H&R GmbH & Co. KGaA / Key word(s): Preliminary Results/Quarter Results
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Preliminary business results for the 1st quarter 2021
Salzbergen, Germany, April 27, 2021. According to preliminary calculations, H&R GmbH & Co. KGaA (H&R KGaA for short; DE000A2E4T77) has achieved an operating result (EBITDA - Consolidated earnings before taxes on income and earnings, other financing income and expenses as well as depreciation and impairment losses and write-ups on intangible assets and property, plant and equipment) of EUR 25.7 million, and therefore well above the previous year's level (Q1/2020: EUR 10.7 million). The already very good previous quarter results of Q4/2020 (EBITDA EUR 25.1 million) were as well slightly improved. EBIT was EUR 13.2 million (Q1/2020: EUR -2.0 million), earnings before taxes (EBT) EUR 11.3 million (Q1/2020: EUR -3.7 million). The bottom line was that the consolidated net income attributable to shareholders amounted to EUR 7.2 million (Q1/2020: EUR -4.7 million). Here, too, there is an additional improvement in the final quarter of 2020 (consolidated net income attributable to shareholders of EUR 5.8 million). The results were achieved with sales of EUR 241.4 million. This is around 6.9% less than in the previous year (Q1/2020: EUR 259.4 million). Decisive for this were lower sales volumes. However, there is also an increase in sales compared to the final quarter of 2020.
Cash flow under pressure in Q1/2021
Despite a positive group result, the operating cash flow remained negative at EUR -4.0 million in the first quarter of 2021 (Q1/2020: EUR 2.9 million). The main reason was the development of the raw material price, which led to higher net working capital requirements. The free cash flow closed negative as well, but recovered by almost EUR 10,0 million and finished at EUR -12.3 million (Q1/2020: EUR -22.2 million).
Recovery in earnings mainly driven by the refinery business
The refineries in the REFINING segment sold lower volumes in the first quarter of 2021 than in the previous year. Sales decreased accordingly to EUR 144.5 million (Q1/2020: EUR 170.7 million). On the earnings side, on the other hand, stable product prices encouraged a further improvement. The segment's EBITDA was EUR 17.5 million (Q1/2020: EUR 5.0 million). The international locations of our SALES segment, on the other hand, recovered strongly in sales to EUR 87.9 million (Q1/2020: EUR 80.2 million), but the earnings recovery in this segment was somewhat more subdued than at the German refineries: Instead of EUR 6.7 million in the same quarter of the previous year, EBITDA of EUR 7.6 million was achieved in the first quarter of 2021. The PLASTICS segment achieved a noticeably improved EBITDA of EUR 0.9 million (Q1/2020: EUR -0.1 million). Here sales remained constant from EUR 11.0 million in the previous year to EUR 10.9 million in Q1/2021.
Solid equity base
The balance sheet total increased to EUR 813.3 million at the end of the first quarter of 2021 (December 31, 2020: EUR 745.7 million). High production capacity utilization at the refinery locations and rising raw material costs resulted in higher inventories on the assets side, while on the liabilities side, taking out the KfW entrepreneur loan had an impact on liabilities to banks. The company's equity as of the balance sheet date was EUR 362.0 million (December 31, 2020: EUR 346.9 million). It was quoted at 44.5% (December 31, 2020: 46.5%).
For a complete presentation of the business development including segment reporting and the quarterly financial statements, H&R KGaA refers to the quarterly statement 1/2021 which will be published on May 14, 2021.
H&R GmbH & Co. KGaA:
Forward-looking statements and forecasts:
27-Apr-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
H&R GmbH & Co. KGaA
Neuenkirchener Str. 8
+49 (0)40 43 218 321
+49 (0)40 43 218 390
Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Hanover, Munich, Stuttgart, Tradegate Exchange
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