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14.05.2024 09:36:12 - dpa-AFX: EQS-News: hGears AG Group: Start to 2024 in line with expectations despite continued challenging environment (english)
hGears AG Group: Start to 2024 in line with expectations despite continued
challenging environment
EQS-News: hGears AG / Key word(s): Quarter Results
hGears AG Group: Start to 2024 in line with expectations despite continued
challenging environment
14.05.2024 / 09:35 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
hGears AG Group: Start to 2024 in line with expectations despite continued
challenging environment
FIRST-QUARTER 2024 HIGHLIGHTS
* Group sales of EUR 26.0 million 7.3 % lower than in the previous year
* Refinancing for the next 3 years successfully completed
Schramberg, 14 May 2024 - In the first quarter of 2024, hGears AG generated
consolidated revenue of EUR 26.0 million and adjusted EBITDA of EUR 0.5
million. Following the strategic reorganisation of our sales structures, we
have now combined our activities into the e-Bike, (e)-Mobility and e-Tools
business areas in order to strengthen our optimal focus on industry-specific
requirements and dynamics while also creating more transparency. The e-Bike
business area developed positively from a very low level in the previous
year, while sales in the (e)-Mobility business area remained stable with a
slight increase. The main reason for the 7.3 % decline in consolidated sales
was the downward trend in the e-Tools division. Overall, the Group therefore
succeeded in achieving results in line with management expectations and the
guidance despite the persistently challenging business environment.
Following a weak performance in the same period of the previous year, the
e-Bike business unit recorded a certain degree of stabilisation in the first
quarter of 2024 despite ongoing destocking. However, the slight recovery
from a very low level in the previous year was reflected in growth of 14.2 %
to EUR 6.0 million in the reporting period. Although trends in the
automotive industry continued to remain a challenge, our projects in the
super sports car and EHV areas had a positive impact on the business
development of (e)-Mobility. As a result, the business area recorded a
slight increase of 2.7 % to EUR 12.6 million. At e-Tools, the combination of
excess inventories and weak demand in the electric garden tools business
once again had a negative impact on sales performance, while powertools
recorded a certain recovery. Nevertheless, the business area recorded a
year-on-year decline of 29.6 % in the first quarter of 2024.
The change in the product mix in the (e)-Mobility business area together
with inefficiencies in connection with start-stop costs and inventory
changes had a negative impact on gross profit, which fell by EUR 3.6 million
year-on-year and reached EUR 11.6 million in the first quarter of 2024.
Thanks to the organisational and operational countermeasures implemented in
2023, the absolute decline year-over-year of the adjusted EBITDA was lower,
decreasing by around EUR 1 million to EUR 0.5 million.
Sven Arend, CEO of hGears, comments:
"The market situation remains challenging, but we have adapted well to the
situation and the organisational and operational measures we have
implemented are having a positive effect. We will continue to focus on
driving the business forward, increasing operational flexibility and
maintaining liquidity at the same time. The reorganised business areas are
now even better aligned with the sector-specific requirements and their
dynamics. This ensures that we are agile, efficient and optimally positioned
to benefit from a recovery in the end markets as soon as it materialises."
Daniel Basok, CFO of hGears, also said:
"In such a challenging environment, I am pleased to announce that we have
successfully concluded new financing for the next three years. We have
secured attractive terms that not only provide stability but also
flexibility for future growth initiatives. This success reflects our
commitment to prudent financial management and our firm belief in our
business model."
OVERVIEW OF Q1 2024 FIGURES
NOTE: Numbers may be subject to rounding
OUTLOOK
In view of the market challenges associated with persistently high inventory
levels and shifts in demand trends as well as ongoing geopolitical risks,
hGears is maintaining its outlook. Against this backdrop, the Management
Board will prioritise operational flexibility and cash preservation, while
focusing on project execution, efficiency and agility in order to position
the company for renewed market growth.
For the full year 2024, the Group has set itself the following targets:
* Group revenues of EUR 100 - 110 million
* Adjusted EBITDA of EUR 1 - 3 million
* Free cash flow of between EUR 0 and minus EUR 3 million
Medium-term outlook:
In the medium term, i.e. over the next three to five years, hGears expects a
strong recovery in the e-bike segment in particular, albeit from a lower
base, and forecasts consolidated sales of around EUR 150 - 180 million.
Contact
hGears AG
Christian Weiz
Brambach 38
78713 Schramberg
T: +49 (7422) 566 222
E: Christian.Weiz@hgears.com
About hGears
hGears is a global manufacturer of mission-critical high-precision gears and
components with a focus on products for e-mobility applications. The
Company's strategic focus is on the e-Mobility business area, where products
include gears, shafts, and other mission-critical components to be used in
electrical drive applications for e-bikes and electric and hybrid vehicles.
In the e-bikes segment, hGears is the European market leader in the supply
of high-precision gears and components, and its parts are contained in
almost every second e-bike sold in Europe. This puts the Company in a good
position to capitalize on the dynamically growing end-markets for e-bikes
and electric and hybrid vehicles. hGears has three distinct business areas
for which it develops and manufactures high-precision components:
e-Mobility, e-Tools, and Conventional (i.e. premium and luxury cars,
motorcycles and industrial applications).
hGears combines over 65 years of experience in advanced machined steel metal
processing and state-of-the-art powder metal production. It is one of the
few companies offering customers both processes worldwide. hGears works
together with its customers in a "co-development" role to design components
and find technologically optimal solutions to satisfy the customer's
specifications. hGears' blue-chip customer base includes several major
suppliers (Tier 1) as well as original equipment manufacturers (OEMs). The
Company benefits from long, stable and sustainable relationships with its
customers and has worked with many key customers for over 15 years.
hGears is headquartered in Schramberg, Germany, and operates globally with
production facilities in Schramberg, Germany, Padua, Italy, and Suzhou,
China. Find us on the web: www.hgears.com
---------------------------------------------------------------------------
14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1902635 14.05.2024 CET/CEST
challenging environment
EQS-News: hGears AG / Key word(s): Quarter Results
hGears AG Group: Start to 2024 in line with expectations despite continued
challenging environment
14.05.2024 / 09:35 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
hGears AG Group: Start to 2024 in line with expectations despite continued
challenging environment
FIRST-QUARTER 2024 HIGHLIGHTS
* Group sales of EUR 26.0 million 7.3 % lower than in the previous year
* The positive development of e-Bike and (e)-Mobility only partially
compensated for the downward trend in e-tools
* Gross profit fell to EUR 11.6 million (margin 44.8 %) mainly due to a
lack of volume (start-stop costs)
* The adjusted EBITDA fell to EUR 0.5 million, the adjusted EBITDA margin
reached 2.0 %
* We confirm our forecast for 2024 after quarterly results in line with
expectations
* Refinancing for the next 3 years successfully completed
Schramberg, 14 May 2024 - In the first quarter of 2024, hGears AG generated
consolidated revenue of EUR 26.0 million and adjusted EBITDA of EUR 0.5
million. Following the strategic reorganisation of our sales structures, we
have now combined our activities into the e-Bike, (e)-Mobility and e-Tools
business areas in order to strengthen our optimal focus on industry-specific
requirements and dynamics while also creating more transparency. The e-Bike
business area developed positively from a very low level in the previous
year, while sales in the (e)-Mobility business area remained stable with a
slight increase. The main reason for the 7.3 % decline in consolidated sales
was the downward trend in the e-Tools division. Overall, the Group therefore
succeeded in achieving results in line with management expectations and the
guidance despite the persistently challenging business environment.
Following a weak performance in the same period of the previous year, the
e-Bike business unit recorded a certain degree of stabilisation in the first
quarter of 2024 despite ongoing destocking. However, the slight recovery
from a very low level in the previous year was reflected in growth of 14.2 %
to EUR 6.0 million in the reporting period. Although trends in the
automotive industry continued to remain a challenge, our projects in the
super sports car and EHV areas had a positive impact on the business
development of (e)-Mobility. As a result, the business area recorded a
slight increase of 2.7 % to EUR 12.6 million. At e-Tools, the combination of
excess inventories and weak demand in the electric garden tools business
once again had a negative impact on sales performance, while powertools
recorded a certain recovery. Nevertheless, the business area recorded a
year-on-year decline of 29.6 % in the first quarter of 2024.
The change in the product mix in the (e)-Mobility business area together
with inefficiencies in connection with start-stop costs and inventory
changes had a negative impact on gross profit, which fell by EUR 3.6 million
year-on-year and reached EUR 11.6 million in the first quarter of 2024.
Thanks to the organisational and operational countermeasures implemented in
2023, the absolute decline year-over-year of the adjusted EBITDA was lower,
decreasing by around EUR 1 million to EUR 0.5 million.
Sven Arend, CEO of hGears, comments:
"The market situation remains challenging, but we have adapted well to the
situation and the organisational and operational measures we have
implemented are having a positive effect. We will continue to focus on
driving the business forward, increasing operational flexibility and
maintaining liquidity at the same time. The reorganised business areas are
now even better aligned with the sector-specific requirements and their
dynamics. This ensures that we are agile, efficient and optimally positioned
to benefit from a recovery in the end markets as soon as it materialises."
Daniel Basok, CFO of hGears, also said:
"In such a challenging environment, I am pleased to announce that we have
successfully concluded new financing for the next three years. We have
secured attractive terms that not only provide stability but also
flexibility for future growth initiatives. This success reflects our
commitment to prudent financial management and our firm belief in our
business model."
OVERVIEW OF Q1 2024 FIGURES
Group figures (in EUR million) Q1 2024 Q1 2023
Revenues 26.0 28.0 -7.3 %
Gross Profit 11.6 15.2 -23.6 %
Gross Profit margin 44.8 % 54.4 % -960 bps
Adj. EBITDA 0.5 1.5 -65.8 %
Adj. EBITDA margin 2.0 % 5.4 % -340 bps
Revenues by Business Area (in EUR million) Q1 2024 Q1 2023
e-Bike 6.0 5.2 14.2 %
(e)-Mobility 12.6 12.3 2.7 %
e-Tools 7.3 10.3 -29.6 %
NOTE: Numbers may be subject to rounding
OUTLOOK
In view of the market challenges associated with persistently high inventory
levels and shifts in demand trends as well as ongoing geopolitical risks,
hGears is maintaining its outlook. Against this backdrop, the Management
Board will prioritise operational flexibility and cash preservation, while
focusing on project execution, efficiency and agility in order to position
the company for renewed market growth.
For the full year 2024, the Group has set itself the following targets:
* Group revenues of EUR 100 - 110 million
* Adjusted EBITDA of EUR 1 - 3 million
* Free cash flow of between EUR 0 and minus EUR 3 million
Medium-term outlook:
In the medium term, i.e. over the next three to five years, hGears expects a
strong recovery in the e-bike segment in particular, albeit from a lower
base, and forecasts consolidated sales of around EUR 150 - 180 million.
Contact
hGears AG
Christian Weiz
Brambach 38
78713 Schramberg
T: +49 (7422) 566 222
E: Christian.Weiz@hgears.com
About hGears
hGears is a global manufacturer of mission-critical high-precision gears and
components with a focus on products for e-mobility applications. The
Company's strategic focus is on the e-Mobility business area, where products
include gears, shafts, and other mission-critical components to be used in
electrical drive applications for e-bikes and electric and hybrid vehicles.
In the e-bikes segment, hGears is the European market leader in the supply
of high-precision gears and components, and its parts are contained in
almost every second e-bike sold in Europe. This puts the Company in a good
position to capitalize on the dynamically growing end-markets for e-bikes
and electric and hybrid vehicles. hGears has three distinct business areas
for which it develops and manufactures high-precision components:
e-Mobility, e-Tools, and Conventional (i.e. premium and luxury cars,
motorcycles and industrial applications).
hGears combines over 65 years of experience in advanced machined steel metal
processing and state-of-the-art powder metal production. It is one of the
few companies offering customers both processes worldwide. hGears works
together with its customers in a "co-development" role to design components
and find technologically optimal solutions to satisfy the customer's
specifications. hGears' blue-chip customer base includes several major
suppliers (Tier 1) as well as original equipment manufacturers (OEMs). The
Company benefits from long, stable and sustainable relationships with its
customers and has worked with many key customers for over 15 years.
hGears is headquartered in Schramberg, Germany, and operates globally with
production facilities in Schramberg, Germany, Padua, Italy, and Suzhou,
China. Find us on the web: www.hgears.com
---------------------------------------------------------------------------
14.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: hGears AG
Brambach 38
78713 Schramberg
Germany
Phone: +49 (7422) 566 0
Fax: +49 (7422) 566 883
E-mail: info@hgears.com
Internet: https://hgears.com
ISIN: DE000A3CMGN3
WKN: A3CMGN
Listed: Regulated Market in Frankfurt (Prime Standard)
EQS News ID: 1902635
End of News EQS News Service
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1902635 14.05.2024 CET/CEST
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
HGEARS AG INH O.N. | A3CMGN | Xetra | 2,860 | 28.05.24 17:38:43 | +0,110 | +4,00% | 0,000 | 0,000 | 2,710 | 2,750 |
