PRESS RELEASE

Half-year results

Deufol SE: Results for the first half of 2022

Hofheim am Taunus, August 29, 2022.

Half-year results – Despite a difficult geopolitical situation and a difficult environment, sales and results are higher than forecast. The revised strategic focus on physical and innovative optimization as well as digitization of end-to-end solutions around our customers’ supply chain is bearing fruit.

The Deufol Group, despite a difficult geopolitical situation and a difficult environment, has already exceeded its 2021 annual results in the first half of 2022. This success was achieved thanks to the revised strategic orientation on physical and innovative optimization as well as the digitization of end-to-end solutions around our customers’ supply chain. In this context, the original core competence of industrial product packaging serves as the platform and starting point for expanded service and product development. To this end, the performance program has also been continuously developed and implemented. Since 2022, these elements are now used as part of the go-to-market strategy to achieve targeted growth in core regions and successfully market services coupled with digital solutions. Another pillar of this strategy, the locations of the seaport hubs are further optimized and the services offered there are expanded. We have also established an airport hub at the head office in Hofheim-Wallau am Taunus and bundled services in the Rhine-Main region.

The successful integration of the Wallmann Terminal in the Port of Hamburg into our port hub concept has significantly increased our range of services. Through the direct interconnection of logistics chains and seagoing vessels, Deufol has created a unique selling point, unparalleled in the German and European export industry of mechanical engineering and installations. This was an additional building block to successfully move the Deufol Group forward on the path to growth and more than offset the loss of sales and profits from the logistics business sold in Italy. In addition, activity in the United States has picked up; the performance measures taken there have also had an impact and sales and profits have returned to growth. The activity in Poland, launched the previous year, also successfully emerged from the start-up phase and posted positive initial turnover, although still at a low level. The operating result continued to develop positively despite the general economic conditions.

For the first half of 2022, the Deufol Group achieved the following results:

  • Turnover 129.3 million euros (previous year 110.2 million euros)
  • EBITDA € 16.3 million (previous year € 10.0 million)
  • EBIT(A) € 6.4 million (prior year € -0.1 million)
  • Net result € 3.1 million (previous year € -2.1 million)

Sales development

In the first half of 2022, sales of €129.3 million were 17.4% or €19.1 million higher than in the same period of the previous year. In addition to the impact of price increases on purchases, the increase in sales in all segments notably reflects the significantly higher capacity utilization of most Group companies compared to the same period of the previous year. In addition, the US dollar appreciated by 10.2% on average against the euro compared to the same period of the previous year. This exchange rate effect resulted in an increase of 0.8 million euros in turnover in USD in euros. Group sales adjusted for the effects of exchange rates increased by 16.5% compared to the same period of the previous year.

Strong improvement in operating profit

The operating result (EBITA) achieved amounts to 6.4 million euros and is therefore significantly higher than the figure for the previous year by – 0.1 million euros; the EBITDA margin increased to 12.6%. The main factor contributing to the margin improvement was the disproportionately low increase in personnel costs of €2.8 million or 6.8%, which is also reflected in the lower personnel costs rate of 34.5%. Other operating expenses also fell relative to sales, from 17.1% to 14.8%. The cost of materials increased by €10.7 million to €52.5 million; the material cost ratio increased to 40.6% (previous year: 37.9%), reflecting the still very high and sometimes very volatile price structure in the supply markets. The measures taken, in particular the price adjustment mechanisms vis-à-vis customers, had a moderating effect and prevented a further increase in the ratio. Net profit for the period increased to 3.1 million euros, compared to -2.1 million euros in the same period of the previous year. After deduction of the result attributable to non-controlling interests, the net profit attributable to the shareholders of Deufol SE amounts to € 2.9 million, compared to € -2.5 million the previous year. Earnings per share amounted to €0.067 in the first half (previous year: -€0.057).

Strong increase in operating cash flow with slight increase in total assets

The cash flow from operating activities of the Deufol Group amounted to 15.2 million euros in the reporting period (previous year: 1.4 million euros). Cash and cash equivalents decreased by €1.1 million compared to the end of the year to stand at €13.1 million. At €265.2 million, the balance sheet total as of June 30, 2022 was €4.8 million, or 1.8% more than at the end of the year (€260.4 million). euros). Equity increased by €4.0 million net to €119.8 million; the equity ratio improved from 44.5% at the end of 2021 to 45.2% as of June 30, 2022.

Figures in thousands of euros 6M 2022 30.06.2022 6M 2021 30.06.2021 To change (%)
Sales 129.344 110.193 17.4
EBITDA 16.278 10.035 62.2
EBIT(A) 6.414 -129 -5,066.2
EBT 4.889 -2.048 -338.8
Net income for the period 3.147 -2.140 -247.0
of which non-controlling interests 243 317 -23.3
of which attributable to shareholders of the parent company 2.904 -2.458 -218.1
Earnings per share (€) 0.068 -0.057 -219.3
Cash flow from operating activities 15.212 1,390 994.1
Cash flow from investing activities -3.722 -6.995 -46.8
Net financial debt 75.206 90.973 -17.3
Net financial debt (excluding rental debt according to IFRS 16) 47.101 56.567 -16.7
Equity ratio (%) 45.2 39.9 13.3
Employees (average) 2.017 1.988 1.9

Overview of the first half of 2022

Optimistic expectations for revenue and earnings in a difficult to predict economic environment

Uncertainty regarding the COVID 19 pandemic continues to persist in the current year. However, with the outbreak of war in Ukraine and its far-reaching consequences, the pandemic has faded to some extent into the background; as the trend in the number of cases this summer shows, however, it continues to pose substantial risks that cannot be assessed due to its ever-new variants. In this context, the situation in China is of considerable importance. In the event of a lockdown, the strict no-COVID policy may lead to considerable restrictions of transport capacities in international maritime transport and, consequently, extreme disruptions to supply chains. Supply chain disruptions have also been exacerbated by the war in Ukraine. Although the Deufol Group is not directly affected by the war in Ukraine, its impact is increasingly noticeable with the accompanying energy crisis, rising prices in various sectors and manifest inflation. According to management’s estimates, the sharp rise in inflation will, among other things, result in higher wages and salaries and will also indirectly lead to an increase in the remuneration of temporary workers, contractors and service providers. . We therefore expect a significant increase in payroll costs from the second half of 2022. Due to government intervention on the price of gas in Germany, the effects in terms of increased energy costs should further intensify and significantly increase other operating expenses in the future. Deufol has already developed an effective instrument to counteract these developments by boosting customer prices, not only with regard to raw material prices, and is convinced that it will be able to offset the increase in cost blocks by an increase income in the near future. In addition, substantial efforts are being made to reduce energy consumption, reduce costs and provide services more efficiently in order to limit cost increases – also in terms of improving sustainability. In the context of the interest rate increases which have already occurred and which are expected to continue due to the change in money market policy, Deufol has made provisions for various long-term loans by entering into hedging transactions in the form of interest rate derivatives or changing interest rate contracts to fixed interest rate contracts to hedge the level of interest rates. Management is confident that the revenue (220 – 250 million euros) and EBIT (7 – 11 million euros) ranges indicated in the annual report can still be considered achievable despite the political environment and current economy. Subject to the dynamics of events related to the COVID 19 pandemic, the war in Ukraine, inflation, rising interest rates, the energy crisis and possible bottlenecks in the supply of gas or certain raw materials does not lead to extreme developments, sales and profits should be at the upper end of the above ranges or even exceed them.

The interim report is available at http://www.deufol.com.

About the Deufol Group:

The Deufol Group is a premium global supplier of packaging and related services. Its range of services includes export and industrial packaging, logistics services and innovative IT solutions throughout the supply chain. Based in Hofheim (Wallau) near Frankfurt am Main, Deufol is represented at more than 90 locations in 13 countries and employs more than 2,000 people. In 2021, the Group achieved annual revenue of 243 million euros.

For more information, please contact:

Deufol SE

Claudia Ludwig

Telephone: +49 (6122) 50 1228

Email: [email protected]

ISIN: DE000A1R1EE6

29.08.2022 CET/CEST Dissemination of a press release, transmitted by the DGAP – a service of EQS Group AG.
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