AI assistant
Einhell Germany AG Interim / Quarterly Report 2024
134_10-q_2024-08-21_4797ecf8-46ec-45f8-930b-11109aa49756.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
E Einhell
FINANCIAL REPORT
30th JUNE 2024
Allianz @ Arena
E Einhell
Official Home & Garden Expert
Half year report as at 30 June 2024
Contents
At a glance
Financial figures
Condensed Group management report
- General economic conditions
- Performance report
- Personnel and HR services
- Financial performance and net assets
- Investments
- Current assets and liabilities
- Group structure
- Investor relations
- Financing
- Note to the financial report
- Corporate Governance Code
- Risk report
- Forecast
Consolidated statement of financial position
Consolidated income statement
Consolidated statement of cash flows
Consolidated statement of changes in equity
Condensed IFRS notes
- Principles and methods used in preparing the consolidated financial statements
- Notes to the statement of financial position
- Notes to the statement of income
- Segment reporting
- Other notes
- Events after reporting date
- Statement of responsibility
Financial calendar and legal company information
At a glance
The financial report of the Einhell Group as at 30 June 2024 meets the requirements under the Securities Trading Act (WpHG) for preparing interim reports. It includes abbreviated Group interim statements, a condensed Group management report and a statement of responsibility by the legal representatives. The financial statements are consistent with the International Financial Reporting Standards (IFRS) and their interpretations, as published by the International Accounting Standards Board (IASB) and applicable in the European Union.
There may be minor deviations in this report and in other reports due to rounding of totals and calculation of percentage figures.
The Einhell Group was able to expand its revenue from EUR 525.9 million to EUR 576.2 million in the first six months of the 2024 financial year. The revenue growth is partly attributable to the increase in Power X-Change sales, which accounted for approx. 51% of total revenue in the period under review (previous year: 46%). Earnings before taxes and PPA rose from EUR 45.0 million to EUR 50.9 million.
The very positive earnings performance led to a significant decrease in current liabilities to banks and a highly positive cash flow compared to the prior-year period.
Financial figures
| in EUR million | H1 2024 | H1 2023 | Change in % |
|---|---|---|---|
| Revenue | 576.2 | 525.9 | 9.6 |
| EBT | 50.1 | 44.3 | 13.1 |
| EBT before PPA | 50.9 | 45.0 | 13.1 |
| EBIT | 52.6 | 47.8 | 10.0 |
| Net debt (bank liabilities less bank deposits) | 16.6 | 156.1 | -89.4 |
| H1 2024 | H1 2023 | Change in % | |
| --- | --- | --- | --- |
| Equity ratio in % | 46.3 | 42.8 | 8.2 |
| Earnings per share in EUR¹ | 3.1 | 2.7 | 14.8 |
| Headcount | 2,467 | 2,536 | -2.7 |
¹ The share split increased the number of shares from 3,774,400 to 11,323,200. The relevant figure for the prior year was adjusted accordingly.
Based on the number of shares before the share split, earnings per share amount to EUR 9.4 (previous year: EUR 8.0).
Half year report as at 30 June 2024
Condensed Group Management Report of Einhell Germany AG
1 General economic conditions
1.1 D/A/CH
The sentiment among German companies has slightly deteriorated. The ifo business climate index decreased moderately from 89.3 points in May to 88.6 points in June 2024. The German economy is struggling to overcome stagnation.
According to the Federal Statistical Office, the inflation rate stands at 2.2% in Germany in June 2024. While this is a slight increase (+0.1%) compared to the previous month, the overall price trend and inflation rate have improved significantly compared to June 2023 (6.4%).
Adjusted for seasonal and calendar effects, the gross domestic product (GDP) increased by 1.4% on the previous quarter in the second quarter of 2024. The reason for the increase, however, is the rise in prices. Adjusted for seasonal, calendar and price effects, the GDP decreased slightly from the first to the second quarter of 2024. Compared with the same quarter in the previous year, the price-adjusted GDP rose by 0.3%.
The number of unemployed persons in Germany has increased moderately since the previous month. The German Federal Employment Agency stated in its labour market report that a total of 2.727 million persons were registered as unemployed in June. This is 4,000 more than in May and 172,000 more than one year ago. The unemployment rate remained unchanged at 5.8% but showed a slight increase of 0.3% compared to the prior-year month. Companies remain cautious when it comes to new hires.
In 2023, DIY and home improvement stores in Germany generated revenue in the amount of EUR 21.24 billion, dropping, for the first time in years, below the prior-year period (-3.1%). In the first quarter of 2024, however, revenue grew by 4.4% year-on-year, giving the Chairman of the German association of DIY retailers (BHB) cause for optimism.
1.2 Western and Eastern Europe
The economy in the EU and the eurozone recorded moderate growth. Both in the EU and in the eurozone, the GDP (adjusted for seasonal effects) grew by 0.3% compared to the previous quarter according to the statistical office Eurostat.
Eurostat further stated that, since the record low in May, the unemployment rate in the eurozone rose slightly by 0.1% to 6.5% in June (previous year: 6.4%). The unemployment rate in the entire European Union stands at 6.0% in June (previous year: 6.0%), with the highest rates being recorded in Spain (11.5%) and Greece (9.6%).
The inflation continues to ease in both the European Union and the eurozone. According to the figures published by Eurostat, the annual inflation rate in the eurozone decreased slightly to 2.5% in June 2024 from 2.6% in May. In the prior-year period it had still amounted to 5.5%.
In the European Union, the inflation rate declined from 2.7% in the previous month to 2.6% in June. In June 2023, the inflation rate had still amounted to 6.4%.
The harmonised index of consumer prices (HICP) for Germany, which is calculated for European purposes, stands at 2.5% in June 2024. In the previous month of May, it had still stood at 2.3%.
1.3 Overseas
The Australian economy has recorded highly positive growth rates over the last few years. Economists expect that growth rates will continue to be positive this year, albeit at a slightly lower level than in the previous years. Australia was only able to avoid a technical recession in 2023 due to high immigration rates and government spending. According to the forecasts, the inflation rate will drop to 3.1% in 2024 (previous year: 4.1%).
2 Performance report
2.1 Einhell Group revenue
From January to June 2024, the Einhell Group generated revenue of EUR 576.2 million (previous year: EUR 525.9 million). The increase in revenue in the first half of 2024 thus amounts to EUR 50.3 million compared to the previous year. This corresponds to a significant increase of 9.6%.
Revenue in the first quarter of 2024 already exceeded the prior-year quarter (7.8%) and continued significantly above the prior-year level in the second quarter of 2024. The period under review even managed to exceed the record year 2022 (EUR 563.7 million). All in all, the second quarter was highly satisfactory for the Einhell Group.
As at 30 June 2024, the share of Power X-Change products sold in total Group revenue stands at 51% (previous year: 46%).
In the D/A/CH segment (Germany, Austria, Switzerland), revenue increased to EUR 244.6 million (previous year: EUR 227.0 million). In this segment, the share of Power X-Change products rose considerably. In Austria, it already amounts to 79% (previous year: 72%).
Earnings in the D/A/CH segment remained below the prior-year level. The performance of this segment reflects the investments in the Einhell brand.
In Western Europe, revenue of EUR 100.3 million (previous year: EUR 102.9 million) was slightly below the
Half year report as at 30 June 2024
prior-year level. The largest sales markets in the segment include France, Italy and the UK.
The subsidiaries in the Western Europe segment were unable to raise their revenue in the first six months of 2024 as compared with the other segments. However, the share of Power X-Change products in total revenue is on the rise in Western Europe. In the UK, the share already amounts to 65% (previous year: 57%).
Despite low revenue, earnings in the Western Europe segment rose compared to the previous year's period. Revenue and earnings of the companies in Italy and Scandinavia decreased compared to the prior-year period, whereas the performance of Einhell UK is highly positive compared to the previous year, as Einhell UK achieved a significant increase in earnings.
In Eastern Europe, revenue of EUR 62.8 million is significantly above the previous year's level (EUR 51.0 million). The strongest companies in this segment in terms of revenue were our subsidiaries in Turkey, Croatia and Poland. Revenue in Turkey increased by EUR 5.3 million on the prior-year period, corresponding to revenue growth of more than 50%.
On the back of the higher revenue, earnings before income taxes also rose significantly in the Eastern Europe segment.
In the Overseas and Other Countries segment, revenue increased by 11.3% from EUR 123.2 million to EUR 137.1 million. The Einhell subsidiary with the highest revenue in this segment is the Australian company Einhell Australia (formerly Ozito), which managed to increase its revenue by approx. 20% compared to the previous year's comparable period.
The performance of the subsidiaries in the Overseas and Other Countries segment was uneven in financial year 2024. While Einhell Australia (formerly Ozito) was able to increase revenue and earnings, the performance of the Canadian company, acquired in 2023, declined slightly in terms of both revenue and earnings. The companies in South Africa are also encountering difficulties. Good results have already been achieved with the introduction of Einhell products in Canada and South Africa. One of the most important DIY chains in South Africa was won as a customer.
The Production and Sourcing Companies also managed to increase their revenue performance year-on-year to EUR 31.4 million (previous year: EUR 21.8 million).
Following the restrained purchasing behaviour of FOB customers in the same period of the previous year, the Asian companies recorded a significant increase in revenue.
2.2 Earnings development
From January to June 2024, the Einhell Group generated profit before income taxes of EUR 50.1 million (previous year: EUR 44.3 million). The pre-tax margin is 8.7% (previous year: 8.4%).
The margin before taxes and PPA is 8.8% (previous year: 8.6%).
Consolidated net income after minority interests amounts to EUR 35.5 million in the period under review (previous year: EUR 30.3 million), which results in earnings per share of EUR 3.1 (previous year: EUR 2.7 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 for earnings per share was adjusted in accordance with the share split.
Based on the number of shares before the share split, earnings per share amount to EUR 9.4 (previous year: EUR 8.0).
Compared to the prior-year period, personnel expenses have increased by EUR 5.4 million, now amounting to EUR 69.3 million (previous year: EUR 63.9 million).
Due to investment activities, depreciation and amortisation increased from EUR 7.6 million to EUR 8.5 million in financial year 2024.
Other operating expenses also increased year-on-year from EUR 91.7 million to EUR 101.6 million. This is attributable to an increase in marketing measures and higher outgoing freight rates. The share in revenue that was expended on marketing and advertising measures amounts to 7.4% in the Einhell Group (previous year: 5.7%).
The financial result of EUR -2.5 million (previous year: EUR -3.5 million) is higher than in the previous year. This includes financial income amounting to EUR 5.1 million (previous year: EUR 7.1 million) and financial costs amounting to EUR 7.7 million (previous year: EUR 10.6 million). Financial costs include the surge in refinancing costs in some countries with high interest rates, expenses for currency hedging etc.
3 Personnel and HR services
On 30 June 2024, the Einhell Group had 2,467 employees worldwide (previous year: 2,536).
The decline is partly attributable to the sale of the company Einhell Colombia S.A.S., which was no longer included on the reporting date, and personnel changes at the subsidiary in Thailand.
Half year report as at 30 June 2024
4 Financial performance and net assets
The material items in the statement of financial position as at 30 June 2024 and 30 June 2023 are as follows:
| in EUR million | 06/2024 | 06/2023 |
|---|---|---|
| Non-current assets incl. deferred tax assets | 164.3 | 152.3 |
| Inventories | 329.1 | 358.9 |
| Trade receivables | 229.8 | 219.0 |
| Cash and cash equivalents | 85.3 | 21.8 |
| Equity | 393.3 | 337.8 |
| Liabilities to banks | 101.9 | 177.9 |
5 Investments
In the period under review, the Einhell Group's CAPEX amounts to EUR 8.0 million (previous year: EUR 5.9 million without the acquisitions in Thailand and Vietnam). The majority of this was spent on operating and office equipment and advance payments on assets under construction. As in previous years, investments in product development are shown under other operating expenses and personnel expenses in the consolidated statement of income.
6 Current assets and liabilities
Goods inventories are down on the previous year to EUR 329.1 million (previous year: EUR 358.9 million).
Trade receivables are stated net of allowances for bad debts. At EUR 229.8 million, trade receivables are slightly above the prior-year level (previous year: EUR 219.0 million). Receivables outstanding correspond to the revenue of approximately 2 months.
Derivative financial assets have decreased over the previous year to EUR 4.0 million (previous year: EUR 7.3 million). This item includes the positive market values of currency hedging derivatives.
At EUR 36.9 million, other non-financial assets were up on the previous year (EUR 29.1 million). One large item here were VAT receivables amounting to EUR 14.8 million.
Cash and cash equivalents stand at EUR 85.3 million on the reporting date (previous year: EUR 21.8 million).
Compared to the prior-year period, liabilities to banks decreased from EUR 177.9 million to EUR 101.9 million due to repayment of short-term loans.
7 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.
8 Investor relations
Einhell Germany AG attended the capital market conference "Münchner Kapitalmarkt Konferenz" in April 2024 and the "Warburg Highlight Conference" in June 2024. The talks with investors and family offices revealed substantial interest in the stock. Einhell Germany AG will furthermore attend Eigenkapitalforum in Frankfurt in November and the European MidCap Event in Paris in October.
The Annual General Meeting on 28 June 2024 approved a three-for-one share split. The aim is to make the stock available to a broader public by lowering the entry point and making it easier to acquire Einhell shares. The long-term objective of the share split is to boost the share price and, in its wake, the market capitalisation. The share split has in the meantime been successfully completed and met with the interest of numerous investors.
Following the share split, the shares were allocated the following new identifiers:
- Ordinary bearer shares: ISIN DE000A40EST5, WKN A40EST
- Preference bearer shares: ISIN DE000A40ESU3, WKN A40ESU
9 Financing
The financial requirements of the Einhell Group are driven in particular by the level of inventories and trade receivables. Stock turnover rates of inventories and the maturities of trade receivables play a major role here and have a significant impact on the financial requirements.
The Group relies on a modular financing mix with good conditions.
Non-current liabilities to banks amount to EUR 89.9 million and carry favourable fixed interest rates. Current liabilities to banks amount to EUR 12.0 million and mostly carry variable interest rates.
In the shorter term, the Group also has access to sufficient credit facilities to finance further revenue growth.
Half year report as at 30 June 2024
10 Note to the financial report
This financial report was not subjected to a review pursuant to Section 317 of the German Commercial Code (HGB) or an audit.
11 Corporate Governance Code
The current Declaration of the Board of Directors and the Supervisory Board of Einhell Germany AG on the German Corporate Governance Code pursuant to section 161 of the German Stock Corporation Act (AktG) is permanently available on the Company's website at www.einhell.com.
12 Risk report
In its international operations, Einhell is exposed to a variety of risks that are inherent in all entrepreneurial activities.
The risk management process in the Einhell Group is split into two stages. The first stage is the decentralised recognition of risks in subsidiaries and the various departments of Einhell Germany AG by the risk officers appointed by the Board of Directors who identify risks and quantify their impact on the Group.
The internal control system comprises the two components integrated process controls and internal control systems.
The domestic controlling, investment controlling, finance, Group accounting and legal departments constitute the internal management system of the Einhell Group.
The Einhell Group companies make a forecast in the relevant financial year to budget the following financial year. Based on differentiated revenue planning, the corresponding cost of goods sold and other costs are budgeted. These projected figures are collated for the Group into a budgetary statement of income.
The actual figures from the individual companies are processed on a monthly basis. As a result, a complete consolidated statement of income is devised that compares the budgeted and actual figures and allows for their analysis. The development of order intake, margins etc. is also reported for all companies on a monthly basis.
The comparison is discussed with the members of the Board of Directors and with the managers of the separate divisions and companies. The analysis of the budgeted and actual figures permits relevant measures to be developed and implemented.
The internal monitoring system is comprised of measures that are integrated into the processes and measures that are independent of the processes.
In addition to automated IT process controls, manual controls also form an important part of integrated process measures which are, for example, also carried out by the internal audit department. The Supervisory Board, the Group auditors and other audit bodies are involved in carrying out process-independent controls within the Einhell Group.
The audit of the consolidated financial statements by the Group auditors is the main process-independent control measure with respect to Group accounting processes.
Given its international business model, the Einhell Group is exposed to market risks resulting from changes in interest and foreign exchange rates. The Group uses derivative financial instruments to manage these risks. The guidelines used for managing the associated risks are implemented with the approval of the Board of Directors by a central treasury department working in close cooperation with the Group companies.
The Board of Directors does not currently see any risks that could endanger the future of the Group as a going concern.
13 Forecast report
13.1 D/A/CH
| Expected development in % | 2024 | 2023 |
|---|---|---|
| GDP Germany | 0.4 | -0.2 |
Forecasts by the ifo Institute have become a little more positive for financial year 2024 as Germany is slowly working its way out of the crisis. The high energy cost burden on industrial companies has eased, rendering production in Germany more profitable. Industry exports are supporting the economy. The inflation is forecast to drop back below the 2% threshold in the course of the year.
13.2 Western and Eastern Europe
In a challenging global environment, the European economy continues to demonstrate resilience. After stagnating in 2023, the European economy returns to moderate growth again in 2024. Employment and real wage growth lead to higher consumer spending which, in turn, drives economic growth. By contrast, the negative economic trend is slowing investment growth in residential construction. The European Commission's growth forecast for the EU economy rises to 1.0% for 2024. In 2025, growth is expected to reach 1.6%.
GDP growth in the euro zone is now expected to reach 0.8% and 1.4% in 2024 and 2025, respectively. Given the drop in inflation rates in the first three months of 2024, the inflation is expected to continue its downwards trend. The target previously set for 2025 will presumably be reached before then. The forecasts for the inflation rate in the eurozone are 2.5% in 2024 and 2.1% in 2025.
13.3 Overseas and Other Countries
The Australian economy is facing stagnating growth rates. The Organisation for Economic Co-operation and
Half year report as at 30 June 2024
Development (OECD) expects the Australian gross domestic product (GDP) to increase by $1.4\%$ in real terms in 2024. In the next few years, annual GDP growth is expected to come to $2.0\%$ . However, this will require continued immigration and a stable level of foreign trade with China. Skilled migration has been a strong driver of growth for years. However, the trend is hampered by a shortage of housing.
In the Overseas and Other Countries segment, the following economic growth rates are expected in the countries where the Einhell Group is active:
| GDP in % | 2024 | 2023 |
|---|---|---|
| Argentina | -2.8 | -1.6 |
| Chile | 2.0 | 0.2 |
| Canada | 1.2 | 1.1 |
| Uruguay | 3.7 | 0.4 |
13.4 Outlook and strategy
In a weak economic environment coined by widespread uncertainty among end consumers, the future performance of the Group is very difficult to predict. In spite of the macroeconomic slowdown, the Einhell Group has had a very positive first half of the financial year. The Group hopes that it will be able to continue the positive performance in the second half of the year.
The performance of the Einhell Group is influenced by general market and economic developments, but also by specific developments in crisis regions and on the foreign exchange markets.
High interest rates, volatility on the foreign exchange markets and the extremely high inflation rates in some of the countries that are relevant to Einhell could negatively influence consumer spending. In addition to employing effective currency hedging strategies, what sets us apart here is our attractive product range.
Our Power X-Change platform will remain on the top of our agenda. In June 2024, the Power X-Change platform already accounts for $51\%$ of total revenue. At the end of 2023, the Power X-Change family already comprised around 300 tools. This is to be expanded to about 450 products by 2027. We will continue to use our battery and charger expertise to further develop our technology in this field and to constantly design new and innovative solutions for end consumers.
In order to further optimise awareness of the Einhell brand, we will continue to intensify our marketing
measures in the current financial year. The cooperation with the Mercedes-AMG PETRONAS F1 Team entered into last year is another important milestone in this regard. 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 and is to be further expanded. The cooperation with FC Bayern Munich will be continued to achieve even more awareness for the Einhell brand.
One of our most important strategic measures is 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 subsidiary in Vietnam, Einhell is setting up an industrial park for suppliers 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 suitable takeover candidate in the US, as the previous candidates do 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.
In financial year 2024, Einhell bought a minority interest in the company Bavaria Stroy Tools GmbH in Kazakhstan. With the help of this equity investment, the Group intends to enter previously untapped segments of the Central Asian markets.
In order to address the lack of skilled personnel in Germany, Einhell is working to establish a joint venture with a long-standing IT service partner in Greece. An IT hub is being set up to drive digitalisation within the Group.
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.
Half year report as at 30 June 2024
The implementation of a new ERP software in China was initiated in 2022. In 2023, the implementation of SAP S/4HANA was successfully completed at the first of the Asian companies. In 2024, it was introduced at the battery production facility in Hungary. The SAP system will be gradually rolled out at additional group companies.
Based on the very strong performance in the first half of financial year 2024, the Board of Directors reaffirms its guidance for the full year 2024. According to the planning, the Board expects revenue of EUR 1,030 million and a margin before taxes and PPA of approx. 8.0%.
13.5 Forward-looking statements, assumptions, uncertainties and assessment methods
The Board of Directors' assumptions and forecasts are based on the information currently available. These always bear an element of uncertainty and are based on estimates and assumptions made in order to arrive at a forecast. The Einhell Group hereby advises that the forward-looking assumptions and estimates may in retrospect turn out to be incorrect.
Landau a. d. Isar, 22 August 2024
Einhell Germany AG
The Board of Directors
Andreas Kroiss
Jan Teichert
Dr Markus Thannhuber
Dr Christoph Urban
Half year report as at 30 June 2024
Consolidated statement of financial position (IFRS) as at 30 June 2024
| Assets (in EURk) | 30.06.2024 | 30.06.2023 |
|---|---|---|
| Intangible assets | 48,110 | 48,282 |
| Property, plant and equipment | 65,116 | 59,255 |
| Right-of-use assets | 18,944 | 15,739 |
| Non-derivative financial assets | 4,690 | 2,011 |
| Derivative financial assets | 56 | 388 |
| Other non-financial assets | 5,979 | 3,914 |
| Deferred tax assets | 21,404 | 22,716 |
| Non-current assets | 164,299 | 152,305 |
| Inventories | 329,062 | 358,870 |
| Trade receivables | 229,755 | 219,029 |
| Non-derivative financial assets | 3,678 | 1,430 |
| Derivative financial assets | 3,965 | 6,901 |
| Income tax receivables | 2,154 | 4,197 |
| Other non-financial assets | 30,897 | 25,184 |
| Contract assets | 504 | 521 |
| Cash and cash equivalents | 85,263 | 21,773 |
| Current assets | 685,278 | 637,905 |
| Total assets | 849,577 | 790,210 |
Half year report as at 30 June 2024
| Equity and liabilities (in EURk) | 30.06.2024 | 30.06.2023 |
|---|---|---|
| Subscribed capital | 9,662 | 9,662 |
| Capital reserve | 26,677 | 26,677 |
| Retained earnings | 372,150 | 326,874 |
| Other reserves | -29,344 | -40,872 |
| Equity of shareholders of Einhell Germany AG | 379,145 | 322,341 |
| Non-controlling interests | 14,185 | 15,502 |
| Equity | 393,330 | 337,843 |
| Employee benefits | 8,111 | 3,461 |
| Provisions for other risks | 511 | 529 |
| Liabilities from debt capital | 89,929 | 86,719 |
| Non-derivative financial liabilities | 18,186 | 22,234 |
| Derivative financial liabilities | 8,313 | 22,367 |
| Lease liabilities | 12,100 | 10,584 |
| Other non-financial liabilities | 90 | 0 |
| Deferred tax liabilities | 4,741 | 5,867 |
| Non-current liabilities | 141,981 | 151,761 |
| Employee benefits | 19,304 | 21,203 |
| Provisions for other risks | 29,431 | 28,370 |
| Income tax liabilities | 10,954 | 7,677 |
| Liabilities from debt capital | 11,975 | 91,136 |
| Non-derivative financial liabilities | 60,706 | 36,245 |
| Derivative financial liabilities | 13,751 | 15,474 |
| Trade payables | 147,378 | 79,449 |
| Lease liabilities | 7,362 | 5,468 |
| Other non-financial liabilities | 12,586 | 14,968 |
| Contract liabilities | 819 | 616 |
| Current liabilities | 314,266 | 300,606 |
| Total equity and liabilities | 849,577 | 790,210 |
Half year report as at 30 June 2024
Consolidated income statement (IFRS) for the period from 1 January to 30 June 2024
| (in EURk) | 30.06.2024 | 30.06.2023 |
|---|---|---|
| Revenue | 576,173 | 525,886 |
| Changes in inventories | 4,146 | 0 |
| Own work capitalised | 502 | 142 |
| Other operating income | 3,769 | 7,416 |
| Cost of materials | -352,555 | -322,418 |
| Personnel expenses | -69,265 | -63,879 |
| Depreciation and amortisation | -8,544 | -7,641 |
| Other operating expenses | -101,614 | -91,684 |
| Financial income | 5,152 | 7,099 |
| Financial costs | -7,681 | -10,595 |
| Financial result | -2,529 | -3,496 |
| Profit before income taxes | 50,083 | 44,326 |
| Income taxes | -14,325 | -13,167 |
| Earnings after tax | 35,758 | 31,159 |
| Thereof share of minority shareholders | 299 | 862 |
| Thereof share of shareholders of Einhell Germany AG in consolidated net profit/loss | 35,459 | 30,297 |
Half year report as at 30 June 2024
Consolidated statement of cash flows (IFRS) for the period from 1 January to 30 June 2024
| in EURk | 30.06.2024 | 30.06.2023 |
|---|---|---|
| Cash flows from/used in operating activities | ||
| Profit before income taxes | 50,083 | 44,326 |
| + Depreciation and amortisation of intangible assets and property, plant and equipment | 8,544 | 7,641 |
| - Interest income | -940 | -353 |
| + Interest expenses | 2,385 | 3,493 |
| +/- Other non-cash expenses and income | 5,562 | -3,887 |
| Operating profit before changes in net working capital | 65,634 | 51,220 |
| +/- Decrease/increase in trade receivables | -81,000 | -74,571 |
| +/- Decrease/increase in inventories | 34,362 | 121,684 |
| +/- Decrease/increase in other assets | -7,850 | 6,817 |
| +/- Increase/decrease in non-current liabilities | 29 | -3,583 |
| +/- Increase/decrease in current liabilities | 19,101 | 2,586 |
| +/- Increase/decrease in trade payables | -6,809 | -43,522 |
| Cash flows generated from operating activities | 23,467 | 60,631 |
| - Taxes paid | -15,024 | -8,275 |
| + Interest received | 1,056 | 313 |
| - Interest paid | -2,157 | -2,890 |
| Net cash from/used in operating activities | 7,342 | 49,779 |
| Cash flows from/used in investing activities | ||
| - Payments to acquire fixed assets | -8,037 | -5,946 |
| - Payments for acquisition of consolidated companies | -2,362 | -2,268 |
| + Proceeds from disposal of assets | 78 | 12 |
| - Payments from the sale of consolidated companies | -124 | 0 |
| - Payments for investments in shareholdings | -314 | 0 |
| Net cash used in investing activities | -10,759 | -8,202 |
| Cash flows from/used in financing activities | ||
| - Payments for repayment of loans | -6,739 | -15,255 |
| - Dividend payments to shareholders of Einhell Germany AG | 0 | -10,820 |
| - Dividend payments to non-controlling interests | 0 | -268 |
| - Payments for redemption portion of lease liabilities | -3,607 | -3,474 |
| Net cash used in financing activities | -10,346 | -29,817 |
| Changes to cash and cash equivalents due to currency exchange | -419 | -649 |
| Net decrease/increase in cash and cash equivalents | -14,182 | 11,111 |
| Cash and cash equivalents at beginning of reporting period | 99,445 | 10,662 |
| Cash and cash equivalents at end of reporting period | 85,263 | 21,773 |
Half year report as at 30 June 2024
Consolidated statement of changes in equity (IFRS) for the period from 1 January 2023 to 30 June 2024
| Subscribed capital | Capital reserve | Retained Earnings | Other reserves | Equity of shareholders of Einhell Germany AG | Share of non-controlling interests | Total equity | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Currency translation reserve | Reserve for financial instruments measured at fair value through other comprehensive income | Remeasurement reserve pursuant to IAS 19 | Derivative financial instruments | |||||||
| EURk | EURk | EURk | EURk | EURk | EURk | EURk | EURk | EURk | EURk | |
| 1 January 2023 | 9,662 | 26,677 | 311,226 | -13,618 | 22 | -278 | 21,840 | 355,531 | 11,305 | 366,836 |
| Consolidated net profit | - | - | 30,297 | - | - | - | - | 30,297 | 862 | 31,159 |
| Unrealised gains/losses | - | - | - | -6,065 | - | - | -42,773 | -48,838 | -180 | -49,018 |
| Dividends | - | - | -10,820 | - | - | - | - | -10,820 | -268 | -11,088 |
| Other changes | - | - | -3,829 | - | - | - | - | -3,829 | 3,783 | -46 |
| 30 June 2023 | 9,662 | 26,677 | 326,874 | -19,683 | 22 | -278 | -20,933 | 322,341 | 15,502 | 337,843 |
| Consolidated net profit | - | - | 20,194 | - | - | - | - | 20,194 | 208 | 20,402 |
| Unrealised gains/losses | - | - | - | -2,240 | 36 | -384 | 558 | -2,030 | 247 | -1,783 |
| Dividends | - | - | - | - | - | - | - | - | -344 | -344 |
| Other changes | - | - | 444 | - | - | - | - | 444 | -1,615 | -1,171 |
| 31 December 2023 | 9,662 | 26,677 | 347,513 | -21,923 | 58 | -663 | -20,375 | 340,949 | 13,998 | 354,947 |
| Consolidated net profit | - | - | 35,459 | - | - | - | - | 35,459 | 299 | 35,758 |
| Unrealised gains/losses | - | - | - | 4,819 | - | - | 8,740 | 13,559 | -112 | 13,447 |
| Dividends | - | - | -10,820 | - | - | - | - | -10,820 | - | -10,820 |
| Other changes | - | - | -2 | - | - | - | - | -2 | - | -2 |
| 30 June 2024 | 9,662 | 26,677 | 372,150 | -17,104 | 58 | -663 | -11,635 | 379,145 | 14,185 | 393,330 |
Half year report as at 30 June 2024
Selected IFRS consolidated notes of Einhell Germany AG, Landau/Isar, for the period from 1 January to 30 June 2024
1. Principles and methods used in preparing the consolidated financial statements
1.1 Basis of consolidation
The consolidated financial statements comprise Einhell Germany AG and the companies it controls. IAS 27 defines control as the power to govern the financial and operating policies so as to obtain benefits from a company's activities. If the Group holds more than 50% of the voting rights of a company, either directly or indirectly, it is deemed to control such company, unless such assumption is refuted. Companies acquired or disposed of during a financial year are included in the consolidated financial statements from the date on which control is obtained until the date on which control is lost.
As at 31 May 2024, Einhell Germany AG sold 100% of its interest in Einhell Colombia S.A.S.
Detailed information on the divestment is shown in the condensed management report under section 7 Group structure.
1.2 Accounting and valuation principles
This report as at 30 June 2024 applies the same accounting and valuation principles as were used in the annual financial statements 2023. The IFRS standards that have become mandatory as from 1 January 2024 are applied accordingly by the Einhell Group.
2 Notes to the statement of financial position
2.1 Non-current assets
Intangible assets and property, plant and equipment are valued at acquisition or manufacturing cost. Intangible assets amount to EUR 48.1 million as at 30 June 2024, while property, plant and equipment amount to EUR 65.1 million.
They are recognised in the statement of financial position net of accumulated depreciation and amortisation. Scheduled depreciation and amortisation of non-current assets amounted to EUR 8.5 million as at 30 June 2024.
In the first six months of 2024, Einhell Germany AG acquired a 40% interest in the newly founded company Bavaria Stroy Tools GmbH, registered in Almaty, Kazakhstan. As Einhell Germany AG does not exercise any significant influence over the business activities of Bavaria Stroy Tools GmbH, the interest of EUR 0.3 million has been recognised as an equity investment within non-current financial assets. The corresponding payment was made in full as at 30 June 2024.
2.2 Inventories
Inventories are valued at the lower of acquisition or manufacturing cost or net realisable value. Impairments amounted to EUR 9.7 million in total (previous year: EUR 11.5 million).
| in EUR million | 2024 | 2023 |
|---|---|---|
| Raw materials and supplies (at acquisition cost) | 9.0 | 2.6 |
| Unfinished goods | 0.2 | 2.1 |
| Finished goods | 318.3 | 353.0 |
| Advance payments | 1.6 | 1.2 |
| Total | 329.1 | 358.9 |
2.3 Cash and cash equivalents
Cash and cash equivalents include bank balances, cheques and cash in hand.
2.4 Equity
The positive profit performance and the change in the market value of the currency derivatives led to an increase in equity. This change in market value has no impact on the cash position.
2.5 Dividend
A resolution was passed to pay a dividend of EUR 10,820,096.00 for financial year 2023. The distribution amount corresponds to a dividend of EUR 2.90 per preference share (previous year: EUR 2.90) and EUR 2.84 per ordinary share (previous year: EUR 2.84). The dividend was distributed in July 2024.
2.6 Provisions
Provisions total EUR 29.9 million. This includes non-current provisions of EUR 0.5 million.
Provisions refer in particular to provisions for warranties and guarantees.
2.7 Liabilities
Upon addition, liabilities are valued at fair value of the consideration received; subsequent measurement is performed at amortised cost. Liabilities in foreign currencies are recognised at the reporting date rate or hedging rate as at the reporting date.
3 Notes to the statement of income
3.1 Other operating expenses
Other operating expenses amount to EUR 101.6 million as at 30 June 2024, mainly comprising expenses for logistics, service and marketing.
Half year report as at 30 June 2024
4. 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 D/A/CH, Western Europe, Eastern Europe, Overseas and Other Countries as well as the Production and Sourcing Companies.
Income and expenses that cannot be directly allocated to the individual segments and consolidation effects are shown in the reconciliation item.
| June 2024 in EURk | D/A/CH | Western Europe | Eastern Europe | Overseas and Other Countries | Production and Sourcing Companies | Reconciliation | Group |
|---|---|---|---|---|---|---|---|
| Revenue by invoicing party | 244,581 | 100,334 | 62,762 | 137,108 | 31,388 | 0 | 576,173 |
| Revenue by invoice recipient | 253,741 | 115,295 | 65,794 | 141,343 | 0 | 0 | 576,173 |
| EBT | 20,948 | 4,747 | 6,648 | 14,794 | 5,208 | -2,262 | 50,083 |
| Financial result | 1,022 | -1,043 | -2,103 | -1,117 | 656 | 56 | -2,529 |
| Interest income | 4,513 | 384 | 374 | 1,132 | 632 | -6,095 | 940 |
| Interest expenses | -1,974 | -1,426 | -2,430 | -2,125 | -461 | 6,031 | -2,385 |
| Depreciation and amortisation | 3,381 | 958 | 507 | 2,364 | 1,334 | 0 | 8,544 |
| Non-current assets excl. deferred tax assets | 69,280 | 8,467 | 12,734 | 37,900 | 14,514 | 0 | 142,895 |
| Inventories | 123,316 | 65,143 | 46,102 | 94,701 | 17,829 | -18,029 | 329,062 |
| Depreciation of inventories | 7,739 | 1,113 | 598 | 286 | 9 | 0 | 9,745 |
| June 2023 in EURk | D/A/CH | Western Europe | Eastern Europe | Overseas and Other Countries | Production and Sourcing Companies | Reconciliation | Group |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Revenue by invoicing party | 226,968 | 102,907 | 50,965 | 123,210 | 21,836 | 0 | 525,886 |
| Revenue by invoice recipient | 227,726 | 117,205 | 55,021 | 125,934 | 0 | 0 | 525,886 |
| EBT | 23,448 | 4,638 | 4,576 | 10,276 | 1,443 | -55 | 44,326 |
| Financial result | 1,106 | -1,929 | -1,336 | -1,550 | -530 | 743 | -3,496 |
| Interest income | 5,100 | 15 | 40 | 417 | 267 | -5,486 | 353 |
| Interest expenses | -2,932 | -1,944 | -1,358 | -1,951 | -626 | 5,318 | -3,493 |
| Depreciation and amortisation | 3,085 | 749 | 483 | 2,153 | 1,171 | 0 | 7,641 |
| Non-current assets excl. deferred tax assets | 58,779 | 7,378 | 11,239 | 40,568 | 11,625 | 0 | 129,589 |
| Inventories | 148,834 | 79,727 | 46,859 | 91,529 | 8,667 | -16,746 | 358,870 |
| Depreciation of inventories | 6,729 | 515 | 3,256 | 988 | 0 | 0 | 11,488 |
Half year report as at 30 June 2024
5. Other notes
5.1. Related party disclosures
Thannhuber AG is the controlling shareholder of Einhell Germany AG. Philipp Thannhuber and Dr Markus Thannhuber (shareholders of Thannhuber AG) received remuneration for their activities as executive bodies of Einhell Germany AG in financial year 2024.
The following shareholdings and interlocking directorships exist between Thannhuber AG and Einhell Germany AG:
- Philipp Thannhuber (Deputy Chairman of the Supervisory Board of Einhell Germany AG) is a shareholder and member of the board of Thannhuber AG.
- Markus Thannhuber (member of the Board of Directors of Einhell Germany AG) is a shareholder and deputy chairman of the supervisory board of Thannhuber AG.
The transactions of group companies with the related parties are, without exception, related to the ordinary business activities of the parties involved and were concluded at arm's length conditions, i.e. conditions that are also granted to other third-party manufacturers.
6. 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.
At the Annual General Meeting on June 28, 2024, a share split of 1:3 was decided. To do this, the company's subscribed capital had to be increased from EUR 9,662,464.00 to EUR 11,323,200.00. The capital increase was carried out by withdrawing money from retained earnings. The capital increase was registered on July 18, 2024.
7. Statement of responsibility
To the best of our knowledge, we assure that the interim consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group and that the interim Group management report accurately reflects the actual development and performance of the business and the position of the Group and describes the principal risks and opportunities associated with the Group's expected development in the remaining months of the financial year.
Landau a. d. Isar, 22 August 2024
Einhell Germany AG
The Board of Directors
Andreas Kroiss
Jan Teichert
Dr Markus Thannhuber
Dr Christoph Urban
Half year report as at 30 June 2024
Financial calendar 2024
Quarterly notification as of 30 September 2024
Mid-November 2024
Deutsches Eigenkapitalforum / Frankfurt am Main
November 2024
16
Half year report as at 30 June 2024
Legal company information
Einhell Germany AG
Wiesenweg 22
94405 Landau an der Isar
www.einhell.com
Publication date
22 August 2024
Investor Relations
Telephone: +49 (9951) 942-166
E-mail: [email protected]
Please visit our website at www.einhell.com showing extensive information and reports on Einhell Germany AG.
17
Half year report as at 30 June 2024
Disclaimer
This half year report 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 the calculation of percentage figures.
18
Einhell
Einhell Germany AG
Wiesenweg 22
D-94405 Landau a. d. Isar
Phone (09951) 942-0
www.einhell.com
einhell.com
>>>