POLYTEC: Q1 2024: increased sales, EBIT positive again

POLYTEC: Q1 2024: increased sales, EBIT positive again

16.05.2024

The POLYTEC GROUP's consolidated sales revenues in the first three months of 2024 amounted to EUR 172.3 million, up 2.7% on the high level of the same quarter of the previous year (Q1 2023: EUR 167.8 million).

After sales revenue in the third quarter of 2023 (EUR 145.6 million) and also in the fourth quarter of 2023 (EUR 150.8 million) had remained significantly below the planned figures due to reductions in call-off volumes, the POLYTEC GROUP's consolidated sales improved in the first quarter of 2024.

Earnings before interest and taxes (EBIT) were negative in both the third quarter of 2023 (minus EUR 3.0 million) and the fourth quarter of 2023 (minus EUR 4.0 million). In the first quarter of 2024, POLYTEC GROUP's EBIT took a very significant turn positive and amounted to EUR 1.4 million (Q1 2023: EUR 0.2 million). The EBIT margin rose by 0.7 percentage points from 0.1% to 0.8% compared to the first quarter of the previous year.

From today's perspective, the management of POLYTEC Holding AG furthermore expects planned consolidated sales revenues in the range of EUR 660 million to EUR 710 million for the 2024 financial year and is targeting an EBIT margin of around 2% to 3%. The rising sales trend will be strengthened by the ramp-up of new projects, which are a consequence of the high order intakes of previous years.

Key figures Q1 2024

* Group sales revenues amounted to EUR 172.3 million (Q1 2023: EUR 167.8 million)
* EBITDA amounted to EUR 9.2 million (Q1 2023: EUR 8.4 million)
* EBITDA margin 5.3% (Q1 2023: 5.0%)
* EBIT totalled EUR 1.4 million (Q1 2023: EUR 0.2 million)
* EBIT margin 0.8% (Q1 2023: 0.1%)
* Earnings after tax minus EUR 1.4 million (Q1 2023: minus EUR 1.3 million)
* Earnings per share minus EUR 0.07 (Q1 2023: minus EUR 0.06)
* No dividend to be paid for 2023 FY proposed
* Equity ratio at 40.7% (31.12.2023: 41.4%)
* Net debt amounted to EUR 93.7 million (31.12.2023: EUR 79.5 million)
* Employees (FTE incl. leasing personnel, as at 31.03.2024): 3,968 (Q1 2023: 3,884)

In the Passenger Cars & Light Commercial Vehicles market area, which with 73.6% (Q1 2023: 74.3%) is the POLYTEC GROUP's strongest revenue area, sales revenues of EUR 126.9 million were generated in the months of January to March 2024, up 1.8% or EUR 2.2 million on the same period of the previous year (Q1 2023: EUR 124.7 million).

Since the first quarter of 2024, sales revenues in the Smart Plastic & Industrial Applications market area have shown a pleasing development. After sales at a major customer had remained below expectations for several quarters, sales now rose significantly. In the Smart Plastic & Industrial Applications market area, revenues increased by 46.3% or EUR 6.2 million to EUR 19.6 million (Q1 2023: EUR 13.4 million). The share of this market area in the POLYTEC GROUP's consolidated sales rose by 3.4 percentage points year-on-year, from 8.0% to 11.4%.

Sales revenues in the Commercial Vehicles market area (share 15.0%; Q1 2023: 17.7%) decreased by 13.1% year-on-year, from EUR 29.7 million to EUR 25.8 million.

In the first three months of 2024, EBITDA of the POLYTEC GROUP increased by 9.2% from EUR 8.4 million to EUR 9.2 million compared to the same period of the previous year. The EBITDA margin increased by 0.3 percentage points to 5.3% compared to the same quarter of the prior year. The high level of personnel expenses continued to weigh on the group's earnings situation in the first quarter of 2024.

The financial result in the first three months of 2024 amounted to minus EUR 2.6 million (Q1 2023: minus EUR 1.2 million). Consolidated earnings after tax in the first quarter of 2024 amounted to minus EUR 1.4 million (Q1 2023: minus EUR 1.3 million). This corresponds to earnings per share of minus EUR 0.07 (Q1 2022: minus EUR 0.06).

As of 31 March 2024, the group's balance sheet total increased by EUR 5.2 million to EUR 538.2 million compared to 31 December 2023. The equity ratio was 40.7%, 0.7 percentage points below that of the last annual balance sheet date and remains at a solid level.

Net debt amounted to EUR 93.7 million as of 31 March 2024, an increase of 17.8% compared to the balance sheet date of 31 December 2023 (EUR 79.5 million). The gearing ratio rose from 0.36 to 0.43 from the last balance sheet date.

As of 31 March 2024, POLYTEC had a total of 3,968 employees. Compared with the previous year's reporting date (3,884 FTE), the number of employees increased by a total of 84 FTE, or 2.2%.

Outlook 2024 financial year: unchanged optimistic

​​​​​​​From today's perspective, the management of POLYTEC Holding AG expects planned consolidated sales revenues in the range of EUR 660 million to EUR 710 million for the 2024 financial year and is targeting an EBIT margin of around 2% to 3%.

The rising sales trend will be strengthened by the ramp-up of new projects, which are a consequence of the high order intakes of previous years.

In the 2024 financial year, the POLYTEC GROUP expects passenger car production figures for Europe to be roughly at the previous year's level. While the production of heavy commercial vehicles is expected to decline slightly, the call-off figures are expected to rise in the Smart Plastic & Industrial Applications market area.

However, the achievement of this outlook is subject to uncertainty. The automotive industry continues to be characterised by a volatile market environment, uncertain demand, and the general transformation towards e-mobility.

The earnings situation of the POLYTEC GROUP in the 2024 financial year will be negatively impacted by the high level of wage and material costs, which have already been taken into account in the outlook. Measures introduced in the previous year to increase operational efficiency, especially for two plants, are already showing improvements. However, their full implementation may still take time.

In the medium-term, the POLYTEC GROUP considers itself to be in an extremely solid strategic position with regard to its ability to transform the changes in the automotive sector into increasing economic success for itself. The high volume of new orders received in recent financial years indicates that with its product portfolio, particularly in the area of e-mobility, but also outside the automotive sector, the POLYTEC GROUP possesses an excellent market standing and can face the future with confidence.

The Q1 interim report of POLYTEC Holding AG as at 31 March 2024 closing date is available for downloading on the investor relations, publications section of the group's website.

www.polytec-group.com/en/investor-relations/publications