Delignit AG generates revenue of € 32.1 million and EBITDA margin of 5.9 % in H1 2022 and confirms guidance for fiscal year 2022

Blomberg, 23 August 2022. Delignit AG (ISIN DE000A0MZ4B0), a leading manufacturer of ecological, hardwood-based products and system solutions, generated revenue of € 32.1 million in a challenging first half of 2022, compared to € 36.3 million in the same period of the previous year. Earnings before interest, depreciation and amortisation (EBITDA), amounted to around €1.9 million at the end of the first half of the year, which corresponds to an EBITDA margin of 5.9%, and is therefore also significantly below the previous year's figure (previous year 8.6% EBITDA margin) Despite the lower profitability, earnings per share remained clearly positive at 4 cents. In light of the recent stabilization of demand, the Management Board expects revenue and profitability to pick up significantly in the second half of the year.

Once again, the first six months of 2022 marked a period of considerable market challenges for the Delignit Group. With the start of the year already dominated by ongoing supply chain disruptions, Russia’s unexpected war against Ukraine and new Covid-19 restrictions, primarily in China, led to a further aggravation of this situation. Key OEM customers for the Delignit Group were again forced to close numerous plants, mostly at very short notice, which led to strongly fluctuating call-off figures and repeated production interruptions for the Delignit Group. At the same time, profitability was burdened by dramatic price increases and shortages of key raw materials and primary materials.

Despite the ongoing uncertainties, the Management Board is optimistic about the upcoming second half of the year. On the one hand, the call-off situation at key OEM customers has recently become much more stable. On the other hand, the Delignit Group also achieved important successes in the first half year in the pass-on of increases in raw material costs under long-term serial supply contracts. Furthermore, the sudden loss of Russia as the world’s largest plywood supplier creates additional growth potential for the Delignit Group, both at existing and new customers, some of which were already tapped in the first half of the year. At the same time, the positive market developments are somewhat offset by challenges in the required capacity-related adjustment of the Delignit Group's plants to the partly very high level of demand.

Given the still very high order backlog and the positive market outlook, the Management Board reaffirms its guidance for the full year 2022 issued in the Annual Report and continues to expect slight revenue growth with a somewhat lower EBITDA margin compared to the previous year. Nevertheless, there remain considerable uncertainties and unforeseeable risks due to potential gas shortages and resulting rationing measures in the second half of the year, as well as sustained high inflation, which can also have a significant impact on the business outlook of the Delignit Group.

The full 2022 half-year report will be published on 23 August 2022 and will be available from the Investor Relations section of the company’s website at www.delignit.com.

About the Delignit Group:

The Delignit Group develops, produces and sells ecological materials and system solutions made of renewable raw materials under the brand name Delignit. As a recognised development, project and serial supplier of leading automotive groups, the Delignit Group is, among other things, world market leader for supplying the automotive industry with cargo bay protection and cargo securing systems for light commercial vehicles. With a variety of applications and a vertical integration that are unique in its industry, the Delignit Group serves numerous other technology sectors, for example as a worldwide system supplier of reputable rail vehicle manufacturers. Delignit solutions have exceptional technical properties and are also used, among other things, as trunk floors in passenger cars, interior equipment for motor caravans and special floors for factory and logistics buildings and to improve building security standards.

Delignit material is predominantly based on European hardwood, is carbon-neutral in its life cycle and therefore ecologically superior to non-regenerative materials. The use of the Delignit material therefore improves the environmental performance of customer products and meets their increasing ecological requirements. The company was founded over 200 years ago. Delignit AG is listed in the Scale segment of the Frankfurt Stock Exchange.

Further information is available online at www.delignit.com.

Contact:
Delignit AG
Königswinkel 2-6
32825 Blomberg
Tel. +49 5235 966-156
Fax +49 5235 966-351
e-mail: [email protected]