DGAP-News

DEUTZ AG: DEUTZ generates further growth in first quarter of 2022 - Seite 3

EBIT for the period under review stood at €9.0 million (Q1 2021: €0.4 million). This figure takes account of exceptional items amounting to an expense of €6.8 million that related to the recognition of provisions following several changes at senior management level. The EBIT margin came to 2.0 percent (Q1 2021: 0.1 percent).

Due to the increase in adjusted EBIT, net income improved by €7.7 million to €6.8 million. As a result, earnings per share increased from minus €0.01 to plus €0.06. Net income before exceptional items amounted to €12.5 million; earnings per share before exceptional items came to €0.10.

Financial position remains comfortable; restructuring of the Group’s funding
Cash flow from operating activities amounted to €9.7 million in the first quarter of 2022 (Q1 2021: €17.1 million). The reduction was predominantly due to the change in working capital and an increase in inventories that became necessary due to the significant expansion in the volume of business. This outweighed the significant improvement in operating profit. As a result of the decrease in cash flow from operating activities, free cash flow amounted to minus €4.9 million. This equated to a small deterioration compared with the figure for the prior-year period of minus €1.7 million.

As a result of drawing down an existing credit line in an amount of €25 million in the first quarter of 2022, net financial debt swelled by €7.0 million to €86.7 million as at March 31, 2022.

The equity ratio stood at 45.0 percent, compared with 45.6 percent at the end of 2021. The DEUTZ Group’s financial position therefore remains very comfortable. As at March 31, 2022, the Company had unutilized credit lines totaling around €185 million at its disposal.

DEUTZ restructured its existing funding at the start of May 2022. This involved increasing the volume of the long-term syndicated loan from €160 million to €250 million and terminating the three existing short-term bilateral credit lines, which had a total volume of €75 million. The new lending arrangements include an ESG component and better overall terms and conditions. The term of the syndicated loan was extended by three years to 2027. DEUTZ has thus once again expanded the financial means at its disposal for investment in its transformation and for growth by acquisition.