Public disclosure of inside information according to article 17 MAR
Dr. Hönle AG: Hönle Group generates adjusted operating profit of EUR 7.9 million
Gilching (pta032/01.12.2021/14:55 UTC+1)
The Hönle Group benefited from the economic upturn and was able to significantly increase its sales and, above all, its incoming orders. In addition, the new group companies made a significant contribution to the expansion of business activities. According to preliminary figures, sales in the 2020/2021 financial year increased by 22.7% to € 115.2 million compared to the previous year. The order backlog of the Hönle Group made a strong jump and was around 80% above the previous year's level at the end of the financial year.
Regardless of this positive sales development, business development in the reporting year was negatively impacted by several effects:
The move of the Dr. Hönle AG into the new company building resulted in less goods being produced and delivered than planned in the fourth quarter. In addition, long delivery times for electronic components, mechanical components and, in some cases, raw materials at the Hönle Group led to bottlenecks on the procurement side. This contributed significantly to the postponement of delivery dates from the past fiscal year to the new fiscal year. In addition, increased expenses, which were mainly related to the move of the Dr. Hönle AG, negatively impacted the results for the 2020/2021 financial year. In addition, there incurred marketing expenses for the market launch of the SteriWhite Air disinfection device.
The adjusted operating result (adjusted EBIT) of the Hönle Group was, as expected, € 7.9 million in the 2020/2021 financial year.
As already communicated in the ad-hoc announcement of November 24th, 2021, the assumptions made as part of the planning and now adapted to the business development of a subsidiary of Dr. Hönle AG led to non-cash impairments in the group in the 2020/2021 financial year. The impairments relate to the goodwill in the amount of 3.4 million euros and other items on the assets side of the balance sheet in the amount of 4.1 million euros. The impairments essentially result from the assumption that the sales of Raesch Quarz (Germany) GmbH in the existing sales markets will grow more slowly than originally planned. The impairment test carried out resulted in an impairment requirement, since the future achievable income is below the book value of the cash-generating unit.
The operating result fell from € 8.1 million in the previous year to € 0.3 million in the reporting year after these adjustments. The pre-tax result (EBT) was € -0.6 million (PY: € 7.8 million) and the consolidated result was € -4.8 million (PY: € 5.6 million).
The order backlog of the Hönle Group at the end of the financial year was around 80% above the previous year's level and represents an excellent starting point for the new financial year.
The Management Board also sees very good growth opportunities in the area of UVC air purification. The extremely tense pandemic situation in connection with public funding programs will contribute to strong business development. In the medium to long term, the Board assumes that air cleaning systems will prevail in schools and day-care centres as well as in various other facilities as a standard solution for reducing the risk of infection with SARS-CoV-2 viruses, other cold viruses as well as bacteria and fungi. In the 2021/2022 financial year, it is therefore assumed that sales will develop very well in this business area. The Board expects an additional annual sales volume of 15 to 40 million euros with UV air disinfection devices.
In addition, the Management Board sees good development in the business with drying systems for the printing press market, which is also underpinned by the high order backlog.
Increasing sales of lamps and components for disinfection systems will contribute to very good business development at uv-technik Speziallampen GmbH in the 2021/2022 financial year.
Strong business development is also expected in the Adhesives segment in the new financial year. The ongoing customer projects and the enlarged customer base will contribute to this. In order to be able to represent the planned growth, both the development and sales capacities in the adhesives segment will be increased again. In addition, another managing director will be hired, who will be responsible for international adhesives sales.
Due to the high order backlog and the good business prospects, the Management Board expects the Hönle Group to see a significant improvement in sales and earnings in the 2021/2022 financial year compared to sales and the adjusted operating result of the previous year.
The 2020/2021 annual report will be published on January 27th, 2022 and can then be viewed on the Internet at https://www.hoenle.com/investor-relation/financial-information.
Dr. Hönle AG is a listed technology company headquartered in Gilching. With its nearly 700 employees, the Hönle Group develops innovative solutions for a wide range of industrial manufacturing processes. One focus of its business activities is the development and sale of industrial adhesives and casting compounds. In addition, the Company manufactures equipment for ink and paint drying, adhesive and plastic curing as well as for air, water and surface sterilization and sunlight simulation. The Group also produces UV lamps for disinfection and drying processes, among others, and manufactures tubes and semi-finished products made of quartz glass, which are used in various branches of industry. The Hönle Group supplies technology and world market leaders worldwide and is represented by its own companies or partner companies in more than 20 countries.
Dr. Hönle AG
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