PTA-News: Dr. Hönle AG: Sales and results in the first half of the year below the previous year in a challenging market environment
Gilching 08.May.2024
Business news for the stock market
Gilching (pta009/08.05.2024/08:10) -
* Weakness in machinery and plant engineering and project postponements in the solar industry and electromobility business lead to a 10.1% decline in sales to € 48.1 million
* Operating result is € –0.1 million after € 3.7 million in the previous year
* Recovery expected in the second half of the financial year
* Outlook for the 2023/24 financial year: sales of around €100 million and positive operating result (EBIT)
Both revenue and earnings of the Hönle Group declined in the first six months of financial year 2023/24 compared with the same period last year due to a challenging market environment. Especially customer demand for printing applications saw a notable decline. Hönle Group sales revenues fell 10.1% below the level of the prior-year period to T€ 48,108 in the first half of the financial year. Gross profit dropped by 11.1% year-on-year to T€ 30,149. Even so, the cost of materials ratio was unchanged at 39.6%. The personnel expenses ratio rose to 41.2% (PY: 35.7%) as a result of lower revenues. The ratio of other operating expenses to total output was 15.5% in the current financial year (PY: 14.5%).
The operating result (EBIT) amounted to T€ –113 (PY: T€ 3,685). However, business picked up in the second quarter of the current financial year, as expected. Revenue increased from T€ 23,787 in the first quarter to T€ 24,321 in the second quarter, and the operating result improved from T€ –779 in the first quarter to T€ 675 in the second quarter. Earnings before taxes (EBT) came to T€ –1,034 (PY: T€ 3,050). Consolidated profit for the year was T€ –697 after taxes (PY: T€ 2,684), which corresponds to earnings per share of € –0.13 (PY: € 0.43).
Outlook
Adhesives Segment
The field of organic photovoltaics offers great potential for generating electrical energy in an environmentally friendly manner, as the light-absorbing layers of organic solar cells are much thinner than those of conventional silicon solar cells. Hönle has developed a special type of adhesive for use in organic photovoltaics and has already received the first major orders after having successfully completed extensive testing.
Hönle offers a wide range of adhesives for the electronics packaging sector, a segment that is expected to see substantial growth in the future. In the coming years, more and more data will be generated and processed worldwide. Electronics packaging usually requires customized adhesives, making this an ideal field of activity for the Hönle Group as an adhesives specialist. The adhesives can be used in smart phones, in wearables, or in data processing systems for autonomous cars, for example.
From a regional perspective, the Group will continue to focus on developing the U.S. and the Asian market. Hönle plans to continue developing those markets by working closely together with key account customers.
The Management Board believes that sales of adhesives and adhesive systems, i.e. UV-reactive adhesives and the associated UV curing equipment, will rise sharply in the coming years. Earnings are expected to rise even at a higher rate than revenue.
Equipment & Systems Segment
Investment has been slow in the printing applications sector in the run-up to the Drupa trade fair for the printing industry scheduled for May. The investment backlog is expected to dissipate after the trade fair with an increase in new orders.
Project management is being expanded with the goal of strategically targeting the application fields of the future. In addition to digital printing, these include technical films and industrial coatings.
Targeted product development is being implemented to improve the Group's competitive standing. The development process centres on the customer with the aim of providing user-friendly systems, which will create an important foundation for increasing sales volumes over the coming years. Profitability improvements are also expected from restructuring the product range and from leveraging savings potential on the procurement side.
Glass & Lamps Segment
Environmentally friendly disinfection using ultraviolet radiation is increasingly being used to treat surfaces, air and water. In addition to sterilization lamps and sensors, proof of sterilization will also be offered in the future. Hönle thus pursues a holistic approach from customer advice through the delivery of sterilization systems to microbiological analysis to monitor the success and technical documentation of the sterilization process. The pharmacy and electromobility represent additional growth markets in the Glass & Lamps Segment. The Group's selective expansion of product management will enable a targeted development of new, high-potential fields of application.
On the whole, the Management Board expects sales and earnings to increase in the Glass & Lamps segment over the next few years.
Overall Assessment of Future Business Development
The Management Board expects business activity to pick up in the second half of the financial year. However, the remainder of the financial year will see weaker revenue and earnings than originally forecasted, with increases being postponed until the new financial year to some extent. The Hönle Group is feeling the effects of the weak market environment in the machinery and equipment manufacturing sector, with some solar projects and e-mobility projects also having been postponed. Although order inquires have increased, this development has not yet been reflected in the revenue trend for the current financial year.
As communicated to the capital markets on 30 April 2024, the Management Board expects the Hönle Group to generate revenue of around €100 million in financial year 2023/24. The previous forecast projected revenue of between €105 million and €115 million. The Management Board also expects to report a positive operating profit (EBIT). Previously, the Management Board had forecasted an operating profit of €6 million to €9 million.
The complete half-year report is available at https://www.hoenle.com/investor-relation/financial-information# reports. The Q3 statement 2023/24 will be published on August 7th, 2024.
About Hönle
Dr. Hönle AG is a leading provider of industrial UV technology based in Gilching. With 600 employees, the Hönle Group develops innovative solutions for different areas of application. A focus of its business activities is the development and sale of industrial adhesives and casting compounds. Equipment for drying inks and coatings, curing adhesives and plastics, as well as for disinfecting water, air and surfaces and sunlight simulation are also manufactured. In addition, the group of companies produces UV lamps and quartz glass products, among other things for disinfection and drying processes. The Hönle Group supplies technology and global market leaders and is represented by its own companies and partner companies in more than 20 countries.
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emitter: Dr. Hönle AG
address: Nicolaus-Otto-Str. 2, 82205 Gilching
country: Germany
contact person: Peter Weinert
phone: +49 8105 2083 173
e-mail: peter.weinert@hoenle.de
website: www.hoenle.de
ISIN(s): DE0005157101 (share)
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