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28.07.2023 07:00:27 - dpa-AFX: EQS-Adhoc: Solid sales and EBIT again in the first half of 2023 in a challenging environment (english)
Solid sales and EBIT again in the first half of 2023 in a challenging
environment
Zehnder Group AG / Key word(s): Half Year Results
Solid sales and EBIT again in the first half of 2023 in a challenging
environment
28-Jul-2023 / 06:59 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
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* Organic sales growth of 21% to EUR 62.9 million in North America
* EBIT margin of 14.7% in ventilation and 0.9% in radiators
* Cash flow from operating activities increased to EUR 22.3 million (+93%)
Graenichen (CH), 28 July 2023: The Zehnder Group (SIX: ZEHN), a leading
international provider of complete solutions for a comfortable,
energy-efficient and healthy indoor climate, increased its sales by 2% to
EUR 407.0 million in the first half of 2023 (organically -1%(1)).
Acquisitions from the previous year contributed 3% to sales growth. Foreign
exchange effects had a slightly negative impact of around -1% on
consolidated sales. For the first time in its history, Zehnder Group
achieved 60% of total sales in the ventilation segment. Accordingly, the
share of sales in the radiator segment was 40%.
Sales in the ventilation segment increased by 12% (of which 7% was organic)
to EUR 245.4 million in the first half of 2023. The most recent acquisitions
contributed 6% to sales growth, while currency effects had a slightly
negative impact of -1%. The enhanced component availability led to improved
delivery capability, particularly in residential ventilation. Consequently,
production volumes of ventilation units were increased, and the backlog of
orders accumulated due to a lack of components was largely reduced.
The radiator segment recorded sales of EUR 161.6 million in the first half
of 2023, which corresponds to a decline in sales of 10% (-10% organically).
The sharp decline in volumes was partially offset by higher prices.
Weakening purchasing power due to increased financing costs and persistently
high levels of inflation have led to a decline in demand. This development
had a negative impact on the renovation business and led to a significant
overall decline in volumes in the radiator segment.
Stable operating margin in a challenging market environment
The operating result (EBIT) in the first six months of 2023 amounted to EUR
37.5 million and was thus 2% above the figure for the period during the
previous year. The EBIT margin of 9.2% was at the same level of the previous
year. Cost increases due to higher levels of inflation were largely passed
on to customers. At the same time, Zehnder Group is pursuing a proactive
pricing policy and differentiated cost management in this challenging market
environment. In this way, it was possible to implement cost reductions and
efficiency improvements in many areas.
In the ventilation segment, the EBIT rose to EUR 36.1 million in the first
half of 2023 (previous year: EUR 29.1 million). This corresponds to an
increase of 24% compared to the previous year. The EBIT margin increased by
1.5 percentage points to 14.7%. The gradual resolution of global supply
problems and the associated improvement in delivery capability had a
positive impact on profitability - as did the cost-related price increases.
In the radiator segment, the EBIT fell to EUR 1.4 million in the first half
of 2023 (previous year: EUR 7.8 million). The EBIT margin thus decreased to
0.9% (previous year: 4.4%). This was mainly due to the decline in order
volumes in Europe and China in view of the difficult economic environment
and the associated lower production capacity utilisation. Furthermore, the
challenging climate ceilings business continued to weigh on earnings.
Targeted cost-saving measures were implemented consistently in the radiator
segment. These resulted in restructuring costs of 1.7 Mio. EUR in the first
half of the year.
Increased cash flow from operating activities
Cash flow from operating activities increased to EUR 22.3 million (previous
year: EUR 11.6 million) in the first half of 2023. The increase is mainly
due to the lower build-up of trade receivables compared with the previous
year's period. At the same time, Zehnder Group repurchased its own shares
and paid dividends for the 2022 financial year. Net liquidity(2) amounted to
EUR 24.3 million at the end of June 2023 (previous year: EUR 23.3 million).
Equity was at EUR 336.0 million (previous year: EUR 327.7 million),
corresponding to a continued high equity ratio of 62% (previous year: 58%).
Outlook 2023 and confirmed medium-term targets
As already announced in the last ad hoc release of 20 July 2023, due to the
current economic situation, Zehnder Group expects that high levels of
inflation and rising interest rates will continue to affect the number of
planning permits granted for new buildings and renovation projects for
customers. It is currently difficult to gauge when the new building and
renovation business will recover. Against this background, Zehnder Group
continues to expect a challenging market development. Consequently, Zehnder
Group expects sales for the full year 2023 between EUR 780 million and EUR
820 million, and an EBIT margin of around 8% of sales.
In the long term, growth prospects remain positive, particularly in the
ventilation segment. New building regulations for better insulated
buildings, the increasing demand for energy-saving and efficient climate
control solutions, and the desire for healthy indoor air quality, together
with the still low penetration rates in various countries, are fueling
growth - especially in the ventilation segment. Therefore, the medium-term
targets of average annual sales growth of 5% and an EBIT margin of 9% to 11%
remain unchanged.
The complete Six-month report 2023 is available on our website at:
www.zehndergroup.com/en/investor-relations/reports-and-presentations
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(1) For alternative performance measures, please refer to the Six-month
Report 2023.
(2) For alternative performance measures, please refer to the Six-month
Report 2023.
Next dates to note
Contact
René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com
Alexander Kamb
Senior Manager Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com
This media release is published in German and English. The German version is
binding. For further information about the Zehnder Group, please visit
www.zehndergroup.com.
Company profile
The Zehnder Group provides worldwide leading solutions for a comfortable,
energy-efficient and healthy indoor climate. The products and services of
the Group include heating, cooling, indoor ventilation and air cleaning. The
Group develops and manufactures its products at its own factories in Europe,
China and North America. In the financial year of 2022, the Zehnder Group
had about 4000 employees and achieved sales of EUR 812 million. The company
is listed on the SIX Swiss Exchange (symbol: ZEHN, number: 27 653 461). The
unlisted registered shares B are held directly or indirectly by the Zehnder
family and persons closely associated with them.
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End of Inside Information
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End of Announcement EQS News Service
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1690499 28-Jul-2023 CET/CEST
environment
Zehnder Group AG / Key word(s): Half Year Results
Solid sales and EBIT again in the first half of 2023 in a challenging
environment
28-Jul-2023 / 06:59 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Group sales increased by 2% to EUR 407.0 million; for the first time,
Zehnder Group achieved 60% of total sales in the ventilation segment
* Organic sales growth of 21% to EUR 62.9 million in North America
* Operating result (EBIT) rose by a slight 2% to EUR 37.5 million, which
corresponds to an EBIT margin at previous year's level of 9.2%
* EBIT margin of 14.7% in ventilation and 0.9% in radiators
* Cash flow from operating activities increased to EUR 22.3 million (+93%)
Graenichen (CH), 28 July 2023: The Zehnder Group (SIX: ZEHN), a leading
international provider of complete solutions for a comfortable,
energy-efficient and healthy indoor climate, increased its sales by 2% to
EUR 407.0 million in the first half of 2023 (organically -1%(1)).
Acquisitions from the previous year contributed 3% to sales growth. Foreign
exchange effects had a slightly negative impact of around -1% on
consolidated sales. For the first time in its history, Zehnder Group
achieved 60% of total sales in the ventilation segment. Accordingly, the
share of sales in the radiator segment was 40%.
Sales in the ventilation segment increased by 12% (of which 7% was organic)
to EUR 245.4 million in the first half of 2023. The most recent acquisitions
contributed 6% to sales growth, while currency effects had a slightly
negative impact of -1%. The enhanced component availability led to improved
delivery capability, particularly in residential ventilation. Consequently,
production volumes of ventilation units were increased, and the backlog of
orders accumulated due to a lack of components was largely reduced.
The radiator segment recorded sales of EUR 161.6 million in the first half
of 2023, which corresponds to a decline in sales of 10% (-10% organically).
The sharp decline in volumes was partially offset by higher prices.
Weakening purchasing power due to increased financing costs and persistently
high levels of inflation have led to a decline in demand. This development
had a negative impact on the renovation business and led to a significant
overall decline in volumes in the radiator segment.
Stable operating margin in a challenging market environment
The operating result (EBIT) in the first six months of 2023 amounted to EUR
37.5 million and was thus 2% above the figure for the period during the
previous year. The EBIT margin of 9.2% was at the same level of the previous
year. Cost increases due to higher levels of inflation were largely passed
on to customers. At the same time, Zehnder Group is pursuing a proactive
pricing policy and differentiated cost management in this challenging market
environment. In this way, it was possible to implement cost reductions and
efficiency improvements in many areas.
In the ventilation segment, the EBIT rose to EUR 36.1 million in the first
half of 2023 (previous year: EUR 29.1 million). This corresponds to an
increase of 24% compared to the previous year. The EBIT margin increased by
1.5 percentage points to 14.7%. The gradual resolution of global supply
problems and the associated improvement in delivery capability had a
positive impact on profitability - as did the cost-related price increases.
In the radiator segment, the EBIT fell to EUR 1.4 million in the first half
of 2023 (previous year: EUR 7.8 million). The EBIT margin thus decreased to
0.9% (previous year: 4.4%). This was mainly due to the decline in order
volumes in Europe and China in view of the difficult economic environment
and the associated lower production capacity utilisation. Furthermore, the
challenging climate ceilings business continued to weigh on earnings.
Targeted cost-saving measures were implemented consistently in the radiator
segment. These resulted in restructuring costs of 1.7 Mio. EUR in the first
half of the year.
Increased cash flow from operating activities
Cash flow from operating activities increased to EUR 22.3 million (previous
year: EUR 11.6 million) in the first half of 2023. The increase is mainly
due to the lower build-up of trade receivables compared with the previous
year's period. At the same time, Zehnder Group repurchased its own shares
and paid dividends for the 2022 financial year. Net liquidity(2) amounted to
EUR 24.3 million at the end of June 2023 (previous year: EUR 23.3 million).
Equity was at EUR 336.0 million (previous year: EUR 327.7 million),
corresponding to a continued high equity ratio of 62% (previous year: 58%).
Outlook 2023 and confirmed medium-term targets
As already announced in the last ad hoc release of 20 July 2023, due to the
current economic situation, Zehnder Group expects that high levels of
inflation and rising interest rates will continue to affect the number of
planning permits granted for new buildings and renovation projects for
customers. It is currently difficult to gauge when the new building and
renovation business will recover. Against this background, Zehnder Group
continues to expect a challenging market development. Consequently, Zehnder
Group expects sales for the full year 2023 between EUR 780 million and EUR
820 million, and an EBIT margin of around 8% of sales.
In the long term, growth prospects remain positive, particularly in the
ventilation segment. New building regulations for better insulated
buildings, the increasing demand for energy-saving and efficient climate
control solutions, and the desire for healthy indoor air quality, together
with the still low penetration rates in various countries, are fueling
growth - especially in the ventilation segment. Therefore, the medium-term
targets of average annual sales growth of 5% and an EBIT margin of 9% to 11%
remain unchanged.
The complete Six-month report 2023 is available on our website at:
www.zehndergroup.com/en/investor-relations/reports-and-presentations
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(1) For alternative performance measures, please refer to the Six-month
Report 2023.
(2) For alternative performance measures, please refer to the Six-month
Report 2023.
Next dates to note
Sales announcement 2023 19 January 2024 Annual Report 2023 and Media/Analyst Conference 2024 28 February 2024 Annual General Meeting 2024 11 April 2024 Six-month Report 2024 26 July 2024
Contact
René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com
Alexander Kamb
Senior Manager Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com
This media release is published in German and English. The German version is
binding. For further information about the Zehnder Group, please visit
www.zehndergroup.com.
Company profile
The Zehnder Group provides worldwide leading solutions for a comfortable,
energy-efficient and healthy indoor climate. The products and services of
the Group include heating, cooling, indoor ventilation and air cleaning. The
Group develops and manufactures its products at its own factories in Europe,
China and North America. In the financial year of 2022, the Zehnder Group
had about 4000 employees and achieved sales of EUR 812 million. The company
is listed on the SIX Swiss Exchange (symbol: ZEHN, number: 27 653 461). The
unlisted registered shares B are held directly or indirectly by the Zehnder
family and persons closely associated with them.
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End of Inside Information
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Language: English
Company: Zehnder Group AG
Moortalstrasse 1
5722 Gränichen
Switzerland
Phone: +41 62 855 15 21
E-mail: investor-relations@zehndergroup.com
Internet: www.zehndergroup.com
ISIN: CH0276534614
Listed: SIX Swiss Exchange
EQS News ID: 1690499
End of Announcement EQS News Service
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1690499 28-Jul-2023 CET/CEST
