EQS-News: STEMMER IMAGING successful in its strategic transformation and on track for 2023 earnings forecast: Significant revenue and earnings growth in H1, gross margin at all-time high

Puchheim, August 10, 2023

STEMMER IMAGING successful in its strategic transformation and on track for 2023 earnings forecast: Significant revenue and earnings growth in H1, gross margin at all-time high

• Revenue increases by 8.3% to EUR 78.4 million (H1 2022: EUR 72.4 million)
• EBITDA increases by 25.7% to EUR 14.2 million (H1 2022: EUR 11.3 million), EBITDA margin at 18.1% (H1 2022: 15.6%)
• Gross margin rises to 39.6% (H1 2022: 37.9%)
• Earnings per share increase to EUR 1.35 (H1 2022: EUR 1.06)
• Executive Board confirms earnings forecast for fiscal 2023 including one-off effects in second half of the year 2023

Puchheim, August 10, 2023 Today, STEMMER IMAGING AG (ISIN DE000A2G9MZ9 / GSIN A2G9MZ) publishes the results for the first half year 2023.

STEMMER IMAGING faces up to the decline in order intake and the slowdown in revenue growth with a strong increase in gross profit margin and improved profitability. EBITDA rises significantly.

At EUR 76.1 million, STEMMER IMAGING's order intake was in line with expectations and improved by 10.8% to EUR 40.0 million in the second quarter of 2023 compared to the first quarter of 2023. Despite good market momentum, the improved delivery situation and continued increased inventory levels at customers are leading to a gradual normalization of order backlogs and lead times for new orders. In the second quarter of 2023, STEMMER IMAGING won an order worth more than EUR 1.0 million in vision guided robotics, once again underlining its increasing success in marketing its own products.

In the first half of 2023, STEMMER IMAGING increased revenue by 8.3% year-on-year to EUR 78.4 million (H1 2022: EUR 72.4 million). Revenue in the second quarter increased by 4.1% to EUR 38.0 million (Q2 2022: EUR 36.5 million). From a regional perspective, particularly the Spanish subgroup Infaimon and the local company in the United Kingdom contributed to the revenue growth. When it comes to end markets, Print & Packaging and Metrology were the biggest growth drivers in the Machine Vision segment. In the non-industrial Artificial Vision segment, the segment Sports & Entertainment, among others, recorded significant revenue growth.

The gross profit margin benefited from a positive development for both segments, Distribution as well as Solution. In addition, the regional mix with the strong development of the Infaimon subgroup and the stabilization of the euro exchange rate against the US Dollar has had a positive effect. With a gross margin of 39.6%, a record figure was achieved in the first half of the year, well above the same period last year (H1 2022: 37.9%). In the second quarter, STEMMER IMAGING also achieved an all-time-high quarterly margin of 40.0% (Q2 2022: 37.4%), underlining the positive strategic development.

Building on the positive gross margin development and efficient strategic cost management, STEMMER IMAGING again significantly improved its financial performance compared to the first half year 2022. The operating result (EBITDA) increased to EUR 14.2 million in the first half of 2023 and with a growth of 25.7% was significantly higher than in the same period of the previous year (H1 2022: EUR 11.3 million). EBITDA margin rose to 18.1% (H1 2022: 15.6%) and was in the upper range of the target corridor raised in March 2023 for the EBITDA margin of 15% to 19%. In line with the development of EBITDA, EBIT increased by 30.1% to EUR 12.2 million (H1 2022: EUR 9.4 million) and net income rose by 27.4% to EUR 8.8 million (H1 2022: EUR 6.9 million) in the first half of 2023. This results in an increase in earnings per share to EUR 1.35 (H1 2022: EUR 1.06).

In the second quarter, STEMMER IMAGING generated EBITDA of EUR 6.9 million (Q2 2022: EUR 5.8 million), an increase of 17.4% year-on-year. The EBITDA margin improved to 18.0% (Q2 2022: 16.0%).

Cash flow from operating activities more than doubled to EUR 8.3 million in the first half of the current fiscal year (H1 2022: EUR 4.1 million). For the second quarter, operating cash flow was EUR 2.8 million (Q2 2022: EUR 2.3 million). This development was positively influenced by the strong operating result, regular depreciation and amortization of property, plant and equipment, and a stable working capital development. However, tax payments had a reducing effect.

The Executive Board of STEMMER IMAGING remains confident and continues to see sustainable growth opportunities in the defined strategic target markets. In the view of the Executive Board, the development in the second half year of 2023 will continue to be supported by the strong order backlog of EUR 54.6 million. For the third quarter, however, the Executive Board anticipates a restrained order intake and revenue development due to the high inventory levels at customers, but an improving momentum from the fourth quarter of 2023. In the third quarter of 2023, one-off expenses in the range of EUR 0.7 0.9 million for the further integration of the Infaimon subgroup will also burden the earnings development. This measure leads to sustainable cost savings of around EUR 1.4 million p.a., which will take full effect from the 2024 financial year onwards. For the financial year 2023, the Executive Board expects revenue at the lower end of the forecast range between EUR 163 and 176 million. Furthermore, the Executive Board confirms the EBITDA bandwidth of EUR 26 32 million, also considering the aforementioned one-off expenses.

"The positive development of gross margin based on our strategic transformation and the under-proportional cost development resulting from our scalable business model give us confidence for the future. This enables us to maintain and further expand our attractive margin level even under challenging market conditions in phases of weaker order intake and revenue. The confirmation of our EBITDA forecast reflects this," CEO Arne Dehn comments on the figures.

The half-year report of STEMMER IMAGING AG as of June 30, 2023, is available for download at www.stemmer-imaging.com in the Investors section.

A webcast on the second quarter and first half year 2023 financial results will be held today (August 10, 2023) at 14:00 CEST for analysts, institutional investors and press representatives.
 

About STEMMER IMAGING
STEMMER IMAGING is the leading international partner for machine vision technology.

For industrial and non-industrial applications, our product range combines an extensive commercial range of products combined with a high level of expertise and value-added services.
In addition, we develop subsystems to solve specific tasks.

For over 35 years, we have been helping our customers to take a leading role in their markets across Europe and Latin America.

Contact:
STEMMER IMAGING AG
Michael Bülter
Chief Financial Officer
Gutenbergstr. 9-13
82178 Puchheim
Germany
Phone +49 89 80902-196
ir@stemmer-imaging.com
www.stemmer-imaging.com