SMT Scharf AG publishes results for the first quarter of 2024

SMT Scharf AG publishes results for the first quarter of 2024 

• Consolidated revenues of EUR 12.5 million in Q1 2024
• Operating earnings (EBIT) at EUR -1.0 million
• Orders won in the Tunnel logistics segment create exceptionally high order book position, providing tailwind for the current financial year
• Managing Board confirms revenue and earnings forecast for 2024 

Hamm, 15 May 2024 – SMT Scharf AG (WKN A3DRAE; ISIN DE000A3DRAE2), one of the world’s leading suppliers of bespoke transport solutions and logistics systems for underground mining, is today publishing its figures for the first quarter of 2024. In the first three months of the 2024 financial year, the SMT Scharf Group generated consolidated revenues of EUR 12.5 million. This equates to a slight decline of 2.3 % by comparison with the same quarter in the previous year (Q1/2023: EUR 12.8 million). At the start of the year, SMT Scharf noticed a higher level of activity overall in the relevant mining markets. This was also felt in new systems business which grew again in the first quarter of 2024 and made a decisive contribution to sales revenues.

Earnings from operating activities (EBIT) in the first quarter of 2024 amounted to EUR -1.0 million (Q1/2023: EUR -1.1 million). This was due to higher personnel costs and increased costs from the use of external services. In the first three months of 2024, however, lower net currency losses and gains totaling EUR 416 thousand had a positive effect on the consolidated result. Accordingly, the EBIT margin (in relation to total operating revenue) stood at -6.8 % in the reporting period by comparison with -5.5 % in the same period in the previous year.

“The SMT Scharf Group has made a sound start to the 2024 financial year. As a leading provider of monorails, we see SMT Scharf as well positioned to benefit from the mega trends in mining on a lasting, sustained foundation going forward. There were clear signs in the first quarter, particularly in China, that mine operators were once again investing more heavily in modern mining equipment. New, high-tech coal mines continue to be opened there that have high requirements for innovative, low exhaust gas transportation and logistics solutions for underground coal-mining. Overall, we were able to record renewed growth in the new systems business in the first three months of 2024. We want to build on this progress in the course of the year”, states Volker Weiss, CFO of SMT Scharf AG.

In its New systems business, SMT Scharf lifted its revenues in the first three months of 2024 to EUR 4.7 million following EUR 4.2 million in the first quarter of the previous year. Revenues in the Service business also climbed to EUR 1.5 million (Q1/2023: EUR 1.1 million) while revenues from Spare parts declined year on year to EUR 6.3 million (Q1/2023: EUR 7.1 million).

With a look to its core international markets, SMT Scharf succeeded in once again boosting revenues year on year in the sales market of Poland in the first three months of 2024, posting a figure of EUR 3.6 million (Q1/2023: EUR 3.3 million). Consequently, Poland and China proved to be the sales markets with the strongest revenues in the first quarter of 2024, each with a 28.9 % share of total revenue. SMT Scharf also achieved revenue growth in China year on year, generating EUR 3.6 million (Q1/2023: EUR 3.1 million). Revenues in Russia, by contrast, failed to match the same period in the previous year, coming in at EUR 2.2 million (Q1/2023: EUR 2.9 million). Furthermore, SMT Scharf generated revenue of EUR 1.3 million in Africa in the first quarter of 2024 (Q1/2023: EUR 1.7 million), EUR 0.2 million in Africa (Q1/ 2023: EUR 0.6 million) and EUR 0.9 million in Germany (Q1/ 2023: EUR 0.6 million).

Broken down by segment, the largest share of revenue continued to flow from the Coal mining segment with an 85 % share (Q1/2023: 77 %) while the Mineral mining segment with a 12 % share of consolidated revenues in the reporting period declined year on year (Q1/2023: 19 %). The “Other industries” segment contributed 3 % of consolidated revenues (Q1/2023: 4 %). The Tunnel logistics segment did not contribute any revenues as yet in the first quarter of 2024, similar to the previous year.

Reinhard Reinartz, CEO and COO of SMT Scharf AG, explains: “It was very pleasing to note that our activities in the Tunnel logistics segment and therefore the targeted diversification of the business into areas outside coal-mining are bearing fruit and boosting revenues in this segment. For example, we have won a significant infrastructure project in the Middle East from a new customer in the low double-digit euro millions, representing one of the largest in the company’s history. We were also able to win an order for three battery-driven rail systems as part of the major project to construct Berlin’s 380 kV diagonal power link.” 

Thanks to the major orders won in the Tunnel logistics segment, the order intake in the first quarter of 2024 of EUR 41.7 million significantly exceeded the figure for the previous year of EUR 16.8 million. Accordingly, as of the reporting date of 31 March 2024, the order book stood at EUR 51.9 million (31 March 2023: EUR 26.9 million).

With regard to the 2024 financial year, the Managing Board of SMT Scharf AG is reiterating its forecast and expects consolidated revenue of between EUR 74 million and EUR 79 million, based on conservative estimates. In addition, the Managing Board continues to expect operating earnings (EBIT) of between EUR 1.5 million and EUR 2.5 million in 2024.

The full report for the first quarter of 2024 will be published today in the course of the day at www.smtscharf.com in the Investor Relations section.


Company profile

The SMT Scharf Group develops, manufactures and services transportation equipment for underground mining as well as for tunnel construction. The main products include captivated railway systems that are deployed worldwide, primarily in hard coal mines, as well as in mines for gold, platinum and other metals. They are needed to transport material and personnel with payloads of up to 48 tonnes and on routes with gradients of up to 30 degrees. In addition, SMT Scharf supplies the mining sector with chairlifts. Since 2018, SMT Scharf’s diverse portfolio has also included rubber-tyred diesel and electric vehicles for mining and tunnelling, including loaders, scissor lifts and underground trucks. As part of the further diversification of the business, the product range has been successfully expanded since 2019 to include electronic components and control systems for mining and other industries. Overall, the SMT Scharf Group is active with subsidiaries in seven countries, as well as commercial agencies worldwide. Further information about the SMT Scharf Group can be found online at www.smtscharf.com.


Contact

Investor Relations
cometis AG
Thorben Burbach
Phone: +49(0)611 - 205855-23
Fax: +49(0)611 - 205855-66
Email: burbach@cometis.de