Quarterly Report • Nov 8, 2023
Quarterly Report
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This report is available in German and English. Both versions can also be found online on our corporate website www.r-stahl.com under Corporate/Investor Relations/IR News and Publications/Financial Reports. It contains forward-looking statements based on assumptions and estimates of R. STAHL's management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.
The alternative performance indicators EBITDA pre exceptionals and EBITDA margin pre exceptionals that are used in this report are not defined by international accounting standards. R. STAHL uses these indicators to improve the comparability of its business performance over time. EBITDA pre exceptionals is derived from earnings before interest, taxes, depreciation and amortization (EBITDA) less adjustments classified as exceptionals (restructuring charges, non-scheduled depreciation and amortization, charges for design and implementation of IT-projects, M&A costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of non-current assets no longer required for business operations). EBITDA margin pre exceptionals describes EBITDA pre exceptionals in percentage of sales.
Percentages and figures in this report may include rounding differences. The sign of the rates of change is based on mathematical considerations: Improvements are marked with "+", deteriorations with "-". Rates of change > +100% are shown as > +100%, rates of change < -100% as "n/a" (not applicable).
| $\epsilon$ million | Q3 2023 |
Q3 2022 |
Change in $%$ |
9M 2023 | 9M 2022 | Change in $%$ |
|---|---|---|---|---|---|---|
| Sales | 86.0 | 73.8 | $+16.4$ | 240.7 | 202.5 | $+18.9$ |
| Germany | 21.4 | 19.9 | $+7.8$ | 63.1 | 54.6 | $+15.6$ |
| Central region 1) | 39.1 | 29.8 | $+31.2$ | 107.2 | 87.0 | $+23.1$ |
| Americas | 9.0 | 8.7 | $+2.7$ | 25.1 | 23.7 | $+5.8$ |
| Asia/Pacific | 16.5 | 15.4 | $+6.9$ | 45.3 | 37.2 | $+21.9$ |
| EBITDA pre exceptionals 2) | 13.5 | 9.7 | $+39.7$ | 32.5 | 16.6 | $+95.8$ |
| EBITDA margin pre exceptionals 2) | 15.7% | 13.1% | 13.5% | 8.2% | ||
| EBITDA | 12.9 | 9.1 | $+41.8$ | 31.0 | 15.5 | $> +100$ |
| EBIT | 8.4 | 5.0 | $+68.2$ | 18.0 | 3.2 | $> +100$ |
| Net profit | 6.2 | 5.2 | $+18.8$ | 11.9 | $-1.1$ | n/a |
| Earnings per share (in $\epsilon$ ) | 0.96 | 0.80 | $+20.0$ | 1.85 | $-0.17$ | n/a |
| Order intake | 82.1 | 80.1 | $+2.5$ | 268.0 | 232.0 | $+15.5$ |
| Order backlog as of 30 June | 132.4 | 100.7 | $+31.5$ | |||
| Cash flow from operating activities | $-0.9$ | $-6.5$ | $+85.7$ | $-0.3$ | $-5.2$ | $+93.6$ |
| Free cash flow | $-4.8$ | $-9.6$ | $+50.1$ | $-10.4$ | $-11.6$ | $+10.5$ |
| Depreciation and amortization | 4.5 | 4.1 | $+9.3$ | 13.0 | 12.3 | $+6.4$ |
| Capital expenditures | 3.8 | 3.2 | $+19.8$ | 10.1 | 9.8 | $+2.4$ |
| 30 Sep. 2023 |
31 Dec. 2022 |
Change in $%$ |
||||
| Balance sheet total | 283.5 | 259.7 | $+9.2$ | |||
| Equity | 82.2 | 71.3 | $+15.2$ | |||
| Equity ratio | 29.0% | 27.5% | ||||
| Net financial debt 3) | 48.4 | 29.2 | $+65.7$ | |||
| Net financial debt incl. lease liabilities | 64.5 | 48.9 | $+32.0$ | |||
| Employees 4) | 1,724 | 1,676 | $+2.9$ |
1) Africa and Europe without Germany.
2) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for designing and implementing IT projects, M&A costs profit and loss from deconsolidation transactions as well as profit and los
4) Without apprentices.
OF R. STAHL AKTIENGESELLSCHAFT FOR THE PERIOD 1. JANUARY 2023 THROUGH 30 SEPTEMBER 2023
R. STAHL concluded a new syndicated loan agreement as of 30 August 2023 for the medium-term financing of the company under the leadership of Commerzbank AG together with several major banks and regional Volksbanks and savings banks. The agreement has a term of three years with the option to extend for up to two additional years. The available credit volume will be increased by ë45 million from the previous ë70 million to ë115 million. In addition, there is an increase option of a further ë25 million for a total of ë140 million. The contract includes an ESG component that underscores the company's commitment to sustainability. If the sustainability requirements are met, the applicable interest margin is reduced.
Compared to an already strong prior-year quarter, R. STAHL's business situation improved again in the third quarter of 2023. Obstacles arising from interrupted or disrupted supply chains, which had curbed economic development in the prior-year quarter, have largely disappeared. Bottlenecks continue to be seen in individual cases in the procurement of electronic components; appropriate stockpiling counteracts this
phenomenon. The price adjustments made by customers at the beginning of the year made a major contribution to stable quality of sales. Ongoing strong demand, driven primarily by the chemical and pharmaceutical industries as well as the oil and gas sector (including LNG), resulted in year-on-year sales growth of 16.4% to €86.0 million (Q3 2022: €73.8 million).
In Germany, sales of € 21.4 million (Q3 2022: € 19.9 million), or growth of 7.8%, was achieved. In the Central region - consisting of Africa and Europe excluding Germany - sales showed an increase of 31.2% to €39.1 million (Q3 2022: €29.8 million) and were thus significantly higher than in the previous year. Here, R. STAHL benefited from strong demand in the chemical and pharmaceutical sectors as well as from deliveries to the energy sector. With sales of € 9.0 million, results in the Americas region were slightly above the level of the previous year (Q3 2022: € 8.7 million). The Asia/Pacific region improved with a sales increase of 6.9% to € 16.5 million (Q3 2022: € 15.4 million). This development was primarily driven by the oil and gas industry.
Compared to the previous year, order intake in the third quarter of 2023 increased by 2.5% to €82.1 million ( $Q3$ 2022: € 80.1 million). The growth driver here was the Americas region with an increase of 32.4% to € 11.8 million (Q3 2022: € 8.9 million) and the Central region with growth of 13.0 % to €36.8 million (Q3 2022: € 32.6 million). Germany, on the other hand, fell by 12.0% to € 18.2 million (Q3 2022: € 20.7 million) and the Asia/Pacific region with a decline of -14.7% to € 15.3 million (Q3 2022: € 17.9 million).
In the first nine months, R. STAHL generated sales of € 240.7 million (9M 2022: € 202.5 million), an increase of 18.9% compared with the same period of the previous year. This development was driven in particular by strong demand in the first two quarters of financial year 2023. There was significant double-digit percentage growth in Germany, the Central region and the Asia/Pacific region, while the Americas region made a smaller contribution, posting a single-digit growth rate.
Order intake grew by € 36.0 million or 15.5% year-onvear to $\epsilon$ 268.0 million in the first nine months of 2023 (9M 2022: € 232.0 million). In terms of the regions, Germany remained stable at a high level compared with the previous year. The other regions recorded double-digit percentage growth. At € 132.4 million, the order backlog was $\epsilon$ 31.7 million higher than in the previous year (30 September 2022: € 100.7 mil- $\ln$
| $\epsilon$ million | Q3 2023 |
Q3 2022 |
Change in $%$ |
9M 2023 |
9M 2022 |
Change in $%$ |
Share of Group sales in $%$ |
|---|---|---|---|---|---|---|---|
| Germany | 21.4 | 19.9 | $+7.8$ | 63.1 | 54.6 | $+15.6$ | 26 |
| Central Region | 39.1 | 29.8 | $+31.2$ | 107.2 | 87.0 | $+23.1$ | 45 |
| Americas | 9.0 | 8.7 | $+2.7$ | 25.1 | 23.7 | $+5.8$ | 10 |
| Asia/Pacific | 16.5 | 15.4 | $+6.9$ | 45.3 | 37.2 | $+21.9$ | 19 |
| Total | 86.0 | 73.8 | $+16.4$ | 240.7 | 202.5 | $+18.9$ | 100 |
R. STAHL increased earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals by $\epsilon$ 3.8 million to $\epsilon$ 13.5 million in the third quarter of 2023 (Q3 2022: € 9.7 million). The EBITDA margin pre exceptionals improved to 15.7% (Q3 2022: 13.1%). At €-0.6 million, exceptional items remained at the level of the previous year. Overall, this resulted in EBITDA of € 12.9 million (Q3 2022: € 9.1 million).
Total operating performance increased by 17.5% to € 89.3 million in the third quarter of 2023, mainly due to the higher sales volume ( $Q3 2022$ : $\epsilon$ 76.0 million). Inventories of finished and unfinished goods increased slightly by $\epsilon$ 1.2 million to $\epsilon$ 2.2 million (Q3 2022: € 1.0 million), while capitalized own work remained at the level of the previous year with $\epsilon$ 1.0 million.
The cost of materials increased by 11.0% to $\epsilon$ -29.8 million in the reporting quarter ( $Q3 2022$ : $\epsilon$ -26.9 million) and thus at a disproportionately lower rate than operating performance. Accordingly, the cost of materials ratio improved by two percentage points to 33.4% of operating performance (Q3 2022: 35.4%).
Personnel expenses recorded an increase of 10.5% to €-33.6 million in the third quarter of 2023 (Q3 2022: €-30.4 million). The higher expense is attributable to the increase in the number of employees, collectively agreed salary adjustments and the pro rata accrual of the inflation premium II collectively agreed in Germany. Expenses incurred for severance payments were also higher.
The balance of other operating expenses and other operating income increased in the reporting quarter by € 3.3 million to €-12.9 million (Q3 2022: € 9.6 million). At the same time, other operating income decreased by $\epsilon$ 4.3 million to $\epsilon$ 1.6 million (Q3 2022: € 5.9 million). In addition to the comparatively lower exchange rate gains in the current reporting quarter,
the previous year was impacted by non-recurring income of € 2.0 million from an insurance reimbursement for the warranty claim for LED luminaires (expenses for a customer-side settlement agreement were reported in the same amount under other operating expenses). Other operating expenses decreased by $\epsilon$ 1.0 million to $\epsilon$ -14.5 million (Q3 2022: € 15.5 million). Adjusted for the expenses for the warranty claim included in the previous year, there were higher expenses for services and consulting as well as for temporary work, while exchange rate losses were reduced at the same time.
At $\epsilon$ -4.5 million, amortization of intangible assets and depreciation of property, plant and equipment in the
third quarter of 2023 were slightly higher than in the prior-year period (Q3 2022: €-4.1 million).
Earnings before interest and income taxes improved by $\epsilon$ 3.4 million to $\epsilon$ 8.4 million in the reporting period (Q3 2022: € 5.0 million).
In the first nine months of 2023, EBITDA pre exceptionals increased by $\epsilon$ 15.9 million to $\epsilon$ 32.5 million (9M 2022: € 16.6 million). The EBITDA margin pre exceptionals improved to 13.5% from 8.2% in the priorvear period. Exceptional items totaled €-1.5 million (9M 2022: € -1.1 million), resulting in an EBITDA of $∈$ 31.0 million (9M 2022: € 15.5 million).
| Q 3 | Q 3 | 9M | 9M | Included in income | |||
|---|---|---|---|---|---|---|---|
| $\epsilon$ million | 2023 | 2022 | Change | 2023 | 2022 | Change | statement under |
| EBITDA pre exceptionals 1) | 13.5 | 9.7 | $+3.8$ | 32.5 | 16.6 | $+15.9$ | |
| Exceptionals 1) | $-0.6$ | $-0.6$ | 0.0 | $-1.5$ | $-1.1$ | $-0.4$ | |
| Restructuring charges | $-0.6$ | $-0.1$ | $-0.5$ | $-0.7$ | $-0.7$ | 0.0 | |
| Severance pay | $-0.6$ | $-0,1$ | $-0.5$ | $-0.7$ | $-0.7$ | 0.0 | Personnel costs |
| Legal and consulting costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | Other operating ex- penses |
| Other expenses | 0.0 | $-0.4$ | $+0.4$ | $-0.8$ | $-0.4$ | $-0.4$ | Other operating ex- penses |
| EBITDA | 12.9 | 9.1 | $+3.8$ | 31.0 | 15.5 | $+15.5$ | |
| Depreciation and amortization | $-4.5$ | $-4.1$ | $-0.4$ | $-13.0$ | $-12.3$ | $-0.7$ | |
| EBIT | 8.4 | 5.0 | $+3.4$ | 18.0 | 3.2 | $+14.8$ |
1) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects,
M&A costs, profit and loss from deconsolidation transactions as well as profit and loss
Total operating performance increased by 19.6% to $\epsilon$ 251.0 million in the first nine months of 2023 (9M 2022: € 209.8 million). The improvement was largely driven by sales growth. Furthermore, there was a stronger build-up of finished and unfinished goods at € 7.1 million (9M 2022: € 3.6 million), while capitalized own work declined to €3.2 million (9M 2022: €3.8 million).
The cost of materials increased by 15.6% to $\epsilon$ -85.1 million (9M 2022: € -73.7 million), a result that was
mainly attributable to the overall higher operating performance. The cost of materials ratio recorded a yearon-year improvement to 33.9% (9M 2022: 35.1 %) of total operating performance.
With an increase of 4.9%, personnel expenses rose to €-98.4 million in the first nine months of the current year (9M 2022: € -93.8 million). Both the increase in the number of employees and collective bargaining agreements led to the higher cost position. Lower expenses for vacation provisions and partial retirement agreements had a relieving effect.
The balance of other operating income and other operating expenses increased by ë 9.6 million to ë -36.4 million in the reporting period (9M 2022: ë -26.8 million). Higher expenses for services and consulting as well as for temporary work contributed to the increase. Exchange rate and deconsolidation effects had a combined negative net impact of ë -3.8 million.
Compared with the previous year, amortization of intangible assets and depreciation of property, plant and equipment increased by ë 0.8 million to ë -13.0 million (9M 2022: ë -12.3 million).
This resulted in EBIT of ë 18.0 million in the reporting quarter (9M 2022: ë 3.2 million).
In the first nine months of the current financial year, the financial result improved by ë 0.5 million to ë -2.7 million (9M 2022: ë -3.2 million). While interest expenses increased by ë -2.5 million to ë -5.0 million (9M 2022: ë -2.5 million), the included pro rata result of ZAVOD Goreltex remained at the previous year's level of ë 2.2 million. The partial impairment of the investment in ZAVOD Goreltex had a negative impact of ë -3.1 million in the previous year. The absence of this effect was the main contributor to the improved financial result.
Earnings before income taxes (EBT) increased by ë 1.8 million to ë 7.3 million in the third quarter of
2023 (Q3 2022: ë 5.4 million).
The financial result declined by ë 1.5 million to ë -1.2 million in the third quarter of 2023 (Q3 2022: ë 0.4 million). Interest expenses increased by ë1.0 million to ë -1.8 million (Q3 2022: ë -0.8 million) due to the higher utilization of loans and the higher interest rate used to measure pension obligations. Earnings from ZAVOD Goreltex which is accounted for using the equity method fell by ë 0.6 million to ë 0.6 million (Q3 2022: ë 1.2 million).
| ë million | Q3 2023 |
Q3 2022 |
Change | 9M 2023 |
9M 2022 |
Change |
|---|---|---|---|---|---|---|
| EBIT | 8.4 | 5.0 | +3.4 | 18.0 | 3.2 | +14.8 |
| Financial result | -1.1 | 0.4 | -1.5 | -2.7 | -3.2 | +0.5 |
| Earnings before income taxes | 7.3 | 5.4 | +1.8 | 15.3 | 0.1 | +15.2 |
| Income taxes | -1.1 | -0.2 | -0.9 | -3.4 | -1.1 | -2.3 |
| Net profit | 6.2 | 5.2 | +1.0 | 11.9 | -1.1 | +13.0 |
| thereof attributable to other shareholders | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| attributable to shareholders of R. STAHL AG | 6.2 | 5.2 | +1.0 | 11.9 | -1.1 | +13.0 |
| Earnings per share (in €) | 0.96 | 0.80 | +0.16 | 1.85 | -0.17 | +2.02 |
| Average number of shares outstanding (weighted, in mil lion units) |
6.44 | 6.44 | 0.0 | 6.44 | 6.44 | 0.0 |
year.
In the first nine months of 2023, earnings before income taxes amounted to ë 15.3 million, compared with ë 0.1 million in the same period of the previous
Income taxes increased by $\epsilon$ 0.9 million to $\epsilon$ -1.1 million in the third quarter of 2023 ( $Q3$ 2022: €-0.2 million). Of this total, $\epsilon$ -1.5 million was attributable to income taxes and $\epsilon$ +0.4 million was attributable to deferred taxes.
In the first nine months of the reporting year, income taxes amounted to €-3.4 million (9M 2022: €-1.1 million). Of that total, $\epsilon$ -2.4 million was attributable to effective taxes and $\epsilon$ -0.9 million was attributable to deferred taxes
R. STAHL increased its net profit by $\epsilon$ 1.0 million to $\epsilon$ 6.2 million in the third quarter of 2023 (Q3 2022: € 5.2 million). Accordingly, earnings per share amounted to $\epsilon$ 0.96, compared with $\epsilon$ 0.80 in the prior-year quarter.
Net profit improved by $\epsilon$ 13.0 million to $\epsilon$ 11.9 million in the first nine months of the reporting year (9M 2022: €-1.1 million). Earnings per share increased to € 1.85 (9M 2022: € -0.17).
As of 30 September 2023, the R. STAHL Group's balance sheet total increased by € 23.8 million compared to the end of the previous year to $\epsilon$ 283.5 million $(31$ December 2022: $\in$ 259.7 million)
Non-current assets decreased as of the balance sheet date by € 1.7 million to € 143.2 million (31 December 2022: € 144.9 million). While intangible assets, the atequity investment and deferred taxes decreased,
property, plant and equipment increased, mainly due to the recognition of the photovoltaic system as of 30 June 2023.
Current assets amounted to € 140.3 million as of 30 September 2023 (31 December 2022: € 114.7 million). This corresponds to an increase of $\epsilon$ 25.5 million compared with the end of the previous year. Higher inventories as well as the increase in trade accounts receivable due to the higher sales volume contributed significantly to this development. At the same time, cash and cash equivalents decreased.
Non-current liabilities decreased by € 1.5 million to € 86.5 million at the end of the reporting period (31 December 2022: € 88.0 million). Provisions for pension obligations decreased due to an increase in the discount rate at the end of the third quarter of 2023. Scheduled repayment of lease liabilities also led to a decrease in non-current liabilities. Countering this, recognition of the long-term components of the leasepurchase obligation to finance the photovoltaic system resulted in higher interest-bearing loans.
Current liabilities increased by € 14.5 million to € 114.9 million as of 30 September 2023 compared with the end of the previous year (31 December 2022: € 100.4 million). This was mainly due to the € 11.8 million increase in interest-bearing loans.
Equity improved by $\epsilon$ 10.9 million compared to the end of the previous year to €82.2 million (31 December 2022: € 71.3 million), mainly due to the positive net profit of € 11.9 million. Furthermore, the increase in the interest rate used to measure pension obligations had the effect of increasing equity by $\epsilon$ 2.1 million. Negative effects of €3.1 million from currency translation were recognized in equity.
This resulted in an equity ratio of 29.0% compared with 27.5% as of 31 December 2022
Asset Liabilities
31 December 2022 Balance sheet total ë 259.7 milion
Cash flow increased by ë 2.4 million compared to the third quarter of 2023 to ë 12.1 million inQ3 2023 (Q3 2022: ë 9.7 million). Together with a comparatively lower year-on-year increase in working capital, this resulted in cash flow from operating activities of ë -0.9 million (Q3 2022: ë -6.5 million).
At ë -1.8 million, investments in intangible assets remained at the level of the previous year. With cash outflow of ë -2.1 million, investments in property, plant and equipment increased by ë 0.7 million compared with the previous year (Q3 2022: ë -1.4 million). In the current quarter, this resulted in cash flow from investing activities of ë -3.8 million (Q3 2022: ë -3.1 million). Overall, free cash flow improved by ë 4.8 million to ë -4.8 million in the third quarter of 2023 (Q3 2022: ë -9.6 million).
Cash flow from financing activities was ë 4.8 million in the reporting quarter (2022: ë 7.0 million). As in the previous year, cash outflows of ë -1.6 million were made for the payment of lease liabilities. In the third quarter of 2023, cash inflows from interest-bearing financial debt amounted to ë10.8 million (Q3 2022: ë 8.8 million), while cash outflows for repayment amounted to ë -4.4 million (Q3 2022: ë -0.3 million).
As of 30 September 2023, R. STAHL had cash and cash equivalents of ë 11.1 million at its disposal (31 December 2022: ë 16.1 million). Compared with the third quarter of 2022, cash and cash equivalents decreased by ë 7.3 million (Q3 2022: ë 18.4 million).
In the first nine months of the reporting year, cash flow increased by ë 15.8 million to ë 28.5 million (9M 2022: ë 12.6 million) due to the significant increase in net profit. Working capital increased by ë 28.8 million (9M 2022: ë 17.9 million), mainly due to the increase in inventories and higher trade accounts receivable. The resulting cash flow from operating activities increased by ë 4.9 million year-on-year to ë -0.3 million in the reporting period (9M 2022: ë -5.2 million). Together with cash flow from investing activities of ë -10.0 million (9M 2022: ë -6.3 million), free cash flow in the first nine months of 2023 amounted to ë -10.4 million (9M 2022: ë -11.6 million). The free cash flow of the prior-year period was positively influenced by the reversal of a non-current financial investment in the amount of ë 3.3 million. Adjusted for this effect, free cash flow improved by ë 4.6 million.
Cash flow from financing activities decreased in the first nine months of 2023 to ë 5.7 million (9M 2022: ë 22.8 million). Repayment of interest-bearing financial debt of ë -6.0 million (9M 2022: ë -1.1 million) was offset by cash inflow from interest-bearing financial debt of ë 16.4 million (9M 2022: ë 28.6 million). As in the previous year, lease liabilities were repaid in the amount of ë -4.7 million.
The negative free cash flow, the repayment of lease liabilities and the recognition of the lease-purchase obligation to finance the photovoltaic plant resulted in an increase in net debt (excluding pension provisions and lease liabilities) of ë 19.2 million compared with the year-end figure to ë 48.4 million (31 December 2022: ë 29.2 million).
All R. STAHL subsidiaries regularly prepare an opportunity and risk report that takes into account the opportunities and risks of the company. Managing directors are required to inform the department responsible for opportunity and risk management of any significant events, including those that occur during the quarter. The relevant statements made in the Annual Report 2022 starting on page 42 continue to apply unchanged.
We first presented our assessment of the expected development of the R. STAHL Group in the current year in detail in the Outlook of the Annual Report 2022, which was published on 27 April 2023, starting on page 84. Accordingly – based on the economic development outlook, increased order intake and order backlog – we expected sales growth in 2023 as compared to the previous year to be in the low doubledigit percentage range of between ë 305 million and
€ 320 million. Taking into account a general improvement in the procurement markets and assuming that it will still be possible to pass on price adjustments, we expected the materials ratio to fall slightly while cost efficiency will increase. For financial year 2023, we anticipated EBITDA pre exceptionals in the range of $\epsilon$ 30 million to $\epsilon$ 36 million and an improved positive net profit compared with 2022. Assuming a constant interest rate level for the valuation of pension obligations, we expected a slight increase in the equity ratio for financial year 2023. In terms of free cash flow, we expected a low single-digit positive million euro amount. We also expected net debt to decline. The forecast was specified as follows in the context of the interim half-year reporting:
For full year 2023, we continue to expect sales growth to a total of between € 305 million and € 320 million and EBITDA pre exceptionals in the range of € 30 million and € 36 million. Given the assumption of a further increase in raw materials and supplies, in particular the stocking of electronic components to ensure delivery capability, as well as expected higher inventories of finished and unfinished goods due to the increased volume of business, the amount of capital tied up in inventories will increase. We therefore forecast a reduced free cash flow in the low singledigit negative million euro range and consequently an increase in net debt. Assuming a constant interest rate level for the measurement of pension obligations, we continue to see a slight increase in the equity ratio.
As part of our third-quarter reporting, we are raising the forecast for EBITDA pre exceptionals for the 2023 financial vear to a corridor of between € 35 million and € 40 million. We remain committed to all other estimates.
| $\epsilon$ million | October 2023 | July 2023 | April 2023 | Full-year 2022 |
|---|---|---|---|---|
| Sales | $305 - 320$ | $305 - 320$ | $305 - 320$ | 274.3 |
| EBITDA pre exceptionals 1) |
$35 - 40$ | $30 - 36$ | $30 - 36$ | 22.3 |
| Free cash flow | low single-digit nega- tive million euro amount |
low single-digit nega- tive million euro amount |
low single-digit posi- tive million euro amount |
$-4.4$ |
| Equity ratio | slight increase | slight increase | slight increase | 27.5% |
1) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects, M&A costs, profit and loss from deconsolidation transactions as well as profit and loss from the disposal of assets no longer required for business operations
1 January to 30 September
| Q3 | Q3 | Change | 9M | 9M | Change | |
|---|---|---|---|---|---|---|
| ë 000 | 2023 | 2022 | in % | 2023 | 2022 | in % |
| Sales | 85,963 | 73,821 | +16.4 | 240,693 | 202,505 | +18.9 |
| Change in finished and unfinished products | 2,238 | 1,037 | > +100 | 7,097 | 3,563 | +99.2 |
| Own work capitalized | 1,050 | 1,100 | -4.5 | 3,206 | 3,757 | -14.7 |
| Total operating performance | 89,251 | 75,958 | +17.5 | 250,996 | 209,825 | +19.6 |
| Other operating income | 1,603 | 5,938 | -73.0 | 6,236 | 11,345 | -45.0 |
| Cost of materials | -29,839 | -26,877 | -11.0 | -85,132 | -73,671 | -15.6 |
| Personnel costs | -33,579 | -30,379 | -10.5 | -98,425 | -93,847 | -4.9 |
| Depreciation and amortization | -4,460 | -4,081 | -9.3 | -13,040 | -12,257 | -6.4 |
| Other operating expenses | -14,539 | -15,544 | +6.5 | -42,628 | -38,160 | -11.7 |
| Earnings before financial result and income tax (EBIT) |
8,437 | 5,015 | +68.2 | 18,007 | 3,235 | > +100 |
| Result from companies consolidated using the equity method |
641 | 1,255 | -48.9 | 2,239 | 2,354 | -4.9 |
| Investment result | 0 | 0 | 0.0 | 0 | -3,071 | n/a |
| Interest and similar income | 22 | 9 | > +100 | 86 | 23 | > +100 |
| Interest and similar expense | -1,818 | -833 | < -100 | -5,044 | -2,470 | < -100 |
| Financial result | -1,155 | 431 | n. a. | -2,719 | -3,164 | +14.1 |
| Earnings before taxes | 7,282 | 5,446 | +33.7 | 15,288 | 71 | > +100 |
| Income taxes | -1,072 | -220 | < -100 | -3,389 | -1,131 | < -100 |
| Net profit/loss | 6,210 | 5,226 | +18.8 | 11,899 | -1,060 | n/a |
| thereof attributable to other shareholders | 0 | 24 | n/a | -30 | 14 | n/a |
| thereof attributable to shareholders of R. STAHL AG |
6,210 | 5,202 | +19.4 | 11,929 | -1,074 | n/a |
| Earnings per share in € | 0.96 | 0.80 | +20.0 | 1.85 | -0.17 | n/a |
1 January to 30 September
| ë 000 | Q3 2023 |
Q3 2022 |
Change in % |
9M 2023 |
9M 2022 |
Change in % |
|---|---|---|---|---|---|---|
| Net profit | 6,210 | 5,226 | +18.8 | 11,899 | -1,060 | n/a |
| Gains/losses from currency translations of for eign subsidiaries, recognized in equity |
129 | 513 | -74.9 | -3,158 | 795 | n/a |
| Deferred taxes on gains/losses from currency translations |
0 | 0 | 0.0 | 0 | 0 | 0.0 |
| Currency translation differences after taxes |
129 | 513 | -74.9 | -3,158 | 795 | n/a |
| Other comprehensive income with reclas sification of profit for the period |
129 | 513 | -74.9 | -3,158 | 795 | n/a |
| Gains/losses from the subsequent measure ment of pension obligations, recognized in equity |
4,381 | 6,384 | -31.4 | 3,001 | 30,885 | -90.3 |
| Deferred taxes from pension obligations | -1,295 | -1,891 | +31.5 | -887 | -9,136 | +90.3 |
| Other comprehensive income without re classification to profit for the period |
3,086 | 4,493 | -31.3 | 2,114 | 21,749 | -90.3 |
| Other comprehensive income (valuation differences recognized directly in equity) |
3,215 | 5,006 | -35.8 | -1,044 | 22,544 | n/a |
| thereof attributable to other shareholders | 4 | -7 | n/a | -18 | 6 | n/a |
| thereof attributable to shareholders of R. STAHL AG |
3,211 | 5,013 | -35.9 | -1,026 | 22,538 | n/a |
| Total comprehensive income after tax | 9,425 | 10,232 | -7.9 | 10,855 | 21,484 | -49.5 |
| thereof attributable to other shareholders | 4 | 17 | -76.5 | -48 | 20 | n/a |
| thereof attributable to shareholders of R. STAHL AG |
9,421 | 10,215 | -7.8 | 10,903 | 21,464 | -49.2 |
| ë 000 | 30 Sep. 2023 |
31 Dec. 2022 |
Change |
|---|---|---|---|
| ASSETS | |||
| Intangible assets | 48,374 | 48,829 | -455 |
| Property, plant & equipment | 76,714 | 74,980 | +1,734 |
| Investments in associated companies | 8,926 | 11,455 | -2,529 |
| Other financial assets | 30 | 30 | 0 |
| Other assets | 2,895 | 2,262 | +633 |
| Investment property | 4,136 | 4,292 | -156 |
| Deferred taxes | 2,173 | 3,097 | -924 |
| Non-current assets | 143,248 | 144,945 | -1,697 |
| Inventories and prepayments | 67,122 | 48,920 | +18,202 |
| Trade receivables | 43,722 | 37,353 | +6,369 |
| Contract receivables | 28 | 6 | +22 |
| Income tax claims | 1,561 | 1,531 | +30 |
| Other receivables and other assets | 16,793 | 10,873 | +5,920 |
| Cash and cash equivalents | 11,060 | 16,060 | -5,000 |
| Current assets | 140,286 | 114,743 | +25,543 |
| Total assets | 283,534 | 259,688 | +23,846 |
| EQUITY AND LIABILITIES | |||
| Share capital | 16,500 | 16,500 | 0 |
| Capital reserve | 13,457 | 13,457 | 0 |
| Retained earnings | 69,014 | 57,085 | +11,929 |
| Accumulated other comprehensive income | -16,921 | -15,895 | -1,026 |
| Equity attributable to shareholders of R. STAHL AG | 82,505 | 71,147 | +10,903 |
| Non-controlling interests | 146 | 194 | -48 |
| Equity | 82,196 | 71,341 | +10,855 |
| Pension provisions | 60,975 | 64,168 | -3,193 |
| Other provisions | 2,462 | 2,438 | +24 |
| Interest-bearing financial liabilities | 3,560 | 1,166 | +2,394 |
| Lease liabilities | 12,481 | 14,267 | -1,786 |
| Other liabilities | 125 | 0 | +125 |
| Deferred taxes | 6,860 | 5,911 | +949 |
| Non-current liabilities | 86,463 | 87,950 | -1,487 |
| Provisions | 7,697 | 7,974 | -277 |
| Trade payables | 16,485 | 19,077 | -2,592 |
| Contract liabilities | 251 | 439 | -188 |
| Interest-bearing financial liabilities | 55,868 | 44,081 | +11,787 |
| Lease liabilities | 3,679 | 5,427 | -1,748 |
| Deferred liabilities | 17,436 | 13,852 | +3,584 |
| Income tax liabilities | 1,470 | 746 | +724 |
| Other liabilities | 11,989 | 8,801 | +3,188 |
| Current liabilities | 114,875 | 100,397 | +14,478 |
| Total equity and liabilities | 283,534 | 259,688 | +23,846 |
1 January to 30 September
| ë 000 | Q3 2023 |
Q3 2022 |
Change | 9M 2023 |
9M 2022 |
Change |
|---|---|---|---|---|---|---|
| Net profit | 6,210 | 5,226 | +984 | 11,899 | -1,060 | +12,959 |
| Result from the disposal of consolidated companies |
0 | 418 | -418 | 759 | 418 | +341 |
| Depreciation, amortization and impairment of non-current assets |
4,460 | 4,082 | +378 | 13,040 | 15,328 | -2,288 |
| Changes in non-current provisions | -23 | -789 | +766 | -169 | -815 | +646 |
| Changes in deferred taxes | -413 | 120 | -533 | 943 | 421 | -+522 |
| Equity valuation | 1,284 | -1,255 | +2,539 | -314 | -2,354 | +2,040 |
| Other income and expenses without cash flow impact |
597 | 1,953 | -1,356 | 2,297 | 725 | +1,572 |
| Result from the disposal of non-current assets |
-17 | -74 | +57 | 0 | -44 | +44 |
| Cash flow | 12,098 | 9,681 | +2,417 | 28,455 | 12,619 | +15,836 |
| Changes in current provisions | 474 | 348 | +126 | -290 | -177 | -113 |
| Changes in inventories, trade receivables and other non-capex or non-financial assets |
-6,265 | -11,335 | +5,070 | -33,571 | -20,782 | -12,789 |
| Changes in trade payables and other non capex or non-financial liabilities not attributa ble to investing or financing activities |
-7,240 | -5,198 | -2,042 | 5,068 | 3,092 | +1,976 |
| Changes in working capital | -13,031 | -16,185 | +3,154 | -28,793 | -17,867 | -10,926 |
| Cash flow from operating activities | -933 | -6,504 | +5,571 | -338 | -5,248 | +4,910 |
| Cash outflow for capex on intangible assets | -1,761 | -1,821 | +60 | -4,945 | -5,850 | +905 |
| Cash outflow for capex on property, plant & equipment |
-2,080 | -1,385 | -695 | -5,108 | -3,969 | -1,139 |
| Cash inflow from disposals of property, plant & equipment and investment property |
0 | 110 | -110 | 38 | 141 | -103 |
| Cash inflow from disposals of non-current financial assets |
0 | 41 | -41 | 0 | 3,354 | -3,354 |
| Cash flow from investing activities | -3,841 | -3,055 | -786 | -10,015 | -6,324 | -3,691 |
| Free cash flow | -4,774 | -9,559 | +4,785 | -10,353 | -11,572 | +1,219 |
| Cash outflow for the down payment of lease liabilities |
-1,568 | -1,570 | +2 | -4,677 | -4,718 | +41 |
| Cash inflow from interest-bearing liabilities | 10,774 | 8,772 | +2,002 | 16,364 | 28,583 | -12,219 |
| Cash outflow for repayment of interest-bear ing liabilities |
-4,412 | -252 | -4,160 | -5,974 | -1,067 | -4,907 |
| Cash outflow for the down payment of lease liabilities |
4,794 | 6,950 | -2,156 | 5,713 | 22,798 | -17,085 |
| Changes in cash and cash equivalents | 20 | -2,609 | +2,629 | -4,640 | 11,226 | -15,866 |
| Foreign exchange and valuation-related changes in cash and cash equivalents |
53 | 603 | -550 | -360 | 815 | -1,175 |
| Cash and cash equivalents at the beginning of the period |
10,987 | 20,389 | -9,402 | 16,060 | 6,342 | +9,718 |
| Cash and cash equivalents at the end of the period |
11,060 | 18,383 | -7,323 | 11,060 | 18,383 | -7,323 |
1 January to 30 September
| Equity attributable to shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Accumulated other comprehensive income |
|||||||||
| ë 000 | Share capital |
Capital reserves |
Retained earnings |
Currency transla tion |
Unreal ized gains/ losses from pensions |
Total Accu mulated other com pre hensive income |
Total | Non-con trolling interests |
Equity |
| 1 Jan. 2022 | 16,500 | 13,457 | 55,139 | -4,474 | -31,069 | -35,543 | 49,553 | 213 | 49,766 |
| Net profit/loss | -1,074 | 0 | -1,074 | 14 | -1,060 | ||||
| Accumulated other compre hensive income |
789 | 21,749 | 22,538 | 22,538 | 6 | 22,544 | |||
| Total compre hensive income |
-1,074 | 789 | 21,749 | 22,538 | 21,464 | 20 | 21,484 | ||
| Dividend distribution |
|||||||||
| 30 Sep. 2022 | 16,500 | 13,457 | 54,065 | -3,685 | -9,320 | -13,005 | 71,017 | 233 | 71,250 |
| 1 Jan. 2023 | 16,500 | 13,457 | 57,085 | -6,130 | -9,765 | -15,895 | 71,147 | 194 | 71,341 |
| Net profit/loss | 11,929 | 0 | 11,929 | -30 | 11,899 | ||||
| Accumulated other compre hensive income |
-3,140 | 2,114 | -1,026 | -1,026 | -18 | -1,044 | |||
| Total compre hensive income |
11,929 | -3,140 | 2,114 | -1,026 | 10,903 | -48 | 10,855 | ||
| Dividend distribution |
|||||||||
| 30 Sep. 2023 | 16,500 | 13,457 | 69,014 | -9,270 | -7,651 | -16,921 | 82,050 | 146 | 82,196 |
The interim financial statements for the R. STAHL AG Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as applicable in the EU and in compliance with IAS 34 "Interim Financial Reporting". The interim consolidated financial statements have not been audited.
In addition to R. STAHL AG, the interim consolidated financial statements include 29 domestic and foreign companies for which it is possible for R. STAHL AG to exercise a controlling influence.
Enterprises over which the Company can exercise substantial influence are included in the consolidated financial statements as associates using the equity method. Since 2016, ZAVOD Goreltex Co. Ltd, Saint Petersburg, Russia, has been included in the consolidated financial statements as an associate using the equity method.
In the reporting period, the companies previously included as fully consolidated companies, R. STAHL ENGINEERING & MANUFACTURING SDN. BHD., Selangor, Malaysia, and R. Stahl Svenska Aktiebolag, Järfälla, Sweden, were deconsolidated and liquidated. The number of non-consolidated companies did not change in the reporting period.
The interim consolidated financial statements and the comparative figures for the prior-year period were generally prepared on the basis of the accounting and measurement methods applied in the consolidated financial statements for 2022. A description of these principles is published in the notes to the consolidated financial statements 2022. This can be viewed on the Internet at www.r-stahl.com.
The Group's functional currency is the euro. Unless indicated otherwise, all amounts are stated in thousands of euros (ë 000).
The consolidated financial statements have been prepared using the cost principle. Accounting for derivative financial instruments is the exception to this rule, as these must be accounted for at fair value.
The carrying amounts of cash and cash equivalents, as well as current account loans closely approximate their fair values given the short maturity of these financial instruments. The carrying values of receivables and liabilities are based on historical costs, subject to usual trade credit terms, and also closely approximate their fair values.
The fair value of non-current liabilities is based on currently available interest rates for borrowing with the
same maturity and credit rating profiles. The fair values of external liabilities is currently deviate only slightly from the carrying amounts.
To present the reliability of the valuation of financial instruments at fair value in a comparable manner, IFRS introduced a fair-value-hierarchy with the following three levels:
The derivative financial instruments measured at fair value of the R. STAHL Group are valued exclusively in accordance with the fair value hierarchy Level 2.
In the first six months of 2023, there were no reclassifications among the individual fair value hierarchies.
In accordance with IAS 7, the cash flow statement shows how the R. STAHL Group's flow of funds developed over the reporting period.
Cash and cash equivalents shown in the cash flow statement comprise cash on hand, cheques and credit balances with banks. The item also includes securities with original maturities of up to three months.
Earnings per share are calculated by dividing consolidated net profit - excluding non-controlling interests by the average number of shares. Diluted earnings per share correspond to earnings per share.
Sales presented in the income statement includes both sales from contracts with customers and sales not within the scope of IFRS 15.
A breakdown of sales by source is shown below:
| ë 000 | 9M 2023 | 9M 2022 |
|---|---|---|
| Sales from contracts with customers |
239,932 | 201,744 |
| Rental income from invest ment property |
761 | 761 |
| Total | 240,693 | 202,505 |
A breakdown of sales by time of recognition is shown below:
| ë 000 | 9M 2023 | 9M 2022 |
|---|---|---|
| At a specific time | 231,022 | 193,770 |
| Over a specific period | 9,671 | 8,735 |
| Total | 240,693 | 202,505 |
Sales are recognized over a specific period with a high probability of occurrence within a period of one to two month.
R. STAHL mainly accounts for derivative financial instruments at fair value. For this reason, a detailed reconciliation statement for the carrying amounts and fair values for the individual classes is not provided for reasons of materiality.
The fair values of derivative financial instruments are as follows:
| ë 000 | 30 Sep. 2023 |
31 Dec. 2022 |
|---|---|---|
| Positive market values | ||
| Currency derivatives without hedging relationship |
0 | 62 |
| Negative market values | ||
| Currency derivatives without hedging relationship |
-125 | 0 |
There were no significant transactions with related parties in the reporting period.
There were no significant events after the balance sheet date.
Waldenburg, 7 November 2023
R. Stahl Aktiengesellschaft
The number of employees at the 30 September 2023 reporting date was 1,724 (31 December 2022: 1,676), not including apprentices.
There have been no significant changes to contingent liabilities and other financial obligations compared with 31 December 2022.
Dr. Mathias Hallmann
Chief Executive Officer
15 February Preliminary figures for FY 2023 27 June 31st Annual General Meeting
17 April Annual Report FY 2023
8 May Interim Report Q1 2024 8 August Interim Report H1 2024
6 November Interim Report Q3 2024
R. STAHL AG Investor Relations Judith Schäuble T: +49 7942 943 13 96 F: +49 7942 943 40 13 96 [email protected]
R. STAHL Aktiengesellschaft Am Bahnhof 30 74638 Waldenburg (Württ.) Germany www.r-stahl.com
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