Gurit Reports Net Sales of CHF 499.5 million and an Operating Profit Margin of 4.5% for 2022
Gurit Holding AG / Key word(s): Annual Results
Zurich, March 2, 2023 – Ad hoc announcement pursuant to Art. 53 LR
Gurit (SIX Swiss Exchange: GURN) today reported net sales of CHF 499.5 million for the full year of 2022. Gurit reached an Operating Profit of CHF 22.3 million with a margin of 4.5% of net sales. Adjusted for one-off items, the operating profit was CHF 11.2 million or 2.3% of net sales. Net profit amounted to CHF 9.1 million in 2022.
Gurit saw its net sales increase by 11.9% at constant exchange rates or 6.7% in reported CHF versus prior year and Continued Operations grew by 11.6% in reported CHF. Net sales 2022 were affected by Western Wind customers facing with lower volumes and demand uncertainties, a dynamic and highly competitive Chinese wind market, the Marine & Industrial business with strong growth and the sales contribution of the Structural Profiles acquisition in May 2022.
Composite Materials reported net sales of CHF 325.5 million for 2022. This increase of 52.9% at constant rates compared to 2021 contains a contribution of CHF 102.0 million from Structural Profiles (Fiberline Composites), in which Gurit acquired a 60% stake in May 2022. Wind sales have been influenced by a stronger Wind market in China but a reduced demand from the rest of the world. The Structural Profiles business is loss making driven by supply chain challenges and delayed customer ramp-ups in India. We anticipate the business reaching profitable levels in 2024. The Gurit Marine and Industrial sales have performed strongly with more than 20% growth. Customers in particular request our recyclable PET foam for multiple applications in building & construction, transportation and other industrial segments.
Kitting recorded net sales of CHF 148.6 million for 2022. This is a decrease of -14.0% at constant exchange rates compared to 2021. Kitting saw a generally lower demand from Western wind customers. The optimization of the European kitting footprint was executed according to plan and will provide positive momentum on the business performance in 2023.
The Business Unit Manufacturing Solutions (Tooling) reported net sales of CHF 57.5 million, which represents a decrease of -21.5% at constant exchange rates compared to 2021. Manufacturing solutions net sales were low due to Western customers having had almost no mould demand in 2022. In contrast, the mould business in the Chinese domestic market saw good sales, however in a very competitive business environment. We expect the mould business with Western wind customers to recover markedly in 2023.
Net sales by regions of destination in 2022 showed once more the Asia-Pacific region contributing the largest share with 43.6% of total sales, compared to 39.9% in 2021. Deliveries to Europe accounted for 33.0% of total Group sales in 2022 (2021: 31.2%). Goods delivered to the Americas accounted for 17.1% of total Group sales (2021: 21.9%), while supply to the rest of the world amounted to 6.3% (2021: 7.0%).
Lower Wind volumes and inflation affecting raw material, energy and logistics costs as well as the impact of Structural Profiles negatively influenced Gurit’s profitability. In 2022, the management initiated the Fit 4 Future program, aiming to drive group-wide cost reductions and implement structural measures to reduce personnel and overhead costs. The majority of these restructuring measures have been implemented already and will bring positive effects in 2023 and onwards.
Net profit for the year 2022 amounted to CHF 9.1 million. This equals earnings per share of CHF 1.98 in 2022 (2021: CHF 2.43).
As a result of reduced demands from Western Wind customers and considering the positive effects from the cost saving programs, we expect net sales between 450– 510 million CHF and an operating profit margin of 2% – 5% excluding M&A effects, restructuring and impairment charges.
On track to deliver on ESG targets
* Composite Materials contains Structural Profiles (Fiberline) sales of CHF 102 million for a period of 8 months since the acquisition end of April 2022.
Annual General Meeting of Shareholders on April 24, 2023
Due to the significant funds required and the resulting debt level from the strategic acquisition of 60% of the Structural Profiles (Fiberline) business in 2022 and the current level of profitability of Gurit, the Board of Directors recommends to the AGM not to pay out a dividend in 2023 and to use the funds to reduce the debt level of the company further. The full invitation to the AGM including all motions proposed by the Board of Directors will be available for download at least 20 days prior to the AGM at: http://www.gurit.com/Investors/AGM
Online publication of Annual Report 2022, Media and Analyst webcast on March 2, 2023
Management will discuss the results at a joint media and analyst webcast on March 2, 2023, at 09:00 a.m. CET. As always, the presentations will be held in English and can be accessed on the following URL: http://www.gurit.com/Investors/Webcasts An archived version will later be made available on the same link. Financial Analysts and Media Representatives who wish to ask questions during the Q&A conference call may do so upon prior registration via e-mail at firstname.lastname@example.org
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