SMT Scharf AG publishes third quarter 2024 results

SMT Scharf AG publishes third quarter 2024 results 

• Consolidated revenue of EUR 19.5 million and operating earnings (EBIT) of EUR -0.5 million in the third quarter of 2024
• For 9M/2024, consolidated revenue at EUR 47.9 million and EBIT at EUR -1.3 million
• Tunnel Logistics segment posts significant growth as a result of major order
• Outlook for 2024 lifted appreciably by the consolidation of Xinsha Monorail: consolidated revenue expected between EUR 87 million and EUR 97 million with EBIT between EUR 2.8 million and EUR 4.6 million

Hamm, 13 November 2024 – SMT Scharf AG (WKN A3DRAE; ISIN DE000A3DRAE2), one of the world’s leading suppliers of customised transport solutions and logistics systems for underground mining, has achieved consolidated revenue of EUR 47.9 million (9M/2023: EUR 54.1 million) in the first nine months of the 2024 financial year. This equates to a year-on-year decline of 11.5 %. In the third quarter of 2024, the SMT Scharf Group posted revenue of EUR 19.5 million (Q3/2023: EUR 22.4 million). Overall, SMT Scharf AG continued to face challenging conditions in the market for mining equipment in the first nine months of the current 2024 financial year and generally modest investment propensity.

Operating earnings (EBIT) declined appreciably by comparison with the third quarter of the previous year, falling to EUR -0.5 million (Q3/2023: EUR 5.9 million). With regard to the first nine months of 2024, SMT Scharf recorded negative EBIT of EUR -1.3 million (9M/2023: EUR 4.1 million). The extensive use of external services and higher personnel costs had a major impact in the reporting period. In addition, orders on which work has already started will only be reflected in profit or loss in the fourth quarter of 2024.

Liu Jun, CEO of SMT Scharf AG, commented as follows. “We intend to further expand SMT Scharf’s business activities in the important mining markets around the world. The Chinese market which made the largest contribution to revenue in the reporting period, will play an important role in this process. In China, we continue to see attractive business potential for SMT Scharf as the new, high-tech mines emerging there require modern mining technology. We will also drive our activities in product development forward with Xinsha Monorail, which will be fully consolidated as from November 2024, thereby enabling us to continue providing high-quality transport and logistics systems for our customers in the future.”  

Viewed by region, China ranked as SMT Scharf’s most important export market with revenue of EUR 14.0 million (9M/2023: EUR 21.5 million) and a 29% share of total revenue. In the Polish market, SMT Scharf’s revenue declined year on year by 20.3% to EUR 8.9 million (9M/2023: EUR 11.2 million). Revenue in the foreign market was down by 16.5% in the reporting period, declining to EUR 8.9 million (9M/2023: EUR 10.7 million). At the same time, SMT Scharf generated revenue of EUR 2.2 million in Germany (9M/2023: EUR 2.6 million) as well as significantly higher revenue of EUR 5.9 million in the Africa region (incl. the Middle East) (9M/2023: EUR 4.8 million).

Revenue in the new equipment business amounted to EUR 21.1 million in the first nine months of 2024, thereby only falling short of the figure for the previous year by a small margin (9M/2023: EUR 21.7 million). With regard to the servicing and maintenance of fleets, mine operators exhibited lower demand. Accordingly, revenue from spare parts and service came in at EUR 26.7 million in the reporting period, following EUR 32.4 million in the prior year period.

The Coal Mining segment generated the largest contribution to revenue in the first nine months of 2024 with EUR 34.9 million (9M/2023: EUR 45.1 million). In the Tunnel Logistics segment, SMT Scharf succeeded in boosting revenue significantly to EUR 4.4 million (9M/2023: EUR 0.1 million). The major order won in the Middle East (Africa region) had a positive impact here. In the Mineral Mining segment, revenue increased slightly, advancing from EUR 6.7 million in the prior year period to EUR 7.0 million. The “Other Industries” segment recorded revenue of EUR 1.7 million (9M/2023: EUR 2.2 million).

The order intake for the first nine months of 2024 totalled EUR 73.6 million, thereby surpassing the prior year figure of EUR 55.6 million by a considerable margin. High volume orders in the Tunnel segment, in particular, made an appreciable contribution to this increase. As of the reporting date of 30 September 2024, the order book stood at EUR 48.3 million.

The joint venture company, Shandong Xinsha Monorail Co., Ltd. (“Xinsha”) will be fully consolidated for the first time as of 1 November 2024. Against this backdrop, SMT Scharf AG has substantially raised its forecast for revenue and earnings for the 2024 financial year. Accordingly, the Management Board is now expecting consolidated revenue for the 2024 financial year in a range between EUR 87 million and EUR 97 million. In addition, the outlook envisages operating earnings (EBIT) of between EUR 2.8 million and EUR 4.6 million. Previously, SMT Scharf AG had been assuming consolidated revenue of between EUR 74 million and EUR 79 million and operating earnings (EBIT) of between EUR 1.5 million and EUR 2.5 million.

The full report for the third 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 35 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 operates its own subsidiaries in seven countries and has agents around the world. Further information about the SMT Scharf Group can be found online at www.smtscharf.com.


Contact

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