EQS-News: KAP AG
/ Key word(s): 9 Month figures
KAP AG REPORTS REVENUE AND EARNINGS GROWTH IN THE FIRST NINE MONTHS OF 2022
Fulda, 23 November 2022 – KAP AG (“KAP”), a mid-sized industrial holding company listed on the stock exchange (German securities identification number: WKN 620840; ISIN DE0006208408) reports a significant increase in revenue in the first nine months of 2022. Earnings also increased. However, there was a slowdown in momentum at earnings level, particularly in the third quarter, due to a time lag in passing on energy and raw material price increases to customers.
Compared with the first nine months of 2021, revenue increased by 29.4% to €344.4 million (previous year: €266.3 million). Normalised EBITDA totalled €30.9 million, up 3.3% on the comparative figure for 2021 (€29.9 million). The normalised EBITDA margin came to 9% (previous year: 11.2%). This reflects the fact that significant increases in raw material prices and energy costs can often only be passed on to customers with a time lag.
Eckehard Forberich, member and Spokesman of the Management Board of KAP AG: “We saw a solid first half of the year, but felt a slowdown in momentum in the third quarter, especially at earnings level. This is primarily due to the market environment with higher raw material and energy prices, which is unlikely to change much for the better in the foreseeable future. Overall, however, we are benefiting from our long-standing and trusting customer relationships together with the diversified positioning of our segments.”
Good segment performance in revenue, earnings impacted by rising prices
The engineered products segment also recorded a significant increase in revenue, from €88.2 million to €113.6 million. This development is mainly due to price increases resulting from the significant rise in raw material and energy costs. Normalised EBITDA rose by 25% from €6.0 million to €7.5 million. In this energy-intensive segment, price increases have so far mostly been passed on to customers, in some cases with a time lag.
In the surface technologies segment, revenue increased by 12.4% to €49.9 million; the comparative figure for the previous year was €44.4 million. It was not possible to pass on to customers the significant increases in energy prices, particularly for gas used to heat chemical baths, to any relevant extent. As a result, normalised EBITDA decreased from €8.0 million in the first nine months of 2021 to €6.4 million.
Significantly higher prices, especially for steel and PVC, also impacted the precision components segment. It was possible to increase revenue, from €30.6 million to €34.8 million, while normalised EBITDA decreased from €1.6 million to €1.1 million, as mentioned above, mainly due to the time lag in passing on increased raw material costs.
Cash flows and financials
Management Board confirms forecast for 2022
The full interim report for the first nine months of 2022 can be downloaded from the Company’s website at link.
23.11.2022 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
|Edelzeller Straße 44|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1493765|
|End of News||EQS News Service|
1493765 23.11.2022 CET/CEST