Viscom SE: Weak demand characterises business performance in the first half of 2024; Adjustment of the annual forecast despite continued limited predictability

Viscom SE: Weak demand characterises business performance in the first half of 2024; Adjustment of the annual forecast despite continued limited predictability

Incoming orders: € 36,910 thousand (previous year: € 63,303 thousand); -41.7 %
Order backlog: € 24,558 thousand (previous year: € 48,347 thousand); -49.2 %
Revenue: € 41,304 thousand (previous year: € 49,439 thousand); -16.5 %
EBIT: € -4,844 thousand (previous year: € 236 thousand)

Hanover, 8 August 2024 – The market environment in which Viscom SE (ISIN DE0007846867) operates did not stabilise as hoped in the second quarter of 2024, and Viscom customers' reluctance to make new investments, particularly in the automotive and industrial electronics sectors, continues to be noticeable. Weak demand in the markets had a negative impact on incoming orders, which fell by around 42 % year-on-year to € 36,910 thousand (previous year: € 63,303 thousand). At € 41,304 thousand, revenues in the first half of 2024 were 16.5 % below the comparable figure from the previous year (previous year: € 49,439 thousand). Earnings before interest and taxes (EBIT) was significantly impacted by the lower overall performance and totalled € -4,844 thousand in the first six months of the current financial year (previous year: € 236 thousand). The cost of materials fell by € 13,210 thousand to € 12,793 thousand (previous year: € 26,003 thousand). Personnel expenses totalling € 20,773 thousand were slightly below the previous year's figure (previous year: € 21,150 thousand) despite a higher average number of employees and salary adjustments. The reduction in provisions for holiday and overtime (€ 974 thousand) and the introduction of short-time working at the Viscom SE site in Hanover (€ 143 thousand) had a positive effect on earnings. In addition, the decrease in other operating expenses (€ 6,709 thousand; previous year: € 7,907 thousand), in particular due to lower costs for administration, sales and from warranties and rework, as well as the increase in other operating income (€ 736 thousand; previous year: € 681 thousand) had a positive effect on earnings. The € 172 thousand increase in write-offs to € 3,365 thousand (previous year: € 3,193 thousand) had a negative impact on the half-year result. The reported EBIT for the first half of 2024 includes one-off effects for restructuring measures of around € 150 thousand. Net profit for the period amounted to € -4,104 thousand (previous year: € -395 thousand). Viscom SE expects the cost and efficiency measures already initiated throughout the Group to have a positive impact on earnings over the remainder of the year.

Despite the current challenges, Viscom SE continues to work intensively on new and further developments to its inspection systems and is a technological leader in the use of inspection solutions with 100% fault detection. Interest in the inspection systems from the Lower Saxony-based mechanical engineering company remained high in the first half of 2024. Viscom SE continued to record many customer visits to the Hanover site. A large number of very specific projects are already being discussed with customers in all regions worldwide. Viscom SE is therefore confident that as soon as the hoped-for easing of the current situation materialises and customers resume their projects, more orders will be placed with Viscom SE again. The battery cell business of the subsidiary, Exacom GmbH, is developing particularly favourably. With its Viscom technology, Exacom is the technology leader in the automated 100 % X-ray inspection of battery cells. Market expectations are positive, although there are also delays in the construction of new gigafactories in the area of electromobility. Viscom SE is also expecting further large-scale orders with complex projects and a longer term. Viscom believes it is well poised to position itself in other growth markets such as battery production, consumer electronics and the back-end of semiconductor production, and to reduce its dependence on individual sectors such as the automotive industry. Megatrends such as electrification, automation and digitalisation offer good opportunities for recovery and growth for Viscom in new areas over the next few years.

The market situation in many sectors and regions is currently characterised by uncertainty and difficult conditions. Viscom SE still has no reliable indications of the expected recovery in the second half of 2024. As the year progressed, it became apparent that the German economy would not be able to match the upturn seen in other industrialised countries. Signs of recovery are more hesitant and weaker than originally anticipated. The management of Viscom SE continues to expect incoming orders and target revenue of € 80 to 95 million for the 2024 financial year, thus confirming the forecast of 23 May 2024. The EBIT-Margin was specified against the backdrop of further delays in projects and the resulting underutilisation of capacity in all divisions and companies. The cost-cutting measures introduced will not yet be effective in the short term to significantly improve future monthly results. The management of Viscom SE now expects an EBIT-Margin before non-recurring effects of between -3 % and -9 % for the 2024 financial year. This corresponds to EBIT before non-recurring effects of between € -2.9 million and € -7.2 million (previous forecast: EBIT before non-recurring effects will be in the low negative range). Due to the ongoing discussions with Viscom SE's Works Council, it is not yet possible to make a reliable statement on the extent of the non-recurring effects. However, these will lead to a further burden on earnings. The economic distortions caused by Viscom customers' reluctance to invest is having a severe impact on the predictability of the current financial year and is therefore leading to considerable forecasting uncertainty. Group-wide measures were introduced at the beginning of the year in order to master the current situation without jeopardising liquidity. Investments that were not immediately necessary were halted or require an individual assessment by the Executive Board of Viscom SE. In addition, all material costs were reviewed, expenses for trade fairs and non-revenue-related travel were reduced and potential savings were realised in the first half of 2024. A works agreement was also concluded at the Hanover site in close consultation with the Works Council, which provided for the introduction of short-time working, initially from March to May 2024. Short-time working at the Hanover site was continued from June 2024 and further cost-cutting measures were implemented. Due to the ongoing challenges, Viscom SE will continue to optimise the efficiency programme introduced last year with the aim of further streamlining processes and structures and thus reducing costs.

The Group Interim Report as at 30 June 2024 is now available to download in the Company/Investor Relations section of the company’s website at www.viscom.com.

OPERATING FIGURES

 

SEGMENT INFORMATION

About Viscom

Viscom SE develops, manufactures and sells high-quality inspection systems. Its product range covers the full range of optical inspection and X-ray inspection. The company is a leading global provider in the field of assembly inspection for electronics manufacturing. Viscom’s systems can be configured for each individual customer and networked. Its headquarters and manufacturing site are in Hanover. With a large network of branches, application centres, service centres and representatives, Viscom is represented all over the world. Established in 1984, Viscom SE has been listed on the Frankfurt Stock Exchange since 2006 (ISIN: DE0007846867). Further information can be found at www.viscom.com.

 Any forecasts, expectations or statements concerning the future included in this release may be subject to risk or uncertainty. We therefore cannot guarantee that the expectations will prove correct. Actual results and developments may differ significantly from the expectations and assumptions expressed. The factors that could cause such deviations include changes in the general economic and competitive situation, exchange rate and interest rate fluctuations and changes in national and international law. The company assumes no obligation to update the forward-looking statements in this release.