Hönle Group has a moderate start to the new financial year and confirms the outlook for the year as a whole

Gilching, 26 February 2024

-          Revenue in the first quarter of €23.8 million below the previous year's figure of €27.6 million due to the weak market environment

-          Operating result of € -0.8 million after € 1.9 million in the previous year

-          Positive operating cash flow of € 2.1 million despite negative result

-          Management Board continues to confirm outlook for the 2023/24 financial year

The Hönle Group generated lower sales and earnings in the initial three months of financial year 2023/24 than in the prior-year period due to the weak market environment in the machinery and plant engineering sector and as a result of order delays. Customer demand for printing applications saw an especially notable decline.

At T€ 23,787, the Hönle Group's sales revenues in the first quarter of the financial year were down 13.9% from the prior-year period. Gross profit dropped by 16.3% to 14,425 T€. At 40.1%, the cost of materials ratio was slightly above the previous year's figure of 39.3%. Personnel expenses advanced from 9,358 T€ to T€ 9,954, which corresponds to a personnel expense ratio of 41.8% (PY: 33.9%). The increase in personnel expenses is attributable to a staff increase and adjustments in wages and salaries. In the current financial year, the Other operating expenses ratio came to 16.0% (PY: 14.7%). The operating result (EBIT) stood at T€ -779 (PY: 2,348 T€) and earnings before taxes (EBT) came to T€ -1,274 (PY: 2,028 T€). After taxes, Hönle reported a consolidated net loss of T€ 861 (PY: consolidated net profit of T€ 1,924), which corresponds to earnings per share of € -0.15 (PY. 0.32 €).

Outlook

New orders in the Hönle Group were lower in the initial three months of financial year 2023/24 than in the prior-year period due to the weak market environment in the machinery and plant engineering sector and as a result of order delays. However, the Management Board believes that investor reluctance, which has been prevalent to date, will gradually dissipate. The Board's assumption is supported by market observations as well as the level of orders scheduled for delivery in the second half of the year. In May, the Hönle Group will be participating in Drupa, the world's largest printing equipment trade fair, as an exhibitor. This is also expected to increase demand for printing equipment and contribute to a corresponding increase in new orders for the Hönle Group, which is expected to lead to a considerable upturn in business in the second half of the financial year in particular.

On the whole, the Management Board is optimistic about the business trend for the rest of the financial year and has confirmed the annual targets. The Board is projecting sales revenues of between €105 million and €115 million and an operating result of between €6 million and €9 million for financial year 2023/24.

Adhesives Segment

From a regional perspective, the Group will continue to focus on developing the US market. Demand for customised industrial adhesives is high in North America, where Hönle has been underrepresented thus far. Hönle plans to continue developing the US sales market by working closely together with key account customers.

Hönle has a wide range of speciality adhesives for the electronic packaging sector, which is expected to see substantial growth in the future. In the coming years, more and more data will be generated and processed worldwide. This usually requires customised adhesives, making this an ideal field of activity for the Hönle Group as an adhesives specialist. The adhesives can be used, for instance, in smart phones, wearables or data processing systems for autonomous cars. The Management Board believes that sales of adhesives and adhesive systems, i.e. UV-reactive adhesives and the associated UV curing equipment, will rise sharply in the coming years. Profitability is expected to rise at an exceptionally high rate as sales revenues grow.

Equipment Systems Segment

Project management is being expanded with the goal of strategically targeting the application fields of the future. Active product management is being established for UV curing systems in all application areas relevant to Hönle. In addition to printing machines, these include technical films, coated components used in automotive engineering, and floor coverings.

New products are being strategically developed to improve the Hönle Group's competitive standing. The development process centres on the customer with the aim of providing user-friendly systems, which will create the foundation for increasing sales volumes over the coming years. Profitability improvements are expected from restructuring the product range and from leveraging savings potential on the procurement side.

Glass Lamps Segment

The Hönle Group is well positioned with its Glass Lamps segment. The segment's products are used to disinfect water by means of ultraviolet radiation. This environmentally friendly process is applied increasingly in the treatment of ballast water, drinking water, process water, and ultrapure water. In these fields of application, the Hönle Group supplies leading manufacturers of water treatment systems with lamps, sensors and electrical components. The pharmaceutical and electromobility sectors represent additional growth markets. The Group's selective expansion of product management will enable a targeted development of new, high-potential fields of application.

On the whole, the Management Board expects sales and earnings to increase in the Glass Lamps segment over the next few years.

The 2023/2024 half-year report will be published on May 8, 2024 and is then available at: https://www.hoenle.com/investor-relation/financial-information#reports.

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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:

[email protected]

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