Dr. Hönle (HNL) investor relations material

Executive summary

• Revenue for the first nine months was €69.0 million, down 1.1% year-over-year, with gross profit improving to €45.7 million and EBITDA rising 25.8% to €4.5 million, driven by efficiency measures and a favorable product mix.

• EBIT turned positive at €0.4 million, and net loss narrowed to €-1.1 million, with EPS improving to €-0.17.

• Adhesive Systems and Disinfection segments showed earnings growth, while Curing continued to face challenges due to weak investment activity and customer insolvency.

• Efficiency and restructuring measures contributed to improved profitability.

Financial highlights

• Q3 revenue increased to €23.7 million from €22.6 million year-over-year; nine-month revenue stable at €69.0 million.

• EBITDA rose to €4.5 million, up 25.8% year-over-year; EBIT returned to positive territory at €0.4 million.

• Gross margin improved to 66.2% from 64.1% year-over-year.

• Operating cash flow increased 23% to €4.6 million; cash at quarter-end was €7.2 million.

• Total assets decreased by 2.0% to €142.7 million; equity ratio rose to 53.3%.

Outlook and guidance

• Full-year revenue expected between €92 million and €95 million, with EBITDA guidance of €5 million to €6 million.

• Adhesive Systems and Disinfection expected to continue positive contributions, while Curing is anticipated to remain negative for the current year but return to growth and positive EBITDA next year.

• Preliminary full-year results to be published in December, with the annual report in January.

• Adhesive Systems expected to see above-average sales growth, driven by innovation and internationalization.

• Disinfection projected to contribute more to growth, especially in Asia and North America.