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HGears AG Group: First-quarter 2022 performance in line with expectations; New e-Mobility customer win in April; Full-year outlook and medium-term targets confirmed


DGAP-News: hGears AG

/ Key phrase(s): Quarterly / Interim Statement

hGears AG Group: First-quarter 2022 efficiency according to expectations; New e-Mobility buyer win in April; Full-year outlook and medium-term targets confirmed

10.05.2022 / 07:30
The issuer is solely accountable for the content material of this announcement.

hGears AG Group: First-quarter 2022 efficiency according to expectations; New e-Mobility buyer win in April; Full-year outlook and medium-term targets confirmed

FIRST-QUARTER 2022 HIGHLIGHTS

Group revenues for Q1 2022 of EUR 34.0 million

– Gross revenue reached EUR 18.8 million, reflecting a gross revenue margin of 55.3% (58.3% on a like-for-like[1] foundation)

– Q1 2022 adjusted EBITDA of EUR 4.1 million, 12.2% adjusted EBITDA margin (17.5% on a like-for-like1 foundation)

– New e-bike buyer win for the manufacture of modern e-drive transmissions

– Multi-year contract extension with an current main e-Mobility buyer to supply subsequent era of drugs parts

– Pick up in March revenues and present order guide visibility offers confidence in reconfirming full-year 2022 steerage

Schramberg, 10 May 2022 ? hGears AG posted group revenues of EUR 34.0 million and an adjusted EBITDA of EUR 4.1 million within the first quarter of 2022 regardless of the difficult enterprise surroundings. Performance for the quarter was according to Management?s expectations, and the Company stays on monitor to realize its full-year 2022 and medium-term targets.

Operations throughout a portion of the Group?s buyer base continued to expertise disruptions from COVID-19-related shutdowns and persisting constraints in world provide chains within the first quarter of 2022. This resulted in delayed deliveries throughout all enterprise areas, above all in e-Mobility. As a provider of mission-critical parts, hGears has been in a position to mitigate the inflationary pressures and defend the Company?s profitability in absolute phrases by executing the pass-through clauses for uncooked supplies and vitality prices.

Despite this background, hGears is happy to announce the addition of a famend e-bike buyer to whom it is going to be the only provider for a whole transmission system. The deal supplies additional proof of the Company?s market-leading place. The modern transmission will create a brand new breed of e-bikes and has the potential to revolutionize e-bike building and grow to be a transmission system for different micromobility options sooner or later.

Furthermore, hGears efficiently secured a multi-year contract extension with a significant e-Mobility buyer past 2024 to provide the following era of mission-critical gear parts. This contract renewal displays success concerning the Company?s strategic give attention to the manufacturing of high-precision components at scale and secures long-term steady and environment friendly use of its capacities.

Alongside these new contract wins and regardless of the robust enterprise surroundings, March 2022 confirmed clear indicators of enchancment, with revenues for the month at sturdy ranges. This anticipated enterprise acceleration brings operational leverage, which is moreover anticipated to have an more and more optimistic impact on margins within the second half of the yr.

The Company?s present order guide continues to supply confidence and the visibility to reconfirm the Group?s steerage for the total yr 2022 in the present day.

Pierluca Sartorello, CEO of hGears, feedback: ?Whilst the enterprise surroundings stays difficult, the order backlog for e-bikes within the client market stays sizeable. This is clear in our ongoing buyer wins and up to date contract extension with a big e-Mobility buyer. We imagine that we’re navigating these unprecedented challenges very nicely, and we stay assured in our capability to advance our portfolio, ramp up our new tasks and reap the advantages from working leverage because the yr progresses.?

OVERVIEW OF Q1 2022 FIGURES

Group figures (EUR million) 2022 2021 ?
Revenues 34.0 36.6 -7.1%
Gross Profit 18.8 21.6 -12.9%
Gross Profit margin 55.3% 59.0% -370 bps
Adj. EBITDA 4.1 7.3 -42.8%
Adj. EBITDA margin 12.2% 19.8% -760 bps
       
Revenues by Business Areas (EUR million) 2022 2021 ?
e-Mobility 10.6 12.6 -15.4%
e-Tools 11.7 11.6 +0.7%
Conventional 11.3 12.0 -6.1%

 

OUTLOOK

In 2022, hGears will proceed to give attention to increasing its order quantity with newly received and current clients. Moreover, the Group will proceed to drive operational excellence at its crops and operations to realize extra effectivity positive factors and to optimize the Group?s value buildings additional. Following difficult market situations in 2021, the macroeconomic surroundings is anticipated to stay unstable in 2022, with growing inflationary pressures from the struggle in Ukraine, uncertainty associated to the COVID-19 pandemic and ongoing bottlenecks in world provide chains. However, the Group?s positioning as a provider of mission-critical parts permits hGears to largely compensate for this by implementing pass-through clauses in a lot of its buyer contracts. While this can largely defend earnings in absolute phrases, the Group can’t rule out a unfavourable affect on adjusted EBITDA margin within the brief time period. As a consequence, adjusted EBITDA in full-year 2022 is anticipated to be on a par with the prior yr. The optimistic affect of the working leverage is anticipated to be realized within the second half of 2022 and in 2023.

For the total yr 2022, the Group targets:

High single-digit progress in Group revenues

– Increase in share of revenues of the e-Mobility and e-Tools enterprise space

– Revenue in Conventional enterprise space on the earlier yr?s stage

The Group?s mid-term targets versus full-year 2020 stay:

Double Group income to EUR 250 million

– Triple e-Mobility income to EUR 150 million

The Company?s outlook assumes no renewed tightening of measures to include the COVID-19 pandemic or materials results from the struggle in Ukraine that will have an effect on hGears, its clients or its suppliers.

 

Contact

hGears AG
Christian Weiz
Brambach 38
78713 Schramberg

T: +49 (7422) 566 222
E: christian.weiz@hgears.com

About hGears

hGears is a world producer of mission-critical high-precision gears and parts with a give attention to merchandise for e-mobility purposes. The Company?s strategic focus is on the e-Mobility enterprise space, the place merchandise embrace gears, shafts, and different mission-critical parts for use in electrical drive purposes for e-bikes and electrical and hybrid automobiles. In the e-bikes phase, hGears is the European market chief within the provide of high-precision gears and parts, and its components are contained in roughly two and a half million of the full 5 million e-bikes bought in Europe in 2021. This places the Company in a very good place to capitalize on the dynamically rising end-markets for e-bikes and electrical and hybrid automobiles. hGears has three distinct enterprise areas for which it develops and manufactures high-precision parts: e-Mobility, e-Tools, and Conventional (i.e. premium and luxurious vehicles, bikes and industrial purposes).

hGears combines over 60 years of expertise in superior machined metal metallic processing and state-of-the-art powder metallic manufacturing. It is among the few firms providing clients each processes worldwide. hGears works along with its clients in a ?co-development? position to design parts and discover technologically optimum options to fulfill the shopper?s specs. hGears? blue-chip buyer base consists of quite a lot of main suppliers in addition to unique gear producers. The Company advantages from lengthy, steady and sustainable relationships with its clients and has labored with many key clients for over 15 years.

hGears is headquartered in Schramberg, Germany, and operates globally with manufacturing amenities in Schramberg, Germany, Padua, Italy, and Suzhou, China. Find us on the net: www.hgears.com

[1] For illustrative functions: Adjusted for inflation and quantity/combine affect

10.05.2022 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely accountable for the content material of this announcement.

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