HERMLE turnover increased by 24% to €m 261

HERMLE turnover increased by 24% to €m 261 in the first half of 2023
Operating result rose from €m 30.3 to €m 49.4
New orders decreased by 6% to €m 268
Forecast for whole fiscal year substantiated

Gosheim, 31 August 2023 – Maschinenfabrik Berthold HERMLE AG performed slightly better than expected in the first half of 2023: Group turnover of the German automation and machine tool spe-cialist increased by 24.2% to €m 261.0 compared to the corre-sponding period in 2022 (previous year: €m 210.2). Domestically and internationally, HERMLE saw increases of 12.4% to €m 92.1 (previous year: €m 81.9) and 31.6% to €m 168.9 (previous year: €m 128.3) respectively. Thus, the export rate rose from 64.7% (previous year: 61.0%). As a result of the further easing of supply chain constraints, HERMLE was again able to better utilise capaci-ties and achieve catch-up effects. Integrated automation solutions equipped with HERMLE digitalisation modules proved to be highly successful.

The basis for growth was the large number of orders on hand and continued strong demand until April. From May onwards, and thus later than expected, HERMLE recorded a significant decline in or-ders, meaning new orders in the first six months of 2023 de-creased by 6.1% to €m 267.5 across the Group (previous year: €m 285.0). Domestic and international business accounted for €m 90.6 (previous year: €m 100.7) and €m 176.9 (previous year: €m 184.3) respectively. At the end of June 2023, the HERMLE Group record-ed orders on hand of €m 174.4 compared to €m 182.8 on the same date in the previous year and €m 168.0 at the end of 2022.

Thanks to a further increase in capacity utilisation compared to the first half of 2022, an improved range of products and stable price quality, HERMLE was able to develop the operating result at a higher rate than turnover. Moreover, the previous year's figure was burdened by the loss of the Russian business totalling roughly €m 5. Therefore, the operating result (EBIT) of the HERMLE Group increased by 63.0% to €m 49.4 between January and June 2023 (previous year: €m 30.3). The earnings before tax increased from €m 30.1 to €m 50.4, enabling the gross margin on turnover to climb from 14.3% to 19.3%. The net profit for the period rose from €20.6 to €m 37.1.

The significantly increased result helped to further boost the finan-cial and net asset situation of HERMLE: The operating cash flow rose across the Group by 37.9% to €m 42.9 in the first half of 2023 (previous year: €m 31.1). Liquid funds increased to €m 176.9 as of 30 June 2023 (31 December 2022: €m 113.9), and the equity ratio was 71.0%, compared to 71.6% at the turn of the year.

To secure the expected long-term expansion, HERMLE has launched an extensive expansion programme for its two production sites. As a result, investments in tangible and intangible assets rose to €m 13 in the first six months of 2023 (previous year: €m 3.7). The main focus of activities was on the site in Zimmern ob Rottweil. For example, work on the structural steel for a new large-part production facility was basically completed by the end of June, and the foundation work for expansion of the mineral casting pro-duction facility and the installation of a photovoltaic system have commenced.

Moreover, HERMLE has invested in its service offerings, which were also enhanced during the reporting period. In the first quarter of 2023, HERMLE founded a new subsidiary in France, based in the Paris area, which has been fully operational since June and has already received its first orders. At the end of the second quarter, a new service office was established at the air traffic hub Phoenix, Arizona. This allows HERMLE US to shorten distances to custom-ers in the western USA and to cut costs.

In the course of strengthening its overseas activities, the HERMLE workforce has continued to grow. New employees have been tak-en on in all areas related to automation. On 30 June 2023, the Group employed 1,442 people, that is 120 more than on the same date in 2022 and 59 more than at the end of 2022.

Thanks to the pleasingly stable developments in the year to date, HERMLE is confident of achieving its forecast for 2023 as a whole, despite the drop in demand and the high macroeconomic risks. At present, the company continues to assume that Group turnover for 2023 will remain at the good level of the previous year. Without external disruptions, a potential increase of approximately 10% is also possible. The operating result is expected to remain stable, subject to future developments in material and energy pric-es and the possibility of any price hikes being transferred to cus-tomers. However, a favourable scenario could also enable increas-es in the operating result.

Press contact: Redaktionsbüro tik GmbH, Gabriele Rechinger, Phone +49 (0)911 988 170 72, E-Mail: info@tik-online.de 

Image material: Maschinenfabrik Berthold HERMLE AG, Marketing Department, Phone +49 (0)7426 95 0, E-Mail: marketing@hermle.de