GEA raises outlook for 2022 following strong third quarter

EQS-News: GEA Group Aktiengesellschaft / Key word(s): 9 Month figures GEA raises outlook for 2022 following strong third quarter 04.11.2022 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. GEA raises outlook for 2022 following strong third quarter  Order intake growth of 1.6 percent (organic: -0.7 percent) to EUR 1.37 billion (Q3 2021: EUR 1.35 billion) Revenue 12.9 percent higher (organic: +10.2 percent) at EUR 1.35 billion (Q3 2021: EUR 1.2 billion) EBITDA before restructuring expenses up 17 percent to EUR 199 million (Q3 2021: EUR 170 million); strong rise in corresponding EBITDA margin to 14.7 percent (Q3 2021: 14.2 percent) ROCE significantly increased to 30.6 percent (Q3 2021: 24.6 percent) Net working capital as percentage of revenue improved to 8.9 percent (Q3 2021: 7.2 percent); reduction in net liquidity to EUR 235 million due, among other factors, to the share buyback program (Q3 2021: EUR 358 million) Outlook for 2022 fiscal year raised   GEA continued its profitable growth in the third quarter and has raised its outlook for 2022 based on its very good performance in the first nine months. Revenue is now forecast to grow by more than 7 percent on an organic basis (previously: more than 5 percent). EBITDA before restructuring expenses at constant exchange rates is now expected to be at the upper end of the range of EUR 630 million to 690 million. For ROCE, the company now also anticipates a figure at the upper end of the range of 24 to 30 percent (at constant exchange rates). “In what is still a difficult environment, we have once again demonstrated the robustness and resilience of GEA’s business model,” explains CEO Stefan Klebert. “Our profitable growth accelerated in the third quarter again despite the supply chain challenges and the impact of the war in the Ukraine. Based on our very good performance in the first nine months, we have raised our outlook for fiscal year 2022.”   Rise in order intake and revenue In the third quarter of 2022, order intake rose by 1.6 percent to a high level of EUR 1,371.7 million (Q3 2021: EUR 1,349.9 million). Among the factors contributing to this increase were five major orders (each with a volume of more than EUR 15 million) in the Liquid & Powder Technologies division, amounting to a total of EUR 128 million. Organically, a slight decrease of 0.7 percent was recorded, as the major orders in the prior-year period totaling EUR 167 million included an exceptionally large order in the New Food segment. Revenue rose significantly by 12.9 percent in the reporting period to EUR 1,353.6 million (Q3 2021: EUR 1,199.3 million). Organic revenue growth amounted to 10.2 percent. This growth is attributable in particular to the New Food, Dairy Farming, Pharma and Chemicals customer industries. The share of service revenue rose from 33.7 percent in the prior-year quarter to 34.5 percent. Strong organic revenue growth pushes up EBITDA EBITDA before restructuring expenses rose by 17 percent in the third quarter to EUR 198.7 million (Q3 2021: EUR 169.9 million). All divisions contributed to this development except for Heating & Refrigeration Technologies due to the divestments in this area. The corresponding EBITDA margin grew by 0.5 percentage points to 14.7 percent (Q3 2021: 14.2 percent). Profit for the period climbed by 32 percent to EUR 107 million (Q3 2021: EUR 81.1 million). Earnings per share increased accordingly to EUR 0.61 (Q3 2021: EUR 0.45) and earnings per share before restructuring expenses improved to EUR 0.66 (Q3 2021: EUR 0.48). Net liquidity declined to EUR 235.1 million as of September 30, 2022, compared with EUR 358.4 million in the prior-year period, due to the share buyback program and the increase in net working capital. Net working capital as a percentage of revenue increased to 8.9 percent (Q3 2021: 7.2 percent). This increase is attributable to higher inventories due to the ongoing supply chain bottlenecks and the increase in safety stock. Despite the higher net working capital, capital employed (averaged over the last four quarters) remained virtually unchanged at EUR 1,635 million. Accordingly, return on capital employed (ROCE) increased from 24.6 percent to 30.6 percent. Overview of the first nine months of 2022 In the first nine months of fiscal year 2022, order intake rose by 10 percent (organic: 8.6 percent) to EUR 4,319 million (previous year: EUR 3,926 million). Revenue rose by 9.7 percent (organic: 8.7 percent) to EUR 3,751 million (previous year: EUR 3,420 million). EBITDA before restructuring expenses climbed by 13.4 percent to EUR 504.4 million in the reporting period (previous year: EUR 444.7 million). The corresponding EBITDA margin improved by 0.4 percentage points to 13.4 percent (previous year: 13 percent). At EUR 255.9 million, profit for the period was significantly higher than in the first nine months of the previous year (EUR 214.7 million). Earnings per share increased accordingly from EUR 1.19 to EUR 1.45 and earnings per share before restructuring expenses improved from EUR 1.34 to EUR 1.62.   GEA named 2022 “Investors’ Darling” of the MDAX In September 2022, manager magazin named GEA the 2022 “Investors’ Darling” of the MDAX index. In the annual competition, HHL Leipzig Graduate School of Management analyzes the capital market communications of DAX, MDAX and SDAX companies. Assessment criteria include investor relations performance, capital market perception and reporting.   GEA Key Financial Figures   (EUR million) Q3 2022 Q3 2021 Change in % Q1-Q3 2022 Q1-Q3 2021 Change in % Results of operations             Order intake 1,371.7 1,349.9 1.6 4,318.6 3,926.0 10.0 Book-to-bill ratio 1.01 1.13 – 1.15 1.15 – Order backlog 3,414.9 2,811.7 21.5 3,414.9 2,811.7 21.5 Revenue 1,353.6 1,199.3 12.9 3,751.0 3,420.3 9.7 Organic revenue growth1 10.2 – 10.2 8.7 – 8.7 Share of service revenue in % 34.5 33.7 82 bps 35.1 34.2 84 bps EBITDA before restructuring expenses 198.7 169.9 17.0 504.4 444.7 13.4 as % of revenue 14.7 14.2 52 bps 13.4 13.0 45 bps EBITDA 188.1 164.4 14.4 466.0 419.6 11.1 EBIT before restructuring expenses 154.7 127.1 21.8 371.7 314.9 18.1 EBIT 144.1 121.0 19.1 331.2 283.1 17.0 Profit for the period 107.0 81.1 32.0 255.9 214.7 19.2 ROCE in %2 30.6 24.6 598 bps 30.6 24.6 598 bps Financial position             Cash flow from operating activities 146.5 239.9 –38.9 183.6 393.7 –53.4 Cash flow from investing activities –43.2 –25.4 –70.1 –97.0 –44.7 < -100 Free cash flow 103.3 214.5 –51.8 86.6 349.0 –75.2 Net assets             Net working capital (reporting date) 445.6 332.9 33.9 445.6 332.9 33.9 as % of revenue (LTM) 8.9 7.2 170 bps 8.9 7.2 170 bps Capital employed (reporting date)3 1,758.1 1,577.5 11.5 1,758.1 1,577.5 11.5 Equity 2,333.2 2,038.2 14.5 2,333.2 2,038.2 14.5 Equity ratio in % 39.4 35.3 416 bps 39.4 35.3 416 bps Net liquidity (+)/Net debt (-)4 235.1 358.4 –34.4 235.1 358.4 –34.4 GEA Shares             Earnings per share (EUR) 0.61 0.45 35.2 1.45 1.19 21.5 Earnings per share before restructuring expenses (EUR) 0.66 0.48 38.2 1.62 1.34 20.6 Market capitalization (EUR billion; reporting date) 5.8 7.1 –19.1 5.8 7.1 –19.1 Employees (FTE; reporting date) 18,197 18,301 –0.6 18,197 18,301 –0.6 Total workforce (FTE; reporting date) 19,286 19,410 –0.6 19,286 19,410 –0.6   1)  By "organic", GEA means changes that are adjusted for currency and portfolio effects. 2)  EBIT before restructuring expenses of the last 12 months. Capital employed average of the last 4 quarters and excluding goodwill from the  acquisition of the former GEA AG by former Metallgesellschaft AG in 1999. 3)  Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999. 4)  Including lease liabilities of EUR 165.8 million as of September 30, 2022 (prior year EUR 155.5 million).                             Media Relations Anne Putz Peter-Müller-Str. 12, 40468 Düsseldorf Telefon [phone] [e-mail]   About GEA GEA is one of the world's largest suppliers of systems and components to the food, beverage, and pharmaceutical industries. The international technology­ group, founded in 1881, focuses on machinery and plants, as well as advanced process technology, components, and comprehensive services. With more than 18,000 employees working across five divisions and 62 countries, the group generated revenues of more than EUR 4.7 billion in fiscal year 2021. GEA plants, processes, components, and services enhance the efficiency and sustainability of production processes across the globe. They contribute significantly to the reduction of CO2 emissions, plastic usage, and food waste. In doing so, GEA makes a key contribution toward a sustainable future, in line with the company’s purpose: "Engineering for a better world".   GEA is listed in the German MDAX and the STOXX® Europe 600 Index and is also among the companies comprising the DAX 50 ESG and MSCI Global Sustainability Indices. More information can be found online at gea.com. If you do not want to receive any further information from GEA, please send an e-mail to [e-mail].   04.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. 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Language:	English
Company:	GEA Group Aktiengesellschaft
	Peter-Müller-Straße 12
	40468 Düsseldorf
	Germany
Phone:	[phone]
Fax:	[phone]
E-mail:	[e-mail]
Internet:	www.gea.com
ISIN:	DE0006602006
WKN:	660200
Indices:	MDAX
Listed:	Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich; Regulated Unofficial Market in Hanover, Stuttgart, Tradegate Exchange
EQS News ID:	1479043

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1479043  04.11.2022 CET/CEST