Dr. Hönle AG: Sales increase in the 9-month period by 18.4% to EUR 84.9 million

UV Air Disinfection

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Gräfelfing/München (pta007/06.08.2021/08:05 UTC+2)

Revenues earned by the Hönle Group in the 9-month period climbed from T€ 71,734 in the previous year to T€ 84,932 in the current financial year. The following factors led to a slowdown in the Hönle Group's business development in the current financial year: The Corona crisis had a dampening effect in individual sectors such as the printing press market where revenues generated in the first nine months of financial year 2020/2021 were significantly below the previous year's level. Moreover, there were supply bottlenecks on the procurement side. Long delivery times for raw materials, electronic components and, in some cases, mechanical components resulted in delivery dates being postponed from the third quarter to the fourth quarter.

The operating result (EBIT) climbed 13.9% to T€ 7,162, which translates into an EBIT margin of 8.2% (PY: 8.8%). At T€ 6,395, earnings before tax (EBT) are up 5.4% on the prior-year period. Consolidated profit after income taxes came to T€ 4,849, corresponding to a 2.3% increase year-on-year. Earnings per share amounted to € 0.79 (PY € 0.79). This corresponds to a net return on sales of 5.7% (prior year: 6.6%).

Outlook

Adhesives Segment 

Due to Corona-related travel restrictions it was not possible to carry out sales activities as planned. The acquisition of new customers, in particular, suffered from this impediment. The Management Board expects sales revenues in the Adhesives segment in the current financial year to be below the previous year's values.  Assuming a significant reduction of Corona-related restrictions, business is expected to pick up strongly again  from the next financial year onwards. Ongoing customer projects, as well as our enlarged customer base, will contribute to this. In order to accommodate the planned growth, both development and sales capacities in the Adhesives segment were further increased and the spatial capacities were expanded. A new corporate building with 6,000 sqm of floor space was set up and occupied in Steinbach near Frankfurt early in this year. In addition, further expansion areas exist to ensure that future long-term growth plans can be realised in the future also.

Equipment and Systems Segment 

The Bavarian state government has decided to promote mobile air purification systems for use in public and private schools and other educational institutions. The government explicitly mentions systems that use UVC technology for the disinfection of indoor air. In Bavaria alone, this would result in a demand for around 120,000 of such devices. If other German states were to follow the Bavarian approach and, as a result, promote mobile UV air disinfection systems, this would result in a demand of around 800,000 units for the whole of Germany in the short term.

The Management sees favourable growth opportunities for the Hönle Group to arise from the supply of UVC air purifiers for public and private schools and in many other areas of application such as offices restaurants, gyms, pharmacies, medical practices and opticians. As a consequence, the sale of equipment for disinfecting indoor air is predicted to see excellent development at the end of the fourth quarter and in the next financial year, in particular. The Management Board expects an additional sales volume of between € 15 million to € 40 million from UV air disinfection systems in the next financial year.

Moreover, the Management also expects good sales development with drying systems for the printing press market in the fourth quarter and in the coming financial year. This forecast is underpinned by a high order backlog at the end of the third quarter and a positive outlook for the printing press market as a whole. 

Glass & Lamps Segment 

The rising demand for UV lamps used to disinfect air and water will contribute to very good business development at uv-technik Speziallampen GmbH in the current year as well as in the next years. 

The production capacity in the newly established lamp competence centre in Ilmenau was significantly increased to accommodate the planned growth in the areas of UV air disinfection and ballast water disinfection. 

The quartz glass market is also expected to pick up, as underlined by the good order intake in recent months. Increased demand is registered and is expected in the future as well, in particular, from the semiconductor industry. In addition, the planned expansion of sales capacities in the context of high-quality quartz glass products will probably lead to an increase in sales at Raesch Quarz (Germany) GmbH. Furthermore, improved purchasing conditions at the company will contribute to the growth in earnings.

Overall statement on future business development

The Hönle Group's business development is still difficult to forecast given the Corona pandemic and its impact on the individual segments, and due to the supply bottlenecks that have led to shifts in revenues. The dampening effects of the Corona crisis were still being felt in individual areas, such as the printing press market, where sales in the first nine months of the 2020/2021 financial year were well below the previous year's level. 

However, given the high order backlog at the end of the third quarter, the Management Board expects favourable business with drying systems for the printing press market. Moreover, the business with systems and UV lamps for the disinfection of air and surfaces is expected to develop very well over the short and medium term. For the next financial year, the Management Board expects an additional sales volume of 15 to 40 million euros in the UVC air disinfection business. Strong business development is also expected in the adhesives segment in the next financial year. Existing high-potential customer projects will contribute to this. 

For the current financial year, we continue to expect a significant year-on-year improvement in sales and earnings.

The complete quarterly report is available at: 

https://www.hoenle.com/investor-relation/financial-information#reports

About Hönle 

Dr. Hönle AG is a listed technology company with its registered office in Gräfelfing near Munich. The Hönle Group with its more than 600 employees develops innovative solutions for a wide range of industrial manufacturing processes. One focus of its business activities is the development and sale of industrial adhesives and casting compounds. In addition, equipment for drying paints and varnishes, curing adhesives and plastics, as well as for surface disinfection and sunlight simulation are manufactured. Air disinfection devices that are used to contain the corona pandemic are new to the product range. In addition, the Group produces UV lamps for water disinfection, among other things, and manufactures tubes and semi-finished products made of quartz glass, which are used in various branches of industry. The Hönle Group supplies technology and world market leaders worldwide and is represented in over 20 countries by its own companies or partner companies.

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Emitter:	Dr. Hönle AG Lochhamer Schlag 1 82166 Gräfelfing/München Germany
Contact Person:	Peter Weinert
Phone:	+49 89 85608-173
E-Mail:	peter.weinert@hoenle.de
Website:	www.hoenle.de
ISIN(s):	DE0005157101 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Munich, Stuttgart, Tradegate