KAP AG
KAP AG CONFIRMS ADJUSTED FULL-YEAR GUIDANCE FORECAST DESPITE CHALLENGING MARKET CONDITIONS
EQS-News: KAP AG
/ Key word(s): 9 Month figures
KAP AG CONFIRMS ADJUSTED FULL-YEAR GUIDANCE FORECAST DESPITE CHALLENGING MARKET CONDITIONS
Fulda, 23 November 2023 – KAP AG (“KAP”), a listed, medium-sized industrial holding company (German securities identification number: WKN 620840; ISIN DE0006208408), today published its financial figures for the first nine months of the financial year and at the same time confirmed its full-year guidance forecast, which had been adjusted in August. In the first nine months of 2023, the KAP Group’s revenue (without the contributions to revenue of the companies in the flexible films segment sold in April 2023) decreased by 10.0% to €252.6 million (previous year: €280.8 million). This reflects the fact that the third quarter in particular was weaker than expected due to the economic conditions. Normalised EBITDA without the contributions to earnings of the divested companies was down 21.8% to €17.2 million (previous year: €22.0 million). This results in a normalised EBITDA margin of 6.8% for the first nine months of 2023 (previous year: 7.8%). The Group was able to reduce net debt significantly by 53.4% to €50.2 million as of 30 September 2023 (31 December 2022: €107.8 million). This development is due above all to the cash inflow from the sale of a subsection of the flexible films segment. Marten Julius, Spokesman of the Management Board of KAP AG: “Similar to other manufacturing companies, we are seeing that many of our segments’ customers are currently postponing orders due to the economic conditions, with the result that our business will remain challenging in the coming months as well. However, talks with existing and prospective customers have made it clear that our products are still in demand and that we can therefore expect an improvement in incoming orders in the medium term. Until then, we will prepare accordingly. We are continuing to work intensively on more efficient structures and are setting the right course for profitable growth.” Without the contributions of the divested companies, the flexible films segment generated revenue of €65.6 million in the reporting period, 20.8% less than in the strong previous-year period (previous year: €82.8 million). In addition to higher interest rates, which are generally burdening the construction business, the end of the COVID-19-related economic buoyancy had a noticeable impact here: The “cocooning” phase during the pandemic fuelled extra demand from end customers, that has since been satisfied, however. In addition, to meet the high demand many retailers had stockpiled significantly higher inventories last year, which they are now cutting back to normal pre-pandemic levels. Normalised EBITDA without the contributions to earnings of the divested companies was down 10.9% to €9.1 million (previous year: €10.3 million). The normalised EBITDA margin, without the contribution from the segment’s divested subsection, improved by 1.5 percentage points to 13.9% (previous year: 12.4%), reflecting the successful further development of the remaining section of the segment. In the engineered products segment, revenue decreased from €113.6 million in the same period of the previous year to €92.5 million; normalised EBITDA decreased from €7.5 million to €3.0 million. This was influenced by the expiry of two major customer orders in the Czech Republic and the United States. For this reason, and in response to the weak market caused by the economic situation, KAP has already taken measures to adjust capacity and increase efficiency in this segment. Over the next quarters, these will lead to significant savings and greater use of synergies thanks to leaner structures. The new plant in Jasper, USA, had a noticeable impact on revenue in the surface technologies segment, which rose by 7.2% from €49.9 million to €53.5 million in the first nine months of 2023. In addition, there was an increase in call-offs from major car manufacturers. In contrast, normalised EBITDA decreased from €6.4 million to €5.3 million due to structural adjustment measures at individual plants. Expenses incurred in connection with optimising the production process in Jasper had an impact on the segment result, as did the higher costs that have not yet been fully passed on to customers. Thanks to the flexible set-up and the great commitment of our employees in the segment, the repercussions of the fire at the Polish site were very limited. The planned reconstruction in Poland and the further ramp-up of the new plant in the United States will contribute to a considerable increase in revenue. Realized price increases and slightly higher customer call-offs caused revenue in the precision components segment to rise by 17.7% from €34.8 million to €40.9 million in the first nine months. Normalised EBITDA more than doubled, from €1.1 million to €2.5 million. This positive development reflects efficiency improvements, the ability to pass on higher energy and raw materials costs to the segment’s customers and higher sales volumes. Guidance forecast for the 2023 financial year confirmed [1] In the previous year, without the divested companies in the flexible films segment, the Group generated revenue of €360.1 million and normalised EBITDA of €23.5 million. Contact:
About KAP AG
23.11.2023 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: | 1779715 |
End of News | EQS News Service |