MAX Automation reports continued positive development in the first three quarters of 2023 despite macroeconomic and industry-specific challenges

PRESS RELEASE

MAX Automation reports continued positive development in the first three quarters of 2023 despite macroeconomic and industry-specific challenges
 

• Sales from continuing operations increase by 10.2% to EUR 326.4 million (9M 2022: EUR 296.1 million), driven by continued high order backlog
• Order intake from continuing operations declines by 15.9% to EUR 291.6 million (9M 2022: EUR 346.9 million), which is below the industry average – Strong growth of the bdtronic Group’s business partially compensates for order postponements in other segments
• Order backlog of continuing operations decreases by 11.8% due to high recognition of sales to EUR 267.3 million (31 December 2022: EUR 302.9 million)
• Operating result (EBITDA) from continuing operations increases by 18.4% to EUR 37.0 million (9M 2022: EUR 31.2 million) – EBITDA margin improves to 11.3% due to more efficient project execution and normalisation of material price increases (9M 2022: 10.6%)
• Expected Group sales and EBITDA forecast for the full year 2023 raised in July confirmed

 
Hamburg, 9 November 2023 - MAX Automation SE (ISIN DE000A2DA588), a company listed in the Prime Standard of the Frankfurt Stock Exchange, continued to develop positively in the first three quarters of 2023 despite the overall and industry-specific economic challenges. Customer-related investment restraint and postponements were particularly noticeable in individual companies in the investment portfolio in the third quarter, but remained below the industry average for the German mechanical engineering industry. The strong growth in the bdtronic Group segment partially compensated for order postponements in other segments.

ORDER SITUATION OF CONTINUING OPERATIONS CHARACTERISED BY OVERALL AND INDUSTRY-SPECIFIC ECONOMIC ENVIRONMENT

Consolidated order intake of the MAX Group’s continuing operations declined by 15.9% in the first three quarters of 2023 to EUR 291.6 million (9M 2022: EUR 346.9 million). The decline is mainly due to customers’ reluctance to invest and the related shifts in the NSM + Jücker, ELWEMA and Vecoplan Group segments. The bdtronic Group segment was able to offset this decline to some degree due to a steady increase in demand, including major orders in the areas of dispensing and impregnation technology. Following low demand in the same period of the previous year, the MA micro Group recorded a recovery in order intake at a low level. The order backlog of the MAX Group in the continuing operations declined by 11.8% to EUR 267.3 million (31 December 2022: EUR 302.9 million).

FURTHER IMPROVEMENT IN THE OPERATING RESULT AND MARGIN

Sales revenue from the MAX Group’s continuing operations increased by 10.2% in the first three quarters of 2023 to EUR 326.4 million (9M 2022: EUR 296.1 million). The bdtronic Group, Vecoplan Group and ELWEMA segments continued to make the largest contributions to growth on the basis of a high order backlog.

The MAX Group significantly increased earnings before interest, taxes, depreciation and amortisation (EBITDA) from continuing operations to EUR 37.0 million in the first three quarters of 2023 (9M 2022: EUR 31.2 million). In particular, more efficient project execution and a normalisation of material price increases enabled a further improvement in the EBITDA margin to 11.3% (9M 2022: 10.6%).

The operating cash flow of the MAX Group improved significantly over the course of the first three quarters of 2023 to a cash inflow of EUR 8.1 million (9M 2022: cash outflow of EUR 2.7 million). The substantially improved result for the period more than compensated for the increase in working capital.

The cash outflow in cash flow from investing activities amounted to EUR 5.8 million. The proceeds from the sale of a property were offset by payments for growth investments. In the same period of the previous year, the early repayment of vendor loans in particular had an impact (9M 2022: cash outflow of EUR 4.6 million).

Cash flow from financing activities led to a cash outflow of EUR 9.7 million, mainly due to interest payments (9M 2022: cash inflow of EUR 9.5 million). The same period of the previous year was characterised by increased utilisation of the new syndicated loan.

The increase in working capital as of 30 September 2023 to EUR 105.6 million (31 December 2022: EUR 71.6 million) was characterised by an increased project ramp-up and higher inventories, while lower advance payments for new projects and a higher level of receivables were also noticeable. Net debt increased by 16.1% to EUR 111.2 million (31 December 2022: EUR 95.8 million), in particular due to the increased working capital requirement. Cash and cash equivalents decreased by 21.2% to EUR 28.1 million (31 December 2022: EUR 35.7 million).

Guido Mundt, Chairman of the Supervisory Board of MAX Automation SE: “The successful restructuring and strategic realignment of the MAX Group for the future is particularly evident in the current environment. Despite the overall and industry-specific economic challenges, the MAX Group has continued to develop positively in operational terms. Thanks to the diversified approach of our portfolio companies, investment restraint and postponements are less noticeable than the average for the German mechanical engineering industry. The confirmation of our forecast for the current financial year underscores the robustness of our strategy of being able to leverage the value enhancement potential of well-positioned companies in niche markets, even in times of economic stagnation.”

EXPECTED SALES AND INCREASED EBITDA FORECAST FOR 2023 CONFIRMED

The Supervisory Board is confident of achieving the MAX Group’s targets for 2023, provided there is no deterioration in the overall economic and industry-specific development – for instance, as a result of the war in Ukraine or the terrorist attacks on Israel. For the current financial year, the Supervisory Board continues to anticipate consolidated sales for the MAX Group of between around EUR 410.0 million and EUR 470.0 million based on the continued high order backlog. In view of largely normalised material price increases and the current level of efficiency in project execution, the Supervisory Board is also sticking to its EBITDA forecast of between around EUR 38.0 million and EUR 44.0 million, which was raised on 21 July 2023.

KEY GROUP FIGURES AT A GLANCE

*Comparison of the reporting dates 30 September 2023 and 31 December 2022

KEY FIGURES OF THE SEGMENTS AT A GLANCE

*Comparison of the reporting dates 30 September 2023 and 31 December 2022

NOTE

The iNDAT segment, which was previously subject to reporting requirements, is reported as a discontinued operation in accordance with IFRS 5 due to its ongoing liquidation.

DETAILED FINANCIAL INFORMATION

The complete Interim Statement for the third quarter of 2023 of MAX Automation SE is available for download at https://www.maxautomation.com/en/investor-relations/financial-reports/.

CONTACT:

Marcel Neustock
Investor Relations
Phone: +49 - 40 - 8080 582 75
investor.relations@maxautomation.com
www.maxautomation.com

CONTACT FOR MEDIA REPRESENTATIVES:

Susan Hoffmeister
CROSS ALLIANCE communication GmbH
Phone: +49 - 89 - 125 09 03 33
sh@crossalliance.de
www.crossalliance.de

ABOUT MAX AUTOMATION SE

MAX Automation SE, headquartered in Hamburg, is a medium-sized finance and investment company focused on the management and acquisition of investments in growth and high cash flow companies operating in niche markets. The products and solutions of the portfolio companies are used in various end industries and for numerous industrial applications, including automotive, electronics, recycling, raw materials processing, packaging, and medical technology. MAX Automation SE has been listed in the Prime Standard of the Frankfurt Stock Exchange since 2015 (ISIN DE000A2DA588) and generated sales of EUR 409.2 million in 2022.

www.maxautomation.com