endrion posts record revenue and strong profit growth as market volatility
persists
• Revenue of EUR 132.9 million, up 17% compared to EUR 113.2 million in Q3 2021
• Growth mostly driven by the Industrial Groups: 28% increase in Industrial Brakes, 26% in
Industrial Actuators and Controls, and 8% in Automotive
• Normalized Q3 EBITDA increased 20% to EUR 14.9 million (Q3 2021: EUR 12.4 million)
• Normalized Q3 EBITA was 37% higher at EUR 8.9 million (Q3 2021: EUR 6.5 million)
• Announced split of the Automotive Group into Automotive Core and Automotive E on track
to be fully operational by 1 January 2023
• Strong focus on cashflow, working capital and added value margin
• Leverage ratio of 2.6 unchanged compared to Q2 2022
Key figures
Reported (in EUR million) Q3 2022 Q3 2021 delta YTD 2022 YTD 2021 delta
Revenue 132.9 113.2 17% 389.7 347.8 12%
EBITDA 13.3 11.9 12% 41.4 43.9 -6%
EBITA 7.3 6.0 22% 24.2 25.7 -6%
Net profit 4.0 2.9 38% 12.8 14.2 -10%
EBITDA as a % of revenue 10.0% 10.5% 10.6% 12.6%
EBITA as a % of revenue 5.5% 5.3% 6.2% 7.4%
Return on invested capital 1 (12 months rolling) 11.3% 13.8%


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KENDRION N.V.
PRESS RELEASE
8 November 2022
Kendrion posts record revenue and strong profit growth as market volatility persists

Revenue of EUR 132.9 million, up 17% compared to EUR 113.2 million in Q3 2021
Growth mostly driven by the Industrial Groups: 28% increase in Industrial Brakes, 26% in Industrial Actuators and Controls, and 8% in Automotive
Normalized Q3 EBITDA increased 20% to EUR 14.9 million (Q3 2021: EUR 12.4 million)
Normalized Q3 EBITA was 37% higher at EUR 8.9 million (Q3 2021: EUR 6.5 million)
Announced split of the Automotive Group into Automotive Core and Automotive E on track to be fully operational by 1 January 2023
Strong focus on cashflow, working capital and added value margin
Leverage ratio of 2.6 unchanged compared to Q2 2022


Key figures

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Joep van Beurden, Kendrion CEO:

“We have had a strong third quarter. Revenue grew in all our Business Groups, resulting in a revenue increase of 17% to EUR 132.9 million, compared to Q3 2021 and a new quarterly revenue record. Our Industrial Groups in particular, performed well. Industrial Brakes grew its revenue by 28% while Industrial Actuators and Controls achieved a revenue increase of 26% or 14% excluding 3T’s contribution. The Automotive Group grew by 8%. The revenue growth combined with a stable added value margin and disciplined cost control considerably increased our profitability. Our normalized EBITDA grew by 20%, EBITA by 37% and our net profit before amortization by 53%. I am proud of our global team who delivered these results despite ongoing difficult market conditions.

The Automotive trading environment remains difficult with continuing semiconductor shortages, demand volatility, and supply price increases. With the announced split of the Automotive Group into Automotive E and Automotive Core, we make a clear strategic, operational, and organizational distinction within the Automotive Group. In the new set up, we will further increase our focus on innovation and products such as AVAS sound systems and active suspension, while at the same time improving the efficiency and cash generation from our current combustion engine products. We are on track to implement the new set up by the start of 2023.

In China, production caught up with the backlog caused by the lockdown in Shanghai during the first half of the year. Construction of our new factory at the renowned Industrial Park in Suzhou (SIP) is almost finished and we expect to start production in the first quarter of 2023. The increased production capacity will allow us to meet current project pipeline demands and capture the many opportunities we have identified.

As a global company focused on actuators that support the global trend towards electrification and cleaner energy, we continue to see business opportunities for our products in all three Business Groups. We expect the unpredictability of the economic environment to continue into 2023 but are confident that the global push for clean energy, combined with our strong position in our growth areas Industrial Brakes, Automotive and China, will help us achieve our medium-term financial targets of 5% organic growth between 2019 and 2025, an EBITDA of at least 15% in 2025, and an ROIC of at least 25% in 2025.”


see & read more on
https://www.kendrion.com/en/about-kendrion/investor-relations/press-releases/press-releases-detail-page/q3-results-2022