HÖRMANN Industries GmbH (corporate bond, WKN: A2TSCH) today published its 2021 annual financial statements. In the 2021 financial year, the HÖRMANN Group generated sales of EUR 589.8 million (previous year: EUR 521.5 million). The increase in sales was essentially attributable to the Automotive and Communication divisions, whereas the Engineering division fell short of the prior year levels, as expected. Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved noticeably to EUR 45.3 million (previous year: EUR 25.5 million), while earnings before interest and taxes (EBIT) also picked up to EUR 30.0 million (previous year: EUR 12.6 million). Adjusted for write-downs for impairment, EBIT stood at EUR 33.5 million. The HÖRMANN Group’s result thus was above the pre-crisis level in the reporting period, with the profit margin reaching the highest level in the company’s recent history.
“Although our Automotive division again faced major challenges in the second half of 2021, we are looking back on a very good financial year,” says Dr Michael Radke, CEO of HÖRMANN Industries GmbH. “The positive performance is once again attributable to the diversified structure of our Group. Building on this stable foundation, we can respond flexibly to changes and thus pursue our medium to long-term goals with determination. By 2025, we want to rest on four profitable pillars, grow our sales to EUR 750 million and continue our sustainable profitable growth.”
The Group’s equity base amounted to EUR 131.1 million as at 31 December 2021 (31 December 2020: EUR 120.8 million). In spite of increased total assets of EUR 341.7 million (31 December 2020: EUR 324.7), the equity ratio picked up slightly to 38.4% (31 December 2020: 37.2%). The Group’s net cash and cash equivalents rose from EUR 73.2 million in 2020 to EUR 84.3 million in the reporting period.
“We are very proud that we were able to return to success so quickly after the extraordinary year 2020,” says Johann Schmid-Davis, CFO of HÖRMANN Industries GmbH. “However, the massive production disruptions and shutdowns at our main customer from the truck industry again weighed heavily on our Automotive division in the first months of the current financial year 2022; semiconductor shortages and disruptions in the supply chains are causing high earnings shortfalls, unplanned adverse impacts on the bottom line and high additional cash requirements in our Automotive plants. In all other divisions, material shortages have delayed projects, while the sharp increase in producer and energy prices are weighing heavily on the planned profit margins. We will again address these new challenges with confidence and determination in the financial year 2022.”
Performance of the divisions
The Automotive division performed in line with the commercial vehicle industry in the reporting period. After a strong first half of 2021, demand, particularly in the truck segment, slumped again as of September 2021 due to a shortage of electronic components and the resulting renewed production disruptions and order cancellations on the part of customers, leading to a downward business trend. The division generated total sales of EUR 333.5 million (previous year: EUR 273.2 million), which represents an increase by EUR 60.3 million, of which EUR 30 million were attributable to material price increases that were passed on with no effect on the bottom line. EBIT improved from EUR -16.0 million in the previous year to EUR -5.9 million, primarily due to high demand from the agricultural machinery sector and in spite of high increases in the prices of raw materials. This figure includes write-downs for impairment in the amount of EUR 3.5 million.
The Communication division showed a very positive performance in 2021 in spite of the still noticeable effects of the COVID-19 pandemic and growing supply shortages. Sales climbed by EUR 23.6 million to EUR 169.9 million (previous year: € 146.3 million). The division primarily benefited from increased investments in infrastructure expansion as well as government economic stimulus and promotion programmes for the expansion and digitalisation of the rail network. The division’s EBIT rose sharply by EUR 13.6 million to EUR 37.1 million.
At EUR 68.8 million, sales in the Engineering division fell short of the prior year level (EUR 84.3 million), as had been expected. The great uncertainty and the economic consequences of the COVID-19 pandemic made the division’s customers very hesitant to place orders in 2020, thus showing the late-cycle effects in the reporting period. In the past year 2021, however, the order situation showed a very positive trend, with the order backlog rising to EUR 112.1 million as at 31 December 2021. EBIT declined slightly from EUR 9.1 million to EUR 7.4 million in the 2021 financial year.
At EUR 17.6 million, sales in the Services division stayed at the low level of the previous year (EUR 17.0 million) in the 2021 financial year, while EBIT improved somewhat to EUR -2.0 million (EUR -2.5 million). Travel and admission restrictions as well as the continued hesitancy of customers from the automotive and mechanical engineering sectors to place orders again had an adverse effect on the business trend in 2021. The strategic focus will therefore be placed on winning customers from non-automotive sectors by building on our skills and expertise in automation, assembly and maintenance.
The management of HÖRMANN Industries GmbH confirms the forecast published on 31 March 2021 and projects total consolidated sales of between EUR 585 million and EUR 610 million and EBIT within a range of EUR 22 million to EUR 25 million for the full year 2022. This forecast is conditional, however, on the economic situation stabilising by mid-2022 and the weeks-long production disruptions in the automotive sector being lifted again shortly. At present, events in Ukraine and the resulting supply shortages as well as rising material and energy prices are weighing very heavily on the company’s operations and, together with the volatile course of the COVID-19 pandemic, are causing great uncertainty.
The full, detailed annual financial statements including an in-depth interview with the managing directors of the HÖRMANN Group, Dr Michael Radke and Johann Schmid-Davis, is available for download at https://www.hoermann-gruppe.de/en/investor-relations/financial-publications/financial-publications/.
In addition, the HÖRMANN Group has published its first Sustainability Report. The voluntary preparation of this comprehensive report based on the international guidelines of the Global Reporting Initiative (GRI standard) underlines the long-term orientation of HÖRMANN Industries. Building on the long-standing values of the family-owned company, the Sustainability Report documents the many initiatives with regard to responsible and sustainable corporate governance, the contribution to climate protection and the fulfilment of the responsibility to society and all stakeholders. To download the Sustainability Report, please click on the following link: https://www.hoermann-gruppe.com/en/company/sustainability