Muehlhan AG: Muehlhan AG publishes its results for the first half of 2023

PRESS RELEASE

 

Muehlhan AG publishes its results for the first half of 2023

• Performance falls considerably short of expectations
• Revenues of €5.8 million, EBIT of €-2.0 million
• Share buyback offer to run until beginning of September 2023

 

Hamburg, July 28, 2023—Muehlhan AG (Open Market; ISIN DE000A0KD0F7; WKN A0KD0F) (the “company”) generated revenues of €5.8 million and EBIT of €-2.0 million in the first half of 2023. Consolidated income after taxes after the first six months amounted to €-1.7 million. Cash flow from operating activities is in positive territory at €1.7 million due to a special effect. A comparison with the prior-year results does not make sense due to the sale of numerous subsidiaries at the 2022 year-end.

The results fall well short of expectations. The results can be traced back to unexpectedly lower business activity in the Middle East, and a heavier strain on Russian operations due to Russia’s war of aggression in Ukraine and sanctions imposed in connection with this. There were also substantial non-recurring expenses in connection with the settlement of the sale of key subsidiaries last year, the share buyback program that is currently underway and the provision set up for a legal dispute.

In Russia, revenues of €3.5 million were achieved in the first half of 2023 as against €4.5 million in the same period of the previous year. Despite the difficulties, an EBIT break-even was achieved, compared to €0.3 million in the previous year. In the Middle East, revenues dropped significantly year-over-year from €3.4 million to €1.7 million. EBIT deteriorated from €-0.3 million to €-0.7 million due to the significant decline in revenues, project start-up costs and costs for the resumption of activities.

For the 2023 financial year as a whole, the Executive Board and Supervisory Board expect to see revenues of between €10 million and €15 million and EBIT of €-2.0 million to €-2.5 million.

Muehlhan AG launched a share buyback program on June 28, 2023. Up until September 6, 2023, shareholders of Muehlhan AG have the opportunity to sell their shares for €1.75 per share before the company then withdraws from the stock market. Shareholders who have sold their shares by August 2, 2023, will receive their money only a few days later. The buyback program has been well received so far.

The company’s key performance indicators are shown in the following table:

 

in kEUR   1st half of 2023 1st half of 2022          Results       Revenues   5,796 121,539 Earnings from operations before depreciation and amortization (EBITDA)   -1,981 7,111 Earnings from operations (EBIT)   -2,022 4,152 Earnings before income taxes (EBT)   -1,656 3,487 Consolidated income attributable to shareholders of Muehlhan AG   -1,644 1,375 Earnings per share from continuing operations in EUR -0.09 0.12 Cash flow from operating activities   1,693 -1,690 Investments in property, plant and equipment (not incl. leases)   49 1,170         Balance sheet   June 30, 2023 December 31, 2022 Total assets   54,355 78,458 Fixed assets¹   845 897 Equity   42,748 64,483 Equity ratio in % 78.6 82.2         Employees   1st half of 2023 1st half of 2022  Employees (annual average) number 389 2,087

¹ Fixed assets: total of non-current assets less deferred tax assets

 

About Muehlhan: Muehlhan AG is a listed corporation traded on the Open Market of the Frankfurt Stock Exchange (ISIN: DE000A0KD0F7 / WKN A0KD0F).

You can find additional information at www.muehlhan-ag.com

Contact: Muehlhan AG; phone: +49 40 75271-0; e-mail: investorrelations@muehlhan.com