GEA GROUP AG
DGAP-News: GEA Group Aktiengesellschaft / Key word(s): Quarterly / Interim Statement
GEA Group Aktiengesellschaft: GEA with strong start to the year
2021-05-11 / 07:30
The issuer is solely responsible for the content of this announcement.
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GEA with strong start to the year
. Order intake increased for third successive quarter; at EUR 1.28 billion, 6.9 percent below record prior-year
quarter; organic decline of just 2.5 percent
. Revenue down slightly by 2.6 percent to EUR 1.07 billion; but organic growth of 2.2 percent; share contributed by
service business further increases to 35.2 percent (previous year: 34.3 percent)
. EBITDA before restructuring expenses up 15.4 percent to EUR 121.2 million, margin increased by a significant 1.8
percentage points to 11.4 percent
Düsseldorf (Germany), May 11, 2021 - GEA made a good start to the 2021 fiscal year, again demonstrating the resilience
of the group's business model to challenging market conditions and the ongoing effectiveness of its efficiency
measures. Despite the sustained Covid-19 pandemic and the high prior-year figures, the company saw slight organic
revenue growth (+2.2 percent), while EBITDA before restructuring expenses (+15.4 percent) and ROCE (+7.0 percentage
points) again rose significantly. As a result, earnings per share before restructuring measures almost doubled to EUR
0.39 in the reporting period. In addition, GEA again substantially improved its cash flow, net working capital, and net
liquidity. On the basis of this performance, GEA confirmed its full-year guidance for revenue, EBITDA before
restructuring expenses, and ROCE.
"Despite the still challenging market environment due to the pandemic, we performed very well in the first quarter,
paving the way for a successful fiscal year 2021," said Stefan Klebert, CEO of GEA Group AG. "Positive sales
developments in customer industries such as Dairy Processing, Food and Pharma more than offset the declining
developments in other industries - adjusted for currency and acquisition effects. GEA is clearly benefiting from its
diversified portfolio and its strong service business."
Following the record figure of the prior-year quarter - which was virtually untouched by the pandemic - order intake in
the first quarter remained more or less stable, declining by 2.5 percent organically. However, developments were very
mixed across our different regions and customer industries. At EUR 1,282 million (previous year: EUR 1,377 million),
reported order intake was 6.9 percent lower than the previous year's figure, but higher than the last three quarters.
This is attributable in particular to negative exchange rate effects. In addition, the figure for the previous year
still includes group companies that have since been sold.
With regard to revenue, GEA recorded organic growth of 2.2 percent compared with the already high prior-year figure.
However, due to negative currency effects and company disposals, the reported figure was 2.6 percent down on the
previous year at EUR 1,065 million (previous year: EUR 1,094 million). The share of revenue attributable to the
important service business increased from 34.3 to 35.2 percent.
EBITDA before restructuring expenses amounted to EUR 121 million in the first quarter, compared with EUR 105 million in
the prior-year period. Alongside the improved gross profit attributable to higher margins in the new machinery
business, the efficiency measures introduced last year coupled with reduced travel and marketing costs contributed to
this development. The corresponding margin improved by a clear 1.8 percentage points to 11.4 percent.
Return on capital employed (ROCE) rose to 19.3 percent (previous year: 12.3 percent). Free cash flow improved to EUR 40
million in the first quarter (previous year: EUR 9 million), while net working capital was significantly reduced to EUR
376 million as of March 31, 2021 (previous year: EUR 720 million). As a proportion of revenue, this represents a
considerable decrease from 14.6 percent to 8.2 percent. Net liquidity was again significantly improved from around EUR
10 million as of the prior-year reporting date to EUR 428 million.
Financial Key Figures of GEA
Q1 Q1 Change
(EUR million) 2021 2020 in %
Results of operations
Order intake 1,282.4 1,376.7 -6.9
Book-to-bill ratio 1.20 1.26 -
Order backlog 2,516.7 2,628.7 -4.3
Revenue 1,065.4 1,093.8 -2.6
Organic sales growth in %^1 2.2 - -
Share service revenue in % 35.2 34.3 -
EBITDA before restructuring expenses 121.2 105.0 15.4
as % of revenue 11.4 9.6 -
EBITDA 105.5 96.9 9.0
EBIT before restructuring expenses 76.2 56.4 35.2
EBIT 60.6 48.2 25.6
Profit for the period 56.7 29.8 90.2
ROCE in %^2 19.3 12.3 -
Financial position
Cash flow from operating activities 45.6 23.3 96.3
Cash flow from investing activities -5.8 -14.2 59.0
Free cash flow 39.8 9.1 > 100
Net assets
Net working capital (reporting date) 376.0 719.9 -47.8
as % of revenue (LTM) 8.2 14.6 -
Capital employed (reporting date)^3 1,660.3 2,169.4 -23.5
Equity 2,053.7 2,111.4 -2.7
Equity ratio in % 36.3 37.3 -
Leverage^4 -0.9 x -0.0 x -
Net liquidity (+)/Net debt (-)^5 427.7 10.1 > 100
GEA Shares
Earnings per share (EUR) 0.31 0.17 90.2
Earnings per share before restructuring expenses (EUR) 0.39 0.20 95.0
Market capitalization (EUR billion; reporting date) 6.3 3.4 86.6
Employees (FTE; reporting date) 18,070 18,392 -1.8
Total workforce (FTE; reporting date) 19,008 19,952 -4.7
1) By "organic", GEA means changes that are adjusted for currency and portfolio effects.
2) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in
1999 (average of the last 4 quarters).
3) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in
1999.
4) Total net debt/cons. EBITDA based on frozen GAAP (covenant concept).
5) Excluding lease liabilities of EUR 157 milllion in the 1st quarter 2021 (prior year 1st quarter EUR 168 million). Media Relations: Marc Pönitz Peter-Müller-Strasse 12, 40468 Düsseldorf, Germany Phone +49 (0)211 9136-1500 marc.poenitz@gea.com About GEA GEA is one of the world's largest systems suppliers for the food, beverage and pharmaceutical sectors. The international industrial technology group specializes in machinery and plants as well as advanced process technology, components and comprehensive services. With more than 18,000 employees, the group generated revenue of more than EUR 4.6 billion in fiscal year 2020. A major focus is on continuously enhancing the sustainability and efficiency of customers' production processes. GEA plants, processes and components help achieve significant reductions in carbon emissions, plastic use and food waste in production worldwide. In this way, GEA makes a decisive contribution toward a sustainable future, fully in line with its corporate philosophy of "engineering for a better world."
GEA is listed in the German MDAX and the STOXX^(R) 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. Contact: GEA Group Aktiengesellschaft Phone +49 (0)211 9136 1081 Fax +49 (0)211 9136 31087 gea.com -----------------------------------------------------------------------------------------------------------------------
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