Basler AG: Business figures for the first three months of 2023: Expected restrained start of the year; Company closes share buyback program
Basler AG / Key word(s): Quarter Results/Share Buyback
Insider Information according to Article 17 MAR
Business figures for the first three months of 2023: Expected restrained start to the year; Company closes share buyback program
Ahrensburg, May 3, 2023 – BASLER AG, a leading provider of image processing components for computer vision applications, is today presenting final figures for the first three months of 2023.
The Basler group closed the first three months of 2023 with a decline in sales of 15 % to Euro 56.3 million (previous year: Euro 66.3 million) as well as a negative result before taxes of Euro -1.6 million (previous year: Euro 9.2 million) and a pre-tax return rate of -3.0 % (previous year: 14 %).
As expected, the extremely strong incoming orders of Euro 88.5 million in the first quarter of 2022, which were caused by the supply chain crises, were not achieved in the first three months of 2023. Even though incoming orders increased again for the first time after three consecutive quarters of significant decline, they were at a low level of € 54.1 million in the first quarter of 2023. In addition, cancellations of orders from fiscal years 2021 and 2022 reduced the order backlog in the first quarter by € 13.3 million. Cancellations are expected to be lower in the second quarter, as the backlog at the end of the first quarter of 2023 is largely free of risky orders from the overheated market phase between January 2021 and June 2022. At the beginning of the second quarter, the order backlog was slightly higher. However, it is expected to normalize to approximately three months of sales during the second quarter due to the current weak demand.
For January through March 2023, the German Engineering Federation (VDMA) reported a decline in sales of -4 % compared to the previous year for the German manufacturers of image processing components. Incoming orders in the industry decreased by -13 % in the same period. Based on these figures, it can be seen that the increased order backlogs are currently still providing a tailwind for the industry, but that this should weaken in the future due to declining incoming orders.
Thus, the company is falling behind the German industry for image processing components. This is mainly due to Basler’s Asia-oriented business. The business development of the Basler group showed very strong regional differences in the first quarter of 2023. While sales in Europe grew by around 15 % and in Germany by as much as 25 % in the first quarter, business in America and Asia declined by approximately one quarter. This was mainly due to market weaknesses for capital goods in the semiconductor, electronics and logistics sectors. In China, the sluggish economic recovery following the zero-covid policy and weakness in the consumer goods industry had a double impact. In addition, the Chinese market is becoming increasingly more competitive.
Furthermore, the ERP system conversion to SAP S4 Hana at the turn of the year led to considerable process problems in the first quarter, which in the following weeks resulted in lower-than-planned deliveries and approximately € 3 million less sales than planned.
As a result, cash flow items in the first quarter were particularly affected by weak earnings and a further increase in working capital.
The operating cash flow amounted to € -3.3 million (previous year: € -5.1 million). This development is mainly due to the loss for the quarter, a further increase in inventories and an increase in receivables as a result of the increase in sales at the end of the quarter.
The cash flow from investing activities amounted to € -4.4 million (previous year: € -22.9 million). Compared to the previous year, there were no special effects from M&A transactions. However, investments in fixed assets were higher due to the building project and the system migration to SAP S4 Hana.
This resulted in a free cash flow of Euro -7.7 million (previous year: Euro -28.1 million).
The full quarterly report can be seen on the company website (www.baslerweb.com).
As of March 31, 2023, the company holds 1,666,469 treasury shares or 5.29 % of the share capital of 31.5 million shares.
Detailed information on the transactions is available on https://www.baslerweb.com/de/unternehmen/investoren/aktie/aktienrueckkaufprogramme/
Basler AG is an international leader and experienced expert in computer vision. The company offers a broad coordinated portfolio of vision hardware and software. In addition, it enables customers to solve their vision application issues by developing customer-specific products or solutions. Founded in 1988, the Basler Group employs more than 1,000 people at its headquarters in Ahrensburg, Germany, as well as other sales and development locations throughout Europe, Asia, and North America.
Basler AG, Hardy Mehl (CFO/COO), An der Strusbek 60 – 62, 22926 Ahrensburg, Tel. +49 (0)4102-463101, ir/baslerweb.com, www.baslerweb.com, ISIN DE 0005102008
03-May-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
An der Strusbek 60-62
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