H&R GmbH & Co. KGaA Reports Strong Q1-2024 Financial Performance

H&R GmbH & Co. KGaA announced significant recovery in its financial results for the first quarter of 2024. The company reported an EBITDA of EUR 21.3 million, a nearly 50% increase from EUR 14.3 million in the same period last year. Despite a slight increase in depreciation, amortization, and financing expenses, overall earnings improved at all levels, with EBIT rising to EUR 6.8 million from EUR 0.5 million, and earnings before taxes (EBT) notably increasing to EUR 3.6 million from a previous loss of EUR -2.2 million.

However, sales decreased slightly by 3.4%, totaling EUR 337.0 million compared to EUR 349.0 million in Q1-2023. The company attributed the robust demand faced during the quarter to this performance, despite product prices and quotations beginning the year below expectations. These only improved towards the end of the quarter.

Performance varied across segments, with the ChemPharm SALES segment remaining stable year-on-year and the ChemPharm REFINING segment seeing a decline in sales but an improvement in EBITDA. Meanwhile, the PLASTICS segment faced challenges, partly due to a downturn in the automotive industry, impacting its sales and EBITDA negatively.

The report also highlighted a solid equity base, with total assets rising to EUR 971.2 million and an equity ratio of 47.0%. Cash flow reflected challenges due to higher raw material prices, with a significant decrease in operating cash flow. H&R maintains its full-year guidance for 2024, anticipating growth and favorable market conditions as the year progresses.