WashTec AG: 12% revenue growth with EBIT margin of 7.9% in a challenging economic environment

12% revenue growth with EBIT margin of 7.9% in a challenging economic environment

• Revenue at €482.2m, prior year €430.5m
• EBIT at €38.0m, prior year €45.7m; EBIT margin at 7.9%
• Free cash flow at €16.2m, prior year €42.3m
• Dividend proposal: €2.20 per share

Augsburg, March 30, 2023 – The WashTec Group achieved record revenue of €482.2m in fiscal year 2022, a significant increase of €51.7m or 12.0% over the prior year (€430.5m). Adjusted for exchange rate effects, the growth in revenue was 9.1%. Revenue grew year on year in all product segments, with the growth partly resulting from price increases implemented in the course of the fiscal year. The increase in the Equipment and Service business related both to key accounts and to direct sales.

Despite the revenue growth, EBIT decreased by 16.8% to €38.0m (prior year: €45.7m). The EBIT margin was 7.9% (prior year: 10.6%). Impacts of the Ukraine war and Covid lockdowns in China until the end of the zero-Covid policy caused shortages on procurement markets, with material costs, procurement costs and energy costs rising significantly as a result. The WashTec Group met the challenges in material procurement with increased flexibility in production and higher inventory levels. As a result, the Company retained its delivery capability at all times during the fiscal year. In addition, the Company responded to the developments with price increases for its own products. However, with order lead times of four to six months, it has not been possible to fully pass on the price rises in the procurement market to customers until the end of the fiscal year.

Due in particular to a high output volume towards the year-end, revenue of €143.7m (prior year: €124.2m) was generated in the final quarter of the year. With this figure, WashTec set a new quarterly record. Due to the high level of revenue, EBIT in the fourth quarter, at €15.4m (prior year: €12.7m) was significantly higher than in the prior year. This also made it possible to generate a double-digit EBIT margin in the fourth quarter, of 10.7% (prior year: 10.2%).

Due to lower earnings before taxes (EBT) and substantially higher net operating working capital, free cash flow (net cash inflow from operating activities – net cash outflow from investing activities) decreased to €16.2m (prior year: €42.3m).

Equity went down from €98.4m to €88.1m. The equity ratio decreased to 31.0% (prior year: 36.9%) due to the higher balance sheet total compared to the prior year-end, the lower earnings and the higher dividend distribution.

“Fiscal year 2022 was challenging. Nevertheless, we were able to supply our customers at all times and launched further innovations. In order to return our Company to a double-digit EBIT margin in the coming years, we have taken the necessary measures in the form of a strict cost-cutting program and efficiency improvements in all business areas,” explained Dr. Ralf Koeppe, CEO of WashTec AG.

Annual General Meeting 2023
The Annual General Meeting of WashTec AG will take place on Monday, May 15, 2023. The Management Board and Supervisory Board are proposing a dividend of €2,20 per share for fiscal year 2022.

Outlook for fiscal year 2023
For fiscal year 2023, WashTec expects Group revenue on a similar level to the prior year (2022: €482.2m), with a significant increase in EBIT (2022: €38.0m). This will be supported in particular by the measures already implemented to increase production efficiency, in conjunction with optimized and resilient supply chains and strict cost management in all areas. With regard to the development of free cash flow (2022: €16.2m), the Company expects a significant increase, mainly due to lower inventory levels as a result of improved material availability.

General risk information
Any outlook is subject to uncertainties that could have a material effect on forecast revenue and earnings performance.

The annual report for fiscal year 2022 and additional information about the company can be found on: www.washtec.de.

About WashTec:
WashTec Group with its registered office in Augsburg, Germany, is the leading provider of innovative car wash solutions worldwide. The company has around 1,800 employees and is represented with subsidiaries in the major markets of Europe, North America and Asia/Pacific. Moreover, WashTec has an extensive network of independent marketing partners through which it is present in around 80 countries worldwide.

Key figures:

€m, IFRS	2022	2021	Change in %
Revenue	482.2	430.5	12.0
EBIT	38.0	45.7	-16.8
EBIT margin in %	7.9	10.6	-
EBT	37.3	44.8	-16.7
Net income	26.4	31.1	-15.1
Earnings per share1) (in €)	1.97	2.32	-15.1
Free cash flow	16.2	42.3	-61.7
ROCE in %	20.2	25.8	-

 

€m, IFRS	31. Dec. 22	31. Dec. 21	Change abs.
Balance sheet total	284.5	267.0	17.5
Equity	88.1	98.4	-10.3
Equity ratio	31.0	36.9%	-5.9
Net financial debt	45.2	15.7	29.5
Net operating working capital2)	105.1	86.9	18.2
Employees (31.12.)	1,824	1,782	42

1) Basis: on average 13,382,324 shares
2) Trade receivables + inventories – trade payables – prepayments on orders



Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 5584 - 0
Fax: +49 (0)821 - 5584 - 1135