- Sales increase 8.0% or €4.8 million year-on-year to €64.5 million in Q2 2021 (Q2 2020: €59.7 million)
- EBITDA pre exceptionals up 16.8% or €0.7 million to €4.5 million (Q2 2020: €3.9 million)
- Exceptionals in the second quarter of 2021 of €-0.6 million up €-0.2 million on previous year (Q2 2020: €-0.3 million)
- Net profit improves by €0.8 million to €-1.2 million (Q2 2020: €-2.0 million) and earnings per share to €-0.19 (Q2 2020: €-0.31)
- Ongoing recovery in demand in the second quarter leads to further increase in order intake compared to previous quarter to €65.2 million (Q1 2021: €63.9 million)
- Outlook for FY 2021 confirmed
Waldenburg, 12 August 2021 - R. STAHL today publishes financial figures for Q2 2021. Thus, the company's business development showed a significant recovery over the previous year. Compared to the weak previous year due to COVID-19, sales increased by 8.0% to €64.5 million (Q2 2020: €59.7 million). The main driver behind this development was a reduction in inventories of finished goods, while in the previous year pandemic-related delays in acceptance led to an increase in inventories. Sales growth also led to an increase in earnings before interest, taxes, depreciation and amortization (EBITDA) pre exceptionals of €0.7 million, or 16.8%, to €4.5 million in the second quarter of 2021 (Q2 2020: €3.9 million), resulting in an EBITDA margin pre exceptionals of 7.0% (Q2 2020: 6.5%). At €-0.6 million (Q2 2020: €-0.3 million), exceptionals were slightly above the previous year as a result of higher severance payments. Net profit was up €0.8 million to € 1.2 million in the second quarter of 2021 (Q2 2020: €-2.0 million). This corresponds to earnings per share of €-0.19 (Q2 2020: €-0.31).
"Following a soft start into the year 2021, we increasingly see a revitalization of our markets in our daily business and to some extent in large projects as expected", said Dr Mathias Hallmann, CEO of R. STAHL. "In fact, the strong recovery of the global economy is currently resulting in supply bottlenecks of various of our key raw materials and thus increasing our procurement risks. Nevertheless, from our today's perspective, we are confident that we will achieve our goals for fiscal year 2021", Dr Hallmann added.
Business development in Q2 2021
The positive sales development was primarily driven by significant growth in Asia/Pacific and Germany. R. STAHL generated sales of €16.4 million Germany in the second quarter (Q2 2020: € 15.0 million), an increase of 9.6%. In addition to the cyclical increase in in-vestment activity, this development also reflects a resurgence in major projects, particularly in the chemical and pharmaceutical industries, also benefiting the mechanical engineering sector. At €28.4 million, sales in the Central region - which consists of Africa and Europe excluding Germany - were at roughly the level of the previous year (Q2 2020: €28.6 million) in the quarter under review and continued to be buoyed by day-to-day business and short-term customer requirements. Development in the Americas region, where sales were also largely unchanged year-on-year at €5.3 million, a dip of 3.2% (Q2 2020: €5.4 million), primarily reflects the ongoing reluctance to invest in the oil and gas sector there. The Asia/Pacific region posted significant growth, with sales increasing by 34.8% to €14.4 million (Q2 2020: €10.7 million). This was mainly due to sales from major orders in the order backlog.
Order intake increased by 7.5% to €65.2 million in the second quarter of 2021 (Q2 2020: €60.7 million). The recovery first seen in the previous quarter thus continued (Q1 2021: €63.9 million; Q4 2020: €53.3 million). Order backlog decreased slightly to €67.9 million at 30 June 2021, compared with the end of the previous quarter (31 March 2021: €68.9 million), but remained well above the low level at the beginning of the year (31 December 2020: €64.5 million).
Development of earnings, financial and asset position in Q2 2021
Total operating performance was up 2.4 % to €63.2 million in the second quarter of 2021 (Q2 2020: €61.7 million). Reflected here is the reduction in inventories of finished goods and work in progress in the reporting quarter of €-2.6 million (Q2 2020: increase in inventories of €0.9 million) as a result of increased shipments.
The cost of materials decreased by 0.7% to €-20.7 million in the reporting period (Q2 2020: €-20.9 million), resulting in an improved cost of materials ratio of 32.8% of total operating performance compared with the previous year (Q2 2020: 33.8% of total operating performance).
Personnel expenses increased by 3.1% to €-30.2 million in the reporting period (Q2 2020: €-29.3 million), mainly due to increased exceptionals. The low level of the prior year also reflects early reductions in bonus provisions in the second quarter.
The balance of other operating income and other operating expenses fell by about 4% to € -8.2 million in the second quarter of 2021 (Q2 2020: €-8.0 million). Higher costs for software licenses and certification services were only partially offset by favorable changes in foreign exchange rates and reversals of provisions.
Depreciation and amortization in the reporting period of €-4.2 million was at the level of the previous year (Q2 2020: €-4.2 million).
Overall, EBIT improved by €0.4 million year-on-year to €-0.2 million in the second quarter of 2021 (Q2 2020: €-0.6 million).
Equity improved by €1.8 million year-on- year to €49.9 million (31 December 2020: €48.1 million). This mainly reflects the beneficial effects of changes in foreign exchange rates and unrealized gains from pensions. As a result, the equity ratio increased to 19.3% year-on-year (31 December 2020: 18.8%). Net debt (excluding pension provisions and lease liabilities) increased to €13.2 million at the end of the reporting period (31 December 2020: €5.8 million), mainly as a result of the negative net profit and the increase in working capital.
Business and earnings development in H1 2021
In the first half of 2021, R. STAHL generated sales of €122.7 million, down 1.7% year-on-year (6M 2020: €124.8 million). The downward trend was especially influenced by the strong first quarter of the previous year, which saw achievement of the highest quarterly sales since the beginning of 2020 despite a significant increase in inventories of finished goods and work in progress.
EBITDA pre exceptionals was down €1.4 million or 16.6% to €7.2 million (6M 2020: €8.6 million). This corresponds to an EBITDA margin pre exceptionals of 5.9% (6M 2020: 6.9%). Net profit fell by €1.1 million to €-3.7 million (6M 2020: €-2.6 million), equivalent to earnings per share of €-0.58 (6M 2020: €-0.41).
Outlook for FY 2021
In the course of the unscheduled price adjustment effective 1 July 2021, R. STAHL raised the sales forecast for 2021 to a range between €254 million and €260 million on 10 June 2021, while the outlook for EBITDA pre exceptionals remained unchanged at a range between €17 million and €19 million. The company continues to stand by this estimate subject to the condition that the currently increased procurement risks for some raw materials do not worsen and lead to an additional negative impact on our supply capability.
Key figures of the R. STAHL Group for Q2 2021 pursuant to IFRS
| in € million | Q2
2021 | Q2
2020 | Change
in % | | 6M
2021 | 6M
2020 | Change
in % |
| Sales | 64.5 | 59.7 | +8.0 | | 122.7 | 124.8 | -1.7 |
| Germany | 16.4 | 15.0 | +9.6 | | 31.0 | 31.9 | -2.6 |
| Central region 1) | 28.4 | 28.6 | -0.6 | | 56.7 | 57.8 | -2.0 |
| Americas | 5.3 | 5.4 | -3.2 | | 10.1 | 12.7 | -20.6 |
| Asia/Pacific | 14.4 | 10.7 | +34.8 | | 25.0 | 22.5 | +11.0 |
| EBITDA pre exceptionals 2) | 4.5 | 3.9 | +16.8 | | 7.2 | 8.6 | -16.6 |
EBITDA margin
pre exceptionals 2) |
7.0% |
6.5% | | |
5.9% |
6.9% | |
| EBITDA | 4.0 | 3.6 | +11.4 | | 6.6 | 8.2 | -20.2 |
| EBIT | -0.2 | -0.6 | +66.6 | | -1.7 | -0.1 | n/a |
| Net profit | -1.2 | -2.0 | +39.8 | | -3.7 | -2.6 | -41.7 |
| Earnings per share in € | -0.19 | -0.31 | +38.7 | | -0.58 | -0.41 | -41.5 |
| Order intake | 65.2 | 60.7 | +7.5 | | 129.2 | 139.4 | -7.4 |
| Order backlog as of June 30 | | | | | 67.9 | 79.7 | -14.8 |
Cash flow from
operating activities | 3.6 | 1.5 | >+100 | | 2.2 | 2.5 | -9.1 |
| Depreciation and amortization | 4.2 | 4.2 | -0.1 | | 8.3 | 8.3 | -0.7 |
| Capital expenditures 3) | 3.5 | 2.7 | +30.4 | | 6.7 | 5.0 | +33.5 |
| | | | | | 30 June 2021 | 31 Dec.
2020 | Change
in % |
| Total assets | | | | | 258.1 | 256.2 | +0.7 |
| Equity | | | | | 49.9 | 48.1 | +3.7 |
| Equity ratio | | | | | 19.3% | 18.8% | |
| Net financial debt 4) | | | | | 13.2 | 5.8 | >+100 |
Net financial debt incl.
lease liabilities pursuant to IFRS 16 | | 38.5 | 33.1 | +16.3 |
| Employees 5) | | | | | 1.663 | 1.690 | -1.6 |
1) Africa and Europe excl. Germany
2) Exceptionals: restructuring charges, non-scheduled depreciation and amortization, charges for designing and implementing IT projects, M&A costs as well as profit and loss from the disposal of assets no longer required for business operations
3) Payments for investments in intangible assets and property, plant & equipment
4) excl. pension provisions and without lease liabilities
5) excl. apprentices
Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on economic aspects. Improvements are indicated by a "+" sign, deteriorations by a "-" sign. Rates of change >+100% are shown as >+100%, rates of change <-100% as "n/a" (not applicable).
Investors' and analysts' conference call of R. STAHL AG for Q2 2021
The Executive Board of R. STAHL AG, represented by the CEO Dr Mathias Hallmann, will explain the results of Q2 2021 in a conference call
today at 10:00 CET
and will be available for questions afterwards. The conference call will be held in English language.
Please dial one of the following numbers to join the call and provide the PIN as well as your full name and company when prompted:
DE: +49 (0)69 201744220
UK: +44 (0)2030092470
US: +1 877 4230830
PIN: 89798591#
Along with the conference call, we will provide an online presentation via the internet. Please log on as a participant on the following website (no password required):
https://www.webcast-eqs.com/rstahl20210812/no-audio
A replay of the audio webcast will be available shortly after the conference call has ended on the company's website under the following link:
https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations
Financial calendar 2021
10 November Interim Report Q3 2021
About R. STAHL - www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation. Typical customers are the oil & gas industry, the chemical and pharmaceutical industry and the food industry. In 2020, global sales amounting to €247 million were generated by 1,690 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).
Forward-looking statements
This release contains forward-looking statements based on assumptions and estimates of R. STAHL's management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.
Contact:
R. STAHL AG
Dr. Thomas Kornek
Senior Vice President Investor Relations & Corporate Communications
Am Bahnhof 30
74638 Waldenburg (Württ.)
Germany
Tel. +49 7942 943-1395
investornews@r-stahl.com
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