EQS-Adhoc: H&R GmbH & Co. KGaA: Preliminary Results for FY 2023

H&R GmbH & Co. KGaA: Preliminary results for FY 2023

• Preliminary operating result (EBITDA) of EUR 92.7 million exceeds last forecast

Salzbergen, Germany, February 20, 2024. H&R GmbH & Co. KGaA (short: H&R KGaA; DE000A2E4T77) achieved a solid operating result (EBITDA - consolidated earnings before interest, taxes, depreciation and amortization, impairment losses and reversals of impairment losses on intangible assets and property, plant and equipment) of EUR 92.7 million in financial year 2023 according to preliminary calculations (2022: EUR 124.9 million). Based on lower EBITDA, EBIT amounted to EUR 30.3 million (2022: EUR 69.6 million), while earnings before taxes (EBT) amounted to EUR 18.8 million (2022: EUR 62.0 million). At the bottom line, consolidated net income attributable to shareholders amounted to EUR 10.6 million (2022: EUR 42.7 million). The result was achieved on sales revenues of EUR 1,352.3 million. This was around 14.2% less than in the previous year (2022: EUR 1,576.0 million), mainly due to the price of raw materials.

An overall solid year for H&R despite challenges and volatilities

2023 offered the company mixed economic conditions: On the one hand, the supply of input materials was secured and at more favorable conditions than in 2022. Energy and gas costs also remained at an acceptable level as a result of the price cap, which came as an economic policy measure of the German government. At the same time, this only partially compensated for the competitive disadvantages of German industry compared to other competitors. Products made from Russian raw materials continued to enter the Western European market despite sanctions and increased the pressure on margins. Increasing uncertainty from military conflicts was also a constant factor in 2023, which had a negative impact on sentiment in many of our customer industries. Q4/2023 contributed a higher preliminary operating result of EUR 26.1 million to the full-year EBITDA (Q4/2022: EUR 21.6 million). In contrast, the other earnings levels were almost identical to the previous year: EBIT and EBT in the fourth quarter amounted to EUR 6.1 million and EUR 3.6 million respectively (Q4/2022: EUR 6.1 million and EUR 3.8 million). At EUR -0.8 million, consolidated net income attributable to shareholders was below the previous year's figure (Q4/2022: EUR 2.6 million) due to the higher total annual tax expense posted as at December 31. On a quarterly basis, the company generated 10.3% lower sales revenues of EUR 315.5 million compared to the same period of the previous year (Q4/2022: EUR 351.5 million).

Relief effects due to lower raw material costs

For the year as a whole, operating cash flow recovered strongly to EUR 119.1 million (2022: EUR 38.0 million) despite a lower consolidated result. A lower net working capital requirement relieved the free cash flow, which improved from EUR -34.5 million to EUR 62.8 million. Total assets amounted to EUR 904.2 million at the end of the 2023 financial year (31/12/2022: EUR 962.1 million). Equity amounted to EUR 457.6 million as at the balance sheet date (31/12/2022: EUR 471.2 million). The equity ratio was 50.6% (31.12.2022: 49.0%). 

For a complete presentation of the business development including segment reporting and the annual financial statements, H&R KGaA refers to the publication of the Annual Report 2023 on March 28, 2024.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:

Listed in the Prime Standard of the Frankfurt Stock Exchange, H&R GmbH & Co. KGaA is a specialty chemicals company active in the development and manufacture of chemical-pharmaceutical specialty products based on fossil, bio-based, synthesized and recycled hydrocarbons and in the production of precision plastic parts.

Forward-looking statements and forecasts:

This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.

1841145  20-Feb-2024 CET/CEST