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DGAP-News: KAP AG / Key word(s): 9 Month figures
KAP AG: ROBUST DEVELOPMENT OF BUSINESS IN THE FIRST NINE MONTHS DESPITE GLOBAL SUPPLY CONSTRAINTS
Fulda, 24 November 2021 - KAP AG ("KAP"), a mid-sized industrial holding company listed on the stock exchange (WKN 620840, ISIN DE0006208408), reported a positive development of business in the first nine months of 2021 compared with the same period of the previous year. The Company increased its revenue from continuing operations by 9.0% to €266.3 million (previous year: €244.4 million). Normalised EBITDA increased by 12.8% to €30.0 million (previous year: €26.6 million), while the normalised EBITDA margin increased by 0.4 percentage points to 11.3% (previous year: 10.9%). The significant increase in demand from customers in the automotive sector in the first half of the year was noticeably curbed by difficulties in the international supply chain, particularly in the third quarter. Due to long-term agreements, the KAP Group's segment companies can only pass on price increases in raw materials and logistics to their customers with a delay.
Eckehard Forberich, member and Spokesman of the Management Board of KAP AG: "The past few months, which were marked by an array of uncertainties globally, show once again that the diversification of our business model is paying off. KAP developed robustly in the first three quarters of 2021 despite the global supply constraints, which initially affected the automotive sector in particular. As a result, we were able to continue our strategic and operational optimisation measures within the framework of Accelerate consistently and even faster than planned."
Improved operating results in all continuing segments
The flexible films segment continued on its growth path in the reporting period, benefiting from its strong market position and the acquisition of extrusion specialist AerO Coated Fabrics. The segment companies achieved revenue growth of 29.8%, reaching €101.0 million (previous year: €77.8 million). Normalised EBITDA rose by 18.9% in the first nine months of the year to €15.1 million (previous year: €12.7 million).
In the surface technologies segment, revenue rose by around 14.1% to €44.4 million (previous year: €38.9 million), following a significant decline in the same period of the previous year due to the sharp fall in demand in the automotive sector as a result of the COVID-19 pandemic. The extent of the recovery was limited, particularly in the third quarter of 2021, by lower customer call-offs as a result of ongoing supply chain difficulties. Normalised EBITDA rose significantly by 23.1% to €8.0 million (previous year: €6.5 million).
The precision components segment generated revenue growth of 8.1% in the first nine months of 2021 to €30.6 million (previous year: €28.3 million). The increase was mainly due to the positive effects from the recovery of the automotive sector in the first six months of 2021, which were, however, partly curtailed by the semiconductor shortages in the automotive industry. In the third quarter in particular, customer demand shifts also occurred in this segment as a result of the supply chain disruptions. Normalised EBITDA increased significantly by 100.0% to €1.6 million in the first nine months of 2021 (previous year: €0.8 million), demonstrating the effectiveness of the efficiency improvement measures of the Accelerate programme already implemented.
Accelerate: Improvement initiatives implemented faster than planned
Management Board confirms improved forecast for 2021
The KAP Group's future business performance through to the end of 2021 is largely dependent on the development of the COVID-19 pandemic in the individual countries and the procurement markets in the automotive industry. Depending on their extent, both factors can have a considerable influence on the further development of the Company's business.
The complete Q3 Quarterly Statement 2021 can be found on the Company's website.
About KAP AG
24.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Edelzeller Straße 44
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange
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