Earnings Release • Aug 11, 2022
Earnings Release
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JOST increased sales by +18% to €322m in Q2, with strong growth both in Transport (+14%) and Agriculture (+29%)
Adj. EBIT margin strong at 10%, despite rising costs and disruptions in supply chains, with adj. EBIT growing by +7% to €32m in Q2
High operational flexibility and wide global footprint were key success factor to manage regional shifts in a volatile market environment
Visibility remains low due to the war in Ukraine, potential energy and supply chain constraints as well as ongoing lockdowns in China
JOST confirms outlook for FY 2022, despite challenging market environment
| EUROPE | NORTH AMERICA | APA | |||||
|---|---|---|---|---|---|---|---|
| TRUCK MARKET |
-16% | Truck market affected by supply chain disruptions due to war in Ukraine. |
+7% | Production of class 8 truck in N.A. remained strong in Q2, posting further growth. |
-56% | Truck production in APA impacted by sharp decline in China, despite growth in other APA markets. |
|
| Y R T S U D N I |
TRAILER MARKET |
+6% | Trailer markets grew in Q2 and were less impacted by supply chain issues. |
+12% | Trailer production rose further, boosted by strong underlying demand. |
+11% | Trailer production increased despite weak Chinese market, driven by demand in India and the Pacific region. |
| TRACTOR MARKET |
-6% | Tractor sales impacted by uncertainties due to the war in the Ukraine. |
0% | Demand for compact tractors declined but was offset by higher HP tractor demand. |
|||
| +16% | JOST benefited from broad application mix, offsetting decline in trucks with strong trailer and tractor business. |
+52% | JOST outperformed the markets in Transport and Agriculture. |
-20% | JOST's strong sales in other APA countries limited impact of negative market development in China. |
• The growth in net debt, resulted in a slight increase of leverage. As of June 30, 2022, it was at 1.53x adj. EBITDA (Dec. 31, 2021: 1.45x).
1 ROCE=LTM adj. EBIT / interest-bearing capital employed (interest-bearing capital = equity + financial liabilities [excl. refinancing costs] – liquid assets + provisions for pensions) 2 Net debt = interest bearing capital [excl. refinancing costs] – liquid assets
3 Leverage = Net debt/LTM adj. EBITDA [LTM adj. EBITDA = € 138m; LTM adj. EBITDA PY = € 108m]
1Free cash flow = Operating cash flow – capex
2Cash conversion = Free cash flow/adj. net income
3Capex = Payments to acquire property, plant and equipment + payments to acquire intangible assets
• The continuing surge in business volume as well as price increases, lead to a significant increase in trade receivables and inventories, which impacted working capital. Despite this, JOST was able to achieve a positive free cashflow in Q2 2022 of € +9.2m. The cash conversion rate improved to +0.4 in the quarter.
• Capex spending increased to €6.4m and is at 2.0% of total sales below the 2.5% of sales expected for the year, mostly due to phasing of investment projects.
• Trade receivables and trade payables increased significantly compared to prior year, driven by the higher business activity. Both trade payables and receivables went up at a similar pace due to price increases and higher demand.
• Inventories rose by €60m at a much faster rate due to not only the increase in activity levels but also because of an increase in safety stock to compensate for logistic disruptions across the value chain.
• NWC as % of LTM sales increased to 21.2%, compared to Q2 2021, due to the higher working capital, but is expected to be below the 20% threshold by year-end as guided.
Note: Market estimates based on LMC, Clear Consulting, FTR, OEM announcements (as of August 2022)
| Sales | Mid-single digit growth y-o-y (2021: €1.049m) |
||
|---|---|---|---|
| Adj. EBIT | (2021: €105m) | ||
| Adj. EBIT margin | Stable (2021: 10.0 %) | ||
| Capex (in % of sales) | Approx. 2.5% of sales | ||
| Mid-single digit growth y-o-y |
Another successful quarter, with sales exceeding the €300m and adj. EBIT the €30m mark for the second consecutive quarter in JOST's history.
Both business lines Transport and Agriculture continue to drive the growth momentum, benefiting from a good order intake.
North America was JOST's strongest growth region once again, supported by growing demand for JOST's products.
Given current macroeconomic uncertainties and rising inflation worldwide, visibility remains very low despite strong underlying fundamentals.
JOST confirms its guidance for FY 2022 and is confident on its ability to limit negative impacts of rising costs with its operational flexibility.
Further information
JOST reported strong growth in Q2 2022, benefiting from robust demand for both transport and agricultureal products. For the first time in company history, sales exceeded the €300m und adj. EBIT the €30m mark for two consecutive quarters.
| ISIN | DE000JST4000 |
|---|---|
| Trading symbol | JST |
| German Sec. Code Number (WKN) | JST400 |
| Shares in issue | 14,900,000 |
| Index | SDAX |
| Listed since | July 20, 2017 |
Universal-Investment-Gesellschaft
| A u g 1 1 | P u b l i c a t i o n o f Q 2 2 0 2 2 R e p o r t |
|---|---|
| S e p t 8 | C o m m e r z b a n k a n d O D D O B H F C o r p o r a t e C o n f e r e n c e , F r a n k f u r t / G e r m a n y |
| S e p t 2 1 | 1 1 t h B e r e n b e r g G e r m a n C o r p o r a t e C o n f e r e n c e 2 0 2 2 , M u n i c h / G e r m a n y |
| S e p t 2 2 | 1 1 t h B a a d e r I n v e s t o r C o n f e r e n c e 2 0 2 2 , M u n i c h / G e r m a n y |
| N o v . 1 4 | P u b l i c a t i o n o f Q 3 2 0 2 2 R e p o r t |
I n v e s t o r R e l a t i o n s C o n t a c t : R O M Y A C O S T A H e a d o f I n v e s t o r R e l a t i o n s
J O S T W e r k e A G S I E M E N S S T R A S S E 2 6 3 2 6 3 N E U - I S E N B U R G G E R M A N Y
E - M A I L : r o m y . a c o s t a @ j o s t - w o r l d . c o m P H O N E : + 4 9 - 6 1 0 2 - 2 9 5 - 379 F A X : + 4 9 - 6 1 0 2 - 295 - 6 6 1
W W W . J O S T - W O R L D . C O M
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