EQS-News

hGears AG Group: Full Year 2023 performance impacted by industry-wide destocking; focus remains on driving operational flexibility across the business

EQS-News: hGears AG / Key word(s): Annual Report hGears AG Group: Full Year 2023 performance impacted by industry-wide destocking; focus remains on driving operational flexibility across the business 27.03.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. hGears AG Group: Full Year 2023 performance impacted by industry-wide destocking; focus remains on driving operational flexibility across the business

FULL YEAR 2023 HIGHLIGHTS

• Group revenues at EUR 112.5 million, down 16.9 % y-o-y
• Gross profit at EUR 56.0 million, down 19.8 % y-o-y, gross margin at 49.8 % versus 51.6 % in FY 2022
• Adjusted EBITDA at EUR 5.6 million, down 63.3 % y-o-y, with an adjusted EBITDA margin of 5.0 %
• Internal efficiencies and resource management optimization supporting the Group’s transition to a leaner organization
• Ongoing focus on cash preservation and balance sheet strength
• Full year 2024 guidance and mid-term targets reflect challenging market backdrop, including the persisting overstocking situation

 

Schramberg, 27 March 2024 - hGears AG reports full year 2023 results in a business environment characterized by weak end-market demand, slower-than-expected destocking, and adverse weather conditions. The Group delivered revenues of EUR 112.5 million, only 2.2 % below the guided range of EUR 115 – 123 million, and an adjusted EBITDA of EUR 5.6 million within the guided range of EUR 5 – 9 million. The decrease in revenue is attributed to the e-Mobility and e-Tools business areas, with the operating environment in both business areas, reflecting the prolonged industry-wide destocking environment and with the e-Tools business areas further compounded by demand dynamics related to the construction industry’s sensitivity to high interest rates and weather-related factors in gardening. In 2023, the 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.