HÖRMANN Industries publishes annual financial statements for 2020
HÖRMANN Industries GmbH (corporate bond, WKN: A2TSCH) today published its 2020 annual financial statements. While the Group’s start to the year went according to plan, its business activities were materially affected from mid-March onwards, particularly in the Automotive and Services divisions, by the spread of the novel SARS-CoV-2 virus, the associated restrictions on public life and the large-scale shutdown of production capacities in the automotive industry. The HÖRMANN Group’s sales in the 2020 financial year amounted to EUR 521.5 million (previous year: EUR 622.2 million). This decline in sales is attributable to the Automotive and Services divisions, whereas the Engineering division was able to keep sales at the prior year level and the Communication division increased its sales compared to the previous year in the crisis year 2020. Earnings before interest, taxes, depreciation and amortisation (EBITDA) came to EUR 25.5 million (previous year: EUR 35.6 million), while earnings before interest and taxes (EBIT) amounted to EUR 12.6 million (previous year: EUR 23.7 million). At EUR 18.9 million, adjusted EBIT including non-recurring effects of EUR 5.8 million resulting from the relocation of the automotive plant in Penzberg and extraordinary goodwill amortisation in the Services division in the amount of EUR 0.5 million was only slightly below plan.
Successful financial year 2020 despite the COVID-19 pandemic
“The Covid-19 pandemic has thrown up entirely new challenges, not only for our company but for the whole world,” says Dr Michael Radke, CEO of HÖRMANN Industries GmbH. “At this stage, however, we can say that thanks to a joint effort by all staff members we have come through the pandemic well and have also coped well with the economic consequences. The broad diversification, which has been the trademark of the HÖRMANN Group for decades, has once again proven successful in this crisis. On this stable foundation, we will now pursue our strategic goal of continuing to realise profitable growth for our Group.”
The Group’s equity base amounted to EUR 120.8 million as at 31 December 2020 (31 December 2019: EUR 121.2 million). Even in the difficult crisis year, the equity ratio was thus maintained at 37.2%, i.e. almost at the same level as in the previous year, thanks to the positive financial performance (31 December 2019: 38.8%). Net cash and cash equivalents increased from EUR 64.8 million in 2019 to EUR 73.2 million in the reporting period due to the measures initiated to secure liquidity. .
“Financial stability was certainly a major issue in the crisis year 2020,” says Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH. “We quickly initiated both cost-cutting measures, such as the introduction of reduced working hours, and other measures to ensure financial stability and sufficient liquidity within the HÖRMANN Group. As advocates of the principle of commercial prudence, we applied for a KfW entrepreneur loan in the amount of EUR 40 million, for instance. Together with our other financing instruments, these funds gave us sufficient security to consistently pursue our strategic direction even during the crisis.”
HÖRMANN divisions
The Automotive division generated sales of EUR 273.2 million in 2020 (previous year: EUR 379.5 million). The suspension of production in March and April alone led to a shortfall in sales of almost EUR 60 million. A further EUR 29.8 million decline in sales is attributable to the deconsolidation of HÖRMANN Automotive Penzberg GmbH, whose production processes were relocated to the Bánovce plant in Slovakia on schedule and without major effects as of 30 June 2020 despite the pandemic. An important milestone in the restructuring of the Automotive division was thus completed in 2020. The Services division, which focuses on industrial services primarily for the automotive industry, was similarly affected and generated sales of EUR 17.0 million (previous year: EUR 21.4 million). By contrast, the Communication and Engineering divisions proved to be exceptionally crisis-resilient and continued their stable performance. Generating sales of EUR 146.3 million (previous year: EUR 134.2 million) and EUR 84.3 million (previous year: EUR 86.9 million), respectively, both segments provided substantial support for the Group during the reporting period.
Subject to hardly predictable economic developments resulting from the ongoing COVID-19 pandemic, HÖRMANN Industries projects total consolidated sales of between EUR 540 million and EUR 560 million for the 2021 financial year. At operating level, the Group aims to achieve positive earnings before interest and taxes (EBIT) of roughly EUR 20 million.
The full, detailed annual financial statements including an in-depth interview with managing directors Dr Michael Radke and Johann Schmid-Davis is available for download at https://www.hoermann-gruppe.com/en/investor-relations/financial-reports/financial-reports.
