DGAP-Media / 29.08.2022 / 09:52 CET/CEST

PRESS RELEASE 

Half-year results

Deufol SE: Results for the first half of 2022

Hofheim am Taunus, August 29, 2022.

Half-year results - Despite difficult geopolitical situation and challenging environment, sales and results are above plan. The revised strategic focus on physical and innovative optimization as well as digitalization of end-to-end solutions around the supply chain of our customers is paying off.

The Deufol Group, despite a difficult geopolitical situation and a challenging environment, has already exceeded its full-year 2021 results in the first half of 2022. This success was achieved through the revised strategic focus on physical and innovative optimization as well as the digitalization of end-to-end solutions around the supply chain of our customers. In this context, the original core competence of industrial goods packaging serves as a platform and as a starting point for the expanded service and product development. To this end, the performance program has also been continuously developed and implemented. Since 2022, these elements have now been used as part of the go-to-market strategy to achieve targeted growth in the core regions and successfully market the services paired with digital solutions. As a further pillar of this strategy, the Seaport hub locations are being further optimized and the services offered there expanded. We have also established an airport hub at the headquarters location in Hofheim-Wallau am Taunus and bundled the services in the Rhine-Main region.

The successful integration of the Wallmann terminal in the Port of Hamburg into our seaport hub concept has significantly increased our depth of service. With the direct interlinking of logistics chains and seagoing vessels, Deufol has created a unique selling point that is unparalleled in the German and European mechanical and plant engineering export industry. This was a further building block in successfully moving the Deufol Group forward on its growth path and more than compensating for the loss of sales and earnings from the sold logistics business in Italy. In addition, business in the USA has picked up again; the performance measures taken there have also had an impact and sales and earnings are back on a growth track. The business in Poland, which was launched in the previous year, has also successfully emerged from the start-up phase, and is showing initial positive business figures, albeit still at a low level. Operating profit continued to develop positively despite the general economic conditions.

For the first half of 2022, the Deufol Group achieved the following results:

  • Sales € 129.3 million (previous year € 110.2 million)
  • EBITDA € 16.3 million (previous year € 10.0 million)
  • EBIT(A) € 6.4 million (previous year € -0.1 million)
  • Net result € 3.1 million (previous year € -2.1 million)

Sales development

In the first half of 2022, sales of € 129.3 million were 17.4 percent or € 19.1 million higher than in the same period of the previous year. In addition to the passing on of price increases on the procurement side, the increase in sales in all segments reflects in particular the significantly higher capacity utilization of most Group companies compared with the prior-year period. In addition, the US dollar appreciated against the euro by an average of 10.2 percent compared to the prior-year period. This exchange rate effect was reflected in an increase of €0.8 million in USD sales in euro terms. Group sales adjusted for exchange rate effects showed an increase of 16.5 percent compared with the prior-year period.

Strong improvement in operating profit

The operating result (EBITA) achieved amounted to € 6.4 million and was thus significantly higher than the previous year's figure of € - 0.1 million; the EBITDA margin increased to 12.6 percent. The main factor contributing to the improvement in the margin was the disproportionately low increase in personnel expenses of € 2.8 million or 6.8 percent, which is also reflected in the lower personnel expense ratio of 34.5 percent. Other operating expenses also declined in relation to sales, falling from 17.1 percent to 14.8 percent. The cost of materials increased by €10.7 million to €52.5 million; the cost of materials ratio rose to 40.6 percent (previous year: 37.9 percent), reflecting the still very high and in some cases highly volatile price structure on the procurement markets. The measures taken, especially the price adjustment mechanisms vis-à-vis customers, had a dampening effect and prevented a further increase in the ratio. Net profit for the period increased to € 3.1 million, compared with € -2.1 million in the same period of the previous year. After deducting the earnings attributable to non-controlling interests, the net profit attributable to the shareholders of Deufol SE amounted to € 2.9 million, compared with € -2.5 million in the previous year. Earnings per share amounted to € 0.067 in the first six months (previous year: € -0.057).

Significant increase in operating cash flow with slight increase in total assets

The Deufol Group's cash flow from operating activities amounted to € 15.2 million in the reporting period (previous year: € 1.4 million). Cash and cash equivalents decreased by € 1.1 million compared with the end of the year to € 13.1 million. At € 265.2 million, the balance sheet total as of June 30, 2022, was € 4.8 million or 1.8 percent higher than at the end of the year (€ 260.4 million). Equity increased by a net € 4.0 million to € 119.8 million; the equity ratio improved from 44.5 percent at the end of 2021 to 45.2 percent on June 30, 2022.

Figures in € thousand 6M 2022 30.06.2022 6M 2021 30.06.2021 Change (%)
Sales 129.344   110.193   17,4
EBITDA 16.278   10.035   62,2
EBIT(A) 6.414   -129   -5.066,2
EBT 4.889   -2.048   -338,8
Net profit for the period 3.147   -2.140   -247,0
   of which non-controlling interests 243   317   -23,3
   of which attributable to shareholders of the parent company 2.904   -2.458   -218,1
Earnings per share (€) 0,068   -0,057   -219,3
Cash flow from operating activities 15.212   1.390   994,1
Cash flow from investing activities -3.722   -6.995   -46,8
Net financial debt   75.206   90.973 -17,3
Net financial debt (excluding lease liabilities according to IFRS 16)  
47.101
 
56.567

-16,7
Equity ratio (%)   45,2   39,9 13,3
Employees (average)   2.017   1.988 1,9

Overview of the first six months 2022

 

Optimistic sales and earnings expectations in an economic environment that is difficult to forecast

Uncertainty about the COVID 19 pandemic continues to persist in the current year. However, with the outbreak of the Ukraine war and its far-reaching consequences, the pandemic has receded to some extent into the background; as the course of case numbers this summer shows, however, it continues to harbor substantial risks that cannot be assessed due to its ever-new variants. Of considerable importance in this context is the situation in China. In the event of a lockdown, the strict no-COVID policy can lead to considerable restrictions on transport capacities in international sea transport and, as a result, to extreme disruptions in supply chains. Supply chain disruptions have also been exacerbated by the Ukraine war. Although the Deufol Group is not directly affected by the Ukraine war, its impact is increasingly noticeable with the accompanying energy crisis, rising prices in various sectors and manifesting inflation. According to management estimates, the sharp rise in inflation will be reflected in higher wages and salaries, among other things, and will also indirectly lead to higher remuneration for temporary workers, subcontractors and service providers. We therefore expect a significant increase in personnel expense as early as the 2nd half of 2022. Due to government intervention in the gas price in Germany, the effects in terms of increased energy costs are likely to intensify further and significantly increase other operating expenses in the future. Deufol has already developed an effective instrument to counteract these developments by dynamizing customer prices, not only with regard to raw material prices, and is confident that it will be able to offset the rising cost blocks with rising revenues in the near future. In addition, substantial efforts are being made to reduce energy consumption, cut costs and provide services more efficiently in order to limit cost increases - also in terms of improved sustainability. In connection with the interest rate increases that have already occurred and are expected to continue due to the change in money market policy, Deufol has made provisions for various long-term loans by concluding hedging transactions in the form of interest rate derivatives or by changing variable interest rate agreements into fixed interest rate agreements to hedge the interest rate level. The Management is convinced that the ranges for sales (€220 - 250 million) and EBIT (€7 - 11 million) stated in the annual report can still be regarded as achievable despite the current political and economic environment. Provided the dynamics of the events arising from the COVID 19 pandemic, the Ukraine war, inflation, interest rate rises, the energy crisis and any supply bottlenecks for gas or certain raw materials do not lead to extreme developments, sales and earnings are expected to be at the upper end of the above ranges or even exceed them.

The interim report is available at http://www.deufol.com.

About the Deufol Group:

The Deufol Group is a global premium provider of packaging and related services. Its range of services includes export & industrial packaging, logistics services, and innovative IT solutions along the supply chain. Headquartered in Hofheim (Wallau) near Frankfurt am Main, Deufol is represented at over 90 locations in 13 countries and employs over 2,000 people. In 2021, the Group achieved annual sales of 243 million euros.

For further information, please contact:

Deufol SE

Claudia Ludwig

Phone: +49 (6122) 50 1228

E-mail: Claudia.Ludwig@deufol.com

 

ISIN: DE000A1R1EE6



End of Media Release


Issuer: Deufol SE
Key word(s): Finance

29.08.2022 CET/CEST Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG.
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