R. STAHL starts 2022 with sales increase and strong order intake in the first quarter - effects of Corona pandemic and Russia-Ukraine crisis negatively impact quarterly results and expectations for full year

- First-quarter sales of € 61.0 million up 4.8% year-on-year.

- EBITDA pre exceptionals up € 0.4 million to € 3.0 million.

- Net profit negatively impacted by the partial write-down on the Russian investment and amounted to € -5.4 million, compared with € -2.5 million in the same quarter of the previous year.

- Earnings per share at € -0.84.

- Order intake of € 75.1 million up 17.5% year-on-year.

- Forecast for full year 2022 confirmed: Growth in sales and EBITDA pre exceptionals expected in the low double-digit percentage range.

Waldenburg, 12 May 2022 – R. STAHL today publishes preliminary business figures for financial year 2022. Group sales increased by € 2.8 million compared with the prior-year quarter, reaching € 61.0 million. As a result of this sales growth and despite higher cost items, EBITDA pre exceptionals amounted to € 3.0 million. By contrast, net profit fell to € -5.4 million in the reporting period compared with € -2.5 million in the prior-year quarter. Operating activities as a whole continued to be impacted by the effects of the Corona pandemic and, since February, also increasingly by those of the Russia-Ukraine conflict. Thanks to a noticeable revival in demand across all regions and industries, order intake rose by 17.5% to € 75.1 million in the reporting period.

Business development in the first quarter of 2022
As was already apparent in previous quarters, business performance in the first quarter was increasingly characterized by disrupted supply chains and price increases. This effect was exacerbated by the escalation of the Russia-Ukraine conflict in February. The price increases were offset by price adjustments. Despite the difficult conditions, R. STAHL was able to increase sales by 4.8% to € 61.0 million (Q1 2021: € 58.2 million) in the reporting period, which was supported in particular by orders from the chemical and pharmaceutical industries.

This positive development extended to all regions with just one exception. In Germany, the company generated sales of € 16.9 million, up 15.5%, driven by increases from the chemical and mechanical engineering sectors. In the central region (Europe and Africa excluding Germany), sales were at exactly the same level as the previous year at € 28.2 million. The chemical industry in particular contributed to the stability of sales here. Coming from a weak level, a significant market recovery was perceptible in the Americas, resulting in an increase of 33.9% to € 6.4 million in sales. Wholesale for the oil and gas industry in particular made a gratifying contribution to sales. Only in the Asia/Pacific region did sales fall by -9.8% to € 9.5 million.

R. STAHL also encountered a noticeable revival of demand for incoming orders across almost all regions and industries and was able to record an increase of 17.5% to € 75.1 million for the first quarter. As a result, order backlog increased to € 86.6 million (31 December 2020: € 72.2 million).

Development of financial position and performance in the first quarter of 2022
Sales growth of 4.8% led to a year-on-year increase in EBITDA pre exceptionals of € 0.4 million to € 3.0 million, despite a simultaneous rise in cost items. As a result, the EBITDA margin pre exceptionals also increased to 5.0%. Not including significant special items, EBITDA reached € 2.9 million (Q1 2021: € 2.6 million).

Due to the inventory build-up of € 4.0 million, the cost of materials increased by 10.0% to € -23.6 million in the reporting period (Q1 2021: € -21.4 million). Due to the higher total operating performance and the price adjustment made, the ratio of cost of materials to total operating performance remained unchanged year-on-year at 35.4% (Q1 2021: 35.0% of total operating performance) remained almost constant. Personnel expenses increased by 5.7% to € -31.8 million, mainly as a result of higher capacities and temporarily increased working hours at the Waldenburg site.

The balance of other operating income and other operating expenses increased by € 1.1 million to € -8.3 million in the reporting period (Q1 2021: € -7.2 million). Net profit decreased by € 2.9 million to € -5.4 million in the first quarter of 2022 (Q1 2021: € -2.5 million). This corresponds to earnings per share of € -0.84 (Q1 2021: € -0.39).

Cash flow in the reporting period improved by € 0.9 million to € 2.7 million (Q1 2021: € 1.8 million). Cash flow from operating activities decreased by € -5.8 million to € -7.1 million (Q1 2021: € -1.3 million). This was due to the increase in working capital, which increased as a result of the build-up of inventories in particular. The liquidation of a non-current financial investment, accompanied by a slight increase in investments in intangible assets and property, plant and equipment, led to a decrease in cash flow from investment activities of € 3.0 million to € -0.2 million (Q1 2021: € -3.2 million). Overall, free cash flow in the reporting quarter was € -7.3 million or € -2.8 million below the prior-year figure (Q1 2021: € -4.5 million).

As of 31 March 2022, R. STAHL Group had cash and cash equivalents of € 18.8 million available (31 December 2020: € 6.3 million). Compared to the previous year, cash and cash equivalents thus increased by € 1.5 million (Q1 2021: € 17.2 million).

As a result of the negative free cash flow, net debt (excluding pension provisions and lease liabilities) increased by € 8.9 million to € 27.1 million as of 31 March 2022 compared with the level at the beginning of the year (31 December 2021: € 18.3 million).

Equity improved by € 2.6 million compared to the end of the prior year to € 52.3 million. The positive equity effect from lower provisions for pension obligations compensated for the negative net profit. This resulted in a nearly unchanged equity ratio of 20.3% compared with 20.2% as of 31 December 2021.

Forecast for the 2022 financial year
Given the pleasing order situation and continued strong demand for modern LED and automation solutions, but also given ongoing uncertainties regarding supply bottlenecks, material price developments and the further impact of the Russia-Ukraine crisis, we confirm the forecast we issued when we published our financial figures for 2021 in April. Accordingly, we continue to anticipate year-on-year sales growth in the low double-digit percentage range for 2022. As the full impact of the crisis cannot be passed on to customers, the Executive Board also expects EBITDA pre exceptionals to improve by a low double-digit percentage. The partial write-down of our 25% investment in ZAVOD Goreltex and the continuing uncertainties may result in negative net profit in the higher single-digit million range. Assuming a constant interest rate level for the valuation of the pension provisions, we expect a slight decrease overall in the equity ratio. Due to increasing capital expenditures for both property, plant and equipment and development projects, we expect a moderately negative free cash flow and an increase in net debt.

Key figures of the R. STAHL Group pursuant to IFRS

1) Africa and Europe excl. Germany.
2) Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for design and implementation of IT projects, M&A costs as well as profit and loss from the disposal of non-current assets no longer required for business operations
3) Excl. pensions and excluding lease liabilities.
4) Excl. apprentices

Rounding differences and rates of change
Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on mathematic aspects. Rates of change >+100% are shown as >+100%, rates of change <-100% as “n/a” (not applicable).

Note
The interim report Q1 2022 is available for download under the following link: https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports

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Investors’ and analysts’ conference call of R. STAHL AG for Q1 2022

Chief Executive Officer of R. STAHL AG, Dr. Mathias Hallmann, will explain the results of Q1 2022, present an outlook for the current year and will be available for questions afterwards. The conference call will be held in English language

today at 15:00 CET

Please dial one of the following numbers to join the call and provide the PIN as well as your full name and company’s name when prompted:

DE: +49 89 2030 35529
UK: +44 (0)330 165 4006
US: +1 323 994 2131

PIN: 3094855

Along with the conference call, we will provide an online presentation via the internet. Please log on as a participant on the following website (no password required):

https://www.webcast-eqs.com/rstahl20220512/no-audio

A replay of the audio webcast will be available shortly after the conference call has ended on the company’s website under the following link:

https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations

We look forward to talking to you.

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Financial calendar 2022

24 / 25 May German Spring Conference, Frankfurt a. M.
13 July 29th Annual General Meeting
11 August Interim Report H1 2022
10 November Interim Report Q3 2022
 

About R. STAHL – www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation. Typical customers are the oil & gas industry, the chemical and pharmaceutical industry and the food industry. In 2021 global sales amounting to around € 248 million were generated by 1,672 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

Forward-looking statements
This release contains forward-looking statements based on assumptions and estimates of R. STAHL’s management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.