EQS-News

Einhell keeps dividend stable and announces promising outlook

EQS-News: Einhell Germany AG / Key word(s): Annual Report/Dividend Einhell keeps dividend stable and announces promising outlook 24.04.2024 / 12:38 CET/CEST The issuer is solely responsible for the content of this announcement. Einhell keeps dividend stable and announces promising outlook

 

Landau a. d. Isar, 24 April 2024 – In the past financial year 2023, Einhell Germany AG’s performance was satisfactory overall. Despite the difficult macroeconomic environment at the moment and the challenges in the global supply chain, the company can look back on a solid financial year. The Einhell Group reports consolidated revenue of EUR 971.5 million for financial year 2023 (previous year: EUR 1,032.5 million). In particular, the revenue performance was negatively impacted by exchange rate movements of several currencies. Adjusted for PPA effects (purchase price allocation) from the acquisition of the Canadian and Thai subsidiaries, consolidated net profit totalled EUR 77.4 million. The margin before taxes and PPA is 8.0 percent.

 

Positive cash flow and dividend distribution

 

As the leading supplier of DIY and garden tools, the Einhell Group’s cash flow has developed very positively over the past financial year. As a result, the cash flow from operating activities amounted to EUR 211.7 million. Net liabilities to banks (bank liabilities less bank deposits) were reduced to just under EUR 10 million despite the acquisition of companies in Thailand and Vietnam. Even though earnings have declined slightly, the company is keeping its dividend at a stable level: the Board of Directors and the Supervisory Board will propose a dividend of EUR 10.82 million to the Annual General Meeting. This corresponds to a dividend of EUR 2.90 per preference share and EUR 2.84 per ordinary share.

 

Expansion of the supply chain

 

Driven by the experience of the past few years, Einhell Germany AG will significantly widen its supply chain in future in order to further diversify its sourcing strategies. In financial year 2023, Einhell already expanded its sourcing activities with the takeover of the Vietnamese subsidiary. Over the next few years, the company will work with its strategic partners to establish a supplier industrial park in Vietnam. Another building block in supply chain management is Einhell’s own battery production. “Our group-wide goal is to produce one million batteries this year. And we will also kick off our own battery production in Eastern Europe in 2024,“ says Einhell CEO Andreas Kroiss.