DGAP-News: GEA continues positive performance in second quarter 2022; outlook confirmed
DGAP-News: GEA Group Aktiengesellschaft
/ Key word(s): Quarter Results
GEA continues positive performance in second quarter; outlook confirmed
Düsseldorf, August 10, 2022 - GEA’s positive performance at the beginning of the year continued in the second quarter, with further improvement in its key financial indicators. Order intake rose by 8.5 percent to EUR 1.40 billion. Revenue climbed by 10 percent to EUR 1.27 billion. All divisions contributed to the organic revenue growth of 8.9 percent. EBITDA before restructuring expenses grew by 9 percent to EUR 167 million. The corresponding EBITDA margin remains at a high level of 13.2 percent despite the negative impact of the global supply chain issues and the war in Ukraine. Return on capital employed (ROCE) climbed to 29.7 percent while net working capital as a percentage of revenue improved to 7.9 percent and net liquidity rose significantly to EUR 264 million. According to CEO Stefan Klebert: “Thanks to a solid performance in the second quarter, GEA is on track for continued profitable growth. In addition, we implemented appropriate measures at an early stage to prepare GEA for the uncertain economic situation. We therefore confirm our outlook for 2022.” Robust order intake and revenue growth In the second quarter of 2022, order intake rose by 8.5 percent to EUR 1,403 million (Q2 2021: EUR 1,294 million). Two large orders (orders with a volume of over EUR 15 million each) totaling EUR 52 million from the German-speaking and Asian regions contributed to this development. In addition, the Dairy Farming, Dairy Processing and New Food customer industries experienced strong demand. Organic growth came to 6.7 percent. Revenue rose by 10.0 percent in the reporting period to EUR 1,271 million (Q2 2021: EUR 1,156 million). Organic revenue increased by 8.9 percent, the strongest quarterly rise in 10 years. This growth is attributable in particular to the Dairy Farming, Chemical and Food customer industries. The share of service revenue increased by 0.8 percentage points to 34.6 percent in the second quarter of 2022 Key financial indicators further improved EBITDA before restructuring expenses increased by 9 percent to EUR 167.4 million in the second quarter (Q2 2021: EUR 153.7 million). The corresponding EBITDA margin remains at a high level of 13.2 percent (Q2 2021: 13.3 percent), despite the negative impact of the global supply chain issues and the war in Ukraine. The increase in gross profit more than compensated for the offsetting effects resulting from divestments as well as higher travel and personnel expenses. At EUR 76.7 million, profit for the period remained at the prior-year level (Q2 2021: EUR 76.9 million). The positive operating performance was impacted notably by higher restructuring expenses of around EUR 20 million related to the optimization of production sites. Earnings per share therefore remained unchanged at EUR 0.43. Before restructuring expenses, however, earnings per share were up on the prior-year figure of EUR 0.48, at EUR 0.53. Net liquidity improved to EUR 263.7 million as of June 30, 2022, compared with EUR 202.8 million in the prior-year period. This increase was due in particular to the significant improvement in earnings. Net working capital as a percentage of revenue amounted to 7.9 percent compared with 8.3 percent in the previous year. Return on capital employed (ROCE) climbed to 29.7 percent from to 21.4 percent in the previous year. All divisions contributed to this development, with some recording significant growth in ROCE. First half of 2022 at a glance In the first six months of the current fiscal year, order intake rose by a significant Outlook for 2022 confirmed GEA has confirmed its outlook for fiscal year 2022. Revenue is forecast to grow on an organic basis by more than 5 percent. EBITDA before restructuring expenses at constant exchange rates is expected to be in a range between EUR 630 million and 690 million. For ROCE, the company anticipates a figure between 24 and 30 percent (at constant exchange rates).
GEA links Group financing to sustainability strategy The second tranche of the share buyback program adopted in 2021 was launched on July 6, 2022. This tranche comprises a repurchase volume of EUR 170 million and includes an ‘ESG feature:’ GEA has entered into a three-year partnership with Viva con Agua, a non-profit organization dedicated to safeguarding access to clean drinking water. Based on the guaranteed outperformance of the GEA share buyback program, GEA will donate EUR 250,000 to a drinking water project in Africa this year, in line with the company’s sustainability strategy. GEA is the first company in Germany to combine a share buyback with a sustainability initiative.
GEA Key Financial Figures
Media Relations Anne Putz Peter-Müller-Str. 12, 40468 Düsseldorf, Germany Phone +49 211 9136-1500
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
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 Indices. More information can be found online at gea.com.
Contact: GEA Group Aktiengesellschaft Phone +49 (0)211 9136 1081 Fax +49 (0)211 9136 31087 gea.com
10.08.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
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: | 1416835 |
End of News | DGAP News Service |
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1416835 10.08.2022
GEA Group AG Aktie
Die GEA Group AG Aktie steht recht gut da: Mehr Buy- als Sell-Einschätzungen in der Community.
Das Kursziel von 47 € für GEA Group AG weist auf ein leicht positives Potenzial gegenüber dem aktuellen Kurs von 42.5 € hin.