Despite the challenging situation on the raw materials market, the Zumtobel Group recorded good results in the first half of the current 2021/22 financial year compared to the previous year. Group revenues rose by 10.1% to EUR 567.4 million (previous year: EUR 515.4 million), but the shortage of important raw materials and the corresponding price increases impacted the development of revenues, especially in the second quarter. Against this background, the Group was not yet able to match the sales level of the pre-crisis year (603.8 million euros), despite high order backlogs. Meanwhile, operating earnings (EBIT) rose by 52.4 percent year-on-year to 35.0 million euros (previous year 22.9 million euros), almost reaching the level of the pre-crisis year 2019/20, while net profit for the period increased to 23.0 million euros (previous year 13.3 million euros). “This means that we have also left the crisis year 2020/21 behind us on the bottom line with a 72 percent higher net profit of EUR 23 million,” said Alfred Felder, CEO of the Zumtobel Group. “Nevertheless, the second quarter showed us that the situation on the global raw materials market remains challenging.”

Adjusted for currency effects, revenues increased by 9.2 percent. Revenues in the Lighting Segment rose 6.7 percent to EUR 420.5 million in the first half of the year (previous year: EUR 394.1 million). In the Components Segment, the company recorded a significant 20.6 percent increase in revenues to 175.7 million euros. In addition to the general upward economic trend, price increases implemented in some cases contributed to the positive sales performance, meaning that the pre-crisis level of 2019/20 was only just missed in this area. Overall, sales in almost all regions increased significantly compared with the prior-year period and up to double-digit sales growth was achieved in the core markets of the UK and France. One exception was the DACH region, where growth was lower because, despite a very pleasing development in Austria, revenues in Germany and Switzerland remained largely at the previous year’s level.

The Zumtobel Group’s second quarter, in particular, was characterized by a shortage of raw materials. The company was able to cope comparatively well with restrictions and price increases in the “finished plastic products”, “steel” or “aluminum products” product groups thanks to good and long-standing relationships with suppliers. By contrast, the lack of availability of key components such as semiconductors for high-end drivers was clearly felt, as these were not supplied in the volumes requested, which also led and continues to lead to delayed deliveries to customers. In order to reduce dependence on individual suppliers, the Zumtobel Group is adjusting product development so that, if necessary, a manufacturer can be changed or requirements can be distributed among several manufacturers.

Selling and administrative expenses rose by EUR 13.0 million to EUR -154.1 million during the first half of the current financial year (prior year: EUR -141.1 million). The background to this was, among other things, increased customs duties in connection with Brexit and higher outward freight costs. Notwithstanding this, Group EBIT rose from 22.9 million euros in H1 2020/21 to 35.0 million euros in H1 2021/22, increasing the return on sales from 4.5 to 6.2 percent.

Net profit for the period increased even more significantly – by 72.4% to EUR 23.0 million (prior year EUR 13.3 million) – and thus almost reached the level of the pre-crisis year (EUR 24.7 million).

For Zumtobel Group shareholders, earnings per share (basic on 43.1 million shares) amounted to EUR 0.53 (H1 2020/21: EUR 0.31). Free cash flow deteriorated to EUR 6.7 million during the reporting period (H1 2020/21: EUR 35.0 million), mainly due to the cash outflow in working capital and other operating items.

The balance sheet structure is virtually unchanged compared with April 30, 2021. The equity ratio was 32.7% as of October 31, 2021 and net debt increased by EUR 6.4 million to EUR 103.7 million compared to the balance sheet date.

The Management Board of the Zumtobel Group is confident despite the tense situation on the raw materials market and continues to expect rising revenues in the range of four to seven percent and an EBIT margin of four to five percent for the 2021/22 financial year.