STS Group AG with significant increase in sales and earnings in the first half of 2023

• Sales revenue increases by 22.3% to 143.5 mEUR  (H1/2022: 117.4 mEUR) in a still challenging market environment
• China with significant market recovery and sales revenue growth of 54.3% in H1/2023
• EBITDA rises to 8.4 mEUR (H1/2022: 2.9 mEUR)
• Cash and cash equivalents increases to 31.2 mEUR (December 31, 2022: 25.6 mEUR)
• Forecast 2023 confirmed

Hagen, August 4, 2023 - STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today published its half-year report 2023.

Alberto Buniato, CEO of STS Group AG: "The business development of STS Group was very pleasing in the first half of 2023 despite the existing geopolitical uncertainties in another challenging market environment. China in particular recorded strong growth with an increase of 54.3%. Our decision last year not to fully adjust cost structures in China to the political COVID measures to benefit quickly from a recovery in the market environment thus proved correct. China is a clear growth driver for the automotive industry and an important core market for the STS Group. Further expansion and development in Europe and China, but above all in North America, remains the focus for the current fiscal year and in the medium term."

Sales revenue development

In the period from January 1 to June 30, 2023, STS Group AG generated sales revenue of 143.5 mEUR, compared to 117.4 mEUR in the same period of the previous year. The 22.3% increase was driven by all three segments, which benefited from a significant recovery in the European, Mexican and, in particular, Chinese truck markets in the first half of the year. This translated into rising customer call-offs and an improvement in margins. In addition, the efficiency measures introduced last year led to increased profitability overall. In the prior-year period, the Chinese market for heavy trucks had slumped significantly due to the effects of the restrictive COVID policy and the special stimulus package that expired in the previous period.

Earnings development

As a result of the positive earnings contributions from China, Group earnings before interest, taxes, depreciation and amortization (EBITDA) also increased significantly by 5.5 mEUR to 8.4 mEUR, compared with 2.9 mEUR in the same period of the previous year. As there were no extraordinary expenses in the half-year under review, adjusted EBITDA equals EBITDA at 8.4 mEUR. For the first half of the year, STS Group AG reported a net loss of 0.8 mEUR, compared with a net loss of 6.3 mEUR in the same period of the previous year. Earnings per share (basic and diluted) amounted to -0.12 EUR in the half-year under review, compared to -0.97 EUR in the previous year. 

Balance

Due to the negative consolidated net income, equity decreased to 46.3 mEUR as of June 30, 2023, compared to 49.5 mEUR as of the 2022 balance sheet date. This corresponds to an equity ratio of 20.1% (December 31, 2022: 23.4%). Cash and cash equivalents increased to 31.2 mEUR as of June 30, 2023 (December 31, 2022: 25.6 mEUR). In the half-year under review, STS Group generated positive net cash flow from operating activities of 16.7 mEUR compared to 7.4 mEUR in the previous year. The development of the operating cash flow is significantly influenced by the consolidated net income (H1/2023: -0.8 mEUR; H1/2022: -6.3 mEUR) and the change in net working capital (H1/2023: 9.4 mEUR EUR; H1/2022: -16.7 mEUR). The increase in working capital resulted from a significant increase in trade payables and other receivables due to the increased business volume. The Group's net financial debt decreased by 11.0 mEUR to 4.0 mEUR as of June 30, 2023 (December 31, 2022: 15.0 mEUR).

Forecast 2023

The STS Group recorded successful business development in the first half of the year, which is in line with the targets for 2023 communicated in the Annual Report 2022. Against this backdrop and the continuing geopolitical uncertainties, the Executive Board confirms the forecast and assumes slight year-on-year sales revenue growth. As expected, the Chinese commercial vehicle market recorded a significant recovery in the first half of the year, which is reflected in the current sales and earnings performance. The Executive Board therefore continues to expect a significant increase in EBITDA in the financial year 2023. Relevant special charges are not planned for the financial year, so Adjusted EBITDA corresponds to EBITDA.

The STS Group AG half-year report 2023 is available for download at www.sts.group.
 

Key figures in the first half of 2023

About STS Group:

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry. It employs more than 1,400 people worldwide and generated sales of 235.1 mEUR in the financial year 2022. STS Group ("STS") produces and develops at its twelve plants and three development centers in France, Germany, Mexico, China and, in the future, also in the USA plastic injection moulding and components made of composite materials (Sheet Molding Compound - SMC), such as solid and flexible vehicle and aerodynamic trim, entire interior systems, as well as lightweight construction and battery components for electric vehicles. STS is considered as a technology leader in the manufacture of plastic injection moulding and components made of composite materials. STS has a large global footprint with plants in three continents. The customer portfolio comprises leading international manufacturers of commercial vehicles, passenger cars and electric vehicles.

STS Group AG
Investor Relations
Kabeler Str. 4
58099 Hagen
[email protected]
www.sts.group