PTA-News: Dr. Hönle AG: Hönle Group increases sales by 12% in 9 months

Gilching   05.Aug.2022

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Gilching (pta009/05.08.2022/08:00) - Sales revenues generated by the Hönle Group rose by 12% to T€ 95,141 in the first nine months of financial year 2021/2022 compared with the prior-year period.

As already communicated last week, earnings development lagged behind planning in the third quarter. The situation on the procurement markets as well as higher energy prices had a significant negative impact on the quarterly result which was additionally impaired by one-off effects associated with the personnel changes implemented at the management level of Dr. Hönle AG. The operating result (EBIT) came to T€ 7,214 in the period from 1 October 2021 to 30 June 2022, which is 0.7% higher than the previous year's figure and corresponds to an EBIT margin of 7.1% (PY: 8.2%). The pre-tax result (EBT) came to T€ 6,138 (PY: T€ 6,395). Consolidated profit after income taxes amounted to T€ 4,736, corresponding to a decline of 2.3%. Earnings per share decreased marginally from € 0,79 to € 0,77.


The Management Board does not anticipate any easing on the procurement markets for the fourth quarter of the reporting year, and also expects a further increase in energy prices. Energy prices are significantly influenced by the Russia-Ukraine war and supply reliability of the Nord Stream 1 gas pipeline.

This development has a particularly strong impact on the earnings strength of Raesch Quarz (Germany) GmbH. The Management Board therefore expects a significant negative impact on earnings at that company. The situation on the procurement markets is also expected to temporarily weigh on gross profit margins in the fourth quarter and result in the postponement of orders.

Moreover, the Hönle Group expects large-scale orders in the Adhesives segment, which will probably be postponed to the next financial year.

In the release dated 22 July 2022, the Management Board thus adjusted the revenue forecast from previously € 130 million to 140 million to now € 125 million to € 130 million (PY: € 115 million) and the forecast for the operating result (EBIT) from previously € 14 million to € 17 million to now € 9 million to € 11 million (PY: € 0.3 million) for the Hönle Group in financial year 2021/2022.

The Hönle Group's high order backlog and a large number of ongoing customer projects represent a good starting point for the new financial year. The strains on margins in the current financial year are expected to be offset in financial year 2022/2023 as a result of already implemented or planned sales price adjustments.

Assuming economic conditions remain unchanged, sales and earnings are therefore expected to rise in financial year 2022/2023.

Adhesives Segment

Sales revenues earned in the Adhesives segment in the year under review were roughly on a par with the previous year. The existing travel restrictions in China had an inhibiting effect on sales revenues. The situation has been normalising in this region in recent weeks. With respect to financial year 2022/2023, the high-volume adhesives projects are expected to realise, which is of great importance for the Company's further development.

Due to the large number of high-potential adhesives projects, the Management Board anticipates strong business development over the medium to long term. An additional managing director, responsible for international adhesives sales, is to further develop the sales territories in China and the USA in particular. For the planned increase in sales, both the spatial capacities and the number of application laboratories were extended and personnel capacities required for the areas of development and sales are also to be expanded in the relevant target markets.

Equipment & Systems Segment

Hönle is experiencing strong demand for UV-based drying solutions for adhesives. The adhesives predominantly are used in the electronics industry. Increasing requirements placed on product quality as well as high cycle times make the use of fast-curing adhesives indispensable in electronics manufacturing. UV dryers enable reliable adhesives drying and thus the immediate further processing of the products. Medical technology is another important sales market for UV drying equipment where very high demands are placed on the quality of the bonded components. Both the order intake in the current financial year and the order backlog as at 30 June 2022 are significantly higher than in the previous year respecting UV systems for adhesive drying.

Order intake and order backlog concerning drying systems for the printing and coating market are also up on the previous year. In addition, a new product line for the printing industry is expected to contribute significantly to the planned sales growth from the new financial year onwards.

Despite the temporary subsidy programs for air purifiers in schools and daycare centres, to date, Hönle has sold fewer systems than initially assumed. The further development of sales in this segment largely depends on the further course of the pandemic and the willingness of potential customers to invest in this technology. The life science segment, and UV-based disinfection, in particular, is an important field of business, offering great potential for the Hönle Group's future development. In addition to air disinfection, this also includes the chemical-free disinfection of surfaces in the food industry and the environmentally friendly disinfection of drinking water, as well as industrial, ballast and waste water.

In all, given favourable order books and the large number of customer projects, good business development is expected in the next financial year in the Equipment & Systems segment.

Glass & Lamps Segment

The high demand for UV lamps in the area of air and water disinfection contributed to the good development of revenues at uv-technik Speziallampen GmbH. The prospects in the disinfection and drying business areas are also extremely good due to the high order backlog and the large number of ongoing customer projects. Good business development in the UV lamps segment is therefore also expected in the future.

A strong quartz glass market, a high order backlog and the fact that all quartz glass melting furnaces are in operation and producing glass with low scrap rates will lead to a continuous increase in sales in the coming quarters.

The earnings development at Raesch Quarz (Germany) GmbH will largely depend on the development of electricity prices. The Board of Management expects that the development of electricity prices will continue to weigh heavily on this company's earnings. With the Energy Cost Reduction Programme (EKDP), the German government launched the announced program for energy price subsidies for energy-intensive companies, which are heavily burdened due to significantly increased energy costs, on 15 July. Part of the natural gas and electricity costs from February to September 2022 will be subsidised. Under this programme, Raesch Quarz (Germany) GmbH is expected to be reimbursed for part of its increased energy costs.

About Hönle

Dr. Hönle AG is a listed technology company headquartered in Gilching, Germany. With its nearly 700 employees, the Hönle Group develops innovative solutions for a wide variety of industrial manufacturing processes. One focus of its activities is the development and sale of industrial adhesives and casting compounds. Moreover, the company manufactures equipment for ink and paint drying, adhesives and plastic curing as well as for air, water and surface disinfection and sunlight simulation. In addition, the corporate group produces UV lamps for disinfection and drying processes, among others, and manufactures tubes and semi-finished products made of quartz glass for use in various branches of industry. The Hönle Group supplies technology and world market leaders worldwide and is represented by its own entities and partner companies in more than 20 countries.


emitter: Dr. Hönle AG
address: Nicolaus-Otto-Str. 2, 82205 Gilching
country: Germany
contact person: Peter Weinert
phone: +49 8105 2083 173

ISIN(s): DE0005157101 (share)
stock exchanges: regulated market in Frankfurt; free market in Stuttgart, free market in Munich, free market in Hamburg, free market in Dusseldorf, free market in Hannover; open market in Berlin, Tradegate

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