MAX Automation SE: Robust Q1 2024 in line with expectations – outlook confirmed

MAX Automation SE: Robust Q1 2024 in line with expectations – outlook confirmed

• Sales from continuing operations down slightly by 6.1% to EUR 90.6 million (3M 2023: EUR 96.5 million) due to continued sluggish demand
• Operating result (EBITDA) from continuing operations remains positive at EUR 7.9 million (3M 2023: EUR 9.7 million) despite decline in sales – EBITDA margin declined accordingly to 8.8% (3M 2023: 10.0%)
• Order intake from continuing operations down 21.1% to EUR 89.7 million (3M 2023: EUR 113.7 million) due to investment restraint
• Order backlog of continuing operations declines by 4.5% to EUR 196.8 million (31 December 2023: EUR 206.0 million)
• Outlook for 2024 for continuing operations confirmed: Sales of between EUR 390 million and EUR 450 million and EBITDA of between EUR 31 million and EUR 38 million

Hamburg, 14 May 2024 – MAX Automation SE (ISIN DE000A2DA588), a company listed in the Prime Standard of the Frankfurt Stock Exchange, proved resilient in the first quarter of 2024 and got off to a robust start to the new financial year by posting a positive result. The challenging economic conditions and uncertainties due to the effects of geopolitical tensions continued to restrain customers’ willingness to invest.

ORDER SITUATION OF CONTINUING OPERATIONS STILL CHARACTERISED BY INVESTMENT RESTRAINT

Consolidated order intake in the MAX Group’s continuing operations was down 21.2% to EUR 89.7 million in the first quarter of 2024 (3M 2023: EUR 113.7 million) due to customers’ continued reluctance to invest. Only the ELWEMA segment recorded strong growth with continuous follow-up orders. In the same period of the previous year, the bdtronic Group segment was still able to compensate for order postponements in other segments with non-recurring effects from major orders. The MAX Group’s order backlog in continuing operations declined by 4.5% to EUR 196.8 million (31 December 2023: EUR 206.0 million).

OPERATING RESULT REMAINS POSITIVE DESPITE DECLINE IN SALES AND COST INCREASES

Sales of the MAX Group’s continuing operations dropped slightly by 6.1% to EUR 90.6 million in the first quarter of 2024 due to restrained demand (3M 2023: EUR 96.5 million). The bdtronic Group segment recorded the highest growth in sales, driven by a continued high order backlog and strong service business.

The MAX Group continued to generate positive earnings before interest, taxes, depreciation and amortisation (EBITDA) from continuing operations of EUR 7.9 million in the first quarter of 2024 (3M 2023: EUR 9.7 million). In addition to the decline in sales, inflation-related wage increases and the increase in personnel in the bdtronic Group segment had a negative impact on earnings. As a result, the EBITDA margin declined to 8.8% (3M 2023: 10.0%).

The cash outflow in the MAX Group’s operating cash flow of EUR 8.1 million in the first quarter of 2024 (3M 2023: cash inflow of EUR 0.3 million) resulted from the order-induced increase in working capital in the bdtronic Group segment. The cash outflow from investing activities, mainly for replacement investments and the expansion of production space, totalled EUR 2.1 million (3M 2023: cash outflow of EUR 2.3 million). In the cash flow from financing activities, the cash inflow of EUR 5.9 million (3M 2023: cash outflow of EUR 4.1 million) resulted from the utilisation of the syndicated loan to cover the increased working capital requirement; in the same period of the previous year, non-current liabilities were repaid. Cash and cash equivalents as per balance sheet decreased by 13.3% to EUR 20.1 million (31 December 2023: EUR 23.2 million).

The 9.5% increase in the MAX Group’s working capital as of 31 March 2024 to EUR 112.7 million (31 December 2023: EUR 102.9 million) is mainly due to the higher project volume in the bdtronic Group segment. As a result, net debt also rose by 11.8% to EUR 124.9 million (31 December 2023: EUR 111.8 million).

Guido Mundt, Chairman of the Supervisory Board of MAX Automation SE: “By achieving a positive result in the first quarter of 2024, we have gotten off to a robust start to the new financial year, demonstrating that the MAX Group and its portfolio companies are resilient. This enables us to cope with our customers’ restraint willingness to invest and continue to generate positive EBITDA. All in all, we were able to improve our equity ratio thanks to the profit for the period and the valuation of our investment in ZEAL Network SE. We are confident that the uncertainties responsible for investment restraint will diminish over the course of financial year 2024.”

OUTLOOK FOR 2024 CONFIRMED

The Managing Directors continue to assume that the uncertainties caused by the ongoing war in Ukraine and the resulting higher energy and material costs as well as supply chain disruptions and the general reluctance to invest due to the rise in interest rates will ease over the course of financial year 2024. Overall, the Managing Directors continue to expect sales of between EUR 390 million and EUR 450 million and earnings before interest, taxes, depreciation and amortisation (EBITDA) of between EUR 31 million and EUR 38 million for financial year 2024.

EVENTS AFTER THE END OF THE REPORTING PERIOD

After the end of the reporting period, MAX Management GmbH, a wholly owned subsidiary of MAX Automation SE, concluded an agreement with Hitachi, Ltd. on 26 April 2024 on the sale of the MA micro Group, consisting of MA micro automation GmbH and its subsidiaries MA Life Science GmbH, Micro Automation LLC and Micro Automation LLP. The purchase agreement provides for a purchase price in the range of EUR 71.5 million to EUR 76.5 million, subject to the performance of the MA micro Group in 2024. The transaction, subject to various customary conditions, in particular, the granting of merger control approvals, is expected to be closed in the second half-year of 2024. The proceeds from the sale are primarily intended to be used to reduce financial liabilities of the MAX Group by partially repaying the syndicated loan.

NOTE

With the liquidation of iNDAT and the implementation of a structured sales process for the MA micro Group segment, both segments are now recognised as discontinued operations in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”. Detailed explanations on the application of IFRS 5 and the discontinued operations can be found in the Notes to the Annual Financial Report of MAX Automation SE for financial year 2023.

KEY GROUP FIGURES (CONTINUING OPERATIONS) AT A GLANCE

* Comparison of the reporting dates 31 March 2024 and 31 December 2023
 

KEY FIGURES OF THE SEGMENTS AT A GLANCE

* Comparison of the reporting dates 31 March 2024 and 31 December 2023

DETAILED FINANCIAL INFORMATION

The complete Interim Statement for the first quarter of 2024 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).

www.maxautomation.com