EQS-News: KAP AG
/ Key word(s): Preliminary Results
KAP DEVELOPS IN LINE WITH ADJUSTED EXPECTATIONS IN A DIFFICULT ENVIRONMENT IN 2023 AND IMPLEMENTS FURTHER MEASURES TO INCREASE EFFICIENCY IN 2024
Fulda, 14 March 2024 – KAP AG (“KAP”), a medium-sized industrial holding company listed on the stock exchange, generated revenue of €337.0 million in the 2023 financial year according to preliminary figures. The decline of 22.3% on the previous year is mainly due to the sale of a subsection of the flexible films segment as well as adverse economic factors. Excluding the divested operations in the reporting period, revenue amounted to €316.7 million, down 12.1% year on year. Normalised earnings before interest, taxes, depreciation and amortisation (normalised EBITDA) totalled €16.8 million in 2023, falling short of the previous year’s figure by 53.2%. The margin came to 5.0% (previous year: 8.3%). This was due in particular to declines in earnings in the engineered products, flexible films and surface technologies segments. Normalised EBITDA without the contributions to earnings of the divested companies decreased by 35.7% to €15.1 million. This results in a normalised EBITDA margin of 4.8% for 2023 (previous year: 6.5%). KAP is therefore in line with the guidance forecast as adjusted in August 2023, in which the Management Board expected significantly lower revenue and significantly lower normalised EBITDA for the full year, in each case with an anticipated year-on-year change in the low double-digit percentage range. Marten Julius, member and Spokesman of the Management Board of KAP AG: “2023 was dominated by geopolitical tensions, rising energy costs and adverse economic factors. Although we have developed in line with our adjusted expectations, we cannot be satisfied with our earnings for the year. We have already made structural adjustments to make the KAP Group and its segments even more efficient and leaner and to increase profitability again. In any case, we have to constantly challenge our position in order to remain competitive in the long term. In light of the measures already largely implemented, we are optimistic about KAP’s development in the current financial year.” Heterogeneous business development in the segments In the engineered products segment, both revenue and normalised EBITDA fell significantly. This is primarily due to the economic influences in the automotive sector and the expiry of a high-margin customer contract at the end of 2022. At €116.7 million, revenue was 19.9% below the previous year’s figure, while normalised EBITDA came to €3.1 million (previous year: €9.2 million). Extensive structural adjustments to further increase production efficiency and streamline organisational structures have already been initiated. The weak global economy in the automotive industry was also clearly felt in the surface technologies segment. Nevertheless, it was possible to increase revenue slightly. The segment’s revenue reached €68.6 million (previous year: €65.3 million). Normalised EBITDA totalled €5.4 million in the reporting year (previous year: €6.8 million). On the back of a higher-quality product mix, price adjustments and rigorously implemented efficiency enhancement measures in established production processes as well as a sharper focus on profitable niche markets, the precision components segment was able to increase both revenue and EBITDA year on year. At €53.4 million, revenue was thus 17.1% above the previous year’s figure, while normalised EBITDA came to €2.3 million (previous year: €–0.1 million). Dividend for the 2023 financial year Extensive structural adjustments have already been initiated and implemented in order to make the KAP Group and its segments more efficient and leaner and to increase profitability again. One aim is to strengthen the KAP Group’s capital and financing base by foregoing the dividend. The Company will generally continue to strive to allow shareholders to participate in the Company’s business performance through an attractive dividend in the coming years. Rigorously implementing the strategy The complete and audited annual report 2023 and the guidance forecast for the 2024 financial year will be available to download on KAP AG’s website from 26 April. Contact:
About KAP AG
14.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | KAP AG |
Edelzeller Straße 44 | |
36043 Fulda | |
Germany | |
Phone: | 06611030 |
Fax: | 0661103830 |
E-mail: | office@kap.de |
Internet: | www.kap.de |
ISIN: | DE0006208408 |
WKN: | 620840 |
Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1858177 |
End of News | EQS News Service |
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1858177 14.03.2024 CET/CEST
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