WashTec AG: 5.3% revenue growth in first nine months with significant 19.0% increase in EBIT

• Group revenue €356.7m in first nine months (prior year: €338.6m) and €120.4m in third quarter (prior year: €118.6m)
• Group EBIT €26.9m in first nine months (prior year: €22.6m) and €11.5m in third quarter (prior year: €9.7m)
• Free cash flow of €26.8m in first nine months (prior year: €7.6m)
• Guidance for fiscal year 2023 confirmed

Augsburg, November 2, 2023 – The WashTec Group generated revenue of €356.7m in the nine months to September 30, 2023, a new record and a significant increase of €18.1m or 5.3% on the prior year (€338.6m). In addition to the implemented price increases, this reflected growth in the key accounts business and especially chemicals. At constant exchange rates, the year-on-year revenue growth was 7.2%. A new record was also set for a third quarter with revenue of €120.4m (prior year: €118.6m).

As a result of the revenue growth and active cost management, Group EBIT in the first nine months was €26.9m, significantly higher than in the prior year (€22.6m). The EBIT margin improved to 7.5% (prior year: 6.7%). WashTec achieved a significant 18.6% increase in EBIT to €11.5m in the third quarter (prior year: €9.7m) due to the successful implementation of the efficiency program in the North America region. The EBIT margin increased to 9.6% (prior year: 8.2%), which is higher than both the prior-year quarter and the first two quarters of 2023.

Orders received in the first nine months were significantly down year on year due to the drop in demand in the market as a whole. Due to the lower orders received, the order backlog was significantly smaller at the end of September 2023 than a year earlier. It should be noted that the order backlog in the prior year was significantly inflated by a number of orders that had been brought forward. The order backlog is at a high level overall compared to the long-term average.

Free cash flow increased to €26.8m in the first nine months (prior year: €7.6m) as a result of higher earnings before taxes and improved net operating working capital. This positive outcome was achieved despite the €9.5m acquisition of the site occupied by the American subsidiary.

The WashTec Group confirms the guidance for fiscal year 2023 and expects an increase in EBIT by around 10%. This guidance is fundamentally subject to uncertainties. These may result, for example, from a possible escalation of the conflicts in Ukraine and the Middle East, a significant deterioration of economic conditions in key sales markets, or additional burdens from structural adjustments.

“WashTec has completed the first nine months with record revenue and a significant increase in earnings. This positive outcome gives us added momentum to systematically pursue the strategy we have adopted this year of more closely integrating equipment, service, chemicals and digitalization. We have reached further milestones here in the third quarter of 2023 with our SmartCare platform now production-ready and a five-digit number of digitally connected units. WashTec is well on track,” said Dr. Ralf Koeppe, CEO of WashTec AG.

The full Q3 2023 statement and further information about WashTec can be found on the WashTec: Investor Relations Website.

About WashTec:
The WashTec Group, based in Augsburg, Germany, is the leading provider of innovative solutions for carwash worldwide. WashTec employs around 1,800 people worldwide and has subsidiaries in the markets of Europe, North America and Asia/Pacific. In addition, WashTec is on the map in some 80 countries through independent dealers.


Key figures:
 

€m, IFRS	Q1-Q3 2023	Q1-Q3 2022	Change in %
Revenue	356.7	338.6	5.3
EBIT	26.9	22.6	19.0
EBIT margin in %	7.5	6.7	–
EBT	24.2	22.1	9.5
Consolidated net income	16.9	14.8	14.2
Earnings per share1 (€)	1.26	1.10	14.2
Free cash flow	26.8	7.6	252.6

 

€m, IFRS	30.09.23	31.12.22	Change abs.
Balance sheet total	284.4	284.5	-0.1
Equity	75.8	88.1	-12.3
Equity ratio in %	26.7	31.0	-4.3
Net operating working capital2	92.0	105.1	-13.1
Employees at reporting date	1,767	1,823	-56

¹ Basis: average of 13,382,324 shares; basic = diluted
² Trade receivables + inventories − trade payables − prepayments on orders