According to preliminary figures, FORTEC Elektronik AG recorded profitable growth momentum in the first half of the 2021/2022 financial year in the challenging environment of the pandemic and despite strained supply chains, with earnings performance exceeding expectations.
Group turnover of EUR 42.1 million around 12 % above the previous year's level (PY: EUR 37.5 million)
Group operating EBIT of EUR 4 million (PY: EUR 1.9 million) more than doubled
Order book as at 31 December 2021 increased significantly to EUR 73.7 million (PY: EUR 48.6 million)
Raising of the 2021/2022 forecast, taking into account the dynamic business development in the first half of the year and the high order backlog (EUR 73.7 million)
According to preliminary calculations, group turnover rose to around EUR 42.1 million (PY: EUR 37.5 million) and thus almost reached the pre-Corona level of the first half of the 2019/2020 financial year. The FORTEC Group was thus able to generate a year-on-year increase in turnover of around 12% and was thus within the optimistic range of the forecast expectations for the year as a whole.
Despite higher material and transport costs, profitability improved significantly during the reporting period. The preliminary operating earnings before interest and taxes (EBIT) more than doubled from EUR 1.9 million to around EUR 4 million. The pleasing development is due to sales growth and continued good price implementation. This meant that special effects, such as increased product and freight costs, could also be passed on to customers to a considerable extent.
“The very pleasing and highly profitable business development underlines the stability of the FORTEC business model even in extraordinary times. The market in America has recovered faster than the industry-wide weakening caused by the Corona pandemic would have suggested. In both segments, the gross margin developed better than expected. While the Data Visualisation segment is benefitting from higher complexity of the proposal and becomes more and more a solution provider, the Power Supplies segment is increasing its solution level through design-in projects and more modifications. Our strategy in the value-added process towards becoming a solution provider is paying off,” comments Sandra Maile, CEO of FORTEC Elektronik AG.
Based on the successful business development in the first half of the year and the high order backlog of EUR 73.7 million as at 31 December 2021 (PY: EUR 48.6 million), the Management Board of FORTEC Elektronik AG today decided to raise its revenue and EBIT forecast for the current financial year. Buoyed by a confident outlook for the second half of the year, the company now expects group revenue to grow by up to 15 % (previously: up to 12 %) in the 2021/2022 financial year. The Management Board expects Group EBIT to increase by up to 20 % (previously: up to 10 %).
FORTEC Elektronik AG's business performance will continue to be affected by the impact of the global pandemic and the critical supply situation due to strained supply chains. The forecast for the 2021/2022 financial year is therefore subject to the proviso that further mutations of the COVID-19 virus and possible lockdowns, especially in China, as well as current supply bottlenecks for precursors do not further restrict the development of the global economy. Accordingly, reliable forecasts with a longer-term perspective cannot be made.
The half-year report will be available on the company's website (https://www.fortecag.de/en/investor-relations/reports/) from 30 March 2022
Chairwoman of the Management Board
FORTEC Elektronik AG | Augsburger Str. 2b | 82110 Germering | Germany
Phone: +49 89 894450 232
email@example.com | www.fortecag.de
FORTEC Elektronik AG (ISIN Share: DE 0005774103, WKN: 577410), based in Germering, Germany, was founded in 1984 as an internationally active distributor of standard solutions in the field of power supplies, embedded systems and displays. In addition, the FORTEC Group today offers customer-specific developments and complete system developments. As of 1 April 2020, the operational business was leased to two subsidiaries. As a holding company, FORTEC AG is now responsible for controlling the affiliated companies, the strategy of the group and essential parts of the administration. FORTEC AG has subsidiaries in Germany, Switzerland, the UK and the USA.