Dr. Hönle AG: Hönle increases its operating result by 14% to € 7.7 million in six months

Gilching (pta006/12.05.2022/08:00 UTC+2)

The economic recovery impacted positively on the Hönle Group's course of business. Both incoming orders and order backlog were clearly above the prior year's level. An even higher rise in revenue failed to realise due to long delivery times concerning electrical and electronic components, in particular. In all, sales revenues earned by the Hönle Group in the first six months of financial year 2021/2022 came to T€ 66,240, which translates into a 15.0% increase versus the prior year's value.

A changed product mix, the tense situation in the procurement markets as well as a sharp rise in the price of electricity burdened the Hönle Group's earnings power. Nevertheless, the Company succeeded in improving the operating result (EBIT) by 13.8% to T€ 7,663. This corresponds to an EBIT margin of 11.1% after 11.5% in the previous year. The pre-tax result (EBT) amounted to T€ 6,952, thus exceeding the value reached in the prior year period by 10.6%. The consolidated result after income taxes came to T€ 5,433, an increase of 19.3%. Earnings per share improved from € 0.77 to € 0.89. The net profit on sales was 8.2% in the first half of the year (PY: 7.9%).

Outlook

Given the high order backlog, business is expected to develop well in the current financial year also. Overall, the Management Board expects the Hönle Group to generate sales revenues of € 130 million to 140 million and an operating result (EBIT) of € 14 million to 17 million in financial year 2021/2022.

Adhesives Segment

Sales generated by the Adhesives segment were on par with the previous year's level in the first six months of the current financial year. A restraining effect on sales was provided by the existing travel restrictions in China. The situation in this region, which is of major importance for the Hönle Group, is expected to normalise in the next months, however.

The high-volume adhesives projects, which are of major importance for the Company's further course of business, are expected to realise in the fourth quarter of the financial year at the earliest.

Given the large number of high-potential adhesive projects, the Management Board anticipates strong business development over the medium- to long term. A further managing director, responsible for international adhesives sales, is to further develop the sales territories of China and the USA, in particular.

Equipment & Systems Segment

The Management Board expects a favourable course of business with drying systems for the drying and coating market and with drying systems for adhesives. These positive expectations are underpinned by the current high order backlog in these application areas. Hönle sees a strong demand for UV based drying solutions for industrial applications. In addition to the printing- and coating industries, relevant target markets are also provided by the medical technology industry.

The order backlog in the Equipment & Systems segment at the half-year end was about 65% above the previous year's level. In all, the segment is expected to see very favourable business development due to the excellent order position and the large number of customer projects.

Furthermore, the Management Board assumes that, over the medium to long term, the UV-based disinfection business will develop into an important pillar of the Hönle Group and will generate significant sales and earnings contributions.

Moreover, a new product line for the printing industry will probable contribute substantially to the planned growth in sales revenues from the new financial year onwards.

Glass & Lamps Segment

The high demand for UV-lamps used in air and water disinfection contributed to the excellent sales development at uv-technik Speziallampen GmbH. Prospects in the disinfection and drying business are likewise excellent, not least due to the high order backlog and the large number of ongoing customer projects. Therefore, good business development is expected in the UV lamps segment.

A powerful quartz glass market, a high order backlog and the fact that all quartz glass melting furnaces are in operation, producing glass with low rejection rates, will lead to a further continuous rise in sales in the next quarters. The earnings development at Raesch Quarz (Germany) GmbH will depend, to a great extent, on the development of electricity prices or and on subsidies granted by the government, respectively.

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 headquartered in Gilching, Germany. With its nearly 700 employees, the Hönle Group develops innovative solutions for a wide variety of industrial manufacturing processes. One focus of its activities is the development and sale of industrial adhesives and casting compounds. Moreover, the company manufactures equipment for ink and paint drying, adhesives and plastic curing as well as for air, water and surface disinfection and sunlight simulation. In addition, the corporate group produces UV lamps for disinfection and drying processes, among others, and manufactures tubes and semi-finished products made of quartz glass for use in various branches of industry. The Hönle Group supplies technology and world market leaders worldwide and is represented by its own entities and partner companies in more than 20 countries.

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Emitter:	Dr. Hönle AG Nicolaus-Otto-Str. 2 82205 Gilching Germany
Contact Person:	Peter Weinert
Phone:	+49 8105 2083 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