SAF-HOLLAND: Very good start to financial year 2021
DGAP-News: SAF-HOLLAND SE
/ Key word(s): Quarterly / Interim Statement
SAF-HOLLAND: Very good start to financial year 2021 - Group sales of EUR 285.6 million up 0.8 per cent on first quarter of the previous year - Adjusted EBIT margin significantly improved by 1.2 percentage points to 7.7 per cent - Operating free cash flow balanced despite demand-driven increase in net working capital - Leverage ratio scaled back further to 2.25x EBITDA - Outlook for the full year 2021 confirmed
Alexander Geis, Chairman of the Management Board of SAF-HOLLAND SE says: "We have had a very good start to the financial year and were able to follow on seamlessly from the positive development of the preceding two quarters. The positive business momentum in the EMEA and APAC regions, the favourable business mix and the structural cost reduction and process optimisation measures contributed to the significant improvement in the EBIT margin to 7.7 per cent." "Incoming orders continue to develop in a very pleasing fashion. In the EMEA region, for example, capacity is currently utilised until autumn. I am therefore more than optimistic that we will achieve our annual targets for Group sales and adjusted EBIT margin," adds Alexander Geis. Adjusted EBIT margin of 7.7 per cent significantly above previous-year figure Sales in the OE business decreased by 0.8 per cent or EUR 1.8 million to EUR 207.5 million in the reporting period from January to March 2021. The share of Group sales accounted for by the OE business decreased from 73.8 per cent to 72.6 per cent. By contrast, sales in the spare parts business increased by 5.4 per cent or EUR 4.0 million to EUR 78.2 million. Consequently, the share of the spare parts business in Group sales increased from 26.2 per cent to 27.4 per cent. Adjusted gross profit improved to EUR 56.0 million in the first quarter of 2021 due to the sales and cost situation (previous year: EUR 52.3 million). Due to a favourable product mix, the broad customer base and the structural cost savings, the adjusted gross margin came to 19.6 per cent, which lies significantly above the gross margin achieved in the comparable period of the previous year of 18.4 per cent. Adjusted EBIT amounted to EUR 22.0 million in the first quarter of 2021 (previous year: EUR 18.4 million). This corresponds to an adjusted EBIT margin of 7.7 per cent (previous year: 6.5 per cent). The lower ratio of selling expenses and administrative expenses to Group sales was slightly margin accretive. Operating free cash flow balanced despite demand-driven increase in net working capital The net cash flow from investing activities in plant, property and equipment and intangible assets of EUR -5.2 million lay EUR 1.1 million, or 17.7 per cent, below the comparable figure for the previous year. Operating free cash flow was balanced at EUR 0.5 million (previous year: EUR 25.7 million). "In the first quarter, top priority was given to securing our delivery performance. The fact that this was at the expense of net working capital and thus operating free cash flow was calculated into the equation," says Inka Koljonen, CFO of SAF-HOLLAND SE. "In the further course of the year, the situation with regard to net working capital should ease significantly." Leverage ratio further improved In comparison to December 31, 2020, equity has improved by EUR 24.7 million to EUR 325.2 million. Equity was bolstered by the addition of the result for the period of EUR 11.3 million as well as exchange differences on the translation of foreign operations of EUR 13.5 million. Coupled with the 8.5 per cent increase in the balance sheet, this led to an unchanged equity ratio of 32.6 per cent. Net financial debt (including lease liabilities) decreased by EUR 1.1 million to EUR 195.6 million as of March 31, 2021 compared to the reporting date of December 31, 2020. As of March 31, 2021 SAF HOLLAND carries cash and cash equivalents of EUR 179.5 million (December 31, 2020: EUR 171.0 million). "Due to the significant improvement in EBITDA, we have managed to further reduce the leverage ratio from 2.40x EBITDA at the end of 2020 to 2.25x EBITDA," adds Inka Koljonen. "The very robust financial profile overall creates further headroom for investing in growth." EMEA Region: Adjusted EBIT margin remains stable at a high level The EMEA region generated an adjusted EBIT of EUR 16.2 million in the reporting period from January to March 2021 (previous year: EUR 14.8 million) and an adjusted EBIT margin of 9.6 per cent (previous year: 9.4 per cent). The OE business and spare parts business had a similarly positive impact on the gross margin. In spite of the decline in sales, the Americas region generated an improved adjusted EBIT of EUR 5.4 million in the first quarter of 2021 (previous year: EUR 4.1 million) and a significantly improved adjusted EBIT margin of 6.0 per cent (previous year: 3.9 per cent). The OE business had a slightly negative impact on the gross margin, which, however, was more than compensated for by the spare parts business. In addition, the significantly lower ratio of selling expenses, administrative expenses and research and development expenses to segment sales was margin accretive. APAC region: Operating result back in the black Adjusted EBIT improved by EUR 0.9 million to EUR 0.4 million. The adjusted EBIT margin amounted to 1.4 per cent (previous year: -2.4 per cent). In this regard, the product mix and economies of scale had a positive impact on the gross margin. The significantly lower ratio of selling expenses, administrative expenses and research and development expenses to segment sales was margin accretive. Outlook for the 2021 financial year confirmed Under this assumption, SAF-HOLLAND is still expecting an adjusted EBIT margin of around 7 per cent for the 2021 financial year (2020: 6.1 per cent). In order to support its strategic objectives, the company is planning investments of approximately 2.5 per cent of Group sales once again for the 2021 financial year. This capital expenditure will focus primarily on continuing the introduction of a Global Manufacturing Platform, further automation and the programme FORWARD 2.0 as well as IT. This year's Annual General Meeting of SAF-HOLLAND SE will be held on June 10, 2021. The half-year financial report for the period from January to June 2021 will be published on August 12, 2021.
NOTE:
About SAF-HOLLAND SAF-HOLLAND SE, located in Bessenbach, is one of the leading international manufacturers of chassis-related assemblies and components, primarily for trailers and trucks. In addition to axle and suspension systems, the product range includes fifth wheels, coupling systems, kingpins and landing gear, which are sold under the SAF, Holland, Neway, KLL, V.Orlandi and York brands. SAF-HOLLAND supplies original equipment manufacturers (OEM) on six continents. In the Aftermarket business, the Company supplies replacement parts to manufacturers' service networks (OES), wholesalers, and, with the help of distribution centers, to end customers and service centers via an extensive global sales network. With the innovation offensive "SMART STEEL - ENGINEER BUILD CONNECT", SAF-HOLLAND combines mechanics with sensors and electronics and is driving forward the digital networking of commercial vehicles and logistics chains. Around 3,000 committed employees worldwide are already working on the future of the transport industry today. Further information is available at: https://corporate.safholland.com/en
Michael Schickling
Future-oriented statements This press release contains certain future-oriented statements that are based on current assumptions and forecasts made by the management of SAF-HOLLAND SE. Various known and unknown risks, uncertainties and other factors may lead to the actual results, financial position, development or performance of the company deviating considerably from the appraisals specified here. The company assumes no obligation to update future-oriented statements of this nature or adapt them to future events or developments.
This announcement is for information purposes only and does neither constitute an offer to sell, purchase, exchange or transfer any securities nor a solicitation of any offer to sell, purchase, exchange or transfer any securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. SAF-HOLLAND SE does not intend to register any securities referred to herein under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with this announcement. Contact: Michael Schickling Head of Investor Relations and Corporate Communications SAF-HOLLAND SE Hauptstraße 26 63856 Bessenbach Phone +49 6095 301-617 michael.schickling@safholland.de
12.05.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | SAF-HOLLAND SE |
Hauptstraße 26 | |
63856 Bessenbach | |
Germany | |
Phone: | +496095301117 |
Fax: | +49 6095 301 - 260 |
E-mail: | ir@safholland.de |
Internet: | www.safholland.com |
ISIN: | DE000SAFH001 |
WKN: | SAFH00 |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1195530 |
End of News | DGAP News Service |
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1195530 12.05.2021