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DGAP-News: GRAMMER Aktiengesellschaft / Key word(s): Quarter Results/Quarterly / Interim Statement
GRAMMER AG Publishes Figures for Q1 2022 and Outlook for 2025
- Revenue and earnings development in the first quarter were impacted by rising inflation, renewed coronavirus lockdowns affecting the Chinese market, and sustained bottlenecks on the procurement markets
- Slight 2.2% increase in GRAMMER Group revenue to EUR 515.0 million, driven mainly by the Commercial Vehicles Division (up 13.9%) and positive currency effects
- APAC saw substantial decline (down 13.7%), AMERICAS region reported revenue growth of 17.5%
- Operating EBIT at EUR -2.5 million, down considerably year- on-year (Q1 2021: EUR 21.0 million)
- 2022 outlook confirmed for the time being but risks arising from the war in Ukraine and the protracted coronavirus lockdowns in China could get worse and adversely affect the forecast, depending on their duration and how they progress
Revenue in the APAC region declined by 13.7% year-on-year to EUR 89.1 million (Q1 2021: EUR 103.2 million). In the EMEA region, revenue fell slightly by 0.7% to EUR 289.7 million (Q1 2021: EUR 291.7 million). The AMERICAS region, where the prior-year quarter was impacted by the lower number of OEM call-offs in response to the global semiconductor supply bottleneck, was the only region to generate significant revenue growth of 17.5% to EUR 154.1 million in the first quarter (Q1 2021: EUR 131.2 million) (up 8.7% to EUR 142.6 million adjusted for currency effects).
With regard to the divisions, the company saw revenue decline by 3.6% to EUR 324.2 million in the Automotive Division, whereas revenue in the Commercial Vehicles Division rose sharply by 13.9% to EUR 190.8 million. The EMEA and AMERICAS regions were the main drivers of the positive revenue performance here, while the APAC region saw a sharp downturn, especially in China. In the Automotive Division, the positive revenue development in the AMERICAS region was not sufficient to offset the downturns in EMEA and APAC.
Group earnings before interest and taxes (EBIT) declined significantly to EUR -1.2 million in the first quarter of 2022 (Q1 2021: EUR 22.6 million). Positive earnings contributions were delivered by the EMEA (EUR 12.3 million) and APAC (EUR 6.3 million) regions, while the AMERICAS region reported negative EBIT of EUR -16.4 million. GRAMMER Group operating EBIT came to EUR -2.5 million (Q1 2021: EUR 21.0 million), resulting in an operating EBIT margin of -0.5% (Q1 2021: 4.2%). As previously, the main reasons for this sharp downturn in earnings were the strong rise in material, logistics, energy and personnel costs, sustained bottlenecks on the procurement markets, and renewed coronavirus lockdowns affecting the Chinese market in particular. Non-recurring expenses and special freight at a GRAMMER plant in the AMERICAS region also depressed this figure by about EUR 4 million. Operating EBIT was adjusted for positive currency translation effects of EUR 1.8 million as well as directly attributable costs for coronavirus-related protection and response measures in the amount of EUR 0.5 million.
Revenue growth in AMERICAS, declining revenue in EMEA and APAC
Medium-term guidance for 2025:
GRAMMER Group revenue is expected to grow to EUR 2.5 billion by 2025, of which 60 % is to be generated in the Automotive division and 40 % in the Commercial Vehicles division. The Company is targeting an operating EBIT margin of > 5 % in 2025, and a margin target of > 4 % for net profit. Revenue growth will be fed from all regions, with the APAC region being expanded to become the central platform for growth for both divisions and AMERICAS being brought back on track for profitable growth.
The reduction of Group-wide CO2 emissions by 25 % was adopted as a further key milestone in medium-term planning until 2025. In 2030, the target of a 50 % reduction in CO2 emissions already published as part of the GRAMMER Green Company Initiative is to be achieved.
The full statement for the first quarter of 2022 can be found online at https://www.grammer.com/en/investor-relations/financial-publications/quarterly-reports.html
GRAMMER's key performance indicator, "operating EBIT", is discussed on page 21 of the Annual Report.
GRAMMER AG, which has its head office in Ursensollen, specializes in the development and production of complex components and systems for automotive interiors as well as suspension driver and passenger seats for onroad and offroad vehicles. In the Automotive Division, the company supplies headrests, armrests, center console systems, high-quality interior components and operating systems and innovative thermoplastic components for the automotive industry to prominent car manufacturers and Tier 1 suppliers in the vehicle industry. The Commercial Vehicles Division comprises the business segments truck and offroad seats (tractors, construction machinery and forklifts) and train and bus seats. GRAMMER has about 14,000 employees and operates in 19 countries around the world. GRAMMER shares are listed in the Prime Standard and traded on the Munich and Frankfurt stock exchanges via the Xetra electronic trading platform.
28.04.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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