DGAP-News: GEA reports strong first quarter

Düsseldorf, May 6, 2022

GEA reports strong first quarter 2022

- Order intake up significantly by 20.4 percent (organic: +20.4 percent) to record level of EUR 1.54 billion (Q1 2021: EUR 1.28 billion)

- Revenue 5.7 percent higher (organic: 6.6 percent) at EUR 1.13 billion (Q1 2021: EUR 1.07 billion)

- EBITDA before restructuring expenses grew 14.1 percent to EUR 138 million (Q1 2021: EUR 121 million); corresponding EBITDA margin considerably up 0.9 percentage points to record high of 12.3 percent (Q1 2021: 11.4 percent)

- ROCE increased to 29.3 percent (Q1 2021: 19.3 percent)

- Net working capital as percentage of revenue improved to 6.1 percent (Q1 2021: 8.2 percent); significant growth in net liquidity to EUR 412 million (Q1 2021: EUR 270 million)

- Outlook for 2022 confirmed

GEA started fiscal year 2022 with a strong first quarter, reporting further improvements in its financial performance indicators. Order intake rose significantly by 20.4 percent to a record level of EUR 1.54 billion. EBITDA before restructuring expenses grew by 14.1 percent to EUR 138 million. The corresponding margin improved by a clear 0.9 percentage points to a record high of 12.3 percent. Return on capital employed (ROCE) climbed to 29.3 percent while net working capital as a percentage of revenue improved to 6.1 percent and net liquidity grew substantially to EUR 412 million.

“GEA made a very good start to the year, and did so at a time when the world is facing major political, economic and social challenges,” said CEO Stefan Klebert. “We have again significantly improved our key financial figures. Our order intake as well as our EBITDA margin have reached new record levels in the first quarter. In addition, revenue grew organically for the fifth consecutive quarter. This demonstrates the resilience of GEA’s business model.”

Order intake increased to record level
Order intake rose significantly by 20.4 percent to a record level of EUR 1,544 million in the first quarter of 2022 (Q1 2021: EUR 1,282 million), driven among other things by three major orders (volume of over EUR 15 million each) for a total of EUR 92 million. Organic growth came to 20.4 percent.

Revenue went up by 5.7 percent in the reporting period to EUR 1,126 million (Q1 2021:EUR 1,065 million) and by 6.6 percent on an organic basis. Customer industries contributing to this growth were primarily Beverage, Pharma, Dairy Farming and Chemicals. The share of service revenue increased to 36.2 percent in the first quarter of 2022 (Q1 2021: 35.2 percent).

Further improvements in profitability, financial position and ROCE
EBITDA before restructuring expenses, at EUR 138 million, was 14.1 percent higher year on year (Q1 2021: EUR 121 million). The corresponding EBITDA margin improved by 0.9 percentage points to 12.3 percent (Q1 2021: 11.4 percent). This margin growth was notably due to a higher gross margin in the new machinery business and an increased service share.

Profit for the period went up by 27.2 percent in the first three months to EUR 72.2 million (Q1 2021: EUR 56.7 million). Earnings per share rose correspondingly from EUR 0.31 to EUR 0.41. Earnings per share before restructuring expenses came to EUR 0.43 in the first quarter, compared to EUR 0.39 in the prior-year quarter.

Net liquidity grew significantly from EUR 270 million to EUR 412 million in the first quarter. Net working capital as a percentage of revenue improved substantially from 8.2 percent in the prior-year quarter to 6.1 percent.

Largely as a result of the lower net working capital and a decrease in non-current assets, there was a marked fall in capital employed (average over the last four quarters) from EUR 1,816 million to EUR 1,580 million as of March 31, 2022. In line with this, return on capital employed (ROCE) climbed – on higher EBIT before restructuring expenses – from 19.3 percent to 29.3 percent in the first quarter of 2022.

Outlook for 2022 confirmed
GEA has confirmed its outlook for fiscal year 2022. Revenue is forecast to grow on an organic basis by more than 5.0 percent. EBITDA before restructuring expenses at constant exchange rates is expected to be in a range between EUR 630 million and 690 million. For ROCE, the company anticipates a figure between 24.0 and 30.0 percent (at constant exchange rates).

GEA Key Financial Figures

(EUR million)	Q1 2022	Q1 2021	Change in %
Results of operations
Order intake	1,543.6	1,282.4	20.4
Book-to-bill ratio	1.37	1.20	–
Order backlog	3,181.2	2,516.7	26.4
Revenue	1,126.4	1,065.4	5.7
Organic revenue growth in %1	6.6	–	–
Share of service revenue in %	36.2	35.2	92 bps
EBITDA before restructuring expenses	138.2	121.2	14.1
as % of revenue	12.3	11.4	90 bps
EBITDA	131.9	105.5	25.0
EBIT before restructuring expenses	94.6	76.2	24.2
EBIT	88.3	60.6	45.8
Profit for the period	72.2	56.7	27.2
ROCE in %2	29.3	19.3	991 bps
Financial position
Cash flow from operating activities	–13.7	45.6	–
Cash flow from investing activities	–14.1	–5.8	< -100
Free cash flow	–27.8	39.8	–
Net assets
Net working capital (reporting date)	291.7	376.0	–22.4
as % of revenue (LTM)	6.1	8.2	-204 bps
Capital employed (reporting date)3	1,604.5	1,660.3	–3.4
Equity	2,195.3	2,053.7	6.9
Equity ratio in %	37.7	36.3	147 bps
Net liquidity (+)/Net debt (-)4	411.5	270.3	52.3
GEA Shares
Earnings per share (EUR)	0.41	0.31	29.3
Earnings per share before restructuring expenses (EUR)	0.43	0.39	10.4
Market capitalization (EUR billion; reporting date)	6.6	6.3	4.9
Employees (FTE; reporting date)	18,108	18,070	0.2
Total workforce (FTE; reporting date)	19,226	19,008	1.1
1) By „organic“, GEA means changes that are adjusted for currency and portfolio effects. 2) EBIT before restructuring expenses of the last 12 months. Capital employed average of the last 4 quarters and excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999. 3) Capital employed excluding goodwill from the acquisition of the former GEA AG by former Metallgesellschaft AG in 1999. 4) Including lease liabilities of EUR 174.3 million as of March 31, 2021 (prior year EUR 157.4 million).

 

 

 

Media Relations
Anne Putz
Peter-Müller-Str. 12, 40468 Düsseldorf, Germany
Phone +49 211 9136-1500
anne.putz@gea.com

About GEA
GEA is one of the world's largest suppliers of systems and components to the food, beverage, and pharmaceutical industries. The international technology group, founded in 1881, focuses on machinery and plants, as well as advanced process technology, components, and comprehensive services. With more than 18,000 employees working across five divisions and
62 countries, the group generated revenues of more than EUR 4.7 billion in fiscal year 2021. GEA plants, processes, components, and services enhance the efficiency and sustainability of production processes across the globe. They contribute significantly to the reduction of CO₂ emissions, plastic usage, and food waste. In doing so, GEA makes a key contribution toward a sustainable future, in line with the company’s purpose: "Engineering for a better world".

GEA is listed in the German MDAX and the STOXX^® Europe 600 Index and is also among the companies comprising the DAX 50 ESG and MSCI Global Sustainability Indices.

More information can be found online at gea.com.
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