02.04.2020 2G Energy AG  DE000A0HL8N9

DGAP-News: 2G Energy AG improves EBIT margin to 6.5 % in the 2019 financial year (previous year: 5.5 %) and, barring unforeseen developments, is looking ahead to the current 2020 financial year with cautious optimism despite Covid-19


DGAP-News: 2G Energy AG / Key word(s): Preliminary Results/Forecast
2G Energy AG improves EBIT margin to 6.5 % in the 2019 financial year (previous year: 5.5 %) and, barring unforeseen developments, is looking ahead to the current 2020 financial year with cautious optimism despite Covid-19

02.04.2020 / 08:30
The issuer is solely responsible for the content of this announcement.

  • Group Net Sales grow by around 13 % to EUR 236.4 million (previous year: EUR 209.8 million)
  • EBIT improves significantly to EUR 15.5 million (previous year: EUR 11.5 million, + 35 %), with a consolidated net profit of EUR 10.3 million (previous year: EUR 7.6 million, + 35 %)
  • New order intake remains robust despite Covid-19, rising to EUR 45 million in Q1 (previous year: EUR 39.2 million, + 15 %)
  • Management Board reaffirms 2020 sales forecast of EUR 235-250 million and expects EBIT margin of between 5.5 % and 7.0 %

2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of gas-fired combined heat and power (CHP) plants, grew consolidated sales by around 13 % to EUR 236.4 million in the 2019 financial year (previous year: EUR 209.8 million). This also enabled a further significant improvement in profitability, with EBIT increasing to EUR 15.5 million (previous year: EUR 11.5 million, + 35 %), corresponding to an EBIT margin of 6.5 % (previous year: 5.5 %).

Marked rise in sales from international and service business
Both the international and the service business made a disproportionately high contribution to sales growth in the past financial year. Net sales outside Germany climbed by 14 % year-on-year to EUR 82.9 million, with 39 % (previous year: 40 %) of total sales revenues coming from the sale of CHP plants in foreign countries. The subsidiaries generating the highest sales were 2G Energy Inc. (USA) with EUR 18.4 million (previous year: EUR 6.9 million) and 2G Energy Ltd. (UK) with EUR 18.1 million (previous year: EUR 13.8 million).
The service business and spare parts sales enjoyed similarly strong growth. 2G increased net sales from these activities by 15 % to EUR 89.4 million (previous year: EUR 78.0 million), with these additional service and spare parts sales split more or less evenly between Germany and abroad.

Cost of materials ratio down, personnel cost ratio up
Further efforts to optimize the consolidation of low-waste, high-quality procurement and production processes in 2019 as part of the "Lead to Lean" project pushed the cost of materials down to EUR 146.8 million (previous year: EUR 148.7 million) despite a rise in total operating revenue (EUR 226.1 million as against EUR 221.1 million in the previous year). This equates to a lower cost of materials ratio of 64.9 % (previous year: 67.3 %).

Personnel costs, by contrast, increased by EUR 3.7 million to EUR 39.0 million (previous year: EUR 35.3 million). This change is due to an - albeit relatively small - increase in headcount (primarily in commercial operations) as well as higher average costs per employee. "Implementing industrial processes means efficiency savings and faster throughput, but also a higher level of qualifications for our team," explained CFO Friedrich Pehle. "We are also faced with the challenge of being based in a region where unemployment is under 3 %, meaning fierce competition for skilled staff and managers."

Brisk new order intake in Q1 2020 - Management Board looking ahead to the current financial year with cautious optimism despite Covid-19, barring unforeseen developments
2G received new orders worth EUR 45 million in the first quarter (previous year: EUR 39.2 million). The trend in Germany has been particularly pleasing, with new orders for natural-gas-operated systems rising by 76 % to EUR 9.0 million (previous year: EUR 5.1 million). This brisk new order intake has resulted in a very healthy order backlog, with the order book position standing currently at around EUR 150 million at the end of the first quarter (previous year: EUR 156.3 million).

In light of the very full order books and the current general business trend in Germany and abroad, the Management Board is cautiously optimistic that, taking account of the exceptional circumstances, net sales will be able to hit EUR 235-250 million despite the ongoing Covid-19 crisis. "We are seeing delays in the acquisition and project planning phase especially in Italy and the UK," said CFO Friedrich Pehle. "However, in our industry, postponing projects doesn't mean canceling them completely. Since the start of the year, in fact, our actual order intake trend has stayed positive. So far, the coronavirus has only had a minimal negative impact on 2G's day-to-day business. We've also got a large stock of engines on hand for the most common CHP modules. Something else in our favor is the fact that we significantly expanded our warehouse capacity at our Heek site last year and built up our inventories. In addition, 2G has a very healthy balance sheet and ample liquidity."

"We agreed preventive measures at a very early stage and provided our staff with recommendations for dealing with Covid-19 in their day-to-day lives at work and at home," added CEO Christian Grotholt. "We've also invested in additional IT equipment and further precautions. As well as protecting all our employees, the Management Board is also focusing on maintaining business operations and continuing to ensure the supply of energy to our customers through fully functional CHP. We've hardly had any significant disruptions to our normal business processes so far."

However, the extensive protective measures implemented, the additional cost incurred in purchasing hard-to-get parts and delays on construction sites that could not be completely avoided are resulting in a loss of efficiency. Adopting an approach in line with due commercial prudence, 2G is currently expecting to be able to achieve an EBIT margin for the 2020 financial year that is within the same range as the past financial year, i.e. between 5.5 % and 7.0 %.

Looking ahead to the long term, the Management Board is sticking with its target of generating EUR 300 million in sales by 2024 and improving Group profitability with a target EBIT margin of 10 % on a lasting basis through efficiency savings from its flagship projects, margin contributions from the service business and leveraging economies of scale.

2G company portrait
2G Energy AG is an internationally leading full-service provider of combined heat and power systems (CHP) with electric output between 20 kW and 2,000 kW, which are deployed for the decentralized generation and supply of electricity and heating. 2G is consistently expanding its technology leadership through continuous research and development work, both in gas engine technology for natural gas, biogas and synthetic gas applications (e.g. hydrogen), as well as in specific software development. In particular, this product range, which is based on thousands of systems realized, significantly differentiates 2G from its competitors.

2G benefits from global long-term trends that make efficient and effective energy solutions ever more important. These include rising energy demand accompanied at the same time by the need to conserve natural resources. Moreover, in the energy revolution's future electricity market design, the digitalization that 2G consistently implements forms an indispensable system-relevant element in combination with solar, wind, biogas and natural gas producers and creates a high barrier to market entry for competitors.

The cogeneration of mechanical energy and heating/cooling make CHP technology more efficient and more environmentally compatible than conventional energy production methods. Compared with conventional electricity generation, CHP technology saves up to 40 percent of primary energy, and emits up to 60 percent less carbon dioxide and nitrogen oxides. 2G customers thereby benefit consistently from innovations that are highly beneficial economically and ecologically, that rapidly pay for themselves and that create extensive added value.

2G employs around 600 staff at its headquarters in Heek, Germany, in St. Augustine, USA, as well as at five other European locations. The company is active in a total of 50 countries and generated sales of some EUR 236.0 million in the 2019 financial year. 2G was founded in 1995 and has been listed on the stock market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the "Scale" segment of the Frankfurt Stock Exchange. The share capital amounts to EUR 4,430,000 and is divided into 4,430,000 shares. As of December 31, 2019, company founders Christian Grotholt and Ludger Gausling held a 52.3 % interest in the company, with the free float amounting to 47.7 %.

2020 calendar dates
April 23                 Solventis Aktienforum, Frankfurt am Main
May 8                    Publication of the consolidated financial statements as of December 31, 2019
May 28                 Q1 key figures and business trends
June 30 - July 01 Spring conference, Frankfurt am Main
June 23                Ordinary AGM, Ahaus
September 17      Interim consolidated financial statements as of June 30, 2020
November 16       Q3 key figures and business trends
November 16-18 German Equity Forum, Frankfurt am Main

IR contact
2G Energy AG
Benzstr. 3, 48619 Heek
Phone: +49 (0)2568 93 47-2795
Fax: +49 (0)2568 93 47-15
Email: [email protected]
Internet: www.2-g.de

02.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: 2G Energy AG
Benzstr. 3
48619 Heek
Phone: +49 (0)2568-9347-0
Fax: +49 (0)2568-9347-15
E-mail: [email protected]
Internet: www.2-g.de
Indices: Scale 30
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Stuttgart, Tradegate Exchange
EQS News ID: 1013219

End of News DGAP News Service

1013219  02.04.2020 


Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 152,88 174,30 189,40 209,78 236,40 246,73 257,00
EBITDA1,2 8,07 9,24 11,12 15,37 19,17 20,11 22,20
EBITDA-Marge3 5,28 5,30 5,87 7,33 8,11 8,15 8,64
EBIT1,4 4,77 5,65 7,33 11,45 15,45 16,45 18,20
EBIT-Marge5 3,12 3,24 3,87 5,46 6,54 6,67 7,08
Jahresüberschuss1 2,60 1,78 4,92 7,61 10,30 11,96 12,45
Netto-Marge6 1,70 1,02 2,60 3,63 4,36 4,85 4,84
Cashflow1,7 2,06 6,38 12,85 4,88 1,92 9,79 8,50
Ergebnis je Aktie8 0,59 0,40 1,11 1,72 2,33 2,70 2,78
Dividende8 0,37 0,40 0,42 0,45 0,45 0,45 0,50
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: PricewaterhouseCoopers

2G Energy
WKN Kurs in € Einschätzung Börsenwert in Mio. €
A0HL8N 114,000 Kaufen 511,29
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
33,53 25,30 1,35 71,07
6,70 52,25 2,07 25,15
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
0,45 0,45 0,39 15.06.2021
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
17.05.2021 09.09.2021 18.11.2021 29.04.2021
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
22,63% 24,54% 26,95% 83,28%
Wirtschaftsprüfer BGFL-Scoring Coverage
PricewaterhouseCoopers 0,000
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