Nabaltec AG publishes report for the first quarter of 2024: earnings nearly on par with last year, with a slight decline in revenues

Nabaltec AG publishes report for the first quarter of 2024: earnings nearly on par with last year, with a slight decline in revenues

• Consolidated revenues in the first three months of 2024 at EUR 54.0 million (-5.3% compared to the same quarter of the previous year)
• EBIT of EUR 5.0 million in the first three months of 2024 (Q1/2023: EUR 5.2 million); EBIT margin 9.3%.
• Forecast for 2024 confirmed: revenues slightly above the previous year's level; EBIT margin in a range of 7% to 9%

Schwandorf, 23 May 2024 – Nabaltec AG published its report for the first quarter of 2024 today, confirming the preliminary figures for the first three months. The company earned revenues of EUR 54.0 million in total compared to EUR 57.0 million in the same quarter from the previous year (-5.3%). Nabaltec's operating profit (EBIT) amounted to EUR 5.0 million (same quarter of previous year: EUR 5.2 million), which corresponds to an EBIT margin (EBIT as a percentage of total performance) of 9.3%.

"With an EBIT margin at the previous year's level, we were once again able to demonstrate the high quality of our earnings - despite the slight reduction in revenues compared to the previous year. With the quarterly revenues we have achieved, we are currently on track to reach our annual target," reported Johannes Heckmann, CEO of Nabaltec AG.

In both product segments, revenues in the first quarter of 2024 were down from the same quarter of the previous year due to the economic situation. In the "Functional Fillers" product segment, revenue of EUR 38.7 million was attained in the first three months of 2024, compared to EUR 40.1 million in the same period previous year, corresponding to a reduction of 3.5%. Sales volumes in the boehmite product range continue to stagnate, as there is still no impetus from industry, particularly in Europe. Nabaltec had revenue of EUR 15.4 million in the "Specialty Alumina" product segment in the first quarter of 2024, compared to EUR 17.0 million in the corresponding period from the previous year. The continuing weakness of the steel industry led to this significant reduction of 9.4% compared to the same quarter of the previous year.

After the first three months of 2024, operating cashflow was EUR 31.7 million, compared to EUR 11.2 million in the first quarter of the previous year. Changes in working capital, particularly the decrease in other assets in the form of time deposits in the amount of EUR 15 million, had a positive effect here. Spending on investments increased from EUR 1.9 million in the same quarter from the previous year to EUR 5.1 million. The focus was on expanding capacity for boehmite, process optimization at the Schwandorf site and the expansion of viscosity-optimized aluminum hydroxides.

"Even if some target sectors, such as the market for boehmite, are still hampered by the lack of impetus from industry, we expect to see greater momentum again in the medium term and are optimizing our capacities accordingly. With our current investments, we are laying the foundations for the potential of the coming years. In view of the still slow market momentum, we are sticking to our rather conservative forecast for 2024," Johannes Heckmann continued.

Nabaltec confirms its previous forecast and continues to expect consolidated revenues in 2024 to be slightly higher than in 2023 (EUR 200.1 million). On the earnings side, Nabaltec is expecting an EBIT margin in a range of 7% to 9%.

Note: Nabaltec AG's Q1/2024 report will be available for download as of 23 May 2024 at https://nabaltec.de/en/investor-relations/financial-reports. The Management Board of Nabaltec AG will also hold a round table entitled Q1 Highlights and Deep Dive into Key Products on 28 May 2024 at 4:00 pm. Interested investors can register via the following link.

About Nabaltec AG:

Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide and aluminum oxide on an industrial scale through its two product segments, "Functional Fillers" and "Specialty Alumina." The company's product range includes eco-friendly flame retardant fillers and functional additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives have applications in catalysis and in electric vehicles. Nabaltec also produces specialty oxides for use in technical ceramics, the refractory and polishing industries. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

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