Quarterly Report • Jul 31, 2023
Quarterly Report
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| Q3 for the period from April 1 to June 30, |
||||
|---|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | Change | % change |
| Revenue | 306.5 | 271.1 | 35.4 | 13.1% |
| EBIT | 38.4 | 34.4 | 4.0 | 11.6% |
| Adjusted EBIT | 41.9 | 37.9 | 4.0 | 10.6% |
| Profit for the period | 21.7 | 24.3 | (2.6) | (10.7)% |
| EBIT as % of revenue | 12.5% | 12.7% | ||
| Adjusted EBIT as % of revenue | 13.7% | 14.0% | ||
| Profit as % of revenue | 7.1% | 9.0% | ||
| 2023 | 2022 | Change | % change |
|---|---|---|---|
| 907.8 | 796.0 | 111.8 | 14.0% |
| 104.6 | 96.1 | 8.5 | 8.8% |
| 115.3 | 106.5 | 8.8 | 8.3% |
| 79.8 | 68.5 | 11.3 | 16.5% |
| (45.5) | (31.0) | (14.5) | 46.8% |
| 92.8 | 21.2 | 71.6 | > 100.0% |
| 93.1 | 44.4 | 48.7 | > 100.0% |
| 11.5% | 12.1% | ||
| 12.7% | 13.4% | ||
| 8.8% | 8.6% | ||
| 5.0% | 3.9% | ||
| 10.2% | 2.7% | ||
| 10.3% | 5.6% | ||
| 0.3x | 0.6x | ||
| 9M for the period from October 1 to June 30, |
STABILUS QUARTERLY STATEMENT Q3 FY2023
| BUSINESS PERFORMANCE AND KEY DEVELOPMENTS | 3 | |
|---|---|---|
| GENERAL INFORMATION | 3 | |
| PRINCIPLES OF PREPARING THE QUARTERLY STATEMENT | 5 | |
| ECONOMIC REPORT | 6 | |
| OVERALL ASSESSMENT OF BUSINESS PERFORMANCE | 8 | |
| RESULTS OF OPERATIONS OF THE STABILUS GROUP | 9 | |
| FINANCIAL POSITION OF THE STABILUS GROUP | 18 | |
| REPORT ON RISKS AND OPPORTUNITIES | 22 | |
| REPORT ON EXPECTED DEVELOPMENTS | 23 | |
| SUBSEQUENT EVENTS | 24 | ADDITIONAL INFORMATION |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | 25 |
|---|---|
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 26 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 27 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 28 |
| SEGMENT REPORTING | 29 |
| FINANCIAL CALENDAR | 30 |
|---|---|
| DISCLAIMER | 30 |
| OTHER INFORMATION | 31 |
BUSINESS PERFORMANCE AND KEY DEVELOPMENTS
GENERAL INFORMATION
In view of the results realized in the first nine months of fiscal 2023 and the current expectations for global automotive and industrial production in the remaining months of the fiscal year, the Management Board is concretizing its full-year guidance within the targeted range. For fiscal 2023, sales of €1.2 billion (at the upper end of the previous range) with an adjusted EBIT margin of 13.0% (at the lower end of the previous range) are expected. In contrast to the prior-year period, fiscal 2023 is negatively impacted by currency effects in the operating result, particularly between the Mexican peso and US dollar; these effects reduced the adjusted EBIT margin. The achievement of an EBIT margin of 13.0% corresponds to adjusted EBIT of €156 million. The previous outlook given at the beginning of the fiscal year was for sales of €1.1 billion to €1.2 billion with an adjusted EBIT margin of 13% to 14%, corresponding to an adjusted EBIT of €155 million in the middle of the ranges.
Stabilus is continuously investing in expanding its production capacities in order to meet the sustained high level of demand for the Powerise product range. One strategic milestone in the current fiscal year was the completion and commissioning of the new building at our plant in Mexico, which will help us to achieve the forecast capacities for the coming years. We have also enhanced Powerise production and increased the automation of the Powerise assembly lines at our plant in Romania, leading to an additional improvement in productivity, quality and digitalization. A second automated Powerise line is currently being manufactured at our Koblenz plant and will shortly be shipped to our plant in Pinghu, China. A third such line for the plant in Mexico will be available soon, while additional lines are in the planning and preparation phase. At this year's "Interzum", the world's leading trade fair for furniture production and interior design, Stabilus presented an exclusive preview of future innovations in its Powerise product range for industrial applications. This will open up new possibilities for automated motion control as well as non-vehicle applications.
By way of resolution of the extraordinary general meeting on March 24, 2022 and the subsequent entry in the Luxembourg Trade and Companies Register on April 5, 2022, Stabilus SE, Frankfurt/Main (formerly: Stabilus S.A., Luxembourg) transformed its legal form from that of a Société Anonyme (S. A.) under Luxembourg law to a European Company (Societas Europaea, SE). Its registered office was located at 2, rue Albert Borschette, L-1246 Luxembourg, until September 1, 2022. Until that date, the Company was entered in the Luxembourg commercial register under no. B151589. The relocation of the registered office from Luxembourg to Frankfurt/Main, Germany, was resolved by the extraordinary general meeting on August 11, 2022. Since September 2, 2022, having been entered in the commercial register of the Frankfurt/Main Local Court under no. HRB 128539, the registered office of the Company has been in Frankfurt/Main with the business address Wallersheimer Weg 100, 56070 Koblenz, Germany. The Company was originally founded as Servus HoldCo S.à r.l., Luxembourg, on February 26, 2010.
The shares of Stabilus SE, Frankfurt/Main, (hereinafter referred to as "Stabilus SE") are listed in the MDAX of the Frankfurt Stock Exchange (ISIN: DE000STAB1L8) at the end of the reporting period.
The Stabilus Group is one of the world's leading providers of motion control solutions for customers across a broad spectrum of industries including mobility, health, recreation, furniture, energy, construction, industrial machinery and automation. The Group offers a broad range of solutions for motion control such as gas springs, electromechanical drives (Powerise®) and dampers. Stabilus' strategic aim is to become the global market leader in intelligent motion control. The key focus areas of its STAR 2030 strategy are to: (i) drive profitable and sustainable growth, (ii) further develop Stabilus' position as a Company of Choice for customers and employees, (iii) focus on innovations to deliver Next Level Motion Control Solutions, (iv) be a Model Corporate Citizen (further information at https:// www.stabilus.com/company/company-strategy).
By announcing its sustainability strategy in fiscal 2022, the Stabilus Group directed considerable focus towards its sustainability initiatives for the coming fiscal years. One of our goals is to significantly reduce carbon emissions at Stabilus' own production facilities and throughout our supply chain by 2030. This will be achieved firstly by a sustainable reduction in energy consumption at Stabilus' sites and secondly by the gradual use of 100% renewable electricity and the associated significant reduction in carbon emissions. The in-house generation of solar power was expanded again in fiscal 2023, including the commissioning of the photovoltaic plant at the main plant in Koblenz. Stabilus intends to continue expanding the use of photovoltaic systems at its plants around the world. The switchover to renewable energy sources will also be realized gradually at the other sites. Additionally, a wide range of energy efficiency projects were launched at the plants with a view to reducing carbon emissions, such as converting lighting to LED and lowering temperatures in the production processes. The carbon reduction in the supply chain will be achieved through active
procurement strategies and supplier management (further information on non-financial reporting can be found on our website at https://www. stabilus.com/investors/non-financial-reports).
One of the goals of the Stabilus Group is to be the Company of Choice not only for its customers, but also and especially for its employees. Our employees around the world are an enormously important pillar of our corporate success. This is why we have built our corporate culture on our values of trust, reliability, honesty, fairness and respect. We attach importance to further professional development and equal opportunities for all with an emphasis on performance, experience and personal qualifications. We can grow successfully in the long term, implementing innovations systematically and efficiently, only if we harness the diverse ideas and creative solutions in our teams.
For the Stabilus Group, lasting business success is closely tied to highly qualified and motivated employees. Systematic and sustainable HR development is therefore a central pillar of the Stabilus Group's strategy. The management of the Stabilus Group thus wishes to preserve and promote its employees' commitment to outstanding service quality and high customer satisfaction, while also tailoring human resources to growth plans.
As an attractive employer, the management of the Stabilus Group believes in training our employees as an important contribution to reducing the skills shortage.
As of the end of the third quarter of fiscal 2023, the Stabilus Group had a total of 7,091 employees worldwide (including inactive and dormant employees), not including temporary workers, apprentices or management trainees. This represents an increase of 251 compared with September 30, 2022 (6,840). The increase in headcount compared with September 30, 2022 relates to all three regions – Americas, EMEA and APAC.
As one of the market leaders in a number of industries, Stabilus is continuously investing in research and development in order to remain the preferred partner in the field of motion control solutions for customers in many sectors with a global presence moving ahead.
New products and applications are guided by global and regional megatrends, which are increasingly being defined by sustainability and resource awareness. Integrated system solutions, in which mechanical or electromechanical components are supplemented with sensor systems, control units and software, are becoming more significant all the time. This trend is manifesting itself in both the automotive and industrial sectors, for example in regenerative energies. To be able to access the latest technologies, Stabilus relies on internal development work as well as the active expansion of its innovation ecosystem through equity investments and development partnerships, and especially the systematic development of what is by far the most central guarantee of success: its employees.
Research and development are a central pillar of Stabilus' STAR 2030 strategy – the basis for the Group's perpetual profitable growth and competitive capability.
As a winning project in the Stabilus Innovation Race, LOM X is also a symbol of Stabilus' corporate culture, in which innovation is everyone's business. To remain successful and to continue Stabilus' growth trajectory, the Innovation Race will take place again in fiscal 2023. In this second edition a greater emphasis will be placed on sustainability. All Stabilus employees were invited to develop and submit their ideas via an online platform by mid-April 2023. The submitted proposals were evaluated by a screening team and 15 ideas were selected to proceed to the next phase. The proposals and the teams behind them are currently being supported and assessed by a selection team in order to gradually reduce the field to five finalists.
During the period under review, ongoing appeal proceedings in connection with the possible application of the restructuring clause in 2010 pursuant to Section 8c (1a) of the Körperschaftsteuergesetz (KStG – German Corporate Income Tax Act) were concluded in favor of Stable Beteiligungs GmbH, Koblenz, as a subsidiary of Stabilus SE, Frankfurt am Main, in the second quarter of fiscal 2023. As a result of the conclusion of the appeal proceedings, tax loss and interest carryforwards as of December 31, 2009 as well as the current tax loss for 2010 are revived and lead to tax refunds for the assessments of the years from 2010 onwards. With the conclusion of the appeal proceedings, there is now legal clarity regarding the expected tax refunds and existing uncertainties have been eliminated. As of March 31, 2023, aperiodic income tax receivables (including solidarity tax contribution) amounting to €8.7 million and refund interest on these tax receivables amounting to €3.4 million were therefore recognized. Furthermore, deferred tax assets amounting to €11.3 million were capitalized for interest carryforwards that can be utilized in the future. The income tax receivables and the refund interest on these tax receivables were recognized in cash in the third quarter of fiscal 2023.
PRINCIPLES OF PREPARING THE QUARTERLY STATEMENT
In addition to performance indicators defined or listed in the IFRS accounting framework, the Stabilus Group also reports financial performance indicators that are derived from or based on the financial statements prepared (referred to as "alternative performance measures" or APMs). The Stabilus Group's management sees these financial performance indicators as key additional information for investors and other readers of the financial reports. These financial performance indicators should therefore be considered supplementary to the information prepared in accordance with IFRS and not a substitute. In accordance with the European Securities and Markets Authority (ESMA) Guidelines on Alternative Performance Measures, the Stabilus Group provides a definition, the rationale for use and a reconciliation of the APMs used to the items in Stabilus SE's quarterly statement that can be reconciled directly. The Stabilus Group uses the following APMs in this quarterly statement:
The calculation of the net leverage ratio is based on net financial debt and adjusted EBITDA, which are also considered to be APMs. Organic growth is presented because we believe it aids in understanding the operating performance of the Stabilus Group. Organic growth is defined as reported revenue growth after removing the effects of acquisitions, divestitures and projected exchange rate fluctuations. The effects resulting from constant foreign exchange rates are calculated as current-year revenue converted at applicable current-year average exchange rates, less current-year revenue converted at average prior-year exchange rates. The definitions and required disclosures for all other APMs are provided in the relevant sections of this quarterly statement.
Unless indicated otherwise, all amounts are shown in thousands of euro (€ thousand). For arithmetical reasons, the information presented in this interim Group management report may contain rounding differences of +/– one unit (€ thousand, % etc.).
For the sake of simplicity, generally only one gender form is used in this report. All other gender forms are expressly intended.
This quarterly statement contains forward-looking statements. These statements reflect estimates and assumptions – including those of third parties (such as statistical data concerning the automotive industry or global economic developments) – either at the time that they were made or as of the date of this report. Forward-looking statements always entail uncertainty. If these estimates and assumptions later prove to either inaccurate or only partially accurate, the actual results can differ – even significantly – from expectations.
Stabilus is represented around the world and focuses on automotive and industry applications. Besides innovations and new products, the key factors that affect Stabilus' business performance are the rate of growth in global gross domestic product (GDP) and, specifically for the automotive sector, global production of light vehicle volumes (including cars and light commercial vehicles with a weight of less than six tonnes) and the number of vehicles sold (e.g. new vehicle registrations as an indicator of auto sales).
In October 2022, the International Monetary Fund's (IMF) forecast for global economic growth in the 2022 calendar year was +3.2% (World Economic Outlook – October 2022), which it has since updated to +3.5% in July 2023 (World Economic Outlook – July 2023). According to the latest projections from July 2023, global economic growth of +3.0% is expected in the 2023 calendar year. The IMF is forecasting varied performance on Stabilus' core markets of Europe (+0.9%), the United States (+1.8%) and China (+5.2%) in 2023.
Factors influencing the economy included the various restrictions to curb the COVID-19 pandemic, in particular the high infection rates in China, which had a negative impact on the economy of the APAC region in the first half of fiscal 2023. The ongoing Russia/Ukraine war and its repercussions, as well as shortages of energy, raw materials and supplier products, caused substantial price increases across all areas of the economy. Inflation was also exacerbated by high collective wage agreements in Germany and many other countries. However, government action in Europe, such as the price caps on gas and electricity, served to lower prices. Energy prices on the world markets have fallen considerably since March 2023. Although economic output in the United States continued to rise on the back of strong domestic consumer spending and tax relief, it could be increasingly curbed by monetary policy as the year continues.
| % YEAR-ON-YEAR CHANGE IN THE CALENDAR YEAR | 2023* | 2022 |
|---|---|---|
| World | 3.0% | 3.5% |
| European Union | 1.0% | 3.7% |
| thereof Euro Area | 0.9% | 3.5% |
| thereof Germany | (0.3)% | 1.8% |
| United Kingdom | 0.4% | 4.1% |
| United States | 1.8% | 2.1% |
| Latin America | 1.9% | 3.9% |
| thereof Brazil | 2.1% | 2.9% |
| thereof Mexico | 2.6% | 3.0% |
| Emerging and Developing Asia | 5.3% | 4.5% |
| thereof China | 5.2% | 3.0% |
Latest growth projections for selected economies T_001
Source: IMF, July 2023 World Economic Outlook. * Projections.
According to estimates by the ifo Institute as of the time of reporting, the average global rate of inflation forecast for the 2023 calendar year will be around 7.0%. In the EMEA region, inflation in the European Union (EU) amounted to around 6.4% in June 2023, thereby continuing to decline compared with the preceding months of fiscal 2023. Inflation in Stabilus' core market of Germany was 6.8% in June 2023 and is therefore also flattening off. The inflation situation is gradually easing in the Americas region: Inflation on Stabilus' core US market was 3.0% in June 2023, down (5.2) percentage points as against September 2022. Inflation in the APAC region is comparatively lower, with Stabilus' core market of China reporting inflation approximately 0% in March 2023, slightly lower than the figure of around 0.2% anticipated by the market.
Following several rate hikes by both the ECB (June 2023) and the Fed (July 2023), the interest rates currently stand at 4.0% (ECB) and 5.5% (Fed). Restrictive monetary policy on the part of the central banks is having something of a cooling effect on inflation. Following an interest rate pause in June, the Fed raised the interest rate by a further 0.25% in July, the eleventh increase and the highest level since 2001. The Fed's measures are intended to counter inflation in the US more strongly.
Even though the economic situation remains tense, according to IHS data (as of July 2023), +5.0 million more light vehicles were produced worldwide in the months from October to June 2023 (9M FY2023) than in the same period of the previous year, bringing the total number of vehicles produced to 65.2 million. The highest increase in the number of vehicles produced was in the Americas region, where the number was up +10.5% at 13.7 million units in the first nine months of fiscal 2023 (US: +0.8 million more units produced). Over the same period, the EMEA region produced
+10.3% more units for a total of 15.0 million (Germany: +0.8 million more units produced). By contrast, the APAC region recorded the lowest increase, with +6.7% and a total of 36.5 million units produced compared with the corresponding prior-year period (China: +0.4 million more units produced).
ECONOMIC REPORT
According to the European Automobile Manufacturers Association (ACEA), new car registrations in the EU increased by around +16.6% year-on-year in the third quarter of fiscal 2023 (October 1, 2022 to June 30, 2023; as of June 2023). According to Country Economy, the United States also reported growth in new passenger car registrations of around +11.8% compared with the same period of the previous year in the first nine months of fiscal 2023 (as of June 2023). The growth is being stimulated by improved consumer confidence in the country's economy as inflation abates. New passenger car registrations in China also increased by +5.6% year-on-year over the same period (as of May 2023) according to the China Association of Automobile Manufacturers (CAAM).
Industrial production was impacted by the current global challenges, which include the repercussions of COVID-19, the effects of the Russia/Ukraine war, supply bottlenecks and the shortage of raw materials.
According to Eurostat (the Statistical Office of the European Union), adjusted for seasonal effects, industrial production (development of the volume of production for industry excluding construction, based on data adjusted for calendar and seasonal effects) in the European Union climbed by +0.1% as against May 2022 in May 2023. Germany experienced a slight decrease of (0.2)%. In particular, Stabilus achieved double-digit year-on-year growth rates in the area of commercial vehicles, while healthcare, medical technology and furniture declined slightly.
| IN MILLIONS OF UNITS PER CALENDAR YEAR | Q3 2023** | Q3 2022 |
|---|---|---|
| EMEA | 15.0 | 13.6 |
| thereof Germany | 3.3 | 2.5 |
| Americas | 13.7 | 12.4 |
| thereof United States | 7.8 | 7.0 |
| APAC | 36.5 | 34.2 |
| thereof China | 19.6 | 19.2 |
| Worldwide production of light vehicles* | 65.2 | 60.2 |
Source: IHS Automotive/Light Vehicle Production Forecast (as of July 2023). * Passenger cars and light commercial vehicles (< 6t).
** IHS forecast as of July 2023.
In the United States, industrial production was down around (0.4)% year-onyear in June 2023 after adjustment for seasonal effects. This is the first decrease on a year-on-year basis since February 2021 and follows on from the unchanged figure in May. Despite this, the Americas region posted double-digit revenue growth in the commercial vehicles sector. There were double-digit revenue growth rates in industrial machinery & automation as well as distributors, independent aftermarket and e-commerce as well. Furthermore, revenue in energy & construction almost doubled year-on-year.
In China, industrial production rose by +4.4% as against the same period of 2022 in June 2023, thereby exceeding the forecast of +2.7%. Revenue growth rates were down across almost all sectors in the APAC region. This was offset by the positive development in the commercial vehicles segment. Performance in the industrial sector was also offset by the double-digit growth rates in the energy & construction and industrial machinery & automation segments.
The procurement markets are currently seeing a gradual easing in prices for individual raw materials and intermediate products. Nevertheless, the Stabilus Group's current procurement prices are subject to certain dynamics – owing to the volatile state of the commodity market – and supply chains will now have to be made more resilient in order to ensure as much flexibility as possible. In addition, although it has eased slightly, consistently high inflation is another of the key factors influencing various procurement markets. The Stabilus Group estimates that prices for plastics rose by around +6.7% in the first nine months of fiscal 2023 (as of June 2023); prices for metals increased by an average of +1.9% year-on-year (as of June 2023) and thus at a slower rate than as of the end of fiscal 2022. The price increases relate exclusively to the developments in the EMEA region. The higher procurement prices for the Stabilus Group can be passed on to customers to only a certain extent. Stabilus was able to mitigate supply shortages on the raw materials market with its procurement strategy and strategic inventory management. The Group did not at any time have to stop production on account of shortages.
Stabilus comfortably outperformed the first nine months of fiscal 2022 with the highest revenue for the first nine months of a year in its history at €907,776 thousand (9M FY2022: €796,026 thousand), which translates into significant revenue growth of +14.0% (organic growth rate: +11.6%). The Stabilus Group performed extremely well in the first nine months of fiscal 2023 despite the challenging market conditions and the geopolitical situation, thereby once again demonstrating the Company's stability and market presence even in times of economic volatility.
The Automotive Powerise® division generated significant organic revenue growth of +19.8%, thanks in particular to high customer demand for the product series. Overall, the Automotive Powerise® division once again comfortably outperformed global vehicle production, which rose by +8.0% in the first nine months of fiscal 2023. The positive trend is also evident in the Automotive Gas Spring division, which achieved organic revenue growth of +6.3% as against the first nine months of fiscal 2022. Our Industrial division is on a strong growth trajectory with organic growth of +8.7% in the first nine months of fiscal 2023 compared with the same period of fiscal 2022.
Looking to our regions, revenue in the Americas region climbed significantly to €333.0 million, which translates into organic revenue growth of
+12.8%. The APAC region generated organic growth of +16.1% to €198.5 million. The EMEA region achieved organic revenue growth of +8.4% to €376.2 million despite the difficult market environment (information on operating segments from page 14).
The Group ended the first nine months of fiscal 2023 with adjusted EBIT of €115.3 million (9M FY2022: €106.5 million). This represents an adjusted EBIT margin of 12.7% (9M FY2022: 13.4%), which is lower than in the previous year. This was mainly due to geopolitical developments and their repercussions. For example, the high level of global inflation led to cost increases on the procurement markets for energy and materials (such as steel, plastic and resin). Inflation also had a negative effect on staff costs that we were unable to fully offset by passing on price rises to our customers. In addition, the operating result for fiscal 2023 will be negatively affected by currency effects, especially in relation to the Mexican peso and the US dollar, which will reduce the adjusted EBIT margin. Furthermore, it should be noted for comparative purposes that the first five months of fiscal 2022 (October 2021 to February 2022) were not affected by the Russia/Ukraine war.
The financial covenants in the facility agreement were complied with at all times and reflect the financial stability of the Stabilus Group with a net debt ratio of 0.3x (September 30, 2022: 0.4x) (please refer to the information on the net leverage ratio on page 21). The committed revolving credit facility of €350.0 million had not been utilized as of June 30, 2023. To achieve some stability in the uncertain interest situation, the subsidiary Stabilus GmbH has entered into an interest derivative contract for an existing promissory note loan of €83.0 million. This is accounted for as a cash flow hedge.
The following tables show the development in the Stabilus Group's revenue for the third quarter and first nine months of fiscal 2023 compared with the third quarter and first nine months of fiscal 2022.
| Q3 for the period from April 1 to June 30, |
|||||
|---|---|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change | % currency effect |
% organic growth |
| EMEA | |||||
| Automotive Gas Spring | 31.8 | 29.7 | 7.1% | 0.0% | 7.1% |
| Automotive Powerise® | 30.2 | 23.7 | 27.4% | (0.1)% | 27.5% |
| Industrial | 67.9 | 65.0 | 4.5% | (0.8)% | 5.3% |
| Total EMEA 1) | 129.9 | 118.4 | 9.7% | (0.5)% | 10.2% |
| Americas | |||||
| Automotive Gas Spring | 30.6 | 25.5 | 20.0% | 4.1% | 15.9% |
| Automotive Powerise® | 41.2 | 36.8 | 12.0% | 10.9% | 1.1% |
| Industrial | 38.1 | 35.3 | 7.9% | (2.4)% | 10.3% |
| Total Americas 1) | 109.9 | 97.6 | 12.6% | 4.3% | 8.3% |
| APAC | |||||
| Automotive Gas Spring | 24.1 | 21.7 | 11.1% | (9.2)% | 20.3% |
| Automotive Powerise® | 37.1 | 28.1 | 32.0% | (10.2)% | 42.2% |
| Industrial | 5.5 | 5.3 | 3.8% | (8.7)% | 12.5% |
| Total APAC 1) | 66.7 | 55.1 | 21.1% | (9.6)% | 30.7% |
| Stabilus Group | |||||
| Total Automotive Gas Spring | 86.5 | 76.9 | 12.5% | (1.2)% | 13.7% |
| Total Automotive Powerise® | 108.5 | 88.6 | 22.5% | 1.3% | 21.2% |
| Total Industrial | 111.5 | 105.6 | 5.6% | (1.7)% | 7.3% |
| Revenue 1) | 306.5 | 271.1 | 13.1% | (0.6)% | 13.7% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
STABILUS QUARTERLY STATEMENT Q3 FY2023 9
The revenue of the Stabilus Group climbed by +€111.8 million or +14.0% as against the first nine months of fiscal 2022 to €907.8 million in the first nine months of fiscal 2023 (9M FY2022: €796.0 million). Adjusted for exchange rate effects of +€19.3 million, the Stabilus Group achieved organic growth of +€92.5 million or +11.6% in the first nine months of fiscal 2023. The strong increase in revenue is primarily due to higher demand for the Stabilus product portfolio, but it also includes positive effects from price negotiations with our customers.
The rise in the revenue of the Stabilus Group in the first nine months of fiscal 2023 was largely thanks to revenue growth in the Americas region. Revenue in the Americas region climbed by +€62.9 million or +23.3% to €333.0 million, buoyed by the currency effects of the relatively strong Mexican peso and US dollar compared with the euro. An organic growth rate of +12.8% was achieved.
Revenue also increased significantly in the APAC region by +€21.3 million or +12.0% to €198.5 million. The organic growth rate in the APAC region was +16.1%.
Revenue in the EMEA region also climbed significantly by +€27.5 million or +7.9%; the organic growth rate was +8.4%. Stabilus was able to further reinforce its market position despite the challenging market environment in the region, which was largely influenced by geopolitical uncertainties and their repercussions, as well as the sustained high level of inflation.
| Revenue by region and business unit | T_004 | ||||
|---|---|---|---|---|---|
| 9M for the period from October 1 to June 30, |
|||||
| IN € MILLIONS | 2023 | 2022 | % change | % currency effect |
% organic growth |
| EMEA | |||||
| Automotive Gas Spring | 90.3 | 86.6 | 4.3% | 0.0% | 4.3% |
| Automotive Powerise® | 86.8 | 69.4 | 25.1% | 0.4% | 24.7% |
| Industrial | 199.2 | 192.7 | 3.4% | (1.0)% | 4.4% |
| Total EMEA 1) | 376.2 | 348.7 | 7.9% | (0.5)% | 8.4% |
| Americas | |||||
| Automotive Gas Spring | 89.2 | 74.5 | 19.7% | 9.7% | 10.0% |
| Automotive Powerise® | 127.1 | 101.9 | 24.7% | 15.7% | 9.0% |
| Industrial | 116.7 | 93.7 | 24.5% | 5.3% | 19.2% |
| Total Americas 1) | 333.0 | 270.1 | 23.3% | 10.5% | 12.8% |
| APAC | |||||
| Automotive Gas Spring | 75.3 | 74.3 | 1.3% | (3.8)% | 5.1% |
| Automotive Powerise® | 106.7 | 85.8 | 24.4% | (4.4)% | 28.8% |
| Industrial | 16.5 | 17.1 | (3.5)% | (3.8)% | 0.3% |
| Total APAC 1) | 198.5 | 177.2 | 12.0% | (4.1)% | 16.1% |
| Stabilus Group | |||||
| Total Automotive Gas Spring | 254.8 | 235.4 | 8.2% | 1.9% | 6.3% |
| Total Automotive Powerise® | 320.6 | 257.1 | 24.7% | 4.9% | 19.8% |
| Total Industrial | 332.4 | 303.5 | 9.5% | 0.8% | 8.7% |
| Revenue 1) | 907.8 | 796.0 | 14.0% | 2.4% | 11.6% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
RESULTS OF OPERATIONS OF THE STABILUS GROUP
The following tables show the consolidated income statement of the Stabilus Group for the third quarter and first nine months of fiscal 2023 compared with the third quarter and first nine months of fiscal 2022.
| Income statement | T_005 | ||
|---|---|---|---|
| for the period from April 1 to June 30, | Q3 | ||
| IN € MILLIONS | 2023 | 2022 | % change |
| Revenue | 306.5 | 271.1 | 13.1% |
| Cost of sales | (226.2) | (198.6) | 13.9% |
| Gross profit | 80.3 | 72.5 | 10.8% |
| Research and development expenses | (7.8) | (6.2) | 25.8% |
| Selling expenses | (24.1) | (22.1) | 9.0% |
| Administrative expenses | (10.4) | (10.9) | (4.6)% |
| Other income | 1.1 | 1.1 | 0.0% |
| Other expenses | (0.9) | (0.2) | > 100.0% |
| Income / (expense) from equity-accounted investments | 0.1 | 0.2 | (50.0)% |
| Profit from operating activities (EBIT) | 38.4 | 34.4 | 11.6% |
| Finance income | 0.9 | 5.7 | (84.2)% |
| Finance costs | (6.1) | (5.2) | 17.3% |
| Profit / (loss) before income tax | 33.2 | 34.9 | (4.9)% |
| Income tax income / (expense) | (11.5) | (10.6) | 8.5% |
| Profit / (loss) for the period | 21.7 | 24.3 | (10.7)% |
RESULTS OF OPERATIONS OF THE STABILUS GROUP
| 9M for the period from October 1 to June 30, |
||||
|---|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change | |
| Revenue | 907.8 | 796.0 | 14.0% | |
| Cost of sales | (666.3) | (585.0) | 13.9% | |
| Gross profit | 241.4 | 211.0 | 14.4% | |
| Research and development expenses | (26.4) | (24.1) | 9.5% | |
| Selling expenses | (77.5) | (63.3) | 22.4% | |
| Administrative expenses | (32.4) | (31.1) | 4.2% | |
| Other income | 4.2 | 3.6 | 16.7% | |
| Other expenses | (5.2) | (0.2) | > 100.0% | |
| Income / (expense) from equity-accounted investments | 0.4 | 0.1 | > 100.0% | |
| Profit from operating activities (EBIT) | 104.6 | 96.1 | 8.8% | |
| Finance income | 5.4 | 9.3 | (41.9)% | |
| Finance costs | (23.0) | (9.8) | > 100.0% | |
| Profit / (loss) before income tax | 87.0 | 95.6 | (9.0)% | |
| Income tax income / (expense) | (7.2) | (27.1) | (73.4)% | |
| Profit / (loss) for the period | 79.8 | 68.5 | 16.5% | |
The cost of sales increased by +13.9%, from €(585.0) million in the first nine months of fiscal 2022 to €(666.3) million in the first nine months of fiscal 2023. In particular, this development is due to the rapid growth in business volumes compared with the previous year. The cost of sales was also affected by inflation in the price of materials (e.g. for steel, plastics and resin), which remained high compared with the same period of the previous year. In addition to these effects, the cost base and the margin were also impacted by the substantial rise in staff costs due to inflation, as well as high energy costs compared with the same period of the previous year in some cases. Although conditions on the procurement markets for individual raw materials and components are continuing to ease slightly, the procurement of materials remains a challenge. Reflecting the key role played by revenue in capitalized development costs, amortization on these projects is being reported under the cost of sales from fiscal 2023 onwards, and no longer under research and development expenses. The prior-year figures have been restated accordingly to aid comparison. The effect amounted to €10.0 million in the first nine months of fiscal 2023 after €10.8 million in the same period of the previous year. As a percentage of revenue, the cost of sales decreased slightly by (0.1) percentage points, from 73.5% in the first nine months of fiscal 2022 to 73.4% in the first nine months of fiscal 2023, as the efficiency improvement measures initiated in production began to have the desired impact. Accordingly, the gross profit margin also improved slightly from 26.5% in the first nine months of fiscal 2022 to 26.6% in the first nine months of fiscal 2023.
R&D costs (less capitalized development costs) increased by +9.5%, from €(24.1) million in the first nine months of fiscal 2022 to €(26.4) million in the first nine months of fiscal 2023. The Stabilus Group is continuing to invest in research and development so that it can keep on offering new products and product applications moving ahead, e.g. in the ongoing development of the Powerise® product range, and to cultivate new innovation potential and forward-facing business areas such as radar technology. This is also reflected by the higher headcount in research and development. The capitalization of development costs (less customer payments) increased from +€11.1 million in the first nine months of fiscal 2022 to +€14.1 million in the first nine months of fiscal 2023. The prior-year figures have been restated on account of the change in the presentation of own work capitalized, which was previously reported under research and development expenses. The effect amounted to €10.0 million in the first nine months of fiscal 2023 after €10.8 million in the same period of the previous year. These costs will be reported under cost of sales moving ahead. As a percentage of revenue, R&D expenses decreased slightly by (0.1) percentage points from 3.0% in the first nine months of fiscal 2022 to 2.9% in the first nine months of fiscal 2023.
Selling expenses rose by +22.4% in the first nine months of fiscal 2023 compared with the first nine months of fiscal 2022, from €(63.3) million to €(77.5) million. The increase as against the same period of the previous year was mainly due to the steep increase in business volumes and higher freight costs. The costs incurred in connection with the establishment of a warehouse for the independent aftermarket in the US have been reported as selling expenses in fiscal 2023. Furthermore, selling expenses have been affected by the higher headcount and rising expenses for travel and trade fairs, which had been at a low level in the previous year owing to the COVID-19 pandemic. As a percentage of revenue, selling expenses increased by +0.5 percentage points, from 8.0% in the first nine months of fiscal 2022 to 8.5% in the first nine months of fiscal 2023.
General administrative expenses rose by +4.2%, from €(31.1) million in the first nine months of fiscal 2022 to €(32.4) million in the first nine months of fiscal 2023. The increase as against the same period of the previous year was caused by the slight growth in headcount and higher salaries due to inflation. The Group is also continuing to digitalize and harmonize its IT landscape and is investing in cloud-based ERP solutions. As a percentage of revenue, general administrative expenses decreased slightly by (0.3) percentage points, from 3.9% in the first nine months of fiscal 2022 to 3.6% in the first nine months of fiscal 2023.
Other income rose by +€0.6 million, from +€3.6 million in the first nine months of fiscal 2022 to +€4.2 million in the first nine months of fiscal 2023. The figure for the first nine months of fiscal 2023 primarily included a +€1.3 million government subsidy program in China, while miscellaneous other revenue mainly related to scrap revenue. In the same period of the previous year, other income was influenced by net gains on foreign currency translation gains from operating activities of +€0.7 million. Other expenses rose by €(5.0) million, from €(0.2) million in the first nine months of fiscal 2022 to €(5.2) million in the first nine months of fiscal 2023. The increase is essentially due to currency translation losses from operating business of €(5.0) million, which were mainly incurred in the Americas.
Finance income declined by €(3.9) million, from +€9.3 million in the first nine months of fiscal 2022 to +€5.4 million in the first nine months of fiscal 2023. Finance income includes interest refunds on income tax receivables (restructuring clause) amounting to +€3.4 million. The main effect in the previous year derived from net foreign exchange gains of +€7.9 million from the translation of cash and cash equivalents and from other financial liabilities (lease liabilities).
Finance costs rose by €(13.2) million, from €(9.8) million in the first nine months of fiscal 2022 to €(23.0) million in the first nine months of fiscal 2023. The increase essentially results from net currency losses of €(14.5) million from the translation of cash and cash equivalents (currency losses of €(14.9) million) and other financial liabilities (lease liabilities, currency gains of +€0.4 million).
Finance costs further contain ongoing interest expenses. Interest expense on financial liabilities of €(6.8) million in the first nine months of fiscal 2023 (9M FY2022: €(9.6) million) relates in particular to the term loan facility, €(4.7) million of which (9M FY2022: €(3.7) million) relates to interest paid. Interest on provisions for pensions and early retirement contracts amounted to €(1.1) million. In addition, an amount of €(3.1) million was recognized in the previous year for the amortization of the adjustment of the carrying amount using the effective interest rate method and the derecognition of unamortized transaction costs. No comparable amount was recognized in the first nine months of fiscal 2023.
Following an income tax expense of €(27.1) million in the first nine months of fiscal 2022, the Stabilus Group reported an expense of €(7.2) million in the first nine months of fiscal 2023. This significant change is mainly due to the amended tax assessments for the years 2010 to 2014 following the conclusion of the appeal proceedings in connection with the application of the restructuring clause (see comments on "Restructuring clause", p. 4). The effect in the second quarter of fiscal 2023 amounted to +€19.9 million. The effective tax rate of the Stabilus Group in the first nine months of fiscal 2023 was 8.3% (9M FY2022: 28.3%).
RESULTS OF OPERATIONS OF THE STABILUS GROUP
The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), the Americas (North and South America) and APAC (Asia-Pacific). The following tables show the development of revenue and adjusted EBIT of the operating segments of the Stabilus Group for the third quarter and first nine months of fiscal 2023 compared with the third quarter and first nine months of fiscal 2022:
| Operating segments | T_007 | |||
|---|---|---|---|---|
| Q3 for the period from April 1 to June 30, |
||||
| IN € MILLIONS | 2023 | 2022 | % change | |
| EMEA | ||||
| External revenue 1) | 129.9 | 118.4 | 9.7% | |
| Intersegment revenue 1) | 9.1 | 7.8 | 16.7% | |
| Total revenue 1) | 139.0 | 126.2 | 10.1% | |
| Adjusted EBIT | 19.1 | 12.0 | 59.2% | |
| as % of total revenue | 13.7% | 9.5% | ||
| as % of external revenue | 14.7% | 10.1% | ||
| Americas | ||||
| External revenue 1) | 109.9 | 97.6 | 12.6% | |
| Intersegment revenue 1) | 8.0 | 7.7 | 3.9% | |
| Total revenue 1) | 117.9 | 105.4 | 11.9% | |
| Adjusted EBIT | 11.6 | 14.9 | (22.1)% | |
| as % of total revenue | 9.8% | 14.1% | ||
| as % of external revenue | 10.6% | 15.3% | ||
| APAC | ||||
| External revenue 1) | 66.7 | 55.1 | 21.1% | |
| Intersegment revenue 1) | 0.4 | 0.2 | 100.0% | |
| Total revenue 1) | 67.1 | 55.3 | 21.3% | |
| Adjusted EBIT | 11.2 | 11.0 | 1.8% | |
| as % of total revenue | 16.7% | 19.9% | ||
| as % of external revenue | 16.8% | 20.0% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
| 9M for the period from October 1 to June 30, |
|||
|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change |
| EMEA | |||
| External revenue 1) | 376.2 | 348.7 | 7.9% |
| Intersegment revenue 1) | 27.5 | 24.9 | 10.4% |
| Total revenue 1) | 403.8 | 373.6 | 8.1% |
| Adjusted EBIT | 41.2 | 37.7 | 9.3% |
| as % of total revenue | 10.2% | 10.1% | |
| as % of external revenue | 11.0% | 10.8% | |
| Americas | |||
| External revenue 1) | 333.0 | 270.1 | 23.3% |
| Intersegment revenue 1) | 24.5 | 23.0 | 6.5% |
| Total revenue 1) | 357.6 | 293.0 | 22.0% |
| Adjusted EBIT | 38.5 | 34.1 | 12.9% |
| as % of total revenue | 10.8% | 11.6% | |
| as % of external revenue | 11.6% | 12.6% | |
| APAC | |||
| External revenue 1) | 198.5 | 177.2 | 12.0% |
| Intersegment revenue 1) | 1.1 | 0.2 | > 100.0% |
| Total revenue 1) | 199.7 | 177.4 | 12.6% |
| Adjusted EBIT | 35.5 | 34.7 | 2.3% |
| as % of total revenue | 17.8% | 19.6% | |
| as % of external revenue | 17.9% | 19.6% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
in the healthcare, medical technology and furniture sectors declined. The trend in revenue in the other sectors is in line with the prior-year levels. The division's performance shows that the Stabilus Group is benefiting from its broad product range and can more easily offset any declines in the individual areas. The adverse effects of higher prices for materials and energy, higher staff costs due to inflation and the geopolitical factors were only partially offset by passing on price increases to our customers. The first efficiency improvement measures in production also had the desired impact. Adjusted EBIT in the EMEA region increased by +€3.5 million or +9.3%, from €37.7 million in the first nine months of fiscal 2022 to €41.2 million in the first
External revenue for the EMEA region was +€27.5 million or +7.9% higher in the first nine months of fiscal 2023 than in the first nine months of fiscal 2022, rising from €348.7 million to €376.2 million. Adjusted for exchange rate effects of €(1.7) million, organic revenue growth amounted to +8.4%. Revenue in Automotive Powerise® increased by +€17.4 million or +25.1%, from €69.4 million to €86.8 million. Organic revenue growth in the Automotive Powerise® business amounted to +24.7%. Revenue in Automotive Gas Spring also increased by a solid +€3.7 million or +4.3%, from €86.6 million to €90.3 million. Organic revenue growth in the Automotive Gas Spring business amounted to +4.3%. According to IHS data (as of July 2023), passenger car production in the EMEA automotive market increased by +10.3% compared with the first nine months of fiscal 2022 to 15.0 million units produced in the first nine months of fiscal 2023. The availability of key electronic components (semiconductors) and production components at the customer level is gradually improving. Stabilus therefore began making its supply chains more resilient early on in order to maintain its high flexibility in production and sales activities. There is also high inflation, especially in Germany, which is taking a toll on the general economic environment and resulting in widespread consumer restraint. Despite these negative factors, Stabilus' automotive business recovered slightly and reported sound growth rates, especially in Automotive Powerise®, thereby underscoring the Group's good market presence in the region. Industrial business was on an upward trajectory in the first nine months of fiscal 2023 compared with the first nine months of fiscal 2022, with revenue rising by +€6.5 million or +3.4% from €192.7 million to €199.2 million. Organic revenue growth in industrial business amounted to +4.4%. Although the economic conditions that influence Stabilus' Industrial division are stabilizing, growth in the European industrial sectors is still somewhat low. Inflation and geopolitical uncertainty are at a high level. Nevertheless, Stabilus is experiencing high demand in the industrial sector that it has not yet been able to work through due to the prevalent uncertainty (e.g. supply chains). Stabilus generated above-average revenue growth in the commercial vehicles segment, while the industrial machinery & automation segment also recorded further growth. By contrast, revenue nine months of fiscal 2023, while the adjusted EBIT margin improved by +0.2 percentage points, from 10.8% in the first nine months of fiscal 2022 to 11.0% in the first nine months of fiscal 2023.
External revenue for the Americas region was +€62.9 million or +23.3% higher in the first nine months of fiscal 2023 than in the first nine months of fiscal 2022, rising from €270.1 million to €333.0 million. Adjusted for exchange rate effects of +€28.3 million, due in particular to the relatively strong Mexican peso and the US dollar, organic revenue growth amounted to +12.8%. The main factor driving this strong growth was our Automotive Powerise® business, which rose by +€25.2 million or +24.7% from €101.9 million to €127.1 million in the Americas region in the first nine months of fiscal 2023. Organic revenue growth in the Automotive Powerise® business amounted to +9.0%. In addition to the very positive trend in Automotive Powerise® business, Automotive Gas Spring business also performed very well, expanding by +€14.7 million or +19.7% from €74.5 million to €89.2 million. Organic revenue growth in the Automotive Gas Spring business amounted to +10.0%. According to IHS data (as of July 2023), the US automotive market grew year-on-year, achieving growth rates of +11.4% to 7.8 million units produced, which is reflected in particular in the sales figures for the Automotive Powerise® product range and the Automotive Gas Spring business. The availability of electronic components (semiconductors) also increasingly improved in the Americas region, although a certain level of uncertainty still remains on the market that could hurt global supply chains again as a result of shortages due to the ongoing international trade conflict between the United States and China. The high level of US inflation seen in summer 2022 has eased steadily in recent months. This has had the effect of boosting growth, which is also reflected in consumer behavior in the region. The growth rates in revenue achieved by Stabilus in the first nine months of 2023 were in line with market expectations overall and illustrate the excellent performance of automotive market share in the region. Industrial business also developed very well with revenue growth of +€23.0 million or +24.5%, from €93.7 million to €116.7 million. Organic revenue growth in industrial business amounted to +19.2%. Industrial business enjoyed very strong growth in the first nine months of fiscal 2023, with consumer behavior in the industrial sector continuing to benefit accordingly. The division experienced strong growth thanks to new orders, in particular in energy & construction. Furthermore, double-digit revenue growth rates were achieved in commercial vehicles, industrial machinery & automation as well as distributors, independent aftermarket and e-commerce. The Americas region also felt the dramatic impact of staff cost rises due to the cost of materials and inflation, which it was unable to fully offset through price increases. Furthermore, the operating result in the Americas region is being negatively affected by currency effects, especially in relation to the Mexican peso and the US dollar, which are serving to reduce the adjusted EBIT margin. Although adjusted EBIT in the Americas region increased by +€4.4 million or +12.9%, from €34.1 million in the first nine months of fiscal 2022 to €38.5 million in the first nine months of fiscal 2023, the adjusted EBIT margin declined by (1.0) percentage points, from 12.6% in the first nine months of 2022 to 11.6% in the first nine months of fiscal 2023.
External revenue in the APAC region was +€21.3 million or +12.0% higher in the first nine months of fiscal 2023 than in the first nine months of fiscal 2022, rising from €177.2 million to €198.5 million. Adjusted for exchange rate effects of €(7.2) million, organic revenue growth amounted to +16.1%. This increase was thanks in particular to the strong Automotive Powerise® business, which contributed revenue growth of +€20.9 million or +24.4% from €85.8 million to €106.7 million. Organic revenue growth amounted to +28.8%. Automotive Gas Spring business expanded moderately by €1.0 million or 1.3%, from €74.3 million to €75.3 million. The organic growth rate in revenue for the Automotive Gas Spring business was 5.1%. Economic development in the APAC region is volatile, especially in China, and this is reflected in the figures for fiscal 2023 to date. Economic development in the first half of fiscal 2023 was impacted by the upturn in COVID-19 infections and the resulting slowdown in economic growth. As a result of the lifting of COVID restrictions in particular, inefficiencies affecting both customers and suppliers emerged throughout the value chain, e.g. as a result of staff shortages, lost production, sudden materials shortages, and supply chain bottlenecks. The decline in the first half of the year was also reflected in vehicle production, with the number of units produced in China falling by (6.5)% year-on-year according to IHS (as of April). However, the Chinese automotive market enjoyed strong growth in May 2023 and June 2023 on the back of the growing electrification of the automotive industry in the region. Demand for electric and hybrid vehicles remains unabated. According to IHS data (as of July 2023), China's passenger car production increased by +2.1% compared with the first nine months of fiscal 2022 to 19.6 million units produced in the first nine months of fiscal 2023, while the APAC region saw growth of +6.7% to a total of 36.5 million units produced. This is also reflected in the sales figures for the Automotive Powerise® product range and the Automotive Gas Spring business, which are largely thanks to nominations for new OEM platforms in recent years. The economy was supported by the Chinese government, which initiated various economic programs to counteract regional lockdowns and help the economy to bounce back. Revenue growth in the region also benefited from customer discounts offered by various OEMs. However, this volatility also entails a certain risk in terms of future macroeconomic development. The consumer price index in China in particular is unchanged compared with the previous year. Industrial business revenue declined slightly by €(0.6) million or (3.5)%, from €17.1 million in the first nine months of 2022 to €16.5 million in the first nine months of fiscal 2023, whereas organic revenue growth in industrial business improved by +0.3%. The weaker market environment, especially in China, meant that the industrial market saw business cool off slightly in almost all market segments. This was offset by the positive development of the commercial vehicles, energy & construction and industrial machinery & automation market segments. The APAC region was also affected by a rising cost base, while the customer discounts offered by OEMs on the Chinese market had an impact on margins. Although adjusted EBIT in the APAC
region increased slightly by +€0.8 million or +2.3%, from €34.7 million in the first nine months of fiscal 2022 to €35.5 million in the first nine months of fiscal 2023, the adjusted EBIT margin declined by (1.7) percentage points, from 19.6% in the first nine months of fiscal 2022 to 17.9% in the first nine months of fiscal 2023.
The following tables shows the reconciliation to adjusted EBIT for the third quarter and the first nine months of fiscal 2023 compared with the third quarter and the first nine months of fiscal 2022. Adjusted EBIT is EBIT adjusted for non-recurring items (e.g. restructuring expenses or nonrecurring consulting expenses) and depreciation/amortization of fair value adjustments from purchase price allocation (PPA). The Stabilus Group reports adjusted EBIT as its management is of the opinion that adjusted EBIT is more meaningful, and therefore contributes to a better understanding of the operating performance of the Stabilus Group on the part of users of the financial statements. Further details of segment reporting can be found in the supplementary financial information.
PPA effects from previous acquisitions amounted to €10.5 million in the first nine months of fiscal 2023 (9M FY2022: €10.4 million). This is straight-line depreciation of the remeasurement of assets. €3.5 million of this figure (9M FY2022: €3.5 million) relates to the PPA in fiscal 2010 and €6.4 million (9M FY2022: €6.3 million) to the PPA in fiscal 2016. The
STABILUS QUARTERLY STATEMENT Q3 FY2023 17
increase in PPA effects compared with the previous year is due to currency effects (USD/EUR). Furthermore, €0.6 million (9M FY2022: €0.6 million) relates to the purchase price allocation in fiscal 2019. In addition to PPA effects, an amount of €0.2 million from earn-out agreements for prior acquisitions was adjusted for in the first nine months of fiscal 2023.
| Q3 for the period from April 1 to June 30, |
|||
|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change |
| Profit from operating activities (EBIT) | 38.4 | 34.4 | 11.6% |
| PPA adjustments – depreciation and amortization | 3.4 | 3.5 | (1.8)% |
| Earn-out (purchase price adjustment) | 0.1 | − | n/a |
| Adjusted EBIT | 41.9 | 37.9 | 10.6% |
| Reconciliation of EBIT to adjusted EBIT | T_010 |
| from October 1 to June 30, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change | |
| Profit from operating activities (EBIT) | 104.6 | 96.1 | 8.8% | |
| PPA adjustments – depreciation and amortization | 10.5 | 10.4 | 0.8% | |
| Earn-out (purchase price adjustment) | 0.2 | − | n/a | |
| Adjusted EBIT | 115.3 | 106.5 | 8.3% |
Statement of financial position T_011
| IN € MILLIONS | June 30, 2023 | Sept 30, 2022 | % change |
|---|---|---|---|
| Assets | |||
| Non-current assets | 683.3 | 701.9 | (2.6)% |
| Current assets | 572.9 | 564.7 | 1.5% |
| Total assets | 1,256.2 | 1,266.6 | (0.8)% |
| Equity and liabilities | |||
| Equity | 679.3 | 669.7 | 1.4% |
| Non-current liabilities | 373.8 | 375.0 | (0.3)% |
| Current liabilities | 203.2 | 221.9 | (8.4)% |
| Total liabilities | 577.0 | 596.9 | (3.3)% |
| Total equity and liabilities | 1,256.2 | 1,266.6 | (0.8)% |
Total assets of the Stabilus Group declined slightly by €(10.4) million or (0.8)%, from €1,266.6 million as of September 30, 2022 to €1,256.2 million as of June 30, 2023.
The non-current assets of the Stabilus Group declined by €(18.6) million or (2.6)%, from €701.9 million as of September 30, 2022 to €683.3 million as of June 30, 2023. Non-current assets were primarily influenced by carrying amount adjustments due to exchange rate effects (e.g. a decrease in goodwill of €(8.2) million). The amortization on other intangible assets of €(22.7) million, which essentially results from purchase price allocation in previous fiscal years, also had an effect on non-current assets, as did depreciation of property, plant and equipment in the amount of €(29.0) million. This was countered by capital expenditure of +€38.6 million, of which +€8.5 million related to new leases and +€30.1 million to ongoing capacity expansions for projects. Furthermore, a total of +€16.2 million was invested in intangible assets in connection with research and development costs.
The current assets of the Stabilus Group increased by +€8.2 million or +1.5%, from €564.7 million as of September 30, 2022, to €572.9 million as of June 30, 2023. This was due to the €29.9 million increase in cash and cash equivalents compared with September, which was partially offset by a lower level of trade receivables (€(18.0) million) and a €(4.2) million reduction in income tax receivables. Furthermore, we expanded our inventories slightly by +€1.5 million in order to safeguard our global supply chains and to allow for higher demand. Higher purchase prices for raw materials and components also played a part.
The equity of the Stabilus Group rose by +€9.6 million or +1.4%, from €669.7 million as of September 30, 2022 to €679.3 million as of June 30, 2023. This development was mainly attributable to the profit of +€79.8 million for the first nine months of fiscal 2023, which was partially offset by the dividend payment to our shareholders of €(43.23) million in the second quarter of fiscal 2023. Other reserves (accumulated other comprehensive income) declined by €(26.8) million, from +€14.6 million to €(12.2) million, as a result of unrealized losses from foreign currency translation of €(25.2) million and unrealized actuarial losses from pensions (after tax) of €(1.7) million. There was also a positive effect of +€0.1 million due to the remeasurement in equity of derivatives acquired for hedging purposes.
The non-current liabilities of the Stabilus Group declined slightly by €(1.2 )million or (0.3)%, from €375.0 million as of September 30, 2022 to €373.8 million as of June 30, 2023. This change is attributable to the pro rata reclassification of the provision for warranties and personnel expenses from current to non-current in the amount of +€11.5 million in order to better reflect the maturity profile of these liability items. Pension obligations increased by +€2.2 million due to slight changes in actuarial assumptions. The change was mainly offset by the application of the restructuring clause, which reduced deferred tax liabilities relating to this matter by €(15.0) million, as well as straight-line amortization on the deferred tax liabilities for purchase price allocations recognized in previous financial years.
The current liabilities of the Stabilus Group declined by €(18.7) million or (8.4)%, from €221.9 million as of September 30, 2022 to €203.2 million as of June 30, 2023. This resulted firstly from the pro rata reclassification of the provision for guarantees and staff costs from current to non-current in the amount of €(11.5) million, and secondly to lower trade payables of €(5.4) million. Furthermore, provisions for revenue risks decreased by
FINANCIAL POSITION OF THE STABILUS GROUP
€(1.6) million as a result of being utilized, while provisions for staff costs declined by €(3.0) million largely as a result of the statutory profit-sharing payment for the Mexican plant. This was partially offset by a +€4.8 million increase in other liabilities, which was primarily due to liabilities to employees and vacation payment.
Cash flow from operating activities increased by +€62.8 million or +83.6%, from €75.1 million in the first nine months of fiscal 2022 to €137.9 million in the first nine months of fiscal 2023. This is essentially due to the change in working capital (including a reduction in trade receivables). In addition, an amount totaling €12.1 million (income taxes of €8.7 million and interest refunds of €3.4 million) was recognized in cash in connection with the restructuring clause (see comments on "Restructuring clause", p. 4), with the result that income tax payments decreased compared with the same period of the previous year.
Cash flow from investing activities changed by +€8.8 million or (16.3)%, from €(53.9) million in the first nine months of fiscal 2022 to €(45.1) million in the first nine months of fiscal 2023. This was due in particular to the acquisition of the investment accounted for at equity (Cultraro Automazione Engineering S.r.l., €(17.2) million) and another equity investment (Synapticon GmbH, €(6.0) million) in the first quarter of the previous year. Purchases of intangible assets rose by +€3.5 million and capital expenditure for property, plant and equipment increased by +€11.0 million as against the previous year.
There was a change of +€29.3 million in cash flow from financing activities, from €(84.5) million in the first nine months of fiscal 2022 to €(55.2) million in the first nine months of fiscal 2023. This was mainly attributable to the net repayment of the senior facility of €(97.6) million in the same period of the previous year, which was partially offset by the promissory note loan taken out in 2022 in the amount of +€55.0 million. Furthermore, dividend payments also increased by +€12.4 million in fiscal 2023 compared with fiscal 2022. Interest payments for financial liabilities increased by +€1.0 million as a result of higher market interest rates (Euribor).
| Cash flows | T_012 | ||
|---|---|---|---|
| 9M for the period from October 1 to June 30, |
|||
| IN € MILLIONS | 2023 | 2022 | % change |
| Cash flow from operating activities | 137.9 | 75.1 | 83.6% |
| Cash flow from investing activities | (45.1) | (53.9) | (16.3)% |
| Cash flow from financing activities | (55.2) | (84.5) | (34.7)% |
| Net increase/(decrease) in cash | 37.6 | (63.3) | < (100.0)% |
| Effect of movements in exchange rates on cash held | (7.7) | 5.1 | < (100.0)% |
| Cash and cash equivalents as of beginning of the period | 168.4 | 193.2 | (12.8)% |
| Cash and cash equivalents as of end of the period | 198.3 | 135.0 | 46.9% |
Free cash flow is defined as the total of cash flows from operating activities and cash flows from investing activities. Management reports free cash flow as this alternative performance measure aids in assessing the ability of the Stabilus Group to generate cash flows that can be used, for example, for investment or distributions. Free cash flow changed by +€71.6 million, from +€21.2 million in the first nine months of fiscal 2022 to +€92.8 million in the first nine months of fiscal 2023. The improvement is due to the significantly higher cash flow from operating activities, which mainly resulted from the cash recognized in connection with the restructuring clause in the amount of €12.1 million (see comments on "Restructuring clause", p. 4). Free cash flow was also affected by higher investments not related to acquisitions of €14.6 million in the first nine months of fiscal 2023. The investments in Cultraro Automazione Engineering S.r.l. and Synapticon GmbH in the first quarter of fiscal 2022 impacted free cash flow in the previous year in the amount of €23.2 million. The calculation of free cash flow for the first nine months of fiscal 2023 and fiscal 2022 is shown in the table below.
Adjusted free cash flow is defined as the total of cash flows from operating activities and cash flows from investing activities before acquisitions. Management reports adjusted free cash flow as this alternative performance measure aids in assessing the ability of the Stabilus Group to generate cash flows from organic growth (i.e. disregarding acquisitions). Adjusted free cash flow increased by +€48.7 million, from +€44.4 million in the first nine months of fiscal 2022 to +€93.1 million in the first nine months of fiscal 2023, largely as a result of the significant change in working capital from operating activities and lower income tax payments due to the cash recognized in connection with the restructuring clause (see comments on "Restructuring clause", p. 4). Higher investments not related to acquisitions had an offsetting effect on investing activities. The adjustment of €0.3 million in the first nine months of fiscal 2023 relates to the last purchase price payment to Piston from the share purchase (53%) in fiscal 2019. The prior year adjustment relates to investments of €23.2 million in Cultraro Automazione Engineering S.r.l. and Synapticon GmbH. The calculation of free cash flow for the first nine months of fiscal 2023 and fiscal 2022 is shown in the table below.
| 9M for the period from October 1 to June 30, |
|||
|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change |
| Cash flow from operating activities | 137.9 | 75.1 | 83.6% |
| Cash flow from investing activities | (45.1) | (53.9) | (16.3)% |
| Free cash flow | 92.8 | 21.2 | > 100.0% |
| Adjusted free cash flow | T_014 | ||
| 9M |
| 9M for the period from October 1 to June 30, |
|||
|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change |
| Cash flow from operating activities | 137.9 | 75.1 | 83.6% |
| Cash flow from investing activities | (45.1) | (53.9) | (16.3)% |
| Free cash flow | 92.8 | 21.2 | > 100.0% |
| Acquisition of assets and liabilities within the business combination, net of cash acquired |
0.3 | − | n/a |
| Payment for equity-accounted and other investments | − | 23.2 | n/a |
| Adjusted FCF | 93.1 | 44.4 | > 100.0% |
The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (LTM). Net financial debt is the nominal amount of financial liabilities, i.e. current and non-current financial liabilities less cash and cash equivalents. Adjusted EBITDA is defined as adjusted EBIT before depreciation/amortization and before extraordinary nonrecurring items (e.g. restructuring expenses or non-recurring consulting expenses). Management reports the net leverage ratio as this alternative performance measure is a useful indicator for assessing the debt and financing structure of the Stabilus Group. The net leverage ratio declined from 0.6x in the first nine months of fiscal 2022 to 0.3x in the first nine months of fiscal 2023 (September 30, 2022: 0.4x). This is mainly due to the strong increase in adjusted EBITDA and the further reduction in financial liabilities. The calculation of the net leverage ratio for the first nine months
of fiscal 2023 and fiscal 2022 is shown in the table on the right.
Net leverage ratio
| 9M as of June 30, | |||
|---|---|---|---|
| IN € MILLIONS | 2023 | 2022 | % change |
| Financial debt | 255.2 | 256.9 | (0.7)% |
| Cash and cash equivalents | (198.3) | (135.0) | 46.9% |
| Net financial debt | 56.9 | 121.9 | (53.3)% |
| Adjusted EBITDA (LTM, June 30) | 220.6 | 194.2 | 13.6% |
| Net leverage ratio 1) | 0.3x | 0.6x |
1) The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (LTM).
| Financial debt | T_016 | |
|---|---|---|
| 9M as of June 30, | ||
| IN € MILLIONS | 2023 | 2022 |
| Financial liabilities (non-current) | 253.5 | 252.5 |
| Financial liabilities (current) | 1.7 | 1.6 |
| Adjustment carrying value | − | 2.8 |
| Financial debt | 255.2 | 256.9 |
| Adjusted EBITDA (LTM, June 30) | T_017 |
|---|---|
| -------------------------------- | ------- |
| 2023 | 2022 | % change |
|---|---|---|
| 150.7 | 126.6 | 19.0% |
| 39.4 | 38.0 | 3.4% |
| 16.4 | 15.7 | 4.5% |
| 14.0 | 13.9 | 0.6% |
| 220.4 | 194.2 | 13.5% |
| 0.2 | − | n/a |
| 220.6 | 194.2 | 13.6% |
| 9M as of June 30, |
Please refer to page 51 and onwards in the annual report of September 30, 2022 for information on the risk management system and the overall assessment of the risks and opportunities of the Stabilus Group.
In the reporting period (October 1, 2022 to June 30, 2023), the second quarter saw a slight easing in the assessments made in the 2022 annual report concerning the risks for material and energy prices. These aspects have thus been amended slightly. The Stabilus Group currently rates the development of risks of prices for materials as "medium" (risk class) with a probability of occurrence of "likely" (2022 annual report: "high" and "very likely"). These changes have been made on account of the slight improvement in procurement prices for the materials concerned. In relation to energy risks, the risk assessment has been changed to "medium" (risk class) with a probability of occurrence of "likely" as a result of winter coming to an end and the German government introducing a price cap (2022 annual report: "high" and "likely").
In addition, the effect of currency fluctuations on the operating and financial result was considered to be a risk in the first nine months of fiscal 2023 and assessed as "high" (risk class) with a probability of occurrence of "very likely".
Furthermore, as a result of rising interest rates, the risk of a change in interest rates in relation to the Euribor-based credit facilities was added as of March 31, 2023 and assessed as "low" (risk class) with a probability of occurrence of "likely".
To achieve some stability in the uncertain interest situation, the Stabilus Group entered into an interest derivative contract in the first half of fiscal 2023. This is accounted for as a cash flow hedge. Nevertheless, negative effects can arise from its market value and influence the financial position and results of operations. Derivatives are managed centrally and the developments on the interest markets are monitored continuously in conjunction with risk management.
In view of the general economic and market landscape, the management of the Stabilus Group continues to attach great importance to the very strict monitoring of cost, liquidity and impairment risks. Inflation is also expected to remain at a high level for the foreseeable future.
The Management Board does not believe there are any material individual or aggregate risks to the continued existence of Stabilus SE or the Stabilus Group in the future. The risk-bearing capacity of the Stabilus Group is linked to its financial covenants (net leverage ratio) and is monitored on an ongoing basis. The aggregate overall risk exposure did not have any material impact on risk-bearing capacity.
The development of the world economy is being influenced by the ongoing Russia/Ukraine war, possible disruptions in global supply chains and consistently high inflation pressure in fiscal 2023 (Stabilus fiscal: from October 1, 2022 to September 30, 2023). This is also reflected in higher wage and salary adjustments in the individual regions. As a result, the economy is not expected to see a tangible upturn in the coming months. Now that China has withdrawn from its strict zero-COVID policy, the economy in the relevant areas for Stabilus has entered a phase of consolidation. On the other hand, supply bottlenecks are expected to continue to ease, while the economic outlook for the euro area is set to gradually improve as energy prices fall. However, the continued tightening of monetary policy could also weigh on the development of financial markets and the world economy.
The International Monetary Fund (IMF, World Economic Outlook – July 2023) expects global gross domestic product to rise by +3.0% in the 2023 calendar year. Within the European Union, very low growth of just +0.9% is anticipated for the euro area. In the Americas region, growth of +1.8% is forecast for the US and for Central and South America. Higher growth rates are projected in the APAC region, with the core market of China expected to grow by +5.2%. In addition to the International Monetary Fund forecast from July 2023, the latest OECD forecast issued in June 2023 anticipates a muted recovery in global economic activity. The world economy is expected to grow by +2.7% in the current calendar year and +2.9% in the next calendar year. Within the European Union, the euro area is now also expected to see very low growth of just +0.9%. In the Americas region, growth of +1.6% is still forecast for the United States. The OECD also expects the emerging economies to deliver considerably more in the way of momentum for the world economy, with growth in the core market of China forecast at +5.4%.
| % YEAR-ON-YEAR CHANGE IN THE CALENDAR YEAR | 2023* | 2024* |
|---|---|---|
| World | 3.0% | 3.0% |
| European Union | 1.0% | 1.7% |
| thereof Euro Area | 0.9% | 1.5% |
| thereof Germany | (0.3)% | 1.3% |
| United Kingdom | 0.4% | 1.0% |
| United States | 1.8% | 1.0% |
| Latin America | 1.9% | 2.2% |
| thereof Brazil | 2.1% | 1.2% |
| thereof Mexico | 2.6% | 1.5% |
| Emerging and Developing Asia | 5.3% | 5.0% |
| thereof China | 5.2% | 4.5% |
Source: IMF, July 2023 World Economic Outlook.
* Projections.
| Production of light vehicles* T_019 |
||||||
|---|---|---|---|---|---|---|
| IN MILLIONS OF UNITS PER CALENDAR YEAR | 2023** | 2024** | 2025** | 2026** | 2027** | 2028** |
| EMEA | 19.4 | 19.6 | 19.7 | 19.8 | 20.2 | 20.1 |
| thereof Germany | 4.3 | 4.6 | 4.8 | 4.7 | 4.9 | 4.9 |
| Americas | 18.3 | 18.5 | 19.4 | 19.9 | 20.2 | 20.4 |
| thereof United States | 10.4 | 10.6 | 11.0 | 10.5 | 10.6 | 10.5 |
| APAC | 48.3 | 49.4 | 50.9 | 51.8 | 53.2 | 54.1 |
| thereof China | 25.9 | 27.6 | 29.2 | 30.0 | 31.1 | 31.7 |
| Worldwide production of light vehicles* | 86.0 | 87.5 | 90.0 | 91.5 | 93.6 | 94.6 |
Source: IHS Automotive/Light Vehicle Production Forecast (as of July 2023).
* Passenger cars and light commercial vehicles (< 6t).
** IHS forecast as of July 2023.
Interest rate developments at the ECB and the Fed will be another key factor. To counteract inflation, the ECB again raised interest rates by another 0.25% to 4.0% in June 2023. After a pause in June, the Fed also raised its interest rate again by 0.25% in July 2023, which now stands at 5.5% (July 2023). The interest rate is thus at its highest level since 2001. Further interest rate adjustments by the ECB and Fed cannot be ruled out.
Based on the IHS forecasts for the automotive sector (July 2023), the Stabilus Group is anticipating growth in global automotive production, as measured by the number of vehicles produced with a total weight of up to six tonnes, of around +5.4% to approximately 86.0 million units in fiscal 2023. According to IHS, all three regions will produce more vehicles in fiscal 2023 than in fiscal 2022. The Americas and EMEA regions are expected to take the lead, each producing +1.5 million more vehicles, followed by APAC (+1.4 million).
Sustained geopolitical tension and the resulting uncertainty affecting the international markets will continue to shape the development of the industrial sector. In addition to structural issues such as high energy prices and rising interest rates, companies are facing a slowdown in demand. Nevertheless, the supply problems in the industrial sector, which were caused by bottlenecks for raw materials and precursors in particular, will continue improving in fiscal 2023. Stabilus is experiencing high demand in the industrial sector that it has not yet been able to work through fully due to the prevalent uncertainty (supply chains, for instance).
Compared with the previous year, the situation on the procurement markets for raw materials and intermediate products appears to be improving slightly as supply bottlenecks ease. This slow process of change will affect the development of procurement prices for the Stabilus Group. The procurement prices for the key individual raw materials and components used by Stabilus will take some time to come down. By its own estimate, the Stabilus Group forecasts that the price of direct materials such as plastics, metals and steel will rise by around +3% in fiscal 2023. Action taken by central governments, especially in Germany, has led to energy prices settling somewhat.
In view of the results realized in the first nine months of fiscal 2023 and the current expectations for global automotive and industrial production in the remaining months of the fiscal year, the Management Board is concretizing its full-year guidance within the targeted range. For fiscal 2023, sales of €1.2 billion (at the upper end of the previous range) with an adjusted EBIT margin of 13.0% (at the lower end of the previous range) are expected. In contrast to the prior-year period, fiscal 2023 is negatively impacted by currency effects in the operating result, particularly between the Mexican peso and US dollar; these effects reduced the adjusted EBIT margin. The achievement of an EBIT margin of 13.0% corresponds to adjusted EBIT of €156 million. The previous outlook given at the beginning of the fiscal year was for sales of €1.1 billion to €1.2 billion with an adjusted EBIT margin of 13% to 14%, corresponding to an adjusted EBIT of €155 million in the middle of the ranges.
On July 26, 2023, Stabilus acquired a further 28% of the shares in Cultraro Automazione Engineering S.r.l. from the company's founders. The Stabilus Group acquired the first equity investment of 32% of the shares on November 22, 2021. This means Stabilus now owns 60% of the total shares in Cultraro Automazione Engineering S.r.l. The Cultraro Group is a leading manufacturer of dampers. Cultraro's products, such as rotary and linear dampers, are used in a variety of compact motion control applications in the automotive industry and other industrial applications. In fiscal 2022 (January 1, 2022 to December 31, 2022), it generated revenue of around €16.0 million and an EBIT margin of around 20.5%. The purchase price for the 28% equity investment was €14.6 million. Earn-out elements depending on the achievement of a business plan in the following fiscal year were also agreed. Stabilus also has preemptive rights for the purchase of the remaining 40%. The acquisition of additional shares in the Cultraro Group will strengthen Stabilus' market presence and position in the automotive and industrial business. The Group is currently preparing the purchase price allocation in order to determine the fair values of the acquired assets and liabilities of the Cultraro Group. Cultraro Automazione Engineering S.r.l., which the Group previously accounted for using the equity method, will be consolidated and included in the consolidated financial statements of the Stabilus Group with effect from August 1, 2023.
As of July 27, 2023, there were no additional events or developments that could have materially affected the measurement and presentation of the Group's assets and liabilities as of June 30, 2023.
Koblenz, July 27, 2023
Stabilus SE The Management Board
Dr. Michael Büchsner Stefan Bauerreis
as of and for the three months and nine months ended June 30, 2023
| Q3 for the period from April 1 to June 30, | 9M for the period from October 1 to June 30, | |||
|---|---|---|---|---|
| IN € THOUSANDS | 2023 | 2022 | 2023 | 2022 |
| Revenue | 306,493 | 271,116 | 907,776 | 796,026 |
| Cost of sales 1) | (226,168) | (198,592) | (666,348) | (585,045) |
| Gross profit | 80,325 | 72,524 | 241,428 | 210,981 |
| Research and development expenses 1) | (7,810) | (6,174) | (26,385) | (24,065) |
| Selling expenses | (24,092) | (22,132) | (77,481) | (63,301) |
| Administrative expenses | (10,378) | (10,892) | (32,423) | (31,059) |
| Other income | 1,135 | 1,067 | 4,208 | 3,602 |
| Other expenses | (881) | (172) | (5,202) | (230) |
| Income / (expense) from equity-accounted investments | 68 | 170 | 413 | 127 |
| Profit from operating activities (EBIT) | 38,367 | 34,391 | 104,558 | 96,055 |
| Finance income | 932 | 5,709 | 5,416 | 9,310 |
| Finance costs | (6,145) | (5,231) | (22,957) | (9,798) |
| Profit / (loss) before income tax | 33,154 | 34,869 | 87,017 | 95,567 |
| Income tax income / (expense) | (11,455) | (10,586) | (7,201) | (27,117) |
| Profit / (loss) for the period | 21,699 | 24,283 | 79,816 | 68,450 |
| thereof attributable to non-controlling interests | 346 | 250 | 1,039 | 892 |
| thereof attributable to shareholders of Stabilus | 21,353 | 24,033 | 78,777 | 67,558 |
| Other comprehensive income / (expense) | ||||
| Foreign currency translation differences | (1,681) | 11,971 | (25,222) | 26,715 |
| Hedge of cash flows from financial instruments | 579 | − | 97 | − |
| Items to be reclassified to consolidated profit or loss in future periods | (1,102) | 11,971 | (25,125) | 26,715 |
| Unrealized actuarial gains and losses | (817) | 4,500 | (1,662) | 7,856 |
| Items not to be reclassified to consolidated profit or loss in future periods | (817) | 4,500 | (1,662) | 7,856 |
| Other comprehensive income / (expense), net of taxes | (1,919) | 16,471 | (26,787) | 34,571 |
| Total comprehensive income / (expense) for the period | 19,780 | 40,754 | 53,029 | 103,021 |
| thereof attributable to non-controlling interests | (560) | 30 | 1,309 | (182) |
| thereof attributable to shareholders of Stabilus | 20,340 | 40,724 | 51,720 | 103,203 |
| Earnings per share (in €): | ||||
| basic (EPS) | 0.86 | 0.97 | 3.19 | 2.74 |
| diluted (DEPS) | 0.86 | 0.97 | 3.19 | 2.74 |
1) See description of change in reporting, p. 12.
as of June 30, 2023
| IN € THOUSANDS | June 30, 2023 | Sept 30, 2022 |
|---|---|---|
| Assets | ||
| Property, plant and equipment | 229,628 | 228,879 |
| Goodwill | 208,630 | 216,806 |
| Other intangible assets | 205,161 | 216,857 |
| Investments in entities accounted for using the equity method and other investments |
23,102 | 23,099 |
| Other assets | 849 | 1,413 |
| Deferred tax assets | 15,916 | 14,850 |
| Total non-current assets | 683,286 | 701,904 |
| Inventories | 168,939 | 167,451 |
| Trade and other receivables | 179,636 | 197,656 |
| Income tax receivables | 3,889 | 8,074 |
| Other financial assets | 615 | 600 |
| Other assets | 21,578 | 22,536 |
| Cash and cash equivalents | 198,274 | 168,352 |
| Total current assets | 572,931 | 564,669 |
| Total assets | 1,256,217 | 1,266,573 |
Consolidated statement of financial position T_021
for the first nine months ended June 30, 2023
Consolidated statement of changes in equity T_022
| IN € THOUSANDS | Issued capital |
Capital reserves |
Retained earnings |
Other reserves |
Equity attributable to shareholders of Stabilus |
Non-controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|
| Balance as of September 30, 2021 | 247 | 225,848 | 348,746 | (35,591) | 539,250 | 5,087 | 544,337 |
| Profit / (loss) for the period | − | − | 67,558 | − | 67,558 | 892 | 68,450 |
| Other comprehensive income / (expense) | − | − | − | 35,645 | 35,645 | (1,074) | 34,571 |
| Total comprehensive income for the period | − | − | 67,558 | 35,645 | 103,203 | (182) | 103,021 |
| Dividends | − | − | (30,875) | − | (30,875) | (185) | (31,060) |
| Reclassifications | 24,453 | (24,453) | − | − | − | − | − |
| Balance as of June 30, 2022 | 24,700 | 201,395 | 385,429 | 54 | 611,578 | 4,720 | 616,298 |
| Balance as of September 30, 2022 | 24,700 | 201,395 | 421,129 | 18,301 | 665,525 | 4,165 | 669,690 |
| Profit / (loss) for the period | − | − | 78,777 | − | 78,777 | 1,039 | 79,816 |
| Other comprehensive income / (expense) | − | − | − | (27,057) | (27,057) | 270 | (26,787) |
| Total comprehensive income for the period | − | − | 78,777 | (27,057) | 51,720 | 1,309 | 53,029 |
| Dividends | − | − | (43,225) | − | (43,225) | (235) | (43,460) |
| Balance as of June 30, 2023 | 24,700 | 201,395 | 456,681 | (8,756) | 674,020 | 5,239 | 679,259 |
for the period from October 1 to June 30,
| 9M for the period from October 1 to June 30, |
||||
|---|---|---|---|---|
| IN € THOUSANDS | 2023 | 2022 | ||
| Profit / (loss) for the period | 79,816 | 68,450 | ||
| Income tax income / (expense) | 7,201 | 27,117 | ||
| Net financial result | 17,541 | 489 | ||
| Interest received | 5,416 | 350 | ||
| Net result from equity-accounted investments | (413) | (127) | ||
| Dividends received | 410 | − | ||
| Depreciation and amortization (incl. impairment losses) | 51,752 | 51,083 | ||
| Gains / losses from the disposal of assets | 30 | (70) | ||
| Changes in inventories | (1,488) | (27,820) | ||
| Changes in trade and other receivables | 18,020 | (34,037) | ||
| Changes in trade payables | (5,441) | 8,383 | ||
| Changes in other assets and liabilities | (9,166) | 9,340 | ||
| Changes in provisions | (10,640) | (3,537) | ||
| Income tax payments | (15,168) | (24,528) | ||
| Cash flow from operating activities | 137,870 | 75,093 | ||
| Proceeds from disposal of property, plant and equipment | 757 | 296 | ||
| Purchase of intangible assets | (16,229) | (12,682) | ||
| Purchase of property, plant and equipment | (29,340) | (18,309) | ||
| Payment for equity-accounted and other investments | − | (23,175) | ||
| Acquisition of assets and liabilities within the business combi nation, net of cash acquired |
(253) | − | ||
| Cash flow from investing activities | (45,065) | (53,870) |
| 9M for the period from October 1 to June 30, |
||||
|---|---|---|---|---|
| IN € THOUSANDS | 2023 | 2022 | ||
| Receipts from financial liabilities | − | 55,000 | ||
| Receipts under credit facility | − | 100,000 | ||
| Payments for redemption of financial liabilities | (1,277) | (1,061) | ||
| Payments for redemption of senior facilities | − | (197,643) | ||
| Payments for lease liabilities | (5,800) | (6,071) | ||
| Dividends paid | (43,225) | (30,875) | ||
| Dividends paid to non-controlling interests | (235) | (185) | ||
| Payments for interest | (4,682) | (3,682) | ||
| Cash flow from financing activities | (55,219) | (84,517) | ||
| Net increase / (decrease) in cash and cash equivalents | 37,586 | (63,294) | ||
| Effect of movements in exchange rates on cash held | (7,664) | 5,091 | ||
| Cash and cash equivalents as of beginning of the period | 168,352 | 193,189 | ||
| Cash and cash equivalents as of end of the period | 198,274 | 134,986 | ||
Consolidated statement of cash flows T_023
The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), the Americas (North and South America) and APAC (Asia-Pacific). Based on Stabilus' guiding strategy of "in the region, for the region", we have established our facilities in the proximity of the Group's customers and have done so continuously over past years. Management reporting is based on the segment reporting structure. The customer structure, products and services offered (product portfolio) are largely the same in all three regional segments.
The Group measures the performance of its operating segments through a measure of segment profit or loss (key performance indicator) which is referred to as "adjusted EBIT". Adjusted EBIT represents EBIT adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation/amortization of fair value adjustments resulting from purchase price allocation (PPA).
The column "Other/Consolidation" includes the effects from the purchase price allocation for the April 2010 business combination. The effects from the purchase price allocation for the June 2016 and April 2019 business combinations are included in the regions.
| EMEA | Americas | APAC | |||||
|---|---|---|---|---|---|---|---|
| 9M for the period from October 1 to June 30, |
9M for the period from October 1 to June 30, |
9M for the period from October 1 to June 30, |
|||||
| IN € THOUSANDS | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| External revenue 1) | 376,212 | 348,737 | 333,027 | 270,088 | 198,537 | 177,201 | |
| Intersegment revenue 1) | 27,545 | 24,897 | 24,546 | 22,952 | 1,123 | 211 | |
| Total revenue 1) | 403,757 | 373,634 | 357,573 | 293,040 | 199,660 | 177,412 | |
| Depreciation and amortization (incl. impairment losses) |
(25,664) | (26,356) | (13,233) | (12,767) | (9,362) | (8,467) | |
| EBIT | 36,776 | 33,390 | 35,889 | 31,535 | 35,386 | 34,623 | |
| Adjusted EBIT | 41,245 | 37,658 | 38,520 | 34,069 | 35,500 | 34,743 |
| Segment total | Other / consolidation | Stabilus Group | ||||
|---|---|---|---|---|---|---|
| 9M for the period from October 1 to June 30, |
9M for the period from October 1 to June 30, |
9M for the period from October 1 to June 30, |
||||
| IN € THOUSANDS | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| External revenue 1) | 907,776 | 796,026 | − | − | 907,776 | 796,026 |
| Intersegment revenue 1) | 53,214 | 48,060 | (53,214) | (48,060) | − | − |
| Total revenue 1) | 960,990 | 844,086 | (53,214) | (48,060) | 907,776 | 796,026 |
| Depreciation and amortization (incl. impairment losses) |
(48,259) | (47,590) | (3,493) | (3,493) | (51,752) | (51,083) |
| EBIT | 108,051 | 99,548 | (3,493) | (3,493) | 104,558 | 96,055 |
| Adjusted EBIT | 115,265 | 106,470 | − | − | 115,265 | 106,470 |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
| DATE 1) 2) | PUBLICATION/EVENT |
|---|---|
| July 31, 2023 | Publication of quarterly statement Q3 FY2023 |
| November 10, 2023 | Publication of provisional annual results for FY2023 |
| December 8, 2023 | Publication of 2023 Annual Report |
1) We cannot rule out changes of dates. We recommend looking at the information in the Investors/Financial Calendar section of our website (www.stabilus.com/investors/financial-calendar). 2) Please note that our fiscal year (FY) ends in September (e.g. FY2023 comprises the twelve-month period from October 1, 2022 to September 30, 2023).
This quarterly statement is published in German and English. The German version takes precedence in case of doubt.
This quarterly statement contains forward-looking statements relating to Stabilus SE management's current plans, targets, forecasts and estimates. These statements account only for information available up to and including the date on which this quarterly statement was prepared. Stabilus SE management does not guarantee that these forward-looking statements will prove correct. The future performance of Stabilus SE and its subsidiaries and the results actually achieved are subject to a number of risks and uncertainties that could cause actual events or results to deviate from the forward-looking statements.
Many of these factors are beyond the control of Stabilus SE and its subsidiaries and so cannot be predicted accurately. These factors include changes in economic circumstances and the competitive situation, changes in the law, fluctuations in interest or exchange rates, legal disputes and investigations and the availability of funding. These and other risks and uncertainties are discussed in this quarterly statement. Other factors can also have a negative impact on our performance and results.
Stabilus SE does not intend, nor is it separately obliged, to update or amend forward-looking statements to reflect events or developments that occur after this quarterly statement is published.
Certain figures in this quarterly statement have been rounded up or down. This can result in discrepancies between the actual amounts of individual amounts in tables and the total amounts reported, as well as between figures in tables and figures in in-text analysis sections of this quarterly statement. All percentage changes and performance indicators in this quarterly statement were calculated based on the data available in millions of euro to one decimal place (€ million).
Further information including news, reports and publications can be found in the Investors section of our website at www.stabilus.com/investors.
INVESTOR RELATIONS
Phone: +49 261 8900 8198 E-mail: [email protected]
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Wallersheimer Weg 100 56070 Koblenz Germany Phone: +49 261 8900-0 E-mail: [email protected]
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