Roblon announces a turnover and a result above expectations for the first semester from 2021/22 and adjusts expectations for the whole year
Interim report – H1 2021/22 (the period from November 1, 2021 to April 30, 2022)
Highlights of the Roblon Group Interim Report:
As expected, the Group was negatively impacted by COVID-19 in the first half of 2021/22, facing logistical challenges, raw material supply shortages and other market impacts. Despite these challenges, the Group’s reported revenue and results for the first half of 2021/22 exceeded guidance for the period. This positive development can be attributed to the Composite product group and the European part of the FOC product group, while the US subsidiary did not perform as expected.
As described in company announcement no. 1/2022, the Group acquired the Czech company Vamafil spol. sro on January 3, 2022, and in this context increased its long-term credit facilities by DKK 75 million to support the acquisition of Vamafil and the Group’s growth strategy.
- In H1 2021/22, order intake amounted to DKKm 207.1 (DKKm 150.4) and the order book as of April 30, 2022 was DKKm 103.4 (DKKm 73.1).
- Revenues amounted to DKK 178.1 million (DKK 103.0 million). Both product groups, but especially the FOC, showed improvements compared to the prior year period.
- Gross margin of 49.9% (44.8%) for the first half was positively impacted by a favorable product mix and improved profitability in the FOC product group.
- Operating profit before depreciation, amortization and special items (EBITDA) was DKK 12.6 million (a loss of DKK 18.6 million).
- EBIT before special items was a loss of DKK 0.5 million (a loss of DKK 28.2 million).
- Special items related to the acquisition of Vamafil in the Czech Republic amounted to a net charge of DKK 3.6 million (DKK 0 million).
- Roblon’s equity as of April 30, 2022 amounted to DKK 219.9 million (DKK 216.4 million).
- Operating cash flow for the first half of 2021/22 was a net outflow of DKK 18.6 million (an outflow of DKK 22.0 million), impacted by an increase of approximately DKK 30 million in working capital. The increase is mainly related to the higher level of activity, the increase in raw material prices, the acquisition of businesses and the increase in inventories of essential raw materials.
Guidelines for the whole of the year 2021/22
The forecast is still subject to uncertainty due to the negative impacts of COVID-19 on all of the Group’s markets, which recently translated into a negative impact on the FOC product group in the United States.
Roblon ceased all sales to Russia and Belarus following the war in Ukraine. Historically, the Group has not had significant commercial activities in Russia, Belarus or Ukraine.
Supply shortages of certain raw materials and components are expected to remain a challenge.
At the end of the first half of 2021/22, management adjusts the annual guidance for 2021/22 as follows:
- revenues between DKK 360-390m compared to DKK 330-370m previously (2020/21: DKK 249.9m);
- an operating result before depreciation, amortization and special items (EBITDA) of around DKK 17 to 27 million compared to DKK 8 to 27 million previously (2020/21: a loss of DKK 12.6 million);
- operating result before exceptional items (EBIT) between a loss of DKK 10 million and a profit of DKK 0 million compared to a previous loss of DKK 19 million and a profit of DKK 0 million (2020/21: a loss of DKK 32.9 million);
- special items related to restructuring costs of approximately DKK 8 million (2020/21: DKK 0 million)
Head office building put up for sale
At the beginning of 2020, the Group decided to put its headquarters in Frederikshavn up for sale. There are currently no potential buyers for the buildings, but the sale process continues. After the sale, the group’s Danish operations will all be located at Roblon’s facility in Gærum, which currently houses production and various administrative functions. In addition to generating positive synergies in day-to-day operations, this initiative should also have a positive impact on Roblon’s earnings and equity going forward.
Frederikshavn, June 17, 2022
Jorgen Kjaer Jacobsen Lars Ostergaard
Chairman of the Board Managing Director and CEO
Inquiries regarding this announcement should be directed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300
Company Announcement #9 – 2022