EQS-News

FUCHS with good start into financial year 2024 - Seite 2

Stefan Fuchs, Chairman of the Executive Board FUCHS SE

Business development in the group

In the first three months of 2024, FUCHS generated sales revenues of EUR 877 million (936), which were 6% below the prior-year period due to price- and currency effects.
Price adjustments resulted in an organic decline in sales revenues of 3%, while negative currency effects, especially from the regions Asia-Pacific and North and South America, amounted to 3%.
EBIT, on the other hand, improved by EUR 4 million or 4% to EUR 107 million (103) compared to the first three months of the previous year. At 12.2% (11.0%), the EBIT margin was significantly higher than in the previous year.
Earnings after tax rose by 5% to EUR 77 million (73).
Earnings amounted to EUR 0.58 (0.54) per ordinary share and per preference share.
At EUR 15 million (52), Free cash flow before acquisitions was below a favoured prior-year figure.

Business development in the regions

At EUR 511 million (552), sales revenues in the region Europe, Middle East, Africa (EMEA) were 7% lower compared to the first three months of 2023, primarily driven by prices. EBIT rose by 8% to EUR 54 million (50). Despite lower sales revenues, the majority of the companies achieved earnings improvements. In particular, the United Kingdom and Poland recorded strong increases in earnings.
Sales revenues in the region Asia-Pacific were down 3% year-on-year at EUR 245 million (252) due to high negative currency effects. However, organic growth of 3% was achieved, which was characterized by both a recovery in business development in China as well as strong growth in India. The high currency losses were mainly due to the weak Chinese renminbi and the Australian dollar. EBIT increased by EUR 1 million to EUR 29 million (28). This was driven by the recovery in China, while Australia and Southeast Asia had a slow start to the year.
At EUR 167 million (181), sales revenues in the region North- and South America were 8% below the previous year's level, mainly due to high negative exchange rate effects and organic declines. Price adjustments and subdued business development impacted sales in North America, while South America was impacted primarily by the difficult macroeconomic situation in Argentina. The high negative currency effects were caused by the Argentinian peso and the American dollar. EBIT increased by 11% to EUR 21 million (19). North America benefited from the continued positive development in the area of specialty lubricants. In a difficult economic environment, South America was on a par with the previous year.