SBF achieves revenue growth and positive result in a challenging market environment
- Revenue rises to € 17.7 million in the first half of the year (H1 2021: € 15.3 million)
- EBITDA reaches € 2.0 million (H1 2021: € 2.3 million)
- Slight slowdown in growth dynamics due to challenging industry environment
- Strong second half-year expected with high order backlog and strategic inventory expansion
- Outlook for 2022: revenue of around € 36.0 million and EBITDA of around € 3.7 million
Leipzig, August 17, 2022 – SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, "SBF"), a listed supplier of LED lighting systems for rolling stock, local authorities, rail and industry, today published its financial report for the first half of 2022. The company continued its growth path in a challenging environment. Thereby, the revenue was significantly increased compared to the previous year's period and a strongly positive result was achieved. For the full year 2022, the Executive Board expects revenues of around € 36.0 million and EBITDA of around € 3.7 million.
Rudolf Witt, Member of the Management Board of SBF AG comments: “We look back on a successful and extraordinarily challenging first half of the year. In a difficult market environment, we managed to continue to grow profitably and to expand our positioning in a future market. In addition, we have readjusted our growth strategy to the complex framework conditions. Before the start of the Ukraine war and the volatile macroeconomic development, our focus was on the greatest possible growth. In the current market phase, we are following a risk-averse growth course. Accordingly, revenue and EBITDA are expected to be slightly below the forecast for the year. We see ourselves in an excellent position to achieve the communicated medium- to long-term goals.“
First half of 2022: Significant growth in revenue and strongly positive result
Group revenue in the first half of 2022 increased by 15.7% year-on-year to € 17.7 million (H1 2021: € 15.3 million). EBITDA reached € 2.0 million (H1 2021: € 2.3 million) in a difficult environment. Rising procurement costs had a negative impact on profitability, while price increases will not have a positive effect on earnings until the second half of the year. Nevertheless, the EBITDA margin remained at a high level of 11.1% (H1 2021: 14.7%).
The ‘Rolling Stock’ business area continued to develop very robustly overall in its conservative but predictable segment. It contributed revenue of EUR 12.0 million (H1 2021: € 11.2 million) and EBITDA of EUR 1.8 million (H1 2021: € 2.8 million) to the Group result. The EBITDA margin fell from 25.1% to 15.3%. Higher procurement costs also had an impact on the result. Continued high interest in SBF products is reflected in the order backlog of € 28.7 million (30 June 2021: € 31.3 million). In order to better meet the challenges in the procurement market and to handle projects efficiently, the inventory was strategically expanded in the first half of 2022. This gives SBF the flexibility it needs to react to current market conditions. The market outlook remains extremely good - especially in view of the political efforts to strengthen rolling stock.
The ‘Public and Industrial Lighting’ business area fell short of expectations in the first half of 2022 due to the complex market conditions. Segment revenue was € 5.8 million (H1 2021: € 4.6 million). Segment EBITDA increased to € 0.6 million (H1 2021: € 0.1 million) with an EBITDA margin of 10.4%. The continuing limited supply capability of semiconductors was particularly challenging. In addition, some customers have postponed projects as they face uncertainties on their part. However, the growth prospects for the year as a whole remain extremely good in the segment. The new production facility opened at the beginning of May will also contribute to this, as it meets the highest technological requirements. In addition, production was strengthened in February through the acquisition of the assets of Nordeon Lighting Solutions GmbH.
Second half of 2022: positive outlook in a challenging market environment
With the profitable growth path in the first half of the year, well-filled order books, a strategic inventory and strong positioning, SBF AG believes it is well equipped for the current second half of 2022. In view of the complex general conditions, the Executive Board expects a slight temporary slowdown in growth dynamics and now anticipates revenue for the current financial year of around € 36.0 million (previously: more than € 40 million). EBITDA will be around € 3.7 million and, due to the market environment described above, below the EBITDA of the previous year (2021: € 5.2 million). Taking into account already known special charges, particularly in connection with the acquisition of the assets for the "Public and Industrial Lighting" business unit, adjusted EBITDA will be significantly above € 4.0 million. Given the market potential and our good positioning, the company considers itself well positioned to achieve the communicated medium- to long-term goals.
About SBF Group:
SBF is a listed supplier of LED lighting systems for rolling stock, local authorities, rail and industry. With its focus on energy-efficient LED lighting, SBF is benefiting from the megatrends of climate protection and urbanization and expects double-digit growth rates in the coming years. SBF is focusing on organic and inorganic growth to expand its range of services and increase the depth of value creation.
In the 'Rolling Stock' business area, SBF is a tier 1 supplier of complex ceiling and lighting systems for the world's leading rolling stock manufacturers. Strong technological competence, high vertical integration and customized customer solutions are the basis for a leading market position in a market with high entry barriers. In the 'Public and Industrial Lighting' business area, SBF offers modern and smart LED systems for efficient lighting of roads, railroad stations and industrial plants.
For more information, visit https://www.sbf-ag.com.
Phone: +49 (0)341 65235 894
Kirchhoff Consult AG
Phone: +49 (0)40 60 91 86 70
17.08.2022 CET/CEST Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de