EQS-News: STEMMER IMAGING with further improved profitability ratios. EBITDA up 50% 2022 earnings forecast raised

Puchheim, November 10, 2022

STEMMER IMAGING with further improved profitability ratios. EBITDA up 50% 2022 earnings forecast raised
 

• Order intake in the first nine months of 2022 at EUR 126.3 million remaining above prior-year period (9M 2021: EUR 121.2 million)
• Strong revenue growth of 15.4% over the course of the year to EUR 113.0 million (9M 2021: EUR 97.9 million) with record high in the third quarter
• Operating result (EBITDA) increased significantly by 50% to EUR 18.7 million (9M 2021: EUR 12.5 million) with EBITDA margin of 16.6% (9M 2021: 12.7%)
• Launch of the proprietary developed subsystem STEMMER IMAGING Modular Embedded
• Earnings forecast for full-year 2022 raised above previously stated upper range

   *Prior-year figure adjusted due to new valuation method implemented for trading in standard software licenses

STEMMER IMAGING AG reported again a strong quarter with growth in revenue and EBITDA in a challenging market environment. The company was able to improve its profitability ratios for the eleventh quarter in a row.

Order intake in the nine-month period increased again compared to the prior-year period (9M 2021: EUR 121.2 million), rising by 4.2% to EUR 126.3 million. For the first nine months of the fiscal year, the book-to-bill ratio thus amounts to a strong value of 1.1. In the past third quarter, order intake was almost at the previous year's level.

STEMMER IMAGING generated revenue of EUR 113.0 million in the first nine months, a significant increase of 15.4% year-on-year (9M 2021: EUR 97.9 million). Third-quarter revenue increased to a company record of EUR 40.6 million, up 18.3% year-on-year (Q3 2021: EUR 34.3 million). The increase was driven by an improved delivery situation compared to the second quarter of 2022, which was characterized by the still significantly tighter global material availability.

The German Mechanical Engineering Industry Association (VDMA) reported an increase in order intake of 6% in Germany and 7% in Europe for the machine vision sector in the first nine months of 2022. In terms of revenue, the VDMA reported growth rates of 8% in Germany and 5% in Europe in the first nine months.

Almost all regions contributed to growth at STEMMER IMAGING in the past quarter. In particular, Germany, France, the Netherlands, and the Scandinavian countries again posted overproportional growth. Looking at end markets, STEMMER IMAGING saw significant growth in its focus markets, including the sports & entertainment market, while declines were recorded in the logistics and electronics sectors. Activity levels in strategic growth markets such as battery manufacturing and food & agriculture remained high.

Against the backdrop of higher material costs, the gross margin remained robust in the third quarter at 37.3%, the same level as in the previous quarter (Q2 2022: 37.4%). The effects of higher material expenses caused by spot market influences and exchange rate effects in US dollars were offset by strict price management. In addition, a change in the regional mix had a margin-reducing effect.

The operating result (EBITDA) again increased overproportionately by 50.0% and amounted to EUR 18.7 million in the first nine months of 2022 (9M 2021: EUR 12.5 million) with an EBITDA margin of 16.6% (9M 2021: 12.7%). In the third quarter of 2022, EBITDA increased by 63.0% to EUR 7.4 million (Q3 2021: EUR 4.5 million). The EBITDA margin increased significantly to 18.3% (Q3 2021: 13.3%).

Cash flow from operating activities was EUR 8.6 million in the first nine months of the current fiscal year, up 7.6% on the prior-year figure (9M 2021: EUR 8.0 million). Cash flow was positively influenced mainly by the strong operating result. It was slightly above the previous year's figure due to the increase in working capital mainly as a result of higher receivables.

As announced, STEMMER IMAGING has successfully launched a next proprietary machine vision subsystem. Modular Embedded is an integrated carrier board with flexible interfaces and all the necessary software components based on Common Vision Blox (CVB) software and is aimed at the growth market for embedded applications. With this technology, machine vision solutions can be integrated even deeper into the process chains of industrial and non-industrial applications. STEMMER IMAGING underlines with this launch its strategic focus on hardware- and software-supported proprietary developments of machine vision subsystems.

Based on the positive revenue and earnings development in the nine-month period and the visibility for the fourth quarter, the Executive Board raised the earnings forecast for fiscal year 2022 in its ad hoc announcement on November 2, 2022. The company now expects revenue of between EUR 150156 million, which is at the upper end of the previous forecast range (previous forecast: EUR 143-156 million). The Executive Board currently expects the operating result (EBITDA) for the full year 2022 to be in a range between EUR 24.0-27.5 million above the initial range (previous forecast: EUR 19-24 million). Main driver for the increase in the earnings forecast is the expected stronger revenue growth in the second half of 2022 compared to the first half of 2022 as well as to the previous year. In addition, the scaling cost structure will have a positive impact on operating earnings. STEMMER IMAGING also confirms its mid-term guidance until 2024 with revenue of EUR 200 million and an EBITDA margin of 13-16%.

Arne Dehn, CEO STEMMER IMAGING AG:

"Improved performance figures for eleven quarters in a row clearly demonstrate our teams ability to successfully implement our strategy with concrete results. The further expansion of our range of services remains a key driver. In this context, customer feedback on the market launch of our latest internally developed subsystem 'STEMMER IMAGING Modular Embedded' is very promising. This is one reason to look forward to a successful year with increased earnings forecast and to further growth in the coming years."
 

The nine-month report of STEMMER IMAGING AG as of September 30, 2022, is available for download at www.stemmer-imaging.com in the Investors section.

About STEMMER IMAGING:

Stemmer Imaging is the leading international partner for machine vision technology. Our offering combines an extensive commercial range for industrial and non-industrial applications.

With a high level of expertise and value-added services STEMMER IMAGING additionally offers pre-configured subsystems dedicated to specific applications.

For over 35 years, we have been supporting our clients to take a leading role in their markets in the meantime also in other European countries and in Latin America.

Contact:

STEMMER IMAGING AG
Arne Dehn
Chief Executive Officer
Gutenbergstr. 9-13
82178 Puchheim
Phone: +49 89 80902-196
ir@stemmer-imaging.com
www.stemmer-imaging.com