| Lease liabilities | 7,030 | 7,441 |
| Other non-financial liabilities | 9,658 | 12,077 |
| Contract liabilities | 933 | 721 |
| Current liabilities | 336,990 | 238,391 |
| Total equity and liabilities | 884,209 | 747,623 |
Quarterly notification as of 30 September 2024
Consolidated income statement (IFRS) for the period from 1 January to 30 September 2024
| 30.09.2024 | 30.09.2023 | |
|---|---|---|
| EURk | EURk | |
| Revenue | 839,345 | 755,798 |
| Changes in inventories | 3,044 | 0 |
| Own work capitalised | 813 | 288 |
| Other operating income | 5,718 | 11,673 |
| Cost of materials | -505,753 | -461,113 |
| Personnel expenses | -105,672 | -97,435 |
| Depreciation and amortisation | -14,131 | -11,627 |
| Other operating expenses | -146,932 | -129,616 |
| Financial income | 5,949 | 8,851 |
| Financial costs | -9,718 | -14,064 |
| Profit before income taxes | 72,663 | 62,755 |
| Income taxes | -22,293 | -19.218 |
| Earnings after tax | 50,370 | 43,537 |
| Thereof share of minority shareholders in consolidated net profit/loss | -12 | 969 |
| Thereof share of shareholders of Einhell Germany AG in consolidated net profit/loss | 50,382 | 42,568 |
Quarterly notification as of 30 September 2024
Consolidated statement of cash flows (IFRS) for the period from 1 January to 30 September 2024
| | 30.09.2024
EURk | 30.09.2023
EURk |
| --- | --- | --- |
| Cash flows from/used in operating activities | | |
| EBT | 72,663 | 62,755 |
| + Depreciation and amortisation of intangible assets and property, plant and equipment | 14,131 | 11,627 |
| - Interest income | -1,502 | -782 |
| + Interest expenses | 3,016 | 5,795 |
| +/- Other non-cash expenses and income | 4,490 | -1,234 |
| Operating profit before changes in net working capital | 92,798 | 78,161 |
| +/- Decrease/increase in trade receivables | -59,045 | -30,729 |
| +/- Decrease/increase in inventories | -7,009 | 147,386 |
| +/- Decrease/increase in other assets | -9,494 | 4,721 |
| +/- Increase/decrease in non-current liabilities | 939 | -3,846 |
| +/- Increase/decrease in current liabilities | 17,901 | 5,994 |
| +/- Increase/decrease in trade payables | 27,846 | -29,804 |
| Cash flows generated from operating activities | 63,936 | 171,883 |
| - Taxes paid | -19,600 | -14,562 |
| + Interest received | 1,479 | 767 |
| - Interest paid | -2,901 | -5,235 |
| Net cash from/used in operating activities | 42,914 | 152,853 |
| Cash flows from/used in investing activities | | |
| - Payments to acquire fixed assets | -12,630 | -9,228 |
| - Payments for acquisition of consolidated companies less cash and cash equivalents acquired | -2,372 | -2,268 |
| + Proceeds from disposal of assets | 131 | 24 |
| - Payments associated with disposal of consolidated companies | -154 | 0 |
| - Payments for investments in financial assets | -314 | 0 |
| Net cash used in investing activities | -15,339 | -11,472 |
| Cash flows from/used in financing activities | | |
| + Proceeds from taking out loans | 0 | 7,453 |
| - Payments for repayment of loans | -8,379 | -95,243 |
| - Dividend payments to shareholders of Einhell Germany AG | -10,820 | -10,820 |
| - Dividend payments to non-controlling interests | 0 | -611 |
| - Payments for redemption portion of lease liabilities | -6,571 | -5,434 |
| Net cash used in financing activities | -25,770 | -104,655 |
| Changes to cash and cash equivalents due to currency exchange | -799 | -859 |
| Net decrease/increase in cash and cash equivalents | 1,006 | 35,867 |
| Cash and cash equivalents at beginning of reporting period | 99,445 | 10,662 |
| Cash and cash equivalents at end of reporting period | 100,451 | 46,529 |
Quarterly notification as of 30 September 2024
Segment reporting
The identification of reportable operating segments pursuant to IFRS 8 is based on the so-called management approach concept. The Einhell Group is segmented by region for the distribution companies and separately for the production and sourcing companies. This division of the Einhell Group reflects its internal management and reporting structures. It differentiates between the segments Western Europe incl. D/A/CH, Eastern Europe, Overseas and Other Countries as well as the Production and Sourcing Companies.
The D/A/CH segment was combined with the Western Europe segment.
Income and expenses that cannot be directly allocated to the individual segments are shown in the reconciliation column.
Segment reporting
| September 2024 in EURk | Western Europe incl. D/A/CH | Eastern Europe | Overseas and Other Countries | Production and Sourcing Companies | Reconciliation | Group |
|---|---|---|---|---|---|---|
| Revenue by invoicing party | 490,629 | 92,593 | 209,944 | 46,179 | 0 | 839,345 |
| Revenue by invoice recipient | 525,011 | 96,874 | 217,460 | 0 | 0 | 839,345 |
| Profit before income taxes | 37,018 | 8,715 | 22,206 | 5,869 | -1,145 | 72,663 |
| September 2023 in EURk | Western Europe incl. D/A/CH | Eastern Europe | Overseas and Other Countries | Production and Sourcing Companies | Reconciliation | Group |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue by invoicing party | 446,626 | 78,733 | 196,234 | 34,205 | 0 | 755,798 |
| Revenue by invoice recipient | 470,428 | 83,855 | 201,515 | 0 | 0 | 755,798 |
| Profit before income taxes | 33,719 | 7,075 | 16,850 | 963 | 4,148 | 62,755 |
Quarterly notification as of 30 September 2024
Financial calendar 2024/2025
| Annual financial statements as of 31 December 2024 | End of April 2025 |
|---|---|
| Quarterly notification as of 31 March 2025 | Mid-May 2025 |
| Annual General Meeting 2025 | 27 June 2025 |
| Half year financial report as of 30 June 2025 | Mid-August 2025 |
| Quarterly notification as of 30 September 2025 | Mid-November 2025 |
Quarterly notification as of 30 September 2024
Legal company information
Einhell Germany AG
Wiesenweg 22
94405 Landau an der Isar
www.einhell.com
Publication date
14 November 2024
Investor Relations
Telephone: +49 (9951) 942-166
E-mail: [email protected]
Please visit our website at www.einhell.com for extensive information and reports on Einhell Germany AG.
13
Quarterly notification as of 30 September 2024
Disclaimer
This quarterly notification contains forward-looking statements. Forward-looking statements are based on specific assumptions and expectations at the time this notification is published. They are therefore subject to risks and uncertainties and actual results may differ considerably from such forward-looking statements. Various risks and uncertainties are determined by factors that do not lie in the Einhell Group's sphere of influence and can therefore not be estimated with certainty at present. This includes, without limitation, future market conditions and the economic trends as well as legal and political decisions.
Unless otherwise stipulated, all amounts are stated in thousands of euros (EURk). There may be minor deviations in this report and in other reports due to rounding of totals and calculation of percentage figures.
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Einhell
Einhell Germany AG
Wiesenweg 22
D-94405 Landau a. d. Isar
Phone (09951) 942-0
[email protected]
www.einhell.com
einhell.com
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