EQS-Adhoc: H&R GmbH & Co. KGaA publishes preliminary business figures for first half of 2024

Insider information pursuant to Article 17 of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary results for first half of 2024 published.

• Sales revenues reach EUR 675.6 million (HY1 2023: EUR 699.6 million)
• EBITDA at EUR 41.1 million above previous years’ level (HY1 2023: EUR 39.4 million)

Salzbergen, Germany, July 22, 2024. H&R GmbH & Co. KGaA (short: H&R KGaA; ISIN DE000A2E4T77) reported stable key financial figures overall at the end of the first half of 2024. According to preliminary calculations, the consolidated operating result (EBITDA - consolidated earnings before income taxes, other financial income and expenses as well as depreciation, amortization, impairment and write-ups on intangible assets and property, plant and equipment) amounted to EUR 19.8 million in the second quarter and thus did not match the momentum of the start of the year (Q1-24: EUR 21.3 million) or the same quarter of the previous year 2023 (Q2-23: EUR 25.0 million). The results for the second quarter also fell short of expectations at other levels: EBIT closed at EUR 4.9 million after EUR 10.6 million last year and was lower primarily due to consistently high depreciation and amortization and higher operating expenses. Earnings before taxes (EBT) amounted to EUR 1.7 million in the second quarter of 2024 (Q2-2023: EUR 7.9 million), resulting from higher financing expenses. Consolidated net income attributable to shareholders amounted to EUR 1.3 million (Q2 2023: EUR 4.7 million). Earnings per share remained positive at EUR 0.03. Sales revenue in the second quarter of the current financial year fell to EUR 338.6 million (Q2-2023: EUR 350.5 million) with slightly higher raw material prices, primarily due to lower economic demand.

Looking at the first half of 2024, the company provisionally achieved an improved operating result (EBITDA) of EUR 41.1 million (HY1 2023: EUR 39.4 million). With slightly higher depreciation and amortization compared to the previous year, the other results for the six-month period were roughly on a par with the previous year: EBIT improved to EUR 11.7 million (HY1 2023: EUR 11.1 million). Earnings before taxes (EBT) were slightly weaker at EUR 5.3 million (H1 2023: EUR 5.7 million). Consolidated net income attributable to shareholders closed at EUR 2.8 million (HY1 2023: EUR 3.7 million). As a result of the better first quarter of 2024, H&R KGaA generated earnings per share of EUR 0.07 in the first half of the year. Sales revenues amounted to EUR 675.6 million at the end of the first half of the year (HY1 2023: EUR 699.6 million).

The ChemPharm Sales segment made the main contribution to the quarterly and half-year results. The operating result improved to EBITDA of EUR 10.1 million in the second quarter of 2024 (Q2 2023: EUR 7.4 million). At EUR 21.1 million (HY1 2023: EUR 13.8 million), the segment also reported the strongest and significantly improved result for the 6-month period. Sales in the segment fell short of the previous year and amounted to EUR 243.6 million for the first half of the year (HY1 2023: EUR 251.1 million).

By contrast, the ChemPharm Refining segment: although sales in the first half of 2024 were likewise down on the previous year at EUR 417.0 million (HY1 2023: EUR 433.2 million), earnings did not improve in contrast to the international business. Overall, the activities of our two specialty production sites recorded lower operating results of EUR 10.1 million in the second quarter and EUR 20.6 million in the first half of 2024 (Q2 2023: EUR 16.7 million; HY1 2023: EUR 22.4 million). The factors for this were different: compared to 2023, H&R did not benefit this year from special effects from the previous year, keyword energy price brake. At the same time, price adjustments could only be implemented to a limited extent by customers in our customer industries due to the economic situation.

The Plastics segment generated a lower operating result of EUR 1.2 million compared to the first half of the previous year (HY1 2023: EUR 3.0 million). In a quarter-on-quarter comparison, the reduction amounted to EUR 0.9 million, with an operating result of EUR 0.8 million achieved in the second quarter. At EUR 11.9 million and EUR 24.2 million respectively, revenue was also down on the prior-year figures (Q2 2023: EUR 13.1 million; HY1 2023: EUR 26.3 million).

Operating cash flow totaled EUR -5.9 million in the second quarter of 2024 (Q2 2023: EUR 8.3 million), while free cash flow amounted to EUR -18.3 million (Q2 2023: EUR -7.1 million). Operating cash flow amounted to EUR 5.5 million in the first half of the year (HY1 2023: EUR 56.8 million) and free cash flow to EUR -18.5 million (HY1 2023: EUR 24.7 million). On average, more was spent on input materials in the first half of 2024 than in the same period of the previous year. Net working capital requirements changed accordingly and had a negative impact on operating cash flow. Reduced but still significant investments led to a corresponding reduction in free cash flow. 

Total assets amounted to EUR 988.5 million as of June 30, 2024 (December 31, 2023: EUR 903.2 million). Equity hardly changed in the same period and amounted to EUR 457.7 million (December 31, 2023: EUR 457.6 million). As of June 30, 2024, the company's equity ratio was 46.3% (December 31, 2023: 50.7%).

In principle, the company has assumed significantly improved momentum and a corresponding recovery in key figures for the second quarter. The interim results are currently below the full-year forecast (EUR 90.0 million to EUR 110.0 million) in purely arithmetical terms. At the same time, the company expects the market situation (economic developments, customer demand, competitive situation) to improve over the remainder of the year and therefore currently refrains from giving a more precise forecast for the full year. The final financial figures and further information on business performance to date in 2024 will be published as planned in the half-year report on August 15, 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.

1951153  22-Jul-2024 CET/CEST