EQS-News: STS Group AG continues to grow in the first half of 2024 with increasing profitability

STS Group AG continues to grow in the first half of 2024 with increasing profitability

• Sales revenue increases by 7.0% to 153.5 mEUR (H1/2023: 143.5 mEUR)
• Plastics segment growth driver with a 9.9% increase in sales revenue
• EBITDA increased by 40.3% to 11.8 mEUR (H1/2023: 8.4 mEUR)
• EBITDA margin improved to 7.7% (H1/2023: 5.8%)
• Full-year guidance confirmed

Hagen, 09 August 2024 – STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today published its half-year report 2024.

Alberto Buniato, CEO of STS Group AG: "Despite a more challenging market environment with regional downturns, we once again achieved a very positive business performance in the first half of 2024. We benefited particularly from further growth in the Chinese truck market and positive developments at our European production sites. Our new US production site is now operative and ramping up serial production since end of June, which will translate into additional positive sales revenue effects here in the second half of 2024. We are also making good progress in improving profitability, which is reflected in the increased EBITDA margin. We continue to deliver on our promises and to demonstrate our capability to improve the performance of the Group."

Sales revenue development

In the period from 1 January to 30 June 2024, STS Group AG generated sales revenue of 153.5 mEUR, compared to 143.5 mEUR in the same period of the previous year. Revenue growth of 7.0% was mainly driven by the Plastics segment, which recorded revenue growth of 9.9%. The China segment continued to stabilize the Group's growth with an increase of 2.3%. Due to the continued recovery of the Chinese market following the market stabilization in the year 2023, demand firmed up in the first half of 2024. The increase of sales within the Plastics segment was also supported by higher tooling revenues realized in the first half year 2024, related to new customer projects.

Earnings development

The earnings position of STS Group AG developed very positively. Thanks to the positive earnings contributions from all three segments, earnings before interest, taxes, depreciation and amortization (EBITDA), which also corresponds to Adjusted EBITDA, increased by 3.4 mEUR to 11.8 mEUR in the first half of the year, compared to 8.4 mEUR in the same period of the previous year. This represents a disproportionately high increase in earnings of 40.3%. As a result, the STS Group's EBITDA margin of 7.7% was also significantly higher than in the same period of the previous year (5.8%). Due to higher financial expenses and taxes, STS Group AG reported an almost unchanged consolidated net loss of -0.7 mEUR for the first half of 2024 compared to -0.8 mEUR in the same period of the previous year. Earnings per share (basic and diluted) amounted to -0.11 EUR in the half-year under review after -0.12 EUR in the previous year.

Balance sheet

Due to the negative consolidated net income, equity decreased slightly to 45.4 mEUR as at 30 June 2024 after 46.6 mEUR as at 31 December 2023. This corresponds to an equity ratio of 17.2% (31 December 2023: 17.5%). Cash and cash equivalents decreased to 32.7 mEUR as at 30 June 2024 (31 December 2023: 39.3 mEUR). STS Group generated a positive net cash flow from operating activities of 5.2 mEUR in the half-year under review compared to 16.7 mEUR in the previous year. The development of the operating cash flow is influenced by the Group result (H1/2024: -0.7 mEUR; H1/2023: -0.8 mEUR) and the change in net working capital (H1/2024: 14.8 mEUR; H1/2023: 9.4 mEUR). The increase in working capital is mainly due to a significant decrease in inventories, which included unfinished tools for new customer projects, and the increase in current contract liabilities. The Group's net financial debt increased by 7.0 mEUR to 36.3 mEUR as at 30 June 2024 (31 December 2023: 29.3 mEUR).

Guidance for 2024 confirmed

STS Group recorded successful business development in the first half of 2024, which is in line with its own expectations. Despite the observed slowdown in some regional commercial vehicle markets and ongoing geopolitical uncertainties, the Executive Board confirms its forecast for the 2024 financial year. Accordingly, STS Group is expected to achieve sales revenue growth in the upper single-digit percentage range and an EBITDA margin in the high single-digit percentage range.

The STS Group AG half-year report 2024 is available for download at www.sts.group.

Key figures in the first half of 2024

About STS Group:

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading systems supplier for the automotive industry. The group of companies employs 1,300 people worldwide and generated sales of EUR 277.9 million in the 2023 financial year. At its twelve plants and three development centers in France, Germany, Mexico, China and, in future, the USA, STS Group ("STS") produces and develops injection-moulded plastics and components made from sheet moulding compounds (SMC), such as rigid and flexible vehicle and aerodynamic trim, holistic interior systems, as well as lightweight and battery components for electric vehicles. STS is a technological leader in the production of plastic injection moulding and composite components. STS has a large global footprint with plants on three continents. The customer portfolio includes leading international manufacturers of commercial vehicles, passenger cars and electric vehicles.

STS Group AG
Investor Relations
Kabeler Str. 4
58099 Hagen
Germany
ir@sts.group
www.sts.group

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