EQS-Adhoc: H&R GmbH & Co. KGaA: Preliminary results for nine month period 2023

Insider information pursuant to Article 17 of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary results for nine-month period 2023

• Sales reach EUR 1.0 billion (comparative period 2022: EUR 1.2 billion)
• EBITDA of EUR 66.6 million behind previous year's level (nine months 2022: EUR 103.3 million)
• Earnings stabilization continued in the third quarter of 2023
• Free cash flow growth to EUR 58.4 million (nine months 2022: EUR -60.3 million)

Salzbergen, Germany, October 17, 2023. H&R GmbH & Co. KGaA (in short: H&R KGaA; ISIN DE000A2E4T77) continued the recovery trend during the year at the end of the third quarter of 2023 and recorded a stable sales and earnings development. According to preliminary calculations, the consolidated operating result (EBITDA - consolidated earnings before income taxes, other financing income and expenses, and amortization, depreciation, and impairment losses and reversals of impairment losses on intangible assets and property, plant, and equipment) was EUR 27.2 million in the third quarter (Q3-2022: EUR 30.5 million). Overall, the third quarter showed the strongest momentum so far in fiscal 2023, although challenges (economic developments; availability of raw materials; price development electricity/energy; customer demand; competitive situation) remained overall. The results in detail: EBIT closed at EUR 13.0 million, down from last year's EUR 17.2 million. Earnings before taxes (EBT) for Q3-2023 were EUR 9.6 million (Q3-2022: EUR 15.3 million), while in terms of consolidated net income attributable to shareholders, the company closed at EUR 7.6 million (Q3-2022: EUR 10.4 million). Sales in the third quarter of the current fiscal year decreased - due to volume and raw material prices - to EUR 337.2 million (Q3-2022: EUR 419.6 million).

Looking at the entire nine-month period 2023, the Group achieved stable EBITDA of EUR 66.6 million (nine-month period 2022: EUR 103.3 million) and lower sales of EUR 1,036.8 million (nine-month period 2022: EUR 1,225.4 million) for the reasons mentioned above. Depreciation and amortization increased by around 6.6 percent compared to the previous year, resulting in EBIT of EUR 24.1 million (nine months 2022: EUR 63.4 million). A comparable trend was also seen in earnings before taxes (EBT), which amounted to EUR 15.2 million (nine months 2022: EUR 58.2 million). Consolidated earnings attributable to shareholders closed at EUR 11.3 million (nine months 2022: EUR 40.1 million). H&R KGaA thus generated earnings per share of EUR 0.30; at EUR 0.20, the third quarter of 2023 (nine months 2022: EUR 1.08; Q3-2022: EUR 0.28) contributed the highest share during the year.

The main contribution to earnings came from the ChemPharm REFINING segment. With EBITDA of EUR 20.9 million in the third quarter of 2023 (Q3-2022: EUR 19.4 million), it also performed slightly better than in the same quarter of the previous year. At EUR 43.2 million (Q3-2022: EUR 74.3 million), the segment performance for the nine-month period was at a reduced, but nevertheless stable level as a result of the development during the year. Sales in the segment reached EUR 634.1 million for the nine-month period (nine months 2022: EUR 802.7 million).

Our international activities of the ChemPharm SALES segment recorded overall reduced operating results of EUR 8.1 million in the third quarter and EUR 21.9 million in the nine-month period (Q3-2022: EUR 10.9 million; Nine-months 2022: EUR 29.6 million). Sales in the nine-month period were down year-on-year at EUR 380.2 million and at EUR 129.0 million in the quarter (nine months 2022: EUR 401.8 million; Q3-2022: EUR 141.9 million).

The PLASTICS segment generated an improved operating result for the nine-month period compared to the previous year, but the third quarter of 2023 was unable to make any contribution to this. EBITDA of EUR 3.0 million was achieved, unchanged since the first half of the year (Q3-2022: EUR 1.1 million; nine months 2022: EUR 2.4 million). At EUR 38.3 million and EUR 12.0 million, respectively, sales developed unevenly compared to the previous year's figures (nine months 2022: EUR 34.2 million; Q3-2022: EUR 13.1 million); mainly as a result of a still tense situation in the automotive industry. 

The operating cash flow of EUR 101.7 million in the first nine months of 2023 (first nine months of 2022: EUR -9.0 million) was significantly better than in the same period of the previous year. During the year, it was burdened primarily by lower raw material prices and the associated lower net working capital requirement. In total, it amounted to EUR 44.9 million in Q3 2023 (Q3-2022: EUR -7.6 million), while free cash flow was EUR 33.8 million (Q3-2022: EUR -31.6 million). As of the reporting date of September 30, free cash flow was EUR 58.4 million, compared to EUR -60.3 million in the previous year.

Total assets decreased from EUR 962.1 million to EUR 926.9 million compared to December 31, 2022, while equity decreased from EUR 471.2 million to EUR 466.9 million in the same period. As of September 30, 2023, the Company's equity ratio was 50.4% (December 31, 2022: 49.0%).

Overall, the Company has thus almost reached the lower end of the full-year expectations of EUR 70.0 million already after 9 months of the fiscal year. The company currently expects an operating result for the year of at least EUR 80.0 million. At the same time, the company is currently refraining from making more optimistic statements: In particular, a further escalation of the Middle East conflict could affect global trade and supply relations as well as raw material prices, adding to the known burdens from the Ukraine war. Management will monitor further developments closely and make further adjustments to business expectations as necessary.

The final financial figures and further information on business development to date in 2023 will be published as planned in the quarterly statement on November 15, 2023.

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:

H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil-based chemical and pharmaceutical specialty products and produces high-precision plastic parts. 

Forward-looking statements and forecasts:

This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.

1750869  17-Oct-2023 CET/CEST