August 13, 2021

Press release

Half-year Financial Report 2021

  • Business volume remains at very high level in multi-year comparison
  • Economic rebound placing stress on supply chains and causing inefficiencies
  • EBIT climbs to € 9.3 million year-on-year
  • Order intake again increasing and with € 488.2 million at sound level
  • Management retaining expectations for 2021 – stable revenues, EBIT margin of around 5%
GROUP KEY FIGURES 1-6/20201-6/2021
Revenuesin € million458.0448.1
EBITin € million5.49.3
Net profit for the periodin € million2.25.5
Cash flow from operating activitiesin € million-34.0-27.7
Equity in % of total assets 25.2%28.8%
Earnings per share-0.5-0.2
Number of employees as of June 30 3,9674,008
Order backlog as of June 30in € million1,118.21,092.0


The Rosenbauer Group generated revenues of € 448.1 million in the first half of 2021. Following a recovery process in the second quarter of the year, revenues remained at a very high level but fell just short of the multi-year record high achieved in the previous year (1-6/2020: € 458.0 million). The MENA and CEEU areas increased their business volumes by 25% and 14% respectively. Meanwhile, the surprisingly fast global economic rebound is putting many supply chains under pressure, including that of the Rosenbauer Group, and key manufacturing sectors are grappling with inefficiencies such as poor availability of materials and delayed deliveries. The waiver of COVID-19 liquidity support at several international locations meant that the effects of this strained supply situation were largely offset. As a result, the Rosenbauer Group achieved a significantly higher EBIT figure of € 9.3 million in the first six months of 2021 (1-6/2020: € 5.4 million). New orders were above the previous year’s level at € 488.2 million (1-6/2020: € 455.3 million). 

Despite the continuing uncertainties around supply chain developments, the Executive Board of the Rosenbauer Group expects the company to achieve stable revenues and an EBIT margin of around 5% in 2021.

Revenues and result of operations
Last July, the International Monetary Fund (IMF) confirmed its economic outlook for 2021 and kept its global growth projection unchanged. The IMF is projecting that the global economy will grow by 6% in the current year. This is based on revised regional growth forecasts, which are ultimately balancing each other out, with outlooks for developing and emerging economies – particularly the emerging economy of Asia – being lowered and forecasts for developed economies being raised. Meanwhile, access to COVID-19 vaccines is turning into a major fault line splitting global recovery into two blocks – with countries that are expecting a continued normalization of economic activity over the course of the year (almost all developed economies) on one side and those countries that are battling resurgent infection figures and growing mortality rates on the other.

In the first six months of 2021, the firefighting industry defied the effects of the COVID-19 pandemic and continued to report stable development. Demand for firefighting equipment was driven by developed European markets in particular, which are continuing to grow at the same rate.

The Rosenbauer Group generated revenues of € 448.1 million in the first half of 2021 (1-6/2020: € 458.0 million). Consolidated revenues are currently divided across the sales areas as follows1: 35% in the CEEU area, 9% in the NISA area, 11% in the MENA area, 13% in the APAC area, 30% in the NOMA area and 2% in the Preventive Fire Protection segment.

Notwithstanding some adverse after-effects of the COVID-19 pandemic, a one-time, non-recurring effect pushed EBIT up to € 9.3 million after the first six months of 2021 (1-6/2020: € 5.4 million). Consolidated EBT for the reporting period amounted to € 6.7 million (1-6/2020: € 2.5 million).

At € 488.2 million, incoming orders from January to June of this year were higher than the corresponding figure for the previous year (1-6/2020: € 455.3 million). Except for the MENA area and the NOMA area, all the sales areas generated more new orders this year than in the comparative period of 2020. Business in Asia, which has been tough recently, even increased by 73% year-on-year. The order backlog remains solid and amounted to € 1,092.0 million as of June 30, 2021 (June 30, 2020: € 1,118.2 million). 

Financial and net assets position
For reasons specific to the industry (high order backlog and strong capacity utilization), the structure of the Rosenbauer Group’s statement of financial position as of the end of the first half-year is characterized by high trade working capital.

Total assets decreased year-on-year to € 961.0 million (June 30, 2020: € 989.5 million), which can be attributed in particular to the lower current assets compared with the same period of the previous year. The major changes result from inventories and current receivables. Inventories dropped to € 454.1 million (June 30, 2020: € 478.3 million) and current receivables were down on the previous year’s level at € 250.8 million (June 30, 2020: € 252.0 million).

The Group’s net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) decreased year-on-year to € 345.3 million (June 30, 2020: € 393.4 million).

Fewer deliveries and the substantial increase in inventories since the turn of the year put cash flow from operating activities at € -27.7 million at the end of the first half of 2021 (1-6/2020: € -34.0 million). Meanwhile, the company is consistently pursuing measures to reduce trade working capital. Clearly positive cash flow from operating activities is expected by the end of the year.

Outlook
In 2022, the IMF is projecting global economic growth of 4.9%, which equates to an increase of 0.5 percentage points on its outlook from April of this year. The IMF’s adjustment takes into account the improved prospects for developed economies and above all the US, the tax relief measures expected in the second half of the year and the altogether encouraging health data for this group of countries. Risks for this scenario still include delays in vaccine distribution and new virus mutations as well as tougher financial conditions, which could result in greater inflation expectations.

Past experience has shown that the global firefighting industry follows general economic trends at a delay of several months, and it is expected to hold steady this year. There were very strong levels of tendering activity in the first half of the year, with larger orders again coming up for tender.
 


CEEU area: Central and Eastern Europe; NISA area: Northern Europe, Iberia, South America and Africa; MENA area: Middle East and North Africa; APAC area: Asia-Pacific; NOMA area: North and Middle America; PFP: Preventive Fire Protection

To the Half-year Financial Report 2021

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