Rosenbauer International AG: Rosenbauer Group continues turnaround in the first quarter of 2024

Leonding (pta011/17.05.2024/07:30 UTC+2)

• Higher vehicle deliveries and more business with equipment and services boost revenues by 17.7% to € 225.6 million
• For the first time in two years, EBIT in the first quarter is once again positive despite special effects
• EBITDA at € 7.6 million, EBT still negative due to interest charges
• Very strong incoming orders of € 362.4 million well above quarterly revenues

The Rosenbauer Group generated revenues of € 225.6 million in the first three months of 2024 (1-3/2023: € 191.7 million). The Group's business volume was thus 17.7% higher than in the same period of the previous year. The reasons for this are, on the one hand, a higher number of vehicle deliveries at improved prices and, on the other, more business with equipment and service. Revenues in the vehicles product segment alone increased by 12.7%. Specifically, the Europe area, the Americas area and Preventive Fire Protection were able to increase their revenues. The Group's turnaround, which was already clearly visible in 2023, has continued. Despite negative one-off effects of € 2.3 million due to the departure of a member of the Executive Board and the realization of a new banking agreement, the significant increase in gross profit enabled a positive operating result in the first quarter for the first time in two years. EBITDA amounted to € 7.6 million (1-3/2023: € 2.5 million) and EBIT to € 0.3 million (1-3/2023: € -4.9 million). At the same time, incoming orders of € 362.4 million were significantly higher than revenues in the first three months.

Revenues and result of operations

Economic activity was surprisingly resilient in the phase of global disinflation in 2022–23. It defied the warnings of a global recession and stagflation and increased while global inflation declined from its peak in mid-2022. The baseline forecast of the International Monetary Fund (IMF) assumes global economic growth of 3.2% in 2024. This corresponds to an increase in the forecast of 0.1 percentage points compared to January of this year.

The Rosenbauer Group generated revenues of € 225.6 million in the first quarter of 2024 (1–3/2023: € 191.7 million). Its revenues are divided across the individual sales areas as follows: Europe area 47%, Middle East & Africa area 8%, Asia-Pacific area 5%, Americas area 35% and Preventive Fire Protection segment 5%.

Gross profit was significantly higher than in the previous year after deducting costs of sales and enabled a slightly positive operating result of € 0.3 million (1-3/2023: € -4.9 million) year on year in spite of increased sales and administrative expenses. Group EBT amounted to € -9.0 million in the first quarter (1-3/2023: € -9.6 million) as a result of higher financing costs.

From January to March 2024, the Rosenbauer Group recorded incoming orders of € 362.4 million (1–3/2023: € 293.3 million). Despite the continued weak economy, all sales regions except for the Asia-Pacific area received more new orders than in the same period of the previous year. Thus, the order backlog continued to grow and amounted to € 1,935.1 million at the end of the first quarter of 2024 (March 31, 2023: € 1,610.0 million).

Financial and Net Assets Position

Total assets increased year on year to € 1,266.1 million (March 31, 2023: € 1,095.8 million). Current assets reported the largest change. They increased from € 831.9 million to € 1,005.2 million. Inventories increased to € 650.2 million (March 31, 2023: € 554.4 million). Receivables and other assets went up to € 313.2 million (March 31, 2023: € 232.4 million).

Net debt increased from € 434.9 million to € 492.8 million, reflecting the high financing requirements, particularly for the sales-related increase in trade working capital.

Trade working capital was at € 506.4 million (1–3/2023: € 458.9 million).

Cash flow from operating activities was negative at € -58.4 million at the end of the first quarter of 2024 because of the increase in inventories and receivables (1–3/2023: € -112.5 million) but better than the corresponding period of the previous year. A positive cash flow from operating activities is expected by the end of the year.

Outlook

Recently the IMF slightly improved its outlook for the world economy. According to the IMF, the economy may be able to steadily increase at a rate of 3.2% in both 2024 and 2025. At the same time, the upside and downside risks for this forecast are largely balanced. The weak medium-term outlooks reflect lower GDP growth per capita.

While the world economy is approaching a soft landing, the short-term priority for central banks is to ensure that inflation recedes smoothly by neither loosening their monetary policy too late nor too early, which could lead to inflation being lower than the target. At the same time, a new focus on medium-term budget consolidation is appropriate along with this easing, which would once again provide leeway for budget maneuvers and priority investments and guarantee debt sustainability.

The firefighting industry, whose order books are full to bursting, lags behind the economic cycle. While it is expected that demand will continue to increase in 2024, actual industry sales will depend on the further stabilization of international supply chains. Many manufacturers have passed on the recent cost increases in the form of price adjustments, which should have a positive impact on their earnings quality.

Based on further stabilization in the supply chains, the Executive Board expects revenues of around € 1.2 billion and an EBIT margin of around 5% for 2024.

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Emitter:	Rosenbauer International AG Paschinger Straße 90 4060 Leonding Austria
Contact Person:	Mag. Tiemon Kiesenhofer
Phone:	+43 664 80 679 6538
E-Mail:	ir@rosenbauer.com
Website:	www.rosenbauer.com/
ISIN(s):	AT0000922554 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade); Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate