HGears AG Reports First Quarter 2024 Results

hGears AG, a leading manufacturer in high-precision components, announced its Q1 2024 results on May 14, 2024, showing a mixed financial performance. Despite a decrease in group sales by 7.3% year-on-year to EUR 26.0 million, the company remains on track with its yearly projections, confirming its 2024 forecast.

The decline in sales primarily resulted from a significant drop in the e-Tools division, although this was partially offset by growth in the e-Bike and stable sales in the [e]-Mobility segments. The e-Bike sector saw a 14.2% increase from a low base last year, reaching EUR 6.0 million. [e]-Mobility improved slightly by 2.7%, totaling EUR 12.6 million. Conversely, the e-Tools faced a 29.6% decline due to excess inventory and reduced demand.

Gross profit declined to EUR 11.6 million, pushing the gross margin down to 44.8%. Adjusted EBITDA also fell to EUR 0.5 million, a significant drop from the previous year. However, the management remains optimistic, emphasizing agility and operational adjustments to navigate the challenging market conditions. In addition, hGears successfully secured financing for the next three years, highlighting their continued focus on stability and growth potential.