Revenues and earnings below expectations

BOOSTER Precision Components GmbH publishes results for the first six months of 2024: Revenues and earnings below expectations

• Revenues of EUR 88.3 million in H1 2024 6.3% below previous year
  (Q2 2024 vs. Q2 2023: -4.3%)
• Declining EBITDA of EUR 7.7 million in H1 2024 vs. EUR 11.2 million in H1 2023
  (EBITDA adjusted for one-off costs for the subsequent bond issue: EUR 8.3 million)
• Successful subsequent bond issue in the amount of EUR 18 million
• Adjusted full-year guidance

Frankfurt a. M., 30 August 2024 – BOOSTER Precision Components GmbH (Bond; ISIN NO0012713520) today published its unaudited consolidated results for the first six months of 2024.

H1 2024 affected by lower-than-expected-demand, one-off consultancy costs and negative currency translation effects

BOOSTER recorded a lower-than-expected demand in the first half of 2024, which is in line with the current subdued sector performance, resulting in a 6.3% decline in revenues to EUR 88.3 million (H1 2023: EUR 94.3 million).

The company’s EBITDA was down by 31.3% and amounted to EUR 7.7 million (H1 2023: 11.2 million). Adjusted for one-off costs for the subsequent bond issue of EUR 0.6 million, EBITDA is at EUR 8.3 million, which corresponds to a decrease of 25.9%. In addition, the EBITDA was significantly impacted by an unfavourable product mix and negative currency translation effects due to the weakened Mexican peso. BOOSTER’s EBIT for the first six months was EUR 3.4 compared to EUR 7.3 million in the previous year. The Group net income was negative at EUR -2.0 million (H1 2023: 1.9 million).

BOOSTER Group’s total assets as of 30 June 2024 amounted to EUR 109.6 million (12-31-2023: EUR 114.5 million). At EUR 42.4 million, fixed assets were 2.2% lower than at 31 December 2023 (EUR 43.4 million) and current assets fell by 5.4% to EUR 66.1 million as of 30 June 2024. The decrease in current assets was mainly driven by declining cash and cash equivalents by EUR 5.1 million to EUR 6.1 million.

Equity capital decreased by 18.2% to EUR 12.1 million as of 30 June 2024 (12-31-2023: EUR 14.8 million) due to the negative Group net income and negative currency translation effects from the Mexican peso. In addition to a slight decrease in total liabilities by EUR 3.1 million to EUR 89.7 million compared to the end of 2023, there was a shift in the liability items: Bonds increased by EUR 15.5 million due to the  subsequent bond issue in order to refinance long term investment loans in the amount of EUR 17.7 million including interest of EUR 4.0 million.

Dr Ralph Wagner, CFO of BOOSTER Precision Components: "The current situation in the automotive industry driven by declining demand from car manufacturers and subsequently first tier suppliers, presents us with major challenges. Our primary objective is to secure our long-term financial stability in this difficult environment. We are therefore focusing on strict cost discipline by reducing investments to the necessary level, cutting operating expenditure, imposing a hiring freeze and reducing staff levels in line with lower demand.”

Q2 2024

In the second quarter of 2024, the company’s revenues came down by -4.3% year-on-year to EUR 44.9 million (Q2 2023: EUR 46.9 million). EBITDA decreased by 43.3% and amounted to EUR 3.2 million, compared to EUR 5.6 million in Q2 2023.  Adjusted for one-off consultancy costs for the subsequent bond issue, EBITDA in Q2 2024 amounts to EUR 3.8 million. The EBIT decreased and amounted to EUR 1.0 million in Q2 2024 (Q2 2023: EUR 3.6 million) and Group net income for the period stood at EUR -1.6 million (Q2 2023: EUR 0.5 million).

“After an unexpectedly sharp drop in demand in the first half of the year, we see some positive signs that the market has bottomed out that no further declines are expected until the end of the year,” says Jerko Bartolić, Managing Director and CEO of Booster Precision Components.

Full-year outlook adjusted

Based on the business development to date, Booster’s original full-year forecast has been adjusted. As declared in the ad hoc announcement on 6 August 2024, Booster now assumes a revenue decline of up to 10% (2023: EUR 183.6 million) and a decline of up to 20% (excluding extraordinary items) in earnings (EBITDA 2023: EUR 21.3 million). The original forecast anticipated a moderate single-digit percentage increase in revenues (2023: EUR 183.6 million) and a moderate increase in earnings (EBITDA 2023: EUR 21.1 million). The management will review and consider potential impacts of the significant changes in the current market environment as part of its corporate planning for the financial year 2025 and following.

The unaudited consolidated financial statements of BOOSTER Precision Components GmbH for the first half of the year 2024 will be available under https://booster-precision.com/en/investor-relations/financial-reports.html.
 

Contact:

BOOSTER Precision Components GmbH
Bockenheimer Landstraße 93
60325 Frankfurt a. M.
T +49 69 76758193
mail@booster-precision.com

 

About BOOSTER Group

The BOOSTER Group is an international supplier focused on the production and distribution of highly precise metal parts. BOOSTER Group comprises nine companies in five countries with production sites in in China, Germany, Mexico and two locations in Slovakia. The BOOSTER Group’s activities currently focus on components for turbochargers, which are primarily used in the automotive sector. As part of BOOSTER’s growth strategy, the product portfolio has been expanded to include components for use in electrified or hydrogen-powered vehicles as well as for industrial or medical applications with a positive impact on efficiency and sustainability. BOOSTER Precision Components GmbH is the holding company of the BOOSTER Group and provides management, consulting and services for its domestic and foreign subsidiaries.

www.booster-precision.com