DGAP-News: Voltabox AG / Key word(s): Half Year Results
Voltabox records jump in revenues in first half of year and is heading for sustainable return to profitability in 2020
- Group revenue increases about 77 percent to EUR 32,1 million (prior year: EUR 18,1 million)
- Good operating business development with battery systems for forklifts and battery packs in pedelecs and e-bikes
- EBITDA reaches EUR 0,4 million (prior year: EUR 1,7 million); EBIT at EUR -3,6 million
- Revenue and profit forecast for 2019 already lowered on August 12 due to temporary effects
- Cost-reduction program and stronger focus on high-margin areas initiated
"In the first half of the year, we were able to continue growing in a weak market environment and gain new customers," says Jürgen Pampel, CEO of Voltabox AG. "Nevertheless, temporary effects have recently impacted our profitability. As a result, we have already implemented a number of measures to improve our cost structures. In addition, in the future we will concentrate even more on areas that will enable us to significantly increase our earnings again. I am convinced that we will return to profitability on a sustainable basis in 2020 as a result of our resolute approach."
In the first half year, Voltabox generated Group revenue of EUR 32.1 million (prior year: EUR 18.1 million), which constitutes an increase of 77.3 %. EBIT amounted to EUR -3.6 million after EUR 0.1 million in the prior year. This revenue growth was primarily attributable to battery systems for use in forklifts. Series production of battery systems for use in agricultural vehicles additionally contributed to revenue growth in the first half of the year. Sales of battery packs for pedelecs and e-bikes were also highly satisfactory.
In the area of agricultural and construction machinery, where Voltabox is currently engaged in series production of battery systems for the customer Schäffer, the company positioned itself successfully in the market in the first half of the year and won new customers. In May of this year, Voltabox reported on the new business relationship with Ladog, a manufacturer of vans for municipal services.
At the end of the second quarter, series production of the standard containers for the order of equipment for trolleybuses in four Swiss cities and two Italian cities announced in February was launched according to plan.
In addition, Voltabox ramped up series production for the Battery Hauler 18/20 of the customer Komatsu to the planned level in the first half of the year. This results in an annual production volume in the double-digit range. As already announced, additional projects ("Badger" and "Phoenix") are also currently in development or validation. Voltabox pursues the objective of making initial deliveries within the next nine months. At the same time, the company is working at pre-development projects at a rapid pace in cooperation with the American customer, such as for a load haul dump with a four-ton payload.
Total operating performance increases by 76 percent
Other operating income of Voltabox Group increased slightly to EUR 0.4 million (prior year: EUR 0.1 million), mainly due to foreign currency effects in the first half of the year, while finished goods and work in progress rose about EUR 1.4 million (prior year: EUR 0.5 million). Development costs capitalized were up as expected by EUR 1.2 million to EUR 4.1 million (prior year: EUR 2.8 million). Accordingly, the overall performance increased about 76.0 % to EUR 38.0 million (prior year: EUR 21.6 million) in the first half of the year.
The cost of materials increased by 106.9 % to EUR 22.5 million due to expanded business activities and due to the significant increase in expenses for the use of the previous cell technology in relation to sales, and necessary procurements at short notice (prior year: EUR 10.9 million). As a result, the material input ratio (calculated from the ratio of cost of materials to revenue and inventory changes) rose to 67.3 % (prior year: 58.7 %). Against this backdrop, the gross profit for the reporting period amounted to EUR 15.4 million (prior year: EUR 10.7 million), which constitutes a gross profit margin of 48.0 % (prior year: 58.9 %). Personnel expenses increased by 75.1 % to EUR 9.0 million (prior year: EUR 5.1 million) mainly due to the increase in personnel over the course of second half of the year 2018. The personnel expense ratio decreased slightly to 28.0 % (prior year: 28.3 %).
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell to EUR 0.4 million (prior year: EUR 1.7 million), which corresponds to an EBITDA margin of 1.3 % (prior year: 9.4 %). After increased depreciation and amortization totaling EUR 3.8 million (prior year: EUR 1.6 million) and impairment of EUR 0.3 million as well as other operating expenses of EUR 6.0 million (prior year: EUR 3.8 million) due to general administrative expenses, earnings before interest and taxes (EBIT) decreased to EUR -3.6 million (prior year: EUR 0.1 million). Thus, the EBIT margin decreased to -11.3 % (prior year: 0.6 %). With a virtually unchanged financial result of EUR -0.4 million (prior year: EUR -0.4 million) and significantly higher positive income taxes of EUR 1.3 million (prior year: EUR -0.2 million) from the reversal of income tax liabilities and the recognition of deferred tax assets on loss carried forward, Voltabox generated consolidated net income of EUR -2.7 million (prior year: EUR -0.5 million). This corresponds to earnings per share of EUR -0.17.
Total assets increased; equity ratio remains high at 78 percent
The balance sheet total increased 7.0 % to EUR 194.3 million as of June 30, 2019 (December 31, 2018: EUR 181.5 million), mainly due to the increase in property, plant and equipment as a result of the first-time financial recognition of lease liabilities in accordance with IFRS 16. The reason for the increase in this context is the conclusion of a long-term lease in the past year for the new building planned to be constructed at our Delbrück location.
Noncurrent assets increased by 37.8 % to EUR 71.5 million (December 31, 2018: EUR 51.9 million). Property, plant and equipment increased by EUR 21.4 million to EUR 30.6 million as a result of the first-time financial recognition of leases (December 31, 2018: EUR 9.2 million). Other assets fell to EUR 1.4 million (December 31, 2018: EUR 5.0 million) due to the reclassification of noncurrent rental prepayments in property plant and equipment in accordance with IFRS 16.
Current assets decreased by 4.9 % to EUR 123.3 million (December 31, 2018: EUR 129.7 million). Inventories increased by EUR 12.0 million to EUR 39.3 million (December 31, 2018: EUR 27.2 million) as a result of the supply of production material that will not be used until the second half of the year at the earliest. Trade receivables increased by EUR 15.3 million to EUR 71.3 million (December 31, 2018: EUR 56.0 million). Meanwhile, receivables due from related companies fell by EUR 9.8 million to EUR 1.9 million (December 31, 2018: EUR 11.7 million). Cash and cash equivalents decreased by EUR 24.0 million to EUR 4.2 million (December 31, 2018: EUR 28.2 million). The decrease in the first half of the year was mainly due to the expansion of operational business activities, the prefinancing of planned production over the further course of the year as well as the spatial expansion of the U.S. site. Deferred tax assets increased by EUR 0.5 million (December 31, 2018: EUR 0.0 million), which is attributable to the recognition of losses carried forward by Voltabox AG.
Noncurrent provisions and liabilities now amount to EUR 21.4 million (December 31, 2018: EUR 7.8 million) due to the first-time application of IFRS 16 (leasing liabilities). Current provisions and liabilities increased by 13.5 % to EUR 21.8 million (December 31, 2018: EUR 19.2 million) mainly as a result of the increase in trade payables by EUR 4.5 million to EUR 13.7 million (December 31, 2018: EUR 9.3 million).
Voltabox AG's equity amounts to EUR 151.1 million as of the balance sheet date (December 31, 2018: EUR 154.5 million). Against this backdrop the equity ratio decreased accordingly to 77.7 % (December 31, 2018: 85.3 %) as of the balance sheet date.
Cash flow from operating activities improved
Cash flow from operating activities improved in the period under review to EUR -15.1 million (prior year: EUR -24.6 million). This is mainly due to the EUR 17.7 million decrease in trade receivables to EUR 1.6 million (prior year: EUR 19.4 million) and increased depreciation and amortization. Inventories increased by EUR 10.9 million to EUR 12.0 million (prior year: EUR 1.1 million) and other non-cash expenses decreased by EUR 4.1 million to EUR 0.4 million (previous year: EUR 3.8 million).
Cash flow from investment activity in the period under review amounted to EUR -8.9 million (prior year: EUR -3.5 million). This resulted from payments for investments in property, plant and equipment of EUR 6.2 million (prior year: EUR 0.7 million) and payments for investments in intangible assets amounting to EUR 2.8 million (prior year: EUR 2.8 million).
Cash and cash equivalents totaled EUR 4.2 million as of the end of the reporting period (December 31, 2018: EUR 28.2 million).
Outlook for the 2019 financial year
On August 12, 2019, the Management Board of Voltabox AG announced an adjustment to its sales and earnings forecast for the 2019 financial year. This is due to the partial postponement of a major order to the American subsidiary Voltabox of Texas, Inc. until 2020 and the conversion of an important cell supplier to the latest technology, which will lead to a temporary interruption of production in some areas at Voltabox.
For the 2019 fiscal year, Voltabox now expects revenues of between EUR 70 million and EUR 80 million. The company is forecasting an EBIT margin of -8 to -9 %.
The cumulative order backlog for the next five years at the end of the first half of the year was still at about the same level as at the end of 2018, i.e. around EUR 1.1 billion.
The Management Board expects to see an investment volume of around EUR 14 million in the current year. Own work capitalized should amount to roughly 57 % of the investment total for the current year. Furthermore, the Management Board expects Voltabox to generate a significantly improved operating cash flow for the year as a whole. However, as this cash flow will be lower than originally expected due to the developments in mid-year, the - compared with 2018 - significantly improved free cash flow for 2019 as a whole will be in a negative double-digit range.
Against the backdrop of these developments on the earnings side, Voltabox has consequently introduced a set of measures to improve cost structures and to ensure a sustainable return to the profit zone in 2020. In addition, the Group will focus in the future increasingly on projects and system solutions that promise a better ratio of development expenses to potential revenue. In the USA, the currently necessary measures to improve the quality of earnings are similarly being implemented with close support from Germany.
The interim report and condensed consolidated financial statements as of June 30, 2019, are available for download at https://ir.voltabox.ag/websites/voltabox/English/4200/quaterly-reports.html.
Voltabox AG (ISIN DE000A2E4LE9), which is listed on the regulated market (Prime Standard) of the Frankfurt Stock Exchange, is a rapidly growing system provider for e-mobility in industrial applications. Its core business lies in intrinsically safe, highly developed high-performance lithium-ion batteries that are modular and in serial production. The battery systems are primarily used in buses for public transportation, forklifts, automated guided vehicles and mining vehicles. The company also develops and produces high-quality lithium-ion batteries for select mass-market applications, such as high-performance motorcycles and pedelecs.
Voltabox has production sites at its headquarters in Delbrück, Germany, in Austin (Texas, USA), and in Kunshan, China, as well as development sites in Aachen and Korntal-Münchingen, Germany.
Additional information about Voltabox can be found at www.voltabox.ag/en.
|Phone:||+49 (0)5250 9930 964|
|Fax:||+49 (0)5250 9930 901|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||860559|
|End of News||DGAP News Service|