10.08.2023 GEA Group Aktiengesellschaft  DE0006602006

EQS-News: GEA continues positive performance in second quarter of 2023 and makes major strides toward achieving its sutainability targets


 

EQS-News: GEA Group Aktiengesellschaft / Key word(s): Half Year Results
GEA continues positive performance in second quarter of 2023 and makes major strides toward achieving its sutainability targets

10.08.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.


GEA continues positive performance in second quarter of 2023 and makes major strides toward achieving its sustainability targets

 

  • Order intake down 1.6 percent on the prior-year level at EUR 1.38 billion (Q2 2022: EUR 1.40 billion),
    but up by 2.4 percent organically
  • Revenue growth of 5.6 percent (organic: +9.4 percent) to EUR 1.34 billion (Q2 2022: EUR 1.27 billion)
  • EBITDA before restructuring expenses again rise significantly by 14.4 percent to EUR 191.5 million
    (Q2 2022: EUR 167.4 million); corresponding EBITDA margin increases further to 14.3 percent
    (Q2 2022: 13.2 percent)
  • ROCE further improves to 33.8 percent (Q2 2022: 29.7 percent)
  • Net working capital as percentage of revenue rises year on year to 8.5 percent (Q2 2022: 7.9 percent); net liquidity falls to EUR 65.1 million (Q2 2022: EUR 263.7 million) mainly due to the EUR 170.0 million payment for the second tranche of the share buyback program
  • Forecast for fiscal year 2023, which was raised in May, confirmed
  • As an industry pioneer, GEA also aims to have its steps to achieving net zero by 2040 validated by the SBTi (interim targets to 2030 already validated)
  • Add Better portfolio expanded to include sustainable solutions validated by TÜV Rheinland,
    one of the world’s leading testing services providers

GEA continued its positive performance of recent years in the second quarter of 2023 despite a slight decline in order intake. The key performance indicators of organic revenue, EBITDA before restructuring expenses and ROCE, again show a significant improvement compared with the prior-year quarter. Although order intake declined slightly by 1.6 percent to EUR 1.38 billion, it rose by 2.4 percent organically. Revenue increased by a clear 5.6 percent to EUR 1.34 billion and by an even more substantial 9.4 percent organically. All divisions contributed to this development. EBITDA before restructuring expenses rose significantly by 14.4 percent to EUR 191.5 million. The corresponding EBITDA margin increased further to 14.3 percent. Return on capital employed (ROCE) was further improved to 33.8 percent. Net working capital as a percentage of revenue amounted to 8.5 percent and net liquidity declined to EUR 65.1 million mainly due to the EUR 170.0 million payment for the second tranche of the share buyback program.

“We are pleased that our positive development continues and that we were able to maintain this in the second quarter. Thus, we are confirming our full-year guidance, which we raised in May. We are fully on track to achieve our Mission 26 goals,” says CEO Stefan Klebert. “Looking ahead, I am convinced that sustainability will be a crucial growth driver. Several of our installations for CO2 capture are already successfully in use. We are driving the necessary change in our industries with technology and innovative solutions.”

Order intake and revenue show strong organic growth

At EUR 1,381 million, order intake in the second quarter of 2023 was slightly down by 1.6 percent on the prior-year level of EUR 1,403 million. Organically, growth of 2.4 percent was recorded. The rise in the Liquid & Powder Technologies and Food & Healthcare Technologies divisions did not compensate for the decline in the other divisions. Our customer industries beverage, and notably chemical, showed strong growth.

With regard to large orders (> EUR 15 million), the Liquid & Powder Technologies division secured three significant orders in the months April to June 2023, totaling EUR 81 million. In the prior-year quarter, there were two orders in two divisions worth a total of EUR 52 million.

Revenue rose by 5.6 percent (organic: +9.4 percent) in the reporting period to EUR 1,342 million (Q2 2022: EUR 1,271 million). All divisions contributed to this development. Almost all regions saw an increase in revenue, with a particularly distinct rise of around 21 percent compared with the prior-year quarter in Latin America. Revenue growth was also seen in the majority of customer industries, with the exception of new food, beverage and pharma. The chemical customer industry recorded especially strong growth. In the second quarter of 2023, the share of service revenue increased by 0.9 percentage points to 35.5 percent (Q2 2022: 34.6 percent).

Almost all divisions contribute to significantly improved earnings in second quarter
EBITDA before restructuring expenses increased by a considerable 14.4 percent to EUR 191.5 million (Q2 2022: EUR 167.4 million) thanks to the positive operating performance. The corresponding EBITDA margin rose again to 14.3 percent compared with 13.2 percent in the prior-year quarter. All divisions, with the exception of Food & Healthcare Technologies, contributed to this improvement.

Profit for the period climbed by 27.5 percent in the second quarter to EUR 97.8 million (Q2 2022: EUR 76.7 million). Accordingly, earnings per share rose from EUR 0.43 to EUR 0.57. At EUR 0.62, earnings per share before restructuring expenses were significantly higher than the prior-year figure of EUR 0.53.

Net liquidity decreased compared with the prior-year quarter. As of June 30, 2023, net liquidity – including lease liabilities – amounted to EUR 65.1 million (June 30, 2022: EUR 263.7 million). The largest cash outflow was mainly attributable to the payment for the second tranche of the share buyback program, which amounted to EUR 170.0 million. Further cash outflows related to the dividend payout of EUR 163.7 million and the higher net working capital. As a proportion of revenue, net working capital stood at 8.5 percent and thus was up on the prior-year figure of 7.9 percent.

Return on capital employed (ROCE) increased markedly from 29.7 percent to 33.8 percent. All divisions, with the exception of Food & Healthcare Technologies, recorded improved ROCE.

First half of 2023 at a glance

Despite the difficult economic environment, GEA increased its order intake by 0.5 percent (organic: +3.2 percent) to EUR 2,962 million in the first six months of the current fiscal year (previous year: EUR 2,947 million). Revenue rose by 9.0 percent (organic: +11.5 percent) in the first half of the year to EUR 2,613 million. The service business accounted for 36.0 percent of total revenue (previous year: 35.4 percent). EBITDA before restructuring expenses increased by a substantial 18.8 percent to EUR 363.3 million in the reporting period (previous year: EUR 305.7 million). The corresponding EBITDA margin improved again by 1.1 percentage points to 13.9 percent (previous year: 12.8 percent). Profit for the period again improved by 20.5 percent to EUR 179.5 million in the first half of the year (previous year: EUR 148.9 million). Accordingly, earnings per share again increased significantly by EUR 0.20 to EUR 1.04.

Outlook for 2023 fiscal year confirmed

GEA has confirmed its forecast for fiscal year 2023, which was raised in May. Revenue is expected to grow on an organic basis by more than 8.0 percent. EBITDA before restructuring expenses at constant exchange rates is anticipated to be at the upper end of a range between EUR 730 million and 790 million. At the same time, GEA aims to further increase the EBITDA margin before restructuring expenses to at least 14.0 percent. GEA expects ROCE to be more than 32.0 percent. This applies in each case at constant exchange rates.

GEA aims for independent SBTi validation of its steps toward net zero by 2040

Sustainability is crucial to GEA’s long-term success and therefore a key lever of the Mission 26 strategy. By 2030, Scope 1 and 2 greenhouse gas emissions are to be cut by 60 percent and Scope 3 greenhouse gas emissions by 18 percent compared with the base year 2019. These interim targets were validated by the globally recognized Science Based Targets initiative (SBTi) in 2021.

GEA has set its sights on reducing its greenhouse gas emissions to net zero by 2040 at every link in the value chain (Scope 1 to 3). The company now also aims to have the steps on its path to achieving net zero independently validated; confirmation from SBTi is expected in the first quarter of 2024.

Add Better portfolio expanded to include water-saving GEA solutions, among others

Launched in June 2023, the TÜV Rheinland-validated Add Better label helps customers reduce their emissions. The label highlights all GEA solutions – from industrial machines and processes to digital solutions and entire plants – that are now significantly more resource-efficient than their predecessors. Add Better provides customers with a detailed overview of the improvements made and how the solution can help them enhance their environmental performance.

In the past few weeks, the Add Better portfolio was expanded to include various solutions that notably help to conserve water. These solutions include the GEA Centrifuge Water Saving Unit, which recirculates the cooling water in separators, thereby reducing cooling water consumption by 99.9 percent compared with conventional cooling. This results in annual savings of more than 1.3 million liters of water per separator. Separators of this kind are used in the dairy industry to produce cream and whey, as well as in the beverage industry. Another example is the GEA ECOSpin2 Zero, which is used for wet sterilization in the process of filling PET bottles. As a new machine, this aseptic filling bloc consumes 91 percent less water than the previous model. Following a service upgrade, a previously installed machine can achieve 83 percent water savings. TÜV Rheinland also validated GEA E-Switch Bake, a retrofit system for gas tunnel ovens in bakeries. By switching from gas to electricity, energy consumption is reduced by 14 percent compared to the previous solution, which also reduces emissions.

“The most effective way to reduce overall emissions and protect the environment is to make machinery, equipment and components more efficient for our customers. We are therefore delighted that TÜV validated additional GEA solutions which save water as well as energy,” adds Chief Sustainability Officer Dr. Nadine Sterley.

 

Key Financial Figures of GEA

 

(EUR million) Q2
2023
Q2
2022
Change
in %
Q1-Q2
2023
Q1-Q2
2022
Change
in %
Results of operations            
Order intake 1,381.4 1,403.3 –1.6 2,962.1 2,946.9 0.5
Book-to-bill ratio 1.03 1.10 1.13 1.23
Order backlog 3,451.9 3,355.8 2.9 3,451.9 3,355.8 2.9
Revenue 1,342.2 1,271.0 5.6 2,613.1 2,397.4 9.0
Organic revenue growth1 9.4 8.9 46 bps 11.5 7.8 368 bps
Share of service revenue in % 35.5 34.6 90 bps 36.0 35.4 68 bps
EBITDA before restructuring expenses 191.5 167.4 14.4 363.3 305.7 18.8
as % of revenue 14.3 13.2 109 bps 13.9 12.8 115 bps
EBITDA 179.2 146.0 22.8 336.5 277.9 21.1
EBIT before restructuring expenses 147.4 122.4 20.5 275.2 217.0 26.8
EBIT 135.1 98.8 36.7 248.0 187.2 32.5
Profit for the period 97.8 76.7 27.5 179.5 148.9 20.5
ROCE in %2 33.8 29.7 406 bps 33.8 29.7 406 bps
Financial position            
Cash flow from operating activities 30.7 50.8 –39.6 –18.6 37.1
Cash flow from investing activities –63.7 –39.7 –60.5 –66.8 –53.8 –24.3
Free cash flow –33.0 11.1 –85.4 –16.7 < -100
Net assets            
Net working capital (reporting date) 457.5 384.1 19.1 457.5 384.1 19.1
as % of revenue (LTM) 8.5 7.9 63 bps 8.5 7.9 63 bps
Capital employed (reporting date)3 1,862.9 1,710.8 8.9 1,862.9 1,710.8 8.9
Equity 2,261.0 2,254.2 0.3 2,261.0 2,254.2 0.3
Equity ratio in % 39.6 38.7 86 bps 39.6 38.7 86 bps
Net liquidity (+)/Net debt (-)4 65.1 263.7 –75.3 65.1 263.7 –75.3
GEA Shares            
Earnings per share (EUR) 0.57 0.43 31.2 1.04 0.84 24.1
Earnings per share before restructuring expenses (EUR) 0.62 0.53 17.8 1.17 0.96 21.3
Market capitalization (EUR billion; reporting date)5 6.9 5.9 16.5 6.9 5.9 16.5
Employees (FTE; reporting date) 18,555 18,123 2.4 18,555 18,123 2.4
Total workforce (FTE; reporting date) 19,567 19,255 1.6 19,567 19,255 1.6
 
1)  By "organic", GEA means changes that are adjusted for currency and portfolio effects.
2)  EBIT before restructuring expenses of the last 12 months. Capital employed average of the last 4 quarters and excluding goodwill from the acquisition of the former GEA AG by former  Metallgesellschaft AG in 1999.
3)  Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999.
4)  Including lease liabilities of EUR 156.7 million as of June 30, 2023 (prior year EUR 164.9 million).
5)  The market capitalization includes treasury shares; Closing price as of June 30, 2023: EUR 38.18, Closing price as of June 30, 2022: EUR 32.49.

 

NOTE TO EDITORS

Media Relations

Anne Putz
Peter-Müller-Str. 12,
40468 Düsseldorf, Germany
Phone +49 211 9136-1500
[email protected]

 

About GEA

GEA is one of the world's largest suppliers of systems and components to the food, beverage, and pharmaceutical industries. The international technology group, founded in 1881, focuses on machinery and plants, as well as advanced process technology, components, and comprehensive services. With more than 18,000 employees working across five divisions and 62 countries, the group generated revenues of more than EUR 5.1 billion in fiscal year 2022. GEA plants, processes, components, and services enhance the efficiency and sustainability of production processes across the globe. They contribute significantly to the reduction of CO2 emissions, plastic usage, and food waste. In doing so, GEA makes a key contribution toward a sustainable future, in line with the company’s purpose: "Engineering for a better world".

GEA is listed in the German MDAX and the STOXX® Europe 600 Index and is also among the companies comprising the
DAX 50 ESG and MSCI Global Sustainability and the Dow Jones Sustainability Europe Indices.

 



10.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: GEA Group Aktiengesellschaft
Peter-Müller-Straße 12
40468 Düsseldorf
Germany
Phone: +49 (0)211 9136-0
Fax: +49 (0)211 9136-31087
E-mail: [email protected]
Internet: www.gea.com
ISIN: DE0006602006
WKN: 660200
Indices: MDAX
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Munich; Regulated Unofficial Market in Hanover, Stuttgart, Tradegate Exchange
EQS News ID: 1700253

 
End of News EQS News Service

1700253  10.08.2023 CET/CEST

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Die wichtigsten Finanzdaten auf einen Blick
  2017 2018 2019 2020 2021 2022 2023
Umsatzerlöse1 4.604,51 4.828,21 4.879,70 4.635,05 4.702,91 5.164,71 5.373,49
EBITDA1,2 563,90 431,20 374,40 478,33 569,27 654,04 713,77
EBITDA-Marge3 12,25 8,93 7,67 10,32 12,11 12,66
EBIT1,4 380,91 259,78 -109,09 221,18 379,71 460,98 519,70
EBIT-Marge5 8,27 5,38 -2,24 4,77 8,07 8,93 9,67
Jahresüberschuss1 243,31 113,53 -170,67 96,83 305,17 401,43 392,76
Netto-Marge6 5,28 2,35 -3,50 2,09 6,49 7,77 7,31
Cashflow1,7 262,00 262,66 478,00 715,22 682,00 469,33 533,57
Ergebnis je Aktie8 1,31 0,63 -0,95 0,54 1,70 2,28 2,28
Dividende8 0,85 0,85 0,85 0,85 0,90 0,95 0,80
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2023 - 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: KPMG

INVESTOR-INFORMATIONEN
©boersengefluester.de
GEA Group
WKN Kurs in € Einschätzung Börsenwert in Mio. €
660200 46,080 Kaufen 7.941,02
KGV 2025e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
17,07 23,99 0,70 33,73
KBV KCV KUV EV/EBITDA
3,57 14,88 1,48 10,61
Dividende '22 in € Dividende '23 in € Div.-Rendite '23
in %
Hauptversammlung
0,95 1,00 2,17 30.04.2024
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
08.05.2024 07.08.2024 06.11.2024 07.03.2024
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
10,31% 18,16% 22,26% 34,58%
    
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