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Ad Hoc
Ad hoc announcement pursuant to Art. 53 LR
Phoenix Mecano in H1 2021: Incoming orders and sales at record levels – Marked increase in profitability – Group outperforms pre-crisis year 2019 – Outlook positive
Ad hoc announcement pursuant to Art. 53 LR Kloten/Stein am Rhein, 10 August 2021. With the market environment remaining favourable, the Phoenix Mecano Group achieved double-digit growth in sales and incoming orders in the first half of 2021, hitting record highs, and saw a disproportionate improvement in its operating result and result of the period. The Group's performance was not only better than that of H1 2020, which was weak due to COVID-19, but also that of the pre-crisis year 2019. Consolidated gross sales rose by 33.8% in the first half of 2021, from EUR 302.1 million to EUR 404.3 million. Sales growth in local currencies was 35.7%. Changes in the scope of consolidation impacted the increase in sales by -0.1%. Net sales totalled EUR 401.5 million (previous year: EUR 299.5 million). Incoming orders climbed by 37.5% from EUR 320.1 million to EUR 440.3 million. The book-to-bill ratio was 108.9% (previous year: 106.0%). The operating result increased by 285.7% from EUR 6.4 million to EUR 24.7 million and the operating cash flow by 90.9% from EUR 18.5 million to EUR 35.4 million. The result of the period was EUR 16.6 million, significantly higher than the previous year (EUR 1.2 million). Development of the Group's divisions In the interests of comparability, the division figures for 2020 have been adjusted to the new divisional structure introduced at the start of 2021 (*). The DewertOkin Technology Group (DOT Group) division increased its gross sales by 63.7% to EUR 194.1 million. In organic, local-currency terms, the increase was 66.5%. The operating result rose by 96.7% to EUR 4.3 million, while the operating margin climbed from 1.8%* to 2.2%. The DOT Group pursues a strategy of vertical integration and global expansion, which it implements consistently with a focus on structurally growing end markets. However, the challenging situation on the procurement markets and the associated increases in raw material costs are affecting profitability. In response to this development, the division has introduced price increases, among other measures. These measures are now beginning to take effect, albeit with some delay.
The multi-year project to build a new technology centre and expand capacity at the new Jiaxing site is progressing as planned, and strategic digitalisation initiatives in the smart home and medical technology sectors are being systematically continued. By contrast, the planned partial IPO of the DOT Group in China has been postponed until 2023 at the earliest (see ad hoc announcement of 30 July 2021).
In the Industrial Components division, gross sales in the first half of 2021 rose by 16.5% to EUR 111.0 million. In organic, local-currency terms, they were up by 17.6%. The operating result was EUR 8.6 million, following an operating loss of EUR 3.4 million* the previous year. The operating margin was 7.8% (previous year: -3.6%*).
Sales in the Enclosure Systems division grew by 12.4% from EUR 88.2 million* to EUR 99.2 million. In organic, local-currency terms, the increase was 14.9%. The operating result rose from EUR 8.6 million* to EUR 13.4 million and the operating margin from 9.7%* to 13.5%. In many places the growth rates were in double digits, including the division's main market of Germany, which saw a 12.2% increase. The main drivers of demand were custom HMI projects and integrated system solutions for various electronic enclosure applications with advanced input or Internet of Things interfaces. Outlook Industrial activity in key Group markets is stabilising at a high level and the book-to-bill ratio of 108.9% suggests a continued positive trend in business performance. In the procurement markets and supply chains, however, the situation is likely to remain tense in the second half of the year, meaning that further price increases and longer delivery times can be expected.
Phoenix Mecano invests strategically in system solutions for promising fields of application benefiting from long-term megatrends. Examples include workplace ergonomics, production automation, and changes in the healthcare sector driven by demographic trends. In these fields, Phoenix Mecano technologies and products are used in the digitalisation of patient-related services and processes in hospitals, at human-machine interfaces in industrial applications, and in ergonomic workplaces in offices and homes. The Phoenix Mecano Group is ideally positioned to continue leveraging these opportunities to generate sustainable, profitable growth in the future. Despite considerable ongoing risks and uncertainties associated with the COVID-19 pandemic, Phoenix Mecano is optimistic about the 2021 financial year. The management and Board of Directors anticipate sales growth well into double digits and a significant increase in profitability. Operating profit is expected to exceed EUR 43 million.
A detailed semi-annual report will be available for downloading as a PDF file from our website http://www.phoenix-mecano.com/en/investor-relations/annual-reports/semi-annual-reports from 10 August 2021.
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About Phoenix Mecano
Results Half year 1 2021 in figures (in EUR million)
* Division figures adapted to the new division structure 2021
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