EQS-News

hGears AG Group: Preliminary 2023 free cash flow significantly better than Management’s guidance; adjusted EBITDA in line despite marginal revenues miss

EQS-News: hGears AG / Key word(s): Preliminary Results hGears AG Group: Preliminary 2023 free cash flow significantly better than Management’s guidance; adjusted EBITDA in line despite marginal revenues miss 06.02.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. hGears AG Group: Preliminary 2023 free cash flow significantly better than Management’s guidance; adjusted EBITDA in line despite marginal revenues miss

 

 

FULL YEAR 2023 PRELIMINARY RESULTS

• Preliminary 2023 Group revenues EUR 112.5 million
• Preliminary 2023 adjusted EBITDA EUR 5.6 million
• Preliminary 2023 negative free cash flow EUR 3.1 million

 

Schramberg, 6 February 2024 – hGears Group reports preliminary key financial figures for the fiscal year 2023, a period characterized by weak demand in end markets, overstocking, and adverse weather conditions.

The Group generated revenues of EUR 112.5 million in 2023, a marginal (-2.2 %) below the guided range of EUR 115 – 123 million. Across the business areas, e-Mobility performed below expectations due to ongoing destocking in the e-bike industry and a slowdown in EHV demand, while high interest rates and poor weather conditions continued to adversely impact e-Tools. After a robust uptick in the first half of 2023, the Conventional business area experienced a slowdown in the second half.

hGears achieved an adjusted EBITDA of EUR 5.6 million, within the guided range of EUR 5 – 9 million. Countermeasures to preserve profitability were implemented by Management throughout the year, including organizational streamlining, efficiency improvements, and cost savings. These measures could only partially offset the impact of significant reductions in volume and, consequently, revenues, leading to inefficiencies and a substantial lack of operational leverage.

In 2023, hGears Group achieved a negative free cash flow of EUR 3.1 million, significantly better than the guided negative EUR 9 - 12 million bandwidth. The Company generated a positive free cash flow in the second half of 2023, resulting in cash and cash equivalents of EUR 26.6 million and a net debt position of EUR 3.4 million at year-end. This was mainly achieved by reducing CAPEX related to previous years’ expansion plans and active working capital management.