WASHTEC AG Financial
Statement
Q1 2024
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 2 |
First-quarter EBIT margin at prior-year level despite slow start to the year
Q1
Revenue down on prior year
Revenue | €m |
EBIT | €m |
EBIT margin | % |
Net income | €m |
Number of shares in circulation | units |
Earnings per share | € |
Free cash flow | €m |
Net cash outflow from investing activities | €m |
Equity ratio | % |
Employees at reporting date | persons |
Q1 2024
100.8
5.1
5.1
3.1
13,382,324
0.23
9.3
1.4
33.9
1,694
Q1 2023 | Change | ||||
absolute | in % | ||||
109.2 | -8.4 | -7.7 | |||
5.5 | -0.4 | -7.3 | |||
5.0 | - | 10 bp | |||
3.5 | -0.4 | -11.4 | |||
13,382,324 | 0 | 0 | |||
0.26 | -0.03 | -11.4 | |||
1.9 | 7.4 | 389.5 | |||
11.1 | -9.7 | -87.4 | |||
31.2 | - | 270 bp | |||
1,785 | -91 | -5.1 | |||
WashTec generated revenue of €100.8m in the first three months, down 7.7% on the prior year (€109.2m). This was mainly the result of lower sales of equipment, particularly to key accounts in North America.
EBIT margin at prior-year level
Despite the lower revenue, EBIT in the first three months amounted to €5.1m, only slightly down on the prior year (€5.5m). As a result, the EBIT margin increased slightly to 5.1% (prior year: 5.0%). Adjusted for one-off expenses of around €1m, EBIT rose by around 11% compared to the prior-year quarter.
Increase in free cash flow
Free cash flow improved in the first three months to €9.3m
bp: basis point (1/100th of a percentage point)
Figures in this report are rounded. Because of this, individual figures may not add up to the stated totals and percentages may not precisely correspond to the absolute figures they relate to.
(prior year: €1.9m) due to lower capital expenditure and a refund of capital gains tax prepayments.
Guidance for full year 2024
The WashTec Group confirms its guidance for fiscal year 2024.
Financial Statement Q1 2024 // Contents | WashTec AG | 3 |
Contents
Quarterly Statement for the period
January 1 to March 31, 2024
Business performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1. Group revenue and earnings . . . . . . . . . . . . . . . . . . . . . 5
2. Revenue and earnings by region . . . . . . . . . . . . . . . . . . . 7
3. Group financial position and cash flows . . . . . . . . . . . . . 8
4. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Guidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Opportunities and risks . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Selected financial information for the | period |
January 1 to March 31, 2024 | |
Consolidated Income Statement | . . . . . . . . . . . 11 |
Consolidated Balance Sheet | . . . . . . . . . . . 12 |
Consolidated Cash Flow Statement | . . . . . . . . . . . 14 |
Contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Financial calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 4 |
Highlights and key figures
Q1 2024
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 5 |
Business performance
1. Group revenue and earnings
Earnings, Q1
in €m
Revenue
EBIT
EBIT margin in %
Net income
Q1 2024 | Q1 2023 | Change | |
absolute | in % | ||
100.8 | 109.2 | -8.4 | -7.7 |
5.1 | 5.5 | -0.4 | -7.3 |
5.1 | 5.0 | - | 10 bp |
3.1 | 3.5 | -0.4 | -11.4 |
Orders received were lower in the first quarter than in the prior-year quarter due to the drop in demand in the market as a whole. Due to the lower orders received, the order backlog as of the end of March also fell below the prior-year figure.
The WashTec Group generated revenue of €100.8m in the first three months of the year, a decrease of €8.4m or 7.7% on the prior year (€109.2m). On an exchange rate adjusted basis, revenue was 7.9% down on the prior year.
Revenue Q1 in €m, multi-year comparison
109.2 | ||||
101.0 | 100.8 | |||
87.3 | 84.8 | |||
2020 | 2021 | 2022 | 2023 | 2024 |
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 6 |
At €84.5m, equipment and service revenue was down on the prior-year figure (€91.1m). This is mainly due to weaker sales of equipment, particularly to key accounts in North America. Chemicals revenue fell from €16.7m in the prior-year quarter to €14.9m, mainly due to a weather-related fall in carwash volumes.
Revenue by product, Q1 | ||||
in €m | Q1 2024 | Q1 2023 | Change | |
absolute | in % | |||
Equipment and service | 84.5 | 91.1 | -6.6 | -7.2 |
Chemicals | 14.9 | 16.7 | -1.8 | -10.8 |
Other | 1.4 | 1.3 | 0.1 | 7.7 |
Total | 100.8 | 109.2 | -8.4 | -7.7 |
Despite the lower revenue, gross profit as of March, at €29.0m, was up on the prior year (€27.8m). The implemented efficiency programs notably contributed here. The fall in material prices supported this positive development. The gross profit margin increased significantly from 25.5% to 28.8%.
Functional costs, the sum of research and development expenses, selling expenses and administrative expenses, amounted to €24.0m in the first three months of the fiscal year (prior year: €22.9m). Research and development expenses were higher than the prior year, at €3.8m (prior year: €3.5m). The increase mainly related to additional activities to speed up the exploitation of market potential in Europe and North America. Selling expenses as
a percentage of revenue increased, mainly due to the lower revenue, from 13.8% in the prior year to 14.5%. Administrative expenses, at €5.6m were significantly higher than the prior year (€4.3m). The increase was mainly due to one-off expenses in connection with the change of CEO and expenses for cost optimization of the new product generation. The total amount of one-off expenses was around €1m.
In total, Group EBIT decreased in the first three months to €5.1m (prior year: €5.5m) The
EBIT margin was 5.1% (prior year: 5.0%) and thus matched the prior-year level despite the lower revenue. Adjusted for one-off expenses, EBIT rose to around €6m, significantly higher than in the prior year.
EBIT Q1 in €m, multi-year comparison
5.5 | 5.1 | |||
4.6 | ||||
3.5 | ||||
1.7 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 7 |
2. Revenue and earnings by region
Following the sale of the shares in the Chinese subsidiary in December 2023, and in connection with the strategy of focusing on the core regions of Europe and North America as described in the Annual Report 2023, management has also made changes to the WashTec
EBIT by regions in €m*
Europe and other | |
€5.7m | Europe and other |
+0.0% | €5.7m** |
Group's regional reporting structure. As a result of this, the Asia/Pacific region has been made part of the Europe region from fiscal year 2024. The Europe region has been
renamed "Europe and other". The North America region retains its existing structure. Comparative information has also been prepared on the basis of the new structure.
Revenue by regions in €m*
North America €-0.5m -66.7%
Q1 2024 |
€5.1m |
North America €-0.3m
Q1 2023 |
€5.5m |
Europe and other | |
€84.6m | Europe and other |
-4.9% | €89.0m** |
In the Europe and other region, revenue fell by 4.9% in the first three months, from €89.0m** to €84.6m. The fall in revenue cut across all product segments and is primarily
North America €17.0m -20.9%
Q1 2024 |
€100.8m |
North America €21.5m
Q1 2023 |
€109.2m |
attributable to the weaker sales figures for equipment due to the difficult market conditions, particularly in the direct sales business, as well as the weather-related fall in carwash volumes in the chemicals business.
EBIT in the region was €5.7m in the first quarter (prior year: €5.7m**). Despite weaker revenue, EBIT was maintained at the prior-year level thanks to lower material prices and cost-cutting measures.
Revenue in North America, at €17.0m in the first three months, was a significant 20.9% down on the prior year (€21.5m), mainly due to the lower volume of key account business. In US dollar terms, revenue fell by 20.3%.
At €−0.5m, EBIT in the first three months was significantly lower than in the prior year
(€−0.3m). The measures implemented last year to increase profitability in this region on a lasting basis meant that EBIT was only €0.2m down despite the fall in revenue.
- Cross-segmentconsolidation effects are disregarded. Percentage change relative to comparative period.
- Comparative information prepared on the basis of the modified reporting structure applicable from January 1, 2024.
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 8 |
Revenue by regions, Q1
in €m
Europe and other
North America
Consolidation
Total
Q1 2024 | Q1 2023 | Change | |
absolute | in % | ||
84.6 | 89.0* | -4.4 | -4.9 |
17.0 | 21.5 | -4.5 | -20.9 |
-0.8 | -1.3* | 0.5 | - |
100.8 | 109.2 | -8.4 | -7.7 |
3. Group financial position and cash flows
Net operating working capital (trade receivables + inventories - trade payables - prepayments on orders) increased relative to December 31, 2023, rising €6.4m or 7.7% from €83.5m to €89.9m. The higher net operating working capital compared to the prior year- end mainly related to the usual rise in inventories due to the start of business in the first quarter. Relative to March of the prior year, the figure fell by a significant €10.9m (prior year: €100.8m).
EBIT by regions, Q1
in €m
Europe and other
North America
Consolidation
Total
Q1 2024 | Q1 2023 | Change | |
absolute | in % | ||
5.7 | 5.7* | 0.0 | 0.0 |
-0.5 | -0.3 | -0.2 | -66.7 |
0.0 | 0.1* | -0.1 | - |
5.1 | 5.5 | -0.4 | -7.3 |
Equity amounted to €89.1m as of March 31, 2024 (December 31, 2023: €85.8m). Compared to the 2023 year-end, the equity ratio increased from 31.6% to 33.9%. The equity ratio also increased compared to March of the prior year (31.2%).
The cash inflow from operating activities fell in the three months to March to €10.7m (prior year: €13.0m), mainly due to the higher net operating working capital. This was partially offset by a refund of capital gains tax prepayments. In the second quarter of 2024, this effect will be neutralized by a capital gains tax prepayment due to intragroup distributions.
The cash outflow from investing activities, at €1.4m in the first three months, was a significant €9.7m lower than in the prior year (€11.1m). In the prior year, this item included €9.5m for the acquisition of the site occupied by the American subsidiary.
* Comparative information prepared on the basis of the modified reporting structure applicable from January 1, 2024.
Financial Statement Q1 2024 // Highlights and key figures | WashTec AG | 9 |
Free cash flow (cash inflow from operating activities − cash outflow from investing activi- ties) increased to €9.3m (prior year: €1.9m).
The net cash outflow from financing activities was €4.0m (prior year: cash inflow of €6.8m) and mainly comprises the repayment of lease liabilities and interest-bearing loans.
Cash funds improved compared to December 31, 2023 due to the positive first-quarter cash flow of €5.2m, rising from €−15.6m to €−10.4m.
4. Outlook
Guidance
The WashTec Group confirms the guidance for fiscal year 2024 and expects revenue on a similar level to the prior year and an increase in EBIT in the mid single-digit percentage range.
Revenue and EBIT in the Europe and other and the North America region are expected to develop in line with the targeted Group performance.
This guidance is subject to uncertainties.
Opportunities and risks
The WashTec Group's opportunity and risk management system is described in the Annual Report 2023. There have been no material changes over the first quarter in the opportunities and risks described there.
Financial Statement Q1 2024 // Selected financial information | WashTec AG | 10 |
Selected financial information
Q1 2024
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WashTec AG published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 05:06:06 UTC.
