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Semi-annual report 2022: Adval Tech posts positive EBIT and break-even net result – despite very difficult market conditions

Adval Tech Management AG / Key word(s): Half Year Results

19-Aug-2022 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Ad hoc announcement pursuant to Art. 53 LR

Niederwangen, August 19, 2022, 7.00 a.m. – Under very difficult market conditions, the Adval Tech Group achieved a total income1) of CHF 90.9 million in the first half of 2022 (first half of 2021: CHF 90.4 million, +0.5%), operating earnings before interest, tax and depreciation (EBITDA1)) of CHF 5.3 million (first half of 2021: CHF 9.7 million, -45.4%), operating earnings before interest and tax (EBIT1)) of CHF 1.5 million (first half of 2021: CHF 5.8 million, -74.6%) and net result of CHF 0.0 million (first half of 2021: CHF 4.3 million). The EBITDA margin was 5.8% (first half of 2021: 10.7%) and the EBIT margin amounted to 1.6% (first half of 2021: 6.4%).

The Adval Tech Group was not spared the massive disruptions in global supply and logistics chains in the first half of 2022. The outbreak of war in Ukraine at the end of February further aggravated the already difficult situation. The shortage of raw materials and individual electronics components, as well as the resulting lack of avail­ability, had a massive impact on production volumes and the flow of goods in the automotive industry, particularly in Europe. Securing raw materials also involved ma­jor efforts on the part of Adval Tech. Unpredictable production interruptions on the customer side required extreme flexibility and agility. Although its good order situation, Adval Tech had to selectively introduce short-time working. Marked increases in material, energy and transport costs also put pressure on margins.

Even under these circumstances, in the first half of 2022 Adval Tech was able to maintain the high level of total income1) of the same period 2021 and generate positive EBIT1) as well as break-even net result. In terms of cash flow from operating activities, Adval Tech even improved from CHF -0.1 million to CHF +0.9 million.

Total income1)
In the first half of 2022, the Adval Tech Group generated total income1) of CHF 90.9 million (first half of 2021: CHF 90.4 million). At 75%, Adval Tech generated most of its turnover in the first half of 2022 with customers in Europe (first half of 2021: 75%). Asian customers accounted for 10% of Adval Tech’s turnover (first half of 2021: 10%), Latin American customers for 9% (first half of 2021: 8%), North American customers for 6% (first half of 2021: 6%) and customers from Australia/Oceania for 0% (first half of 2021: 1%).

Profitability
The Adval Tech Group generated operating earnings before interest, tax and depreciation (EBITDA1)) of CHF 5.3 million (first half of 2021: CHF 9.7 million, -45.4%), corresponding to an EBITDA margin of 5.8% (first half of 2021: 10.7%). Operating earnings before interest and tax (EBIT1)) was CHF 1.5 million (first half of 2021: CHF 5.8 million, -74.6%), EBIT margin 1.6% (first half of 2021: 6.4%). Net result for the Adval Tech Group amounted to CHF 0.0 million in the first half of 2022 (first half of 2021: CHF 4.3 million). Adjusted for currency effects, EBITDA1) for the first half of 2022 amounted to CHF 5.3 million and EBIT1) to CHF 1.4 million.

 

Outlook
It remains extremely difficult to make economic forecasts. Neither the further course of the Co­ronavirus pandemic nor the development of supply bottlenecks for raw materials and electronic components are foreseeable for the coming months. Added to this is the geopolitical situation with its uncertainties regarding energy supplies, production reli­ability and cost development. Adval Tech is therefore refraining from issuing a specific outlook for the second half of the year.

The Adval Tech Group remains cautious with regard to costs and capital expenditure. It continues to focus on implementing the acquired projects right first time.

 

Key figures

 

1st half of 2022

2nd half of 2021

1st half of 2021

Total income1) (CHF million)

 

90.9

80.4

90.4

Net turnover (CHF million)

 

86.0

80.4

86.2

EBITDA1) (CHF million)

 

5.3

7.3

9.7

EBIT1) (CHF million)

 

1.5

3.4

5.8

Net result (CHF million)

 

0.0

1.6

4.3

Free cash flow1) (CHF million)

 

-0.7

14.6

-1.0

Number of employees (full-time equivalents) as at balance sheet date

 

1,140

1,134

1,132

1) Alternative Performance Measure, see note 3, page 77 of the Annual Report 2021

 

Download ad hoc announcement pursuant to Art. 53 LR
www.advaltech.com/en/group/investors/company-news/ad-hoc-notices

 

Publication of 2022 semi-annual report
The 2022 semi-annual report will be published at the same time as this ad hoc announcement:
http://www.advaltech.com/en/group/investors/reports/

 

Agenda
End of March, 2023 – Announcement of the results for the 2022 financial year
April 18, 2023 – Conference on the 2022 Annual Report
April 18, 2023 – Publication of the 2022 Annual Report 
May 11, 2023 – General Meeting of Shareholders 2023

 

Background information about the Adval Tech Group
Adding value through innovation – that's what Adval Tech stands for. The Adval Tech Group is a global industrial supplier of technologically sophisticated components and subassemblies made of metal and plastic. It focuses on selected activities, especially in its main target market, the automotive industry. As a supplier and value-adding partner, Adval Tech covers the entire value chain from product development to prototyping, to mold and tool development, and through to component production and assembly. Headquartered in Switzerland, the Adval Tech Group operates a total of nine production plants. These are located in Switzerland, Germany, Hungary, China, Malaysia, Mexico and Brazil.

 

Contact
Markus Reber, CFO, phone +41 31 980 82 70, markus.reber@advaltech.com
Valeria Poretti, Head Corporate HR/Communication, phone +41 31 980 82 66, valeria.poretti@advaltech.com

 

Except for the historical information contained herein, the statements in this ad hoc announcement are forward-looking statements that involve risks and uncertainties.


End of Inside Information

Language:

English

Company:

Adval Tech Management AG

Freiburgstrasse 556

3172 Niederwangen

Switzerland

Internet:

www.advaltech.com

ISIN:

CH0008967926

Valor:

896792

Listed:

SIX Swiss Exchange

EQS News ID:

1423701


 

End of Announcement

EQS News Service

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