Maschinenfabrik Berthold Hermle : Hermle Group turnover increased by 24% to €m 209 by May 2023

Hermle Group turnover increased by 24% to €m 209 by May 2023

Disproportionately improved result

Number of orders decreased by 4% to €m 227

Forecast for entire fiscal year confirmed

Shareholders' meeting agrees distribution of € 11.05 per preference share (previous year: € 9.05)

Gosheim, 5 July 2023 - Maschinenfabrik Berthold Hermle AG experienced continued growth in the first five months of 2023: Group turnover of the German automation and machine tool specialist increased by 23.6% to €m 208.8 compared to the corresponding period in 2022 (previous year: €m 168.9). Integrated automation solutions equipped with Hermle digitalisation modules developed particularly well. Domestic sales increased by 20.1% to €m 78.9 (previous year: €m 65.7) and international sales by 25.9% to €m 129.9 m (previous year: €m 103.2). Due to the improved supply chain situation in early 2023, Hermle was able to effectively maximise its operational capacities. The result improved disproportionately to turnover, partly attributed to the absence of costs associated with the loss of the Russian business in the previous year.

The anticipated cyclical downturn in demand commenced later than forecast: Hermle experienced growth in the number of orders received during the initial four months. However, new orders witnessed a significant decline in May. Therefore, the cumulative number of orders received from January to May 2023 decreased by 3.6% to €m 226.9 across the Group (previous year: €m 235.3). Domestic business accounted for €m 78 (previous year: €m 82.6) and international business for €m 148.9 (previous year: €m 152.7). However, at the end of May 2023, the Group's order backlog was still 6.8% above the comparable level of the previous year at €m 186.2 (previous year: €m 174.3).

Considering the favourable progress in the initial months and the robust order backlog, the Hermle Management Board expressed confidence during today's shareholders' meeting in achieving the full-year forecast. Nonetheless, the numerous risk factors affecting the global economy, and consequently the company's future trajectory, render it challenging to provide a definitive statement. From today's perspective, Hermle anticipates achieving a turnover in 2023 that is at least on par with the good level of the previous year. Without external disruptions, a potential increase of approximately 10% is also possible. The operating result is expected to remain stable, subject to fluctuations in material and energy prices and the possibility of any price hikes being transferred to customers. However, a favourable scenario could also enable increases in the operating result.

Hermle also anticipates strong demand for high-precision and high-performance automation solutions in the coming years, driven in part by the growing scarcity of skilled labour. The company is well-equipped to meet this demand thanks to a comprehensive modular system designed for the advanced automation of its machining centres.

In order to ensure the anticipated future growth, Hermle has initiated an extensive investment program exceeding €m 60 for its two production sites. Currently, a new production facility for large parts is being built at the Zimmern ob Rottweil site, while the mineral casting production facility is being expanded and additional storage capacity generated. A new spindle production facility is currently being prepared at Hermle's headquarters in Gosheim, with completion expected by the end of the year.

In addition, Hermle is actively advancing its internationalisation efforts. During the first half of 2023, Hermle established a new subsidiary in France, which has already secured initial orders. Another branch is also currently being established in the USA with its headquarters in Phoenix, Arizona.

During today's shareholders' meeting, the resolution to raise the dividend was passed, along with the approval of other proposals put forward by the management. The distribution for 2022 is set to increase to € 11.05 per preference share (previous year: € 9.05) and to € 11.00 per ordinary share (previous year: € 9.00). The amounts comprise an unaltered base dividend of € 0.85 and € 0.80 respectively, accompanied by an increased bonus per share from € 8.20 to € 10.20. Preference shareholders thus achieved a dividend yield of 5.5% compared to the 2022 year-end share price. Similar to the previous year, Hermle employees in Germany are expected to reap the rewards of the company's favourable business performance. They will again receive a dividend-linked bonus. At the end of May 2023, Hermle employed 1,433 people throughout the Group, 111 more than on the same date in 2022.

Medienkontakt: Redaktionsbüro tik GmbH, Gabriele Rechinger,
T 0911 988 170 72, E-Mail: [e-mail]

Bildmaterial: Maschinenfabrik Berthold Hermle AG, Udo Hipp,
T 07426 95 6238, E-Mail: [e-mail]