hGears AG Group: Results in the first half of 2024 in line with expectations despite economic weakness and ongoing destocking

EQS-News: hGears AG / Key word(s): Half Year Report hGears AG Group: Results in the first half of 2024 in line with expectations despite economic weakness and ongoing destocking 13.08.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. hGears AG Group: Results in the first half of 2024 in line with expectations despite economic weakness and ongoing destocking

FIRST-HALF 2024 HIGHLIGHTS

• Group revenues of EUR 50.5 million 11.7% lower than in the previous year
• Development in [e]-Mobility relatively constant, stabilization in e-Tools quarter-on-quarter, e-Bike continues to suffer from industry-wide destocking
• Adjusted Gross profit at EUR 23.5 million due to lack of volume and inefficiencies, margin at 46.7 %
• Adjusted EBITDA declined to EUR 0.5 million, while the adjusted EBITDA margin reached 1.1%
• Stable balance sheet and solid financing for the next 3 years
• Confirmation of the 2024 forecast and medium-term targets after half-year results in line with expectations

 

Schramberg, 13 August 2024 – hGears AG generated consolidated Group revenues of EUR 50.5 million and adjusted EBITDA of EUR 0.5 million in the first half of 2024. While the [e]-Mobility division remained largely constant compared to the same period of the previous year, the decline in revenue is largely attributable to the e-Bike and e-Tools divisions.

The business environment remained very challenging due to high interest rates, poor consumer sentiment and a slowdown in the automotive industry. The [e]-Mobility business area recorded only a slight sales decline of 3.7% to EUR 24.6 million after a strong performance in the same period of the previous year, although the momentum in demand for electric vehicles has slowed significantly following the reduction in government subsidies in key European markets. The e-Bike business area suffered a year-on-year decline in sales of 13.8% to EUR 10.5 million as the destocking in all industry channels continued. Sales in the e-Tools business area fell by 20.9% to EUR 15.1 million in the reporting period compared to the first half of 2023, mainly due to a lack of impetus from the construction industry and the garden tools business. Nevertheless, a comparison of the last quarters shows a certain stabilization.