HMS Group (HMSG) HMS Group Reports Rub 2.9 billion EBITDA for 6 months 2021 27-Sep-2021 / 09:30 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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HMS Group Reports Rub 2.9 billion EBITDA for 6 months 2021

Moscow, Russia - September 27, 2021 - HMS Hydraulic Machines & Systems Group Plc (the "HMS Group", or the "HMS", or the "Group") (LSE, MOEX: HMSG), the leading pump, oil & gas equipment and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces its financial results for the six months ended June 30, 2021.

Financial highlights 6m 2021:

-- Revenue: Rub 25.8 bn (+32% yoy)

-- EBITDA[1]: Rub 2.9 bn (+36% yoy), EBITDA margin at 11.1%

-- Operating profit: Rub 1.4 bn (+172% yoy)

-- Profit for the period: Rub 378 mn

-- Total debt: Rub 22.5 bn (-1% yoy)

-- Net debt: Rub 16.6 bn (+2% yoy)

-- Net debt-to-EBITDA LTM ratio: 2.91x

Operational highlights 6m 2021:

-- Backlog[2]: Rub 56.0 bn (+28% yoy)

-- Order intake[3]: Rub 30.9 bn (+58% yoy)

Forecast FY 2021:

-- Revenue: Rub 60.0 bn

-- EBITDA: Rub 6.5 bn

HMS GROUP PERFORMANCE

6 months 2021 financial Results

-- Order intake was up to Rub 30.9 billion, by 58% yoy, compared with Rub 19.5 billion for 6m 2020. Theindustrial pumps and oil & gas equipment grew, while the compressors order intake was down. On the LTM basis, allthe segments grew including the compressors, where the main contracts were signed in 2H 2020. In terms of contractstype, both recurring business and large contracts increased.

-- Backlog was Rub 56.0 billion, up by 28% yoy, compared with Rub 43.7 billion at the end of 6m 2020,supported by all business segments. In terms of contracts type, both recurring business and large contracts grew,by 15% yoy and 48% yoy respectively, compared with the end of 6m 2020.

-- Revenue was Rub 25.8 billion, up by 32% yoy, compared with Rub 19.5 billion for 6m 2020, based on revenuegrowth in the oil & gas equipment and compressors business segments.

-- EBITDA was Rub 2.9 billion, up by 36% yoy, implying EBITDA margin of 11.1%.

-- Revenue generated by large projects grew 145% yoy compared with 6m 2020. Revenue from recurring businessdeclined 10% yoy. EBITDA from large contracts increased 145% yoy, and EBITDA from recurring business declined 58%yoy.

-- Profit for the period was Rub 378 million, compared with loss for the period at Rub 314 million for 6m2020.

-- Free cash outflow was Rub 4.7 billion, compared with free cash outflow of Rub 1.5 billion for 6m 2020,due to the higher working capital requirements for execution of large contracts, that are within the normalquarterly volatility. 


in millions of Rub           6m 2021  6m 2020 Change yoy 2Q 2021  1Q 2021 Change qoq 
Orders                       30,883   19,541  58%        12,444   18,439  -33% 
Backlog                      56,035   43,714  28%        56,035   59,029  -5% 
Revenue                      25,796   19,498  32%        14,605   11,191  31% 
EBITDA                       2,855    2,107   36%        1,547    1,308   18% 
EBITDA margin                11.1%    10.8%              10.6%    11.7% 
Profit/(Loss) for the period 378      (314)   na         326      52      525% 
Free cash outflow             (4,703) (1,513) na          (3,510) (1,193) na

Expenses and Operating profit ? Cost of sales was Rub 20.9 billion, up by 35% yoy, compared with Rub 15.5 billion for 6m 2020, fully dueto the growth in materials and components costs (+54% yoy). Materials and components outpaced the growth in Cost ofsales because of revenue growth and due to a higher share of material-intensive large contracts under execution. 


in millions of Rub             6m 2021 6m 2020 Change yoy Share of  6m 2021 revenue Share of 6m 2020 revenue 
Cost of sales                  20,931  15,537  35%        81.1%                     79.7% 
Materials and components       14,961  9,703   54%        58.0%                     49.8% 
Labour costs incl Social taxes 3,718   3,524   6%         14.4%                     18.1% 
Depreciation and amortization  1,051   1,048   0%         4.1%                      5.4% 
Construction and design [4]    1,189   1,065   12%        4.6%                      5.5% 
Others                         11      197     -94%       0.0%                      1.0% ? Gross profit grew to Rub 4.9 billion, by 23% yoy, compared with Rub 4.0 billion for 6m 2020. ? SG&A expenses[5] were up a minor 1% yoy.

Distribution & transportation expenses were down mainly due to lower transportation costs and expenses on insurance and advertising. As a share of revenue, they declined to 3.0%, compared with 4.6% for 6m 2020.

General & administrative expenses were up to Rub 2.6 billion (+8% yoy). As a share of revenue, these expenses were down to 10.0%, compared with 12.3% for 6m 2020. ? Operating profit increased to Rub 1.4 billion (+172% yoy), compared with Rub 524 million for 6m 2020. 


in millions of Rub                   6m 2021 6m 2020 Change yoy Share of  6m 2021 revenue Share of 6m 2020 revenue 
Gross profit                         4,865   3,961   23%        18.9%                     20.3% 
 Distribution & transportation       765     906     -16%       3.0%                      4.6% 
 General & administrative            2,590   2,405   8%         10.0%                     12.3% 
SG&A expenses                        3,354   3,311   1%         13.0%                     17.0% 
 Other operating expenses            85      127     -33%       0.3%                      0.6% 
Operating expenses ex. Cost of sales 3,439   3,437   0%         13.3%                     17.6% 
Operating profit                     1,426   524     172%       5.5%                      2.7% 
Finance costs                        917     941     -3%        3.6%                      4.8% ? Finance costs were Rub 917 million, down by 3% yoy, compared with Rub 941 million for 6m 2020, due to alower level of average total debt within the reporting period compiled with reduced interest rates, compared with6m 2020. ? Average interest rate was 8.09% p.a., compared with 8.21% p.a. last year. 
in millions of Rub          6m 2021 6m 2020 Change yoy 
Finance costs               917     941     -3% 
Interest rate, average      8.09%   8.21% 
Interest rate Rub, average  8.21%   8.33%

BUSINESS SEGMENTS PERFORMANCE

Industrial pumps[i] ? Order intake was Rub 12.5 billion, up by 56% yoy, compared with Rub 8.0 billion for 6m 2020, mainly dueto a large nuclear pumps contract signed in 2Q 2021. Both recurring business and large contracts grew. ? Backlog was Rub 22.8 billion, up 16% yoy, compared with Rub 19.7 billion at the end of 6m 2020, due tothe growth both in recurring business and large contracts. ? Revenue was down to Rub 8.0 billion (-4% yoy), compared with Rub 8.3 billion for 6m 2020. ? EBITDA was down 18% yoy to Rub 834 million, compared with Rub 1.0 billion for 6m 2020, due to a change ina mix of contracts where major deliveries are scheduled in 2H 2021. EBITDA margin was 10.4%, compared with 12.3%during 6m 2020. 


in millions of Rub  6m 2021 6m 2020 Change yoy 2Q 2021 1Q 2021 Change qoq 
Orders              12,495  8,015   56%        7,772   4,722   65% 
Backlog             22,835  19,685  16%        22,835  19,203  19% 
Revenue             7,990   8,288   -4%        4,373   3,617   21% 
EBITDA              834     1,019   -18%       495     339     46% 
EBITDA margin       10.4%   12.3%              11.3%   9.4%

Oil and Gas equipment & projects (OGEP)[ii] ? Order intake grew to Rub 14.0 billion, up by 109% yoy, compared with Rub 6.7 billion during 6m 2020, dueto the large Rub 7.5 billion contract signed in the reporting period. ? Backlog was Rub 14.9 billion, up by 79% yoy, compared with Rub 8.3 billion at the end of 6m 2020,supported by both regular business and large contracts. ? Revenue was Rub 8.3 billion, up by 62% yoy, compared with Rub 5.2 billion for 6m 2020, due to largecontracts. ? EBITDA increased to Rub 818 million, up by 236% yoy, compared with Rub 243 million for 6m 2020 due to alarger share of large contracts in the reported period. EBITDA margin was 9.8%, compared with 4.7% for 6m 2020. 


in millions of Rub  6m 2021 6m 2020 Change yoy 2Q 2021 1Q 2021 Change qoq 
Orders              14,027  6,723   109%       2,603   11,424  -77% 
Backlog             14,860  8,282   79%        14,860  16,156  -8% 
Revenue             8,341   5,154   62%        3,952   4,390   -10% 
EBITDA              818     243     236%       361     457     -21% 
EBITDA margin       9.8%    4.7%               9.1%    10.4%

Compressors [iii] ? Order intake declined to Rub 2.4 billion, compared with Rub 4.6 billion for 6m 2020, due to less largecontracts signed in the reporting period. On the LTM basis, the compressors' order intake is growing, because themain contracts were signed in 2H 2020. ? Backlog increased to Rub 17.1 billion, up 14% yoy, compared with Rub 15.1 billion at the end of 6m 2020,due to large contracts. ? Revenue was Rub 9.9 billion, up by 71% yoy, compared with Rub 5.8 billion for 6m 2020, mainly due tolarge contracts. ? EBITDA was Rub 978 million, up by 50% yoy, compared with Rub 653 million for 6m 2020, fully due toexecution of large contracts. EBITDA margin was up to 9.9%, compared with 11.3% for 6m 2020. 


in millions of Rub  6m 2021 6m 2020 Change yoy 2Q 2021 1Q 2021 Change qoq 
Orders              2,381   4,594   -48%       2,043   337     506% 
Backlog             17,132  15,058  14%        17,132  22,312  -23% 
Revenue             9,927   5,793   71%        6,621   3,306   100% 
EBITDA              978     653     50%        492     486     1% 
EBITDA margin       9.9%    11.3%              7.4%    14.7%

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September 27, 2021 02:30 ET (06:30 GMT)