KAP AG
KAP HOLDS ITS OWN IN A CHALLENGING MARKET ENVIRONMENT AND RECORDS SOLID PERFORMANCE IN THE FIRST QUARTER OF 2024
EQS-News: KAP AG
/ Key word(s): Quarter Results
KAP HOLDS ITS OWN IN A CHALLENGING MARKET ENVIRONMENT AND RECORDS SOLID PERFORMANCE IN THE FIRST QUARTER OF 2024
Fulda, 28 May 2024 – KAP AG (“KAP”), a mid-sized industrial holding company listed on the stock exchange (German securities identification number: WKN 620840; ISIN: DE0006208408), held its ground in the first quarter of 2024 in a market environment that remained challenging. The Company generated revenue of €83.1 million (previous year: €98.1 million on a comparable basis, that is without the subsegment sold in April 2023). It should be noted that the revenue level in the first quarter of 2023 was particularly high on the back of pent up demand after the Covid-19 pandemic was overcome. Normalised earnings before interest, taxes, depreciation and amortisation (normalised EBITDA) came to €8.5 million in the first quarter of 2024, falling short of the previous year’s figure by €9.7 million (on a comparable basis). The structural measures initiated and in some cases already implemented to improve efficiency had a positive impact and have already made initial positive contributions. The normalised EBITDA margin improved accordingly by 0.3 percentage points to 10.2% (previous year: 9.9% on a comparable basis). Marten Julius, member and Spokesman of the Management Board of KAP AG: “Challenging economic factors continued to permeate the development of our segments at the beginning of the year. As announced, we responded consistently to the weak demand with structural measures and were thus able to perform well overall in the first quarter of 2024. Looking ahead to the further course of business, we are encouraged by the slight upturn in demand for our products and are certainly optimistic. Against the backdrop of the difficult environment, however, we are acting cautiously and with a clear focus on profitability.” Guidance forecast for the full financial year 2024 confirmed Heterogeneous developments across the individual segments Demand in the flexible films segment returned to normal in the reporting period, leaving behind the previous year’s effects attributable to the pandemic, which were manifested in an initial steep rise in demand followed by a subsequent significant decline. At €25.5 million (previous year: €27.8 million on a comparable basis, that is without the subsegment sold in April 2023), revenue was only 8.3% below what had been a very good level in the previous year. The structural measures implemented are already taking effect here too, with the segment’s normalised EBITDA rising by 15.0% to €4.6 million (previous year: €4.0 million on a comparable basis). This equates to a significant improvement of the normalised EBITDA margin, which widened by 3.6 percentage points to 18.0% (previous year: 14.4% on a comparable basis). The performance of the surface technologies segment in the first quarter of 2024 was characterised by continued weakening demand from the automotive sector. In Germany in particular, the number of new electric car registrations fell significantly, as did demand for surface coatings for car parts. In effect, this led to a decrease in revenue by 10.3% to €17.0 million (previous year: €19.0 million). This decline, combined with high energy costs in production, resulted in a normalised EBITDA of €1.6 million (previous year: €2.4 million), down 30.9% year on year. The normalised EBITDA margin came to 9.7% (previous year: 12.5%). The precision components segment saw revenue decrease by 9.8% to €13.6 million (previous year: €15.1 million). Aside from the reticent stance of automotive sector customers, demand for e-bike components was particularly sluggish. Combined, these effects led to a lower utilisation of capacity, with a corresponding impact on earnings. As a result, normalised EBITDA came to €0.9 million (previous year: €1.3 million), down 33.1%. The normalised EBITDA margin came to 6.4% (previous year: 8.6%). Contact:
About KAP AG
28.05.2024 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: | 1911879 |
End of News | EQS News Service |