POLYTEC HOLDING AG: Results 3. Quarter 2023

Hörsching (pta013/14.11.2023/08:04 UTC+1)

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Key figures Q1-Q3 2023

* Group sales revenues EUR 485.2 million (Q1-Q3 2022: EUR 430.7 million)

* EBITDA EUR 22.3 million (Q1-Q3 2022: EUR 25.0 million)

* EBITDA margin 4.6% (Q1-Q3 2022: 5.8%)

* EBIT minus EUR 2.7 million (Q1-Q3 2022: EUR 0.24 million)

* EBIT margin minus 0.6% (Q1-Q3 2022: 0.1%)

* Earnings after tax minus EUR 8.7 million (Q1-Q3 2022: minus EUR 1.9 million)

* Earnings per share minus EUR 0.40 (Q1-Q3 2022: minus EUR 0.08)

* Equity ratio 42.0% (31.12.2022: 43.0%)

* Net debt EUR 90.0 million (Q1-Q3 2022: EUR 92.2 million)

* Employees as at 30.09.2023 (incl. leasing personnel, FTE) 3,906 (30.09.2022: 3,588)

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The POLYTEC Group's consolidated sales revenues in the months January to September 2023 totalled EUR 485.2 million and were therefore 12.7% or EUR 54.5 million higher than in the same period of the previous year (Q1-Q3 2022: EUR 430.7 million). In the first and second quarters of 2023, customer call-offs had improved significantly compared to the previous year. Short-term customer call-off reductions that occurred during the third quarter of 2023 led to lower sales revenues in the third quarter.

In the Passenger Cars & Light Commercial Vehicles market area, which with 74.0% (Q1-Q3 2022: 74.0%) is the POLYTEC GROUP's strongest in terms of sales, revenues of EUR 359.1 million were generated in the months January to September 2023. This figure was 12.6%, or EUR 40.2 million, higher than the comparable value for the preceding year (Q1-Q3 2022: EUR 318.9 million). On a year-on-year basis, sales revenues in the Commercial Vehicles market area (share of total sales: 17.2%; Q1-Q3 2022: 16.7%) rose by 16.2% from EUR 71.7 million to EUR 83.3 million. Sales in the Smart Plastic & Industrial Applications market area (share 8.8%; Q1-Q3 2022: 9.3%) increased slightly from EUR 40.1 million to EUR 42.8 million.

The POLYTEC GROUP's EBITDA amounted to EUR 22.3 million in the first nine months 2023 (Q1-Q3 2022: EUR 25.0 million). The EBITDA margin decreased by 1.2 percentage points year-on-year, from 5.8% to 4.6%.

The measures introduced during the summer to improve operational efficiency had a positive effect in some areas, but significant additional costs due to extra shifts, increased workforce numbers and other special expenses continued to affect the Group's earnings situation in the third quarter of 2023.

Group EBIT in the months January to September 2023 totalled minus EUR 2.7 million (Q1-Q3 2022: EUR 0.2 million). As opposed to the same period of 2022, the EBIT margin was 0.7 percentage points lower, coming from 0.1% to minus 0.6%.

The financial result for the months January to September 2023 totalled minus EUR 5.7 million (Q1-Q3 2022: minus EUR 1.9 million). The consolidated net profit for the first nine months of 2023 amounted to minus EUR 8.7 million (Q1-Q3 2022: minus EUR 1.9 million), which corresponded to earnings per share of minus EUR 0.40 (Q1-Q3 2022: minus EUR 0.08).

In comparison to 31 December 2022, on 30 September 2023, the group's balance sheet total was EUR 13.0 million lower at EUR 538.2 million. The equity ratio was 1.0 percentage point lower than on the annual reporting date at 42.0%. At over 40%, equity has been at a healthy level for years.

Net debt amounted to EUR 90.0 million as of 30 September 2023, an increase of EUR 30.2 million compared to the balance sheet date of 31 December 2022 (EUR 59.8 million). The gearing ratio increased from 0.25 as of the last balance sheet date to 0.40 as of 30 September 2023. On the 30 September 2023 reporting date, the POLYTEC GROUP disposed over cash and cash equivalents of EUR 38.2 million (30.09.2022: EUR 27.3 million).

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Outlook 2023 financial year

At the time of publication of the half-year results, the management of the POLYTEC GROUP expected consolidated sales revenues of around EUR 650 million for the 2023 financial year. Short-term customer call-off reductions during the third quarter led to lower sales revenues in the third quarter and will also affect sales performance in the fourth quarter. From the current perspective, the management of the POLYTEC GROUP expects consolidated sales revenues of around EUR 630 million for the 2023 financial year.

The measures introduced during the summer to improve operational efficiency are having a positive effect in certain areas, but significant additional costs due to extra shifts, increased workforce numbers and other special expenses will continue to affect the Group's earnings position in the fourth quarter of the current financial year.

Inflation-related cost increases must also be taken into account in appropriate price agreements in a timely manner. Achieving a positive EBIT (earnings before interest and taxes) for the 2023 financial year is therefore a challenge. Depending on the final sales trend and the results of negotiations, a slightly negative EBIT margin cannot be ruled out.

In the medium and long term, the high level of new order intake in both the 2022 and 2023 financial years provides a solid basis for turning the transformation in the automotive sector into increasing economic success.

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The Q3 2023 interim report of POLYTEC Holding AG as at 30 September 2023 closing date is available for downloading on the Investor Relations, publications section of the Group's website.

https://www.polytec-group.com/en/investor-relations/publications

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Emitter:	POLYTEC HOLDING AG Polytec-Straße 1 4063 Hörsching Austria
Contact Person:	Paul Rettenbacher
Phone:	+43 7221 701 292
E-Mail:	paul.rettenbacher@polytec-group.com
Website:	www.polytec-group.com
ISIN(s):	AT0000A00XX9 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)