/ Key word(s): Preliminary Results
Nabaltec AG back on track, reporting growth in the fourth quarter of 2020
Schwandorf, 25 February 2021 - Nabaltec AG was able to resume its long-term growth trend in the fourth quarter, with revenues up 7.7% to EUR 40.7 million according to preliminary data. Results in the first three quarters of 2020 were heavily affected by the coronavirus pandemic, and revenues were down in each of those quarters. As a result, 2020 consolidated revenues were down 10.8% from the year before, to EUR 159.6 million. According to preliminary data, earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 23.6 million in 2020, compared to EUR 32.3 million in the previous year (down 26.9%). Nabaltec AG reported preliminary EBIT of EUR -15.9 million in its 2020 financial statements, down from EUR 18.6 million the year before. This figure includes a EUR 23.7 million write-down on the book value of property, plant and equipment for Nashtec in the US, as well as other non-recurring effects amounting to EUR 1.6 million. The non-recurring effects had no impact on the company's liquidity.
"2020 was an extraordinary year in every respect. The pandemic brought an enormous slump in sales in the first half of the year and we had to act quickly to cut costs, which we largely succeeded in doing very effectively," reported Johannes Heckmann, Nabaltec AG's CEO. "For our subsidiary Nashtec in the US, the lower utilization and expectations of a slower recovery led to an impairment, resulting in extraordinary write-downs on the book value of property, plant and equipment. There were also non-recurring effects in 2020 due to our strategic decision to discontinue mullite production in the 'Specialty Alumina' product segment at the Schwandorf site. Adjusting for these non-recurring effects, we were able to post EBIT of EUR 9.4 million according to preliminary data, with an adjusted EBIT margin (EBIT as a percentage of total performance) of 6.0%. In light of the pandemic, we are highly satisfied with this result."
The negative non-recurring effects from write-downs and impairments weighed down earnings by a total of EUR 25.3 million. Aside from EBIT, these measures also affected net income as well as the assets reported in the consolidated balance sheet. In light of the uncertainty associated with the coronavirus pandemic and earnings performance, Nabaltec AG is not planning a dividend payout for Financial Year 2020. Johannes Heckmann: "In light of the fact that the future course of the pandemic is unforeseeable, strengthening the company's resilience is our top priority. We therefore consider it advisable not to burden the company's liquidity position with a dividend payment at this time. However, we expect to be able to resume our longstanding dividend policy in the future."
The "Functional Fillers" product segment reported EUR 114.2 million in revenues in 2020 according to preliminary data, down from EUR 122.2 million the year before. The drop in revenues is primarily attributable to the worsening in market conditions as a result of the pandemic, as well as increased price pressure. The still relatively new boehmite product range once again posted strong performance, with revenues for the year up 48.1% over the year before despite the general market slump. This product range now accounts for around 10% of total revenues (previous year: 6%).
Revenues in the "Specialty Alumina" product segment came to EUR 45.4 million in the past year, according to preliminary data, down 20.1% from the year before. This decrease is due to the general weakening in the refractory industry, resulting in lower demand and prices.
Sales improved at the start of 2021, resulting in a high utilization ratio for Nabaltec. However, incoming orders still tend to be short-term in nature, reflecting the current uncertainty in the market. In the US, Nabaltec expects Nashtec's production to slowly normalize over the medium term. The launch of Naprotec's products was delayed because of the COVID-19 pandemic, and the originally expected revenues will not be realized until a later date due to delays in customer approval procedures. Because of the current situation, it will take longer than expected to build the market.
"The environment remains highly uncertain and the resulting price pressure will continue in the current year as well. Nevertheless, results in the fourth quarter of 2020 have set the course, demonstrating that our markets are essentially intact," said Johannes Heckmann. "We currently expect revenue growth in a range from 6% to 9% in the current year, with an EBIT margin in a range from 8% to 10%, assuming strong economic and industry performance. We expect to be posting record highs once again by 2022 at the latest."
25.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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