STEMMER IMAGING proposes EUR 2.70 dividend and announces market entry in North America

Puchheim, March 28, 2024

Strong financial and balance sheet figures: STEMMER IMAGING proposes EUR 2.70 dividend and announces market entry in North America

Puchheim, March 28, 2024 – STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) publishes its final figures for the 2023 financial year today.

• Revenue at EUR 146.3 million (previous year: EUR 155.4 million)
• Record gross margin increases to 39.7% (previous year: 37.6%)
• EBITDA at EUR 27.0 million (previous year: EUR 28.2 million) – EBITDA margin 18.4% (previous year: 18.2%)
• Inventory reduction to EUR 12.7 million (previous year: EUR 18.9 million)
• Free Cashflow increases to EUR 19.3 million (previous year: EUR 17.4 million)
• Dividend proposal to the Annual General Meeting: EUR 2.70 per share
• Acquisition of 100% of shares in Phase 1 Technology Corp., New York, USA

In the annual report 2023 published today, STEMMER IMAGING confirms its preliminary financial figures with record gross and EBITDA margins and proposes a shareholder-oriented dividend of EUR 2.70 per share. At the same time, the company announces its entry into the North American market with the acquisition of Phase 1 Technology Corp, New York USA.

Business Development

In a challenging market environment, STEMMER IMAGING generated revenue of EUR 146.3 million, which corresponds to a decline of 5.8% compared to a strong prior-year figure (EUR 155.4 million). The revenue generated is within the range of EUR 144-151 million adjusted in October 2023. While STEMMER IMAGING was still able to achieve growth of 8% year-on-year in the first half of the year, market demand slowed down in the second half of the year. Particularly, the food & agriculture, automotive and factory automation markets recorded a decline in revenue, which was only partially offset by revenue gains in the transportation & logistics and medical equipment segments. In regional terms, especially the subsidiaries in the Netherlands and France recorded the largest percentage falls in revenue, whereas the entities in Spain, Latin America and the UK achieved revenue growth.

The consistent and continued concentration of measures on the strategic positioning as a systems house and the associated focus on the value-added offering as part of the STEMMER IMAGING MORE program enabled an improvement in the gross margin to an all-time high of 39.7% (previous year: 37.6%). The fourth quarter of 2023 recorded a record gross margin of 41.3% (Q4 2022: 37.1%). Revenue amounted to EUR 33.3 million in the fourth quarter of 2024 - compared to a strong Q4 2022 with revenue at EUR 42.4 million. EBITDA in Q4 amounted to EUR 7.1 million (Q4 2022: EUR 9.5 million).

In 2023, the company continued its measures to strengthen its group-wide processes and align the organization. As part of this, the branding of the entire Group was adapted to STEMMER IMAGING and the Spanish and Latin American subgroup was largely integrated. This led to a one-off special charge of EUR 1.3 million. The strength of operational management is also reflected in the significant reduction in inventory value from EUR 18.9 million at the end of fiscal year 2022 to EUR 12.7 million. STEMMER IMAGING's ongoing commitment to sustainability was confirmed by a renewed Ecovadis Silver rating under increased given requirements. Additionally, the company achieved high customer and employee satisfaction ratings in the stakeholder dialog.

The company was able to report an EBITDA of EUR 27.0 million. Despite the decline in revenue, the EBITDA range of EUR 26-32 million anticipated at the start of 2023 was achieved (previous year: EUR 28.2 million). This corresponds to an EBITDA profitability of 18.4% (previous year: 18.2%).

EBIT amounted to EUR 21.9 million (previous year: EUR 24.3 million) and was additionally impacted by the amortization of the INFAIMON brand name in the amount of EUR 0.9 million. Earnings per share were EUR 2.42 (previous year: EUR 2.77).

STEMMER IMAGING AG's free cash flow again developed very positively in the past fiscal year at EUR 19.3 million (previous year: EUR 17.4 million) and almost compensated for the dividend payment of EUR 19.5 million.

Dividend Proposal

As already published in our medium-term guidance in October 2023, STEMMER IMAGING plans to distribute at least 70% of its annual earnings to the shareholders in the future. The distribution of a shareholder-oriented dividend of EUR 2.70 per share for the 2023 financial year will therefore be proposed to the 2024 Annual General Meeting.

Outlook 2024

The assessment of the current market situation for the upcoming financial year continues to be clouded by destocking aftereffects and the general inflation-related reluctance to invest in the company's key end markets. Group revenue in the range of EUR 140-157 million and EBITDA of EUR 24-31 million are expected for 2024. This corresponds to a decline in sales of 4% at the lower end of the range and an increase in sales of 7.5% at the upper end of the range - in each case compared to the previous year. The upper end of the forecast range assumes an accelerated and strong recovery in economic activity over the summer with a corresponding impact on the development of incoming orders and revenue.

The current medium-term guidance up to 2026 with a revenue target of EUR 240 million and a target EBITDA margin of between 17% and 21% assumes a short-term and sustainable return to above-average revenue growth rates and further inorganic expansion.

Events after the reporting date

Relocation to Munich

As part of STEMMER IMAGING's expansion plans and strategic positioning, the company has decided to move into modern office space close to the city center in Munich. As things stand at present, the company will move into the premises at the end of 2024.

Acquisition in USA

As part of its strategic expansion efforts, STEMMER IMAGING has signed an agreement to acquire 100% of the shares in Phase 1 Technology, New York, USA (Phase 1 Technology). Phase 1 Technology is a leading distributor specializing in machine vision with focus on the North American market. The acquisition is expected to be completed in the second quarter.

STEMMER IMAGING is publishing a separate press release on this today.

Arne Dehn, CEO of STEMMER IMAGING AG, comments: "STEMMER IMAGING has continued to operate profitably even under the challenging market conditions of the past fiscal year and has been able to translate its added value for customers into record results. For this, we sincerely thank all our employees. The acquisition of Phase 1 Technology announced today represents a further milestone in our expansion strategy and we eagerly anticipate our entry into the North American market."

The annual report 2023 is digitally available on the company's website in the Investors section (Investors - Financial reports | STEMMER IMAGING (stemmer-imaging.com)).
 

About STEMMER IMAGING
STEMMER IMAGING is the leading international systems house for machine vision technology.

With a background of all-round engineering expertise, STEMMER IMAGING delivers the entire spectrum of machine vision services for both, industrial and non-industrial applications – from value-added services to the development of subsystems and its own products, based on an extensive commercial range of products.
 

Contact:

STEMMER IMAGING AG
Michael Bülter
Chief Financial Officer
Gutenbergstr. 9-13
82178 Puchheim
Germany
Phone +49 89 80902-196
ir@stemmer-imaging.com
www.stemmer-imaging.com