HÖRMANN Group publishes annual report 2022
Dr. Michael Radke, CEO of HÖRMANN Industries GmbH: "The HÖRMANN Group has weathered the crises of the last three years well and continued its stable development in the 2022 financial year. Compared to the 2008/2009 financial crisis, which left deep scars on the balance sheet at the time, we have come through the last few years very well. We continue to consistently pursue the Group's focus on sustainable business areas with growth potential and good earning power, such as the establishment of our Intralogistics division last year or the recently announced acquisition of our subsidiary Funkwerk."
The Group's equity amounted to € 136.4 million as at December 31, 2022 (December 31, 2021: € 131.1 million). The increase in equity contributed to a solid equity ratio of 37.4% (December 31, 2021: 38.4%) despite an increase in total assets - mainly due to a sharp rise in working capital as a result of inflation.
Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH: "The twenties of this century have always been a major challenge for any company. But it was precisely here that our diversified business model and its sustainability were once again proven. The stability of our financing structure also helped us a great deal. At the time, we deliberately opted for bond financing as the basic financing for the company in order to secure long-term financing and be prepared for such crises. We also have a very stable banking syndicate with a flexible credit line that will continue to stand by our side in the future."
Development of the business divisions
In the Automotive division, sales increased from € 333.5 million in the previous year to € 403.7 million, mainly due to the price of materials. Adjusted for price effects, value-added sales amounted to around € 360 million. In addition to the reduced production volume since mid-2021 due to a lack of electronic components, the Russian aggression in Ukraine led to an interruption in vehicle production at the main customer MAN Truck & Bus AG from mid-March to the beginning of May 2022. The plants in Gustavsburg and Bánovce, Slovakia, which specialize in truck components, also had to significantly reduce production during this period. This was compounded by the massive increase in material and energy prices, which weighed heavily on margins. Nevertheless, the division was able to improve its EBIT from € -5.9 million in the previous year to € -2.7 million. A return to profit is expected for the current financial year.
The Communication division continued to leverage its good market position and technological product and solution expertise in the reporting year following a very good year in 2021. Incoming orders of € 214.1 million were recorded in the 2022 financial year (previous year: € 186.4 million). Sales increased again compared to 2021 (€ 169.9 million) by € 10.3 million or 6.1% to € 180.2 million. However, problems with material availability (particularly for electronic components), resulting price increases, project delays, a changed product mix and the planned decline in sales in the Train Radio segment had an unfavorable impact on earnings. Accordingly, earnings before interest and taxes fell to € 31.7 million compared to 2021 (€ 37.1 million). However, with an EBIT margin of 17.6% (previous year: 21.8%), the Communication segment is still able to report an above-average return. Now that large parts of the federal government's subsidy programs for the train radio product segment have expired in 2022, HÖRMANN Industries GmbH expects the Communication division to consolidate at a continued above-average level of earnings in 2023.
In the past financial year, the new Intralogistics division, with its expertise and know-how in the planning and implementation of highly automated intralogistics systems, developed positively in line with the general market trend and beyond. In the reporting period, the division generated sales of € 79.1 million (previous year: € 64.2 million, as-ob). The division focused on the realignment and the associated integration and restructuring of the Services division. Accordingly, EBIT of € -3.3 million was generated in 2022 (previous year: € 1.1 million, as-if). Supported by an order backlog of over € 100 million, the division expects to return to profit in the current 2023 financial year with significant sales growth.
With sales revenue of € 21.6 million, the Engineering division was down slightly on the previous year 2021 (previous year: € 23.0 million, as-ob). Thanks to a high-margin product and service mix, EBIT remained at the previous year's level of € 4.0 million (€ 4.3 million, as-if). The EBIT margin thus amounted to 18.5% (previous year: 18.7%, as-if). The Engineering division expects sales of around € 24 million and EBIT of around € 3.0 million for 2023.
Forecast 2023
HÖRMANN Industries GmbH expects revenue of between € 730 million and € 760 million for the 2023 financial year. Taking into account the changed product and service mix and the negative factors resulting from the sharp rise in material prices and the foreseeable increases in personnel and energy costs, the company is aiming for positive earnings before interest and taxes (EBIT) at the previous year's level of between € 23 million and € 25 million (2022: € 23.7 million). The development of working capital and available liquidity is therefore expected to remain at the level of the reporting year.
The complete, detailed annual financial statements, including a detailed interview with the managing directors of the HÖRMANN Group, Dr. Michael Radke, Johann Schmid-Davis and Dr. Christian Baur, can be downloaded at http://www.hoermann-gruppe.de/investor-relations/finanzpublikationen
In addition, the HÖRMANN Group also published its second sustainability report today. The voluntary preparation of this comprehensive report in accordance with the international guidelines of the Global Reporting Initiative (GRI standard) underlines the long-term orientation of HÖRMANN Industries. Based on the long-standing values of the family-owned company, the sustainability report documents the diverse initiatives with regard to responsible and sustainable corporate governance, the contribution to climate protection and the assumption of responsibility for society and all stakeholders. The sustainability report can be downloaded at the following link https://www.hoermann-gruppe.com/de/unternehmen/nachhaltigkeit
