Arbonia with a challenging first half-year of 2022
Half-year results 2022 (reported)
- Revenue growth of 7.2% (organic 9.8%) to CHF 630.9 million
- Strong increase in materials ratio from 45.0% to 51.4%
- EBITDA: CHF 52.4 million after CHF 67.6 million in the previous year
- EBIT: CHF 17.8 million after CHF 34.9 million in the previous year
- Group result after tax: CHF 11.7 million after CHF 23.6 million in the previous year
- Increase in net working capital (NWC) of around CHF 118 million (previous year CHF 33 million)
- Arbonia expects a significantly stronger second half-year of 2022 compared to the first half-year of 2022 and also the second half-year of 2021.
Arbon, 23 August 2022 – Arbonia looks back at a challenging first half-year of 2022. The COVID-19 pandemic and the Russian invasion of Ukraine led to considerable increases in raw material prices, sharply rising energy prices, as well as problems with supply chains, which all affected Arbonia as well. In the face of this political crisis and the associated change in thinking, Arbonia's strategy with modern products (heat pump, ventilation, underfloor heating, battery storage, etc.) for energy-efficient and self-sufficient buildings has proven to be all the more correct. In addition to their well-known economic advantages, these products accelerate the transition to buildings that are independent of fossil energy sources and electricity prices. The investments decided on and implemented in the past are also paying off by countering wage inflation and increased material prices with increases in productivity.
In the first half-year of 2022, Arbonia was able to increase its net revenue in Swiss francs by 7.2% compared to the same period in the previous year, from CHF 588.6 million to CHF 630.9 million. Growth when adjusted for currency and acquisition effects was 9.8%. During the same period, EBITDA decreased from CHF 67.6 million to CHF 52.4 million due to the massive increase in the materials ratio from 45.0% to 51.4% (material price increases of around CHF 68 million). Consequently, the EBITDA margin also decreased from 11.5% in the previous year to 8.3%. A negative effect on the absolute EBITDA resulted from the strength of the Swiss franc, among other factors, which appreciated by a high single-digit percentage against almost all currencies relevant to Arbonia, causing results achieved in foreign countries to be lower than budgeted when converted into Swiss francs. EBIT reached CHF 17.8 million (CHF 34.9 million in the previous year). The group result (after taxes) amounted to CHF 11.7 million and is below the previous year's value of CHF 23.6 million.
In the reporting period, the cash flow from operating activities amounted to CHF –68.6 million (CHF 51.6 million in the previous year). In addition to the low EBITDA contribution, this was above all due to the sharp rise in the NWC, which increased by around CHF 118 million in the first half-year. After the deduction of investments (capex) and including the premature buyback of the Corporate Center, a free cash flow of CHF –142.9 million resulted. As of 30 June 2022, net debt amounted to CHF 68.4 million. No one-time effects occurred in the first half-year of 2022.
The shareholders' equity increased to CHF 1016.1 million (previous year CHF 927.6 million). Consequently, the equity ratio also increased from 55.8% in the previous year to a very solid 66.1%.