EQS-Adhoc: H&R GmbH & Co. KGaA: Preliminary results for Q1-2024 published

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

H&R GmbH & Co. KGaA: Preliminary results for Q1-2024 published

- Results recovered significantly in Q1-2024 compared to the previous year

- EBITDA improved by almost 50% to EUR 21.3 million (Q1-2023: EUR 14.3 million)

Salzbergen, Germany, April 24, 2024. H&R GmbH & Co. KGaA (H&R KGaA for short; DE000A2E4T77) achieved an operating result (EBITDA - consolidated earnings before interest, taxes, depreciation and amortization, impairment losses and reversals of impairment losses on intangible assets and property, plant and equipment) of EUR 21.3 million in the first quarter of 2024 (Q1/2023: EUR 14.3 million), according to preliminary calculations, well above the level of the same quarter of the previous year. Although depreciation and amortization and financing expenses increased slightly again compared to the previous year, the improved performance is reflected across all earnings levels. EBIT amounted to EUR 6.8 million (Q1/2023: EUR 0.5 million) and earnings before taxes (EBT) to EUR 3.6 million (Q1/2023: EUR -2.2 million). At the bottom line, the Group achieved significantly improved earnings attributable to shareholders of EUR 1.5 million compared to the same quarter of the previous year (Q1/2023: EUR -0.9 million). This was achieved on sales of EUR 337.0 million, around 3.4% less than in the previous year (Q1/2023: EUR 349.0 million). Overall, we recorded robust demand in the first quarter of 2024. However, product prices and quotations remained below our expectations at the start of the year. The latter only brightened noticeably at the end of the quarter.  

Sales segment makes largest contribution to earnings as in previous year

The international sites of our ChemPharm SALES segment developed positively for the second year in a row. At EUR 122.9 million, H&R's sales almost exactly matched the previous year's figure (Q1/2023: EUR 123.1 million), while the previous year's EBITDA of EUR 6.4 million improved significantly to EUR 10.9 million in the first quarter of 2024. 

The energy-intensive production sites in the ChemPharm REFINING segment came under pressure. They sold lower volumes overall in the first quarter of 2024, also due to the rather subdued outlook in numerous customer industries. Sales fell to EUR 206.4 million (Q1/2023: EUR 219.5 million) despite higher raw material prices. Product prices remained very competitive in the first quarter, despite lower capacities from Southern Europe. During the course of the year, however, the market as a whole should respond to the shortage with higher margins and combine higher demand with more adequate product prices. The segment's EBITDA in the first quarter of 2024 already indicates such a trend: It amounted to EUR 10.5 million (Q1/2023: EUR 5.7 million).

The PLASTICS segment came under pressure in the first quarter of 2024 as a result of the weak automotive industry: the GAUDLITZ Group companies achieved a lower positive EBITDA of EUR 0.4 million (Q1/2023: EUR 1.2 million). Customers from the e-mobility sector in particular were unsettled by government subsidies in favor of Chinese manufacturers and took a wait-and-see approach.  Sales also fell accordingly, from EUR 13.2 million in the previous year to EUR 12.3 million in Q1/2024. 

Cash flow in Q1/2024 reflects higher raw material price

Operating cash flow in the first quarter of 2024 decreased to EUR 11.4 million (Q1/2023: EUR 48.5 million). This was primarily due to the development of the raw material price, which led to an increase in net working capital requirements. Free cash flow also closed significantly lower at EUR -0.2 million (Q1/2023: EUR 31.8 million).

Equity base remains solid

Total assets increased to EUR 971.2 million at the end of the first quarter of 2024 (31/12/2023: EUR 903.2 million). The Group's equity amounted to EUR 456.3 million as at the reporting date (31.12.2023: EUR 457.6 million). The ratio was 47.0% (31.12.2023: 50.7%).

Published guidance remains in focus

Based on Q1-2024, H&R is slightly below the course of the original full-year guidance for 2024 with a range of EUR 90.0m to EUR 110.0m. Nevertheless, we expect noticeable growth and positive effects from the markets over the course of the year. The company is therefore maintaining its guidance until further notice.

For a complete presentation of the business development including segment reporting and the quarterly financial statements, H&R KGaA refers to the Quarterly Statement 1/2024 to be published on May 15, 2024.

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:

Listed in the Prime Standard of the Frankfurt Stock Exchange, H&R GmbH & Co. KGaA is a specialty chemicals company active in the development and manufacture of chemical-pharmaceutical specialty products based on fossil, bio-based, synthesized and recycled hydrocarbons and in the production of 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.

1888319  24-Apr-2024 CET/CEST