All-time high half-year revenue despite major challenges

• Record order backlog in a volatile environment 
• Unstable supply chain, high stock levels, and rising material costs mark the 1st half year  
• Revenue of EUR 2 billion targeted for 2022 

1) Reporting date figures of consolidated Group companies without equity investments and without contract workers.

The macroeconomic upheavals stressed global supply chains, rising energy and material costs, and exchange rates leave their mark on the key figures in the first half year. In this volatile environment, PALFINGER achieves a record revenue of EUR 1,039.0 million and earnings before interest and taxes of EUR 80.2 million.
 

Market Successes in LATAM and Marine

From the second quarter, the war in Ukraine slows market demand in EMEA. But in the NAM region and especially in LATAM, PALFINGER benefits from continued high demand. The company has also achieved market successes in the Marine sector: A framework agreement with Aker BP for the maintenance and delivery of remote-controlled offshore cranes has been concluded.
 

Dynamic Pricing

In view of the large order backlog and the deferred effectiveness of its own price increases, PALFINGER is switching to “dynamic pricing” with effect from January 2023. With the new, index-based and flexible pricing model, PALFINGER can react quickly to rising or falling costs. “In this way, we guarantee transparency, the immediate and direct transfer of costs, and consequently stabilized profitability,” says PALFINGER CEO Andreas Klauser, explaining the change.
 

Investments in the Future

As part of the investments in implementing the Strategy 2030, PALFINGER opens its global technology center in Köstendorf. Here, control and drive technologies are developed for all PALFINGER solutions worldwide at a central location and in standardized forms. The acquisition of the 35 percent minority interest in the French Guima Palfinger S.A.S. and of the 40 percent minority interest in the Portuguese Comercio e Aluguer de Maquinas, S.A. makes it possible to react even more quickly and efficiently to competitor and market developments in the EMEA region.
 

Key Financials

Revenue of PALFINGER AG amounted to EUR 1,039.0 million in the first half of 2022 against EUR 884.1 for the same period in the previous year. This represents an increase of EUR 154.9 million or 17.5 percent and reflects not only the high market demand for PALFINGER products, but also the increased sales prices and exchange rate effects. EBITDA fell by 10.5 percent compared to the 1st half year 2021 to EUR 119.5 million. Earnings before interest and taxes (EBIT) fell from EUR 92.1 million in the 1st half year 2021 to EUR 80.2 million due to cost increases and the deferred effect of price increases. The consolidated net result amounted to EUR 39.2 million as against EUR 55.7 million as of June 30, 2021. The reversal of the cross-holding with SANY and the acquisition of minority interests reduced equity and influence the balance sheet structure accordingly. The high stock levels led to a sharp increase in financing volume. That said, the financing structure, with an average interest rate of 1.25%, is extremely attractive. The instability of the supply chains led to a huge rise in inventory levels, resulting in increased net debt of EUR 604.1 million compared to EUR 386.1 million in the corresponding period of the previous year.
 

Outlook

PALFINGER’s large order backlog extends into the second quarter of 2023. Further price increases will also take effect in the second half of this year and from today’s perspective cost increases for components and materials have peaked. Given the geopolitical situation, PALFINGER nevertheless expects exceptionally high volatility until the end of fiscal year 2022 and beyond. In this challenging environment, PALFINGER is aiming for revenue of EUR 2 billion in 2022. PALFINGER continues to pursue its mid- and long-term targets. Revenues of EUR 2.3 billion from organic growth, ROCE of 12 percent and an EBIT margin of 10 percent are targeted for 2024. Revenue is expected to hit the EUR 3.0 billion mark in 2030 at the latest.

The presentation on the first half of 2022 is available here:
https://www.palfinger.ag/en/investors/publications/presentations

The interim report of the first half year of 2022 is available here:
https://www.palfinger.ag/en/investors/publications/finance-publications