EQS-News

hGears AG Group: Start to 2024 in line with expectations despite continued challenging environment

EQS-News: hGears AG / Key word(s): Quarter Results hGears AG Group: Start to 2024 in line with expectations despite continued challenging environment 14.05.2024 / 09:35 CET/CEST The issuer is solely responsible for the content of this announcement. hGears AG Group: Start to 2024 in line with expectations despite continued challenging environment

FIRST-QUARTER 2024 HIGHLIGHTS

• Group sales of EUR 26.0 million 7.3 % lower than in the previous year
• The positive development of e-Bike and [e]-Mobility only partially compensated for the downward trend in e-tools
• Gross profit fell to EUR 11.6 million (margin 44.8 %) mainly due to a lack of volume (start-stop costs)
• The adjusted EBITDA fell to EUR 0.5 million, the adjusted EBITDA margin reached 2.0 %
• We confirm our forecast for 2024 after quarterly results in line with expectations
• Refinancing for the next 3 years successfully completed

 

Schramberg, 14 May 2024 - In the first quarter of 2024, hGears AG generated consolidated revenue of EUR 26.0 million and adjusted EBITDA of EUR 0.5 million. Following the strategic reorganisation of our sales structures, we have now combined our activities into the e-Bike, [e]-Mobility and e-Tools business areas in order to strengthen our optimal focus on industry-specific requirements and dynamics while also creating more transparency. The e-Bike business area developed positively from a very low level in the previous year, while sales in the [e]-Mobility business area remained stable with a slight increase. The main reason for the 7.3 % decline in consolidated sales was the downward trend in the e-Tools division. Overall, the Group therefore succeeded in achieving results in line with management expectations and the guidance despite the persistently challenging business environment.

Following a weak performance in the same period of the previous year, the e-Bike business unit recorded a certain degree of stabilisation in the first quarter of 2024 despite ongoing destocking. However, the slight recovery from a very low level in the previous year was reflected in growth of 14.2 % to EUR 6.0 million in the reporting period. Although trends in the automotive industry continued to remain a challenge, our projects in the super sports car and EHV areas had a positive impact on the business development of [e]-Mobility.  As a result, the business area recorded a slight increase of 2.7 % to EUR 12.6 million. At e-Tools, the combination of excess inventories and weak demand in the electric garden tools business once again had a negative impact on sales performance, while powertools recorded a certain recovery. Nevertheless, the business area recorded a year-on-year decline of 29.6 % in the first quarter of 2024.