SMT Scharf AG significantly raises its revenue and earnings forecast for 2024

SMT Scharf AG significantly raises its revenue and earnings forecast for 2024 

• First time consolidation of joint venture company Shandong Xinsha Monorail Co., Ltd. as of 1 November 2024
• New forecast for 2024: consolidated revenue expected between EUR 87 million and EUR 97 million and operating earnings (EBIT) between EUR 2.8 million and EUR 4.6 million
• High-tech mines in China offering attractive growth potential 

Hamm, 30 October 2024 – SMT Scharf AG (WKN: A3DRAE; ISIN: DE000A3DRAE2), one of the world’s leading suppliers of customised transport solutions and logistics systems for underground mining, is substantially raising its revenue and earnings forecast for the 2024 financial year. The reason for this development lies in the first time consolidation of the joint venture company Shandong Xinsha Monorail Co., Ltd. (“Xinsha”) which will be consolidated effective 1 November 2024 due to amended contractual agreements between the joint venture partners.

Accordingly, the Management Board now anticipates a range of consolidated revenue between EUR 87 million and EUR 97 million for the 2024 fiscal year. In addition, a range of operating earnings (EBIT) between EUR 2.8 million and EUR 4.6 million is forecasted. SMT Scharf AG has previously anticipated a range of consolidated revenue between EUR 74 million to EUR 79 million and a range of operating earnings (EBIT) between EUR 1.5 million to EUR 2.5 million for 2024.

The forecast growth will be due to Xinsha’s revenue and operating earnings (EBIT) for November and December 2024, with revenue expected to come in between EUR 13 million and EUR 18 million and operating earnings between EUR 1.3 million and EUR 2.1 million. The effects of Xinsha’s consolidation may be even higher for the financial year 2025, because Xinsha will then be consolidated for the full year.

Liu Jun, CEO of SMT Scharf AG, commented as follows: “We see attractive business potential for SMT Scharf in underground mining in China. Here we are focusing on high-tech coal mines relying on modern mining technology. As SMT Scharf, we can supply high-quality transport and logistics systems which meet the required standards and are tailored to the individual conditions of the mine. Together with Xinsha, we will continue to drive product development and sales activities at a local level forward in order to leverage synergy effects and further expand our position in the Chinese market.”


Company profile

The SMT Scharf Group develops, manufactures and services transportation equipment for underground mining as well as for tunnel construction. The main products include captivated railway systems that are deployed worldwide, primarily in hard coal mines, as well as in mines for gold, platinum and other metals. They are needed to transport material and personnel with payloads of up to 48 tonnes and on routes with gradients of up to 30 degrees. In addition, SMT Scharf supplies the mining sector with chairlifts. Since 2018, SMT Scharf’s diverse portfolio has also included rubber-tyred diesel and electric vehicles for mining and tunnelling, including loaders, scissor lifts and underground trucks. As part of the further diversification of the business, the product range has been successfully expanded since 2019 to include electronic components and control systems for mining and other industries. Overall, the SMT Scharf Group is active with subsidiaries in seven countries, as well as commercial agencies worldwide. Further information about the SMT Scharf Group can be found online at www.smtscharf.com.


Contact

Investor Relations
cometis AG
Thorben Burbach
Phone: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
Email: burbach@cometis.de