KATEK raises sales forecast to over 615 million euros after the strongest half-year in the company’s histor
- Sales in the first half of 2022 grew by 16.6% year-on-year to EUR 315.9 million
- Operating result (EBITDA adjusted) increased by 26.1% to EUR 16.9 million
- Successful countermeasures to price pressure on material, energy and personnel costs through price increases at customers with initial positive effects on gross profit
- M&A activities: Acquisition of Canadian SigmaPoint nears closing; Upside potential in revenue from first-time consolidation from closing in the amount of EUR 20 million for the remainder of 2022
- Sales target for 2022 significantly raised due to pleasing run rate in Q2, high order backlog and high book-to-bill ratio
Munich– After a pleasing run rate in the second quarter, KATEK SE achieved the strongest half-year in its corporate history. Group sales rose to EUR 315.9 million in the first half of 2022 (+16.6%; H1 2021: EUR 271.0 million) and the operating result (EBITDA adjusted) to EUR 16.9 million (+26.1%; H1 2021: EUR 13.4 million). The strongest growth was achieved in the high-value electronics divisions Renewables/Solar (+129.2% year-on-year) and Tele-Care/Healthcare (+131.2% year-on-year). Even the eMobility/Charging segment grew by 13.2% year-on-year despite poor sales figures in the automotive industry, while the rest of the automotive business was at the bottom of all KATEK activities with a minus of 6.4%.
KateK was able to successfully counteract the challenging situation for the entire industry with regard to ongoing supply bottlenecks and logistics difficulties. For example, the increase in inventories in the necessary strategic buffer warehouses slowed down significantly in the second quarter. Material prices, which temporarily exert pressure on the gross profit margin, are successfully counteracted by consistent offsetting of additional costs and nationwide price increases for almost all customers. As a result, the gross profit margin in the second quarter has already improved by 1.7 percentage points compared to the first quarter, as the price adjustments have begun to have an initial effect.
Operating EBITDA (adjusted) excluding special effects of EUR 16.9 million in the first half of 2022 is significantly higher than the previous year’s figure of EUR 13.4 million (+26.1%). The EBITDA margin (adjusted) improved from 5.0% to 5.3%.
Smart Charging for eMobility
“KateK’s announced white-label wallbox – the ghostONE (www.ghost-charger.com) – has been fully developed and preparations for the start of production in selected KATEK plants at the beginning of Q1/2023 are in full swing. Negotiations with potential major customers are very promising and the first significant framework agreement is about to be concluded,” says Rainer Koppitz, CEO & Co-Founder of KATEK SE. The latest generation AC wallbox is aimed at the upscale volume segment of private and semi-public stores. KateK will thus participate in the very dynamic development of the most interesting market segment for charging, which will grow to a projected 65 million charging points in Europe by 2035 and account for 80% of the market for charging stations.
Closing of the acquisition of SigmaPoint
In April 2022, KATEK SE announced the planned acquisition of SigmaPoint, one of Canada’s leading suppliers of high-value electronics. KATEK is thus expanding its industry presence with Homeland Security & Defense and strengthening its offering for KATEK’s European customers in North America. KATEK CEO Rainer Koppitz: “As the number three European electronics service provider, we are thus fulfilling our promise to our European customers of a presence on the North American continent.” With SigmaPoint, KATEK closes the gap in North America and thus offers the local-for-local approach on another continent in addition to the already opened Asian plant in Malaysia. The closing of the transaction is expected in the short term after the publication of the half-year report. The first-time consolidation would add an upside potential in sales of EUR 20 million for the year as a whole.
Management significantly increases sales forecast for 2022
Due to the pleasing run rate in the second quarter, the high order backlog and the high book-to-bill ratio of over 1.2, the KATEK Management Board is raising its sales forecast for the full year 2022 from EUR 583.3 million to more than EUR 615.0 million while maintaining the earnings forecast (EBITDA adjusted: greater than EUR 33.4 million).
The complete half-year financial report 2022 is published on the website of KATEK SE in the Investor Relations section.
On Tuesday, August 16, 2022, at 9:00 a.m. CEST, a webcast on the financial results for the first half of 2022 will be held for analysts, institutional investors and representatives of the press. To participate in the conference call, participants are asked to register via this link.