Highlights third quarter 2023
Turnover increased by 1.6% to € 458.5 million (Q3 2022: € 451.2 million). Adjusted for acquisitions (+1.4%) and currency effects (-1.3%), turnover increased organically by 1.6%, with price effects accounting for 2.0% of turnover.
Turnover in Smart Manufacturing systems increased strongly, due to the easing of supply-chain constraints, while Smart Vision systems’ and Smart Connectivity systems’ turnover decreased compared to Q3 2022, due to destocking effects.
Added value as a percentage of turnover improved compared to Q3 2022, due to the effect of sales price increases over several quarters and the easing of supply-chain constraints.
EBITA before one-off income and expenses decreased by 1.7% to € 54.3 million (Q3 2022: € 55.2 million); operating expenses increased due to the hiring of additional personnel in preparation for the ramp-up of the new plants.
Order book remained stable at € 994.4 million (June 30, 2023: € 999.9 million). Continued strong order intake at Smart Manufacturing systems.
ROS at 11.8% (Q3 2022: 12.2%).
First nine months 2023
Year-to-date, turnover increased to € 1,406.1 million (+4.1%), with EBITA amounting to € 174.1 million, a 1.9% increase.
ROS for the first nine months of this year reached 12.4% compared to 12.6% in the first nine months of 2022.
Alexander van der Lof, CEO of TKH: “We continued to perform well in the third quarter and made strong strategic progress amidst challenging market circumstances. Smart Manufacturing systems showed an excellent improvement in results as supply-chain constraints eased, while Smart Vision systems and Smart Connectivity systems were impacted by destocking at our customers. We managed to improve our added value to cover cost inflation. During the quarter, we continued to execute on our strategic priorities to drive the ROS towards our 2025 targets. Following the conclusion of the divestment of our cable distribution activities, TKH France, which resulted in a one-off net profit contribution of approximately € 20 million, we initiated our second € 25 million share buyback program this year.
Notwithstanding the challenging market circumstances, our technologies continue to gain traction on the back of the long-term megatrends automation, digitalization and electrification. To capture the opportunities we see in our core business, we expect to accelerate our divestment opportunities in the coming 12 months. This gives us further room to invest in our core technologies, while we will also use the funds for additional share buyback programs. The framework agreement for the single-source supply of inter-array cables for all of Vattenfall’s European windfarms in the coming years, underlines our innovative technological power and shows that we are on the right track with our investments in this exciting segment.”
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