The technotrans Group has successfully completed Phase 1 of the Future Ready 2025 strategy despite challenging framework conditions. Consolidated revenue rose by 13 % to € 238.2 million, significantly exceeded the forecast and marked a new all-time high. The EBIT margin reached 6.0% (previous year: 5.2%) and was at the upper end of the guidance. The key factor for the development was the significant improvement in profitability of the Technology segment. ROCE consequently rose from 12.5 % in the previous year to 13.3 %. The record order backlog of € 101 million and the book-to-bill ratio of 1.2 as of December 31, 2022 signal further growth. For the 2023 financial year, the Board of Management expects consolidated revenue in a range between € 255 and € 265 million with an EBIT margin between 6.2 and 7.2 %. ROCE is expected to be between 13.5 and 14.5 %.
"In the wake of global trends such as digitalisation, decarbonisation and electrification, our core competence of thermal management is becoming increasingly important. This is reflected in revenue and the order backlog, which have risen to record levels and provide the basis for a strong financial performance despite difficult underlying conditions," says Michael Finger, Spokesman of the Board of Management of technotrans SE.
Revenue and EBIT again significantly above the previous year
The 13% increase in consolidated revenue to € 238.2 million (previous year: € 211.1 million) clearly exceeded the forecast and marked a new all-time high. EBIT of the Group also improved significantly by 30 % and reached the upper end of the forecast at € 14.3 million (previous year: € 11.0 million). The EBIT margin increased to 6.0 % (previous year: 5.2 %). ROCE rose from 12.5 % to 13.3 %. Based on the strong economic development, net profit increased by 27 % to € 8.9 million (previous year: € 7.0 million). This is reflected in the earnings per share of € 1.29 (previous year: € 1.02).
EBIT margin in the Technology segment more than doubled
Revenue in the Technology segment increased by 15 % to € 180.2 million (previous year: € 156.9 million). An exceptionally high increase in revenue was recorded in the focus markets of Energy Management and Print. Segment profitability increased significantly due to the higher proportion of series orders and the associated economies of scale as well as intensive cost management. The segment EBIT increased significantly to € 7.3 million (previous year: € 3.1 million). The EBIT margin of the Technology segment more than doubled compared to the previous year and reached 4.1 % (previous year: 2.0 %). Revenue in the Services segment also developed significantly positively and rose by 7.0 % to € 58.0 million (previous year: € 54.2 million). The growth drivers of this segment were the focus markets Print, Healthcare & Analytics and Energy Management. The segment EBIT decreased to € 7.0 million (previous year: € 7.9 million). The segment EBIT margin was 12.0 % (previous year: 14.7 %). The temporarily reduced segment profitability had various causes. These include long-term price commitments with customers, with simultaneously increased material prices as well as a pandemic-related increased use of external companies. In addition, the fourth quarter of 2022 saw extraordinarily high sick leave rates due to COVID-19 and influenza, as well as increased fuel costs.
Focus markets with strong performance
The focus markets Plastics, Energy Management, Healthcare & Analytics and Print achieved or exceeded their growth targets. The selectively managed Laser & Machine Tools market also recorded significant growth in revenue. Energy Management developed particularly strongly with an increase in revenue of more than 60 % compared to the previous year. In the print market, impulses from packaging printing generated double-digit growth rates.
Continuous commitment to sustainability
The technotrans Group has committed itself to climate neutrality by 2030. Important progress was made towards this goal in the 2022 financial year, for example with the commissioning of the photovoltaic system in Baden-Baden and the connection of the Holzwickede location to the local hydrogen network. Sustainability also plays an important role in product development. This is evidenced, among other things, by new innovative solutions for electromobility, ongoing improvements to the energy efficiency of the product portfolio and the increasing use of environmentally friendly refrigerants such as propane.
Strategic milestones achieved
In the period under review, technotrans achieved all the milestones of phase 1 "Stability and profitability" of the Future Ready 2025 strategy. The Group has laid the foundations for sustainable growth by focusing on its core business and on sustainably growing target markets. By merging the Group companies technotrans solutions GmbH with Reisner Cooling Solutions GmbH and technotrans SE with KLH Kältetechnik GmbH, the organisation was significantly streamlined, initial synergies were leveraged and efficiency increased. The Group successfully implemented its one-brand strategy and established technotrans as a strong umbrella brand with high market appeal. "We have successfully completed the first phase of the strategy and thus laid the foundations for sustainable profitable growth," says Michael Finger.
Dividend proposal 26% above previous year
The Board of Management and Supervisory Board will propose to the Annual General Meeting on 12 May 2023 the distribution of a dividend of € 0.64 per share (previous year: € 0.51). This exceeds the previous year by 26 % and is in line with the dividend policy, which provides for a distribution of 50 % of the consolidated net profit for the year.
Outlook
The results of the past financial year and the high level of orders on hand strengthen the technotrans Board of Management in its expectation that the growth trajectory will continue in the 2023 financial year. Performance will remain dependent on the situation on the procurement markets. The availability of materials is expected to be limited in the first half of 2023 in particular. technotrans has rented a new production location in Steinhagen to handle the high order backlog. The expenses for commissioning and the persistently tense situation on the procurement market will temporarily depress profitability in the first half of the financial year.
For the 2023 financial year, the Board of Management expects consolidated revenue in a range of € 255 to 265 million with an EBIT margin of between 6.2 and 7.2 %. This corresponds to an EBIT of € 15.8 to 19.1 million. ROCE is expected to range between 13.5 and 14.5 %. The forecast is subject to the proviso that no new burdens arise from the general geopolitical and economic environment.
In addition, the Board of Management confirms the medium-term forecast of organically achieving a revenue in a range of € 265 to 285 million with an EBIT margin between 9.0 and 12.0 % and a ROCE above 15 % in the financial year 2025.
"We will continue our successful course and tackle the challenges with energy and determination. We have committed employees worldwide who contribute significantly to our success. Our special thanks go to them. power to transform - strategy into results will continue to bear the technotrans signature in the second phase of our Future Ready 2025 strategy!" says Michael Finger, whose contract of employment was extended until December 31, 2026 by the Supervisory Board at its meeting on March 15, 2023.
"In the wake of global trends such as digitalisation, decarbonisation and electrification, our core competence of thermal management is becoming increasingly important. This is reflected in revenue and the order backlog, which have risen to record levels and provide the basis for a strong financial performance despite difficult underlying conditions," says Michael Finger, Spokesman of the Board of Management of technotrans SE.
Revenue and EBIT again significantly above the previous year
The 13% increase in consolidated revenue to € 238.2 million (previous year: € 211.1 million) clearly exceeded the forecast and marked a new all-time high. EBIT of the Group also improved significantly by 30 % and reached the upper end of the forecast at € 14.3 million (previous year: € 11.0 million). The EBIT margin increased to 6.0 % (previous year: 5.2 %). ROCE rose from 12.5 % to 13.3 %. Based on the strong economic development, net profit increased by 27 % to € 8.9 million (previous year: € 7.0 million). This is reflected in the earnings per share of € 1.29 (previous year: € 1.02).
EBIT margin in the Technology segment more than doubled
Revenue in the Technology segment increased by 15 % to € 180.2 million (previous year: € 156.9 million). An exceptionally high increase in revenue was recorded in the focus markets of Energy Management and Print. Segment profitability increased significantly due to the higher proportion of series orders and the associated economies of scale as well as intensive cost management. The segment EBIT increased significantly to € 7.3 million (previous year: € 3.1 million). The EBIT margin of the Technology segment more than doubled compared to the previous year and reached 4.1 % (previous year: 2.0 %). Revenue in the Services segment also developed significantly positively and rose by 7.0 % to € 58.0 million (previous year: € 54.2 million). The growth drivers of this segment were the focus markets Print, Healthcare & Analytics and Energy Management. The segment EBIT decreased to € 7.0 million (previous year: € 7.9 million). The segment EBIT margin was 12.0 % (previous year: 14.7 %). The temporarily reduced segment profitability had various causes. These include long-term price commitments with customers, with simultaneously increased material prices as well as a pandemic-related increased use of external companies. In addition, the fourth quarter of 2022 saw extraordinarily high sick leave rates due to COVID-19 and influenza, as well as increased fuel costs.
Focus markets with strong performance
The focus markets Plastics, Energy Management, Healthcare & Analytics and Print achieved or exceeded their growth targets. The selectively managed Laser & Machine Tools market also recorded significant growth in revenue. Energy Management developed particularly strongly with an increase in revenue of more than 60 % compared to the previous year. In the print market, impulses from packaging printing generated double-digit growth rates.
Continuous commitment to sustainability
The technotrans Group has committed itself to climate neutrality by 2030. Important progress was made towards this goal in the 2022 financial year, for example with the commissioning of the photovoltaic system in Baden-Baden and the connection of the Holzwickede location to the local hydrogen network. Sustainability also plays an important role in product development. This is evidenced, among other things, by new innovative solutions for electromobility, ongoing improvements to the energy efficiency of the product portfolio and the increasing use of environmentally friendly refrigerants such as propane.
Strategic milestones achieved
In the period under review, technotrans achieved all the milestones of phase 1 "Stability and profitability" of the Future Ready 2025 strategy. The Group has laid the foundations for sustainable growth by focusing on its core business and on sustainably growing target markets. By merging the Group companies technotrans solutions GmbH with Reisner Cooling Solutions GmbH and technotrans SE with KLH Kältetechnik GmbH, the organisation was significantly streamlined, initial synergies were leveraged and efficiency increased. The Group successfully implemented its one-brand strategy and established technotrans as a strong umbrella brand with high market appeal. "We have successfully completed the first phase of the strategy and thus laid the foundations for sustainable profitable growth," says Michael Finger.
Dividend proposal 26% above previous year
The Board of Management and Supervisory Board will propose to the Annual General Meeting on 12 May 2023 the distribution of a dividend of € 0.64 per share (previous year: € 0.51). This exceeds the previous year by 26 % and is in line with the dividend policy, which provides for a distribution of 50 % of the consolidated net profit for the year.
Outlook
The results of the past financial year and the high level of orders on hand strengthen the technotrans Board of Management in its expectation that the growth trajectory will continue in the 2023 financial year. Performance will remain dependent on the situation on the procurement markets. The availability of materials is expected to be limited in the first half of 2023 in particular. technotrans has rented a new production location in Steinhagen to handle the high order backlog. The expenses for commissioning and the persistently tense situation on the procurement market will temporarily depress profitability in the first half of the financial year.
For the 2023 financial year, the Board of Management expects consolidated revenue in a range of € 255 to 265 million with an EBIT margin of between 6.2 and 7.2 %. This corresponds to an EBIT of € 15.8 to 19.1 million. ROCE is expected to range between 13.5 and 14.5 %. The forecast is subject to the proviso that no new burdens arise from the general geopolitical and economic environment.
In addition, the Board of Management confirms the medium-term forecast of organically achieving a revenue in a range of € 265 to 285 million with an EBIT margin between 9.0 and 12.0 % and a ROCE above 15 % in the financial year 2025.
"We will continue our successful course and tackle the challenges with energy and determination. We have committed employees worldwide who contribute significantly to our success. Our special thanks go to them. power to transform - strategy into results will continue to bear the technotrans signature in the second phase of our Future Ready 2025 strategy!" says Michael Finger, whose contract of employment was extended until December 31, 2026 by the Supervisory Board at its meeting on March 15, 2023.
