Manz (M5Z) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 declined 30.6% year-over-year to €98.6 million, mainly due to a 51.4% drop in Mobility & Battery Solutions sales and postponed investment decisions.

• EBITDA was negative at €-1.3 million versus €17.2 million in H1 2023, with EBIT at €-6.5 million compared to €11.3 million last year.

• Net loss reached €-10.1 million, reversing a net profit of €7.6 million in the prior year period; EPS was €-1.19.

• Order intake fell 6.5% and order backlog dropped 29.0% year-over-year, reflecting weak demand, especially in battery production.

• The company implemented a multi-stage efficiency program, including cost reductions, division merger, short-time work, and organizational streamlining.

Financial highlights

• Group revenues dropped to €98.6 million from €142.1 million year-over-year.

• EBITDA margin at -1.2% (H1 2024: €-1.3 million) vs. 11.3% (H1 2023: €17.2 million); EBIT margin at -6.2% (H1 2024: €-6.5 million) vs. 7.5% (H1 2023: €11.3 million).

• Cash flow from operating activities improved to €-6.0 million (from €-28.3 million), aided by asset disposals.

• Net debt rose to €53.5 million, driven by decreased cash and cash equivalents.

• Equity ratio decreased to 32.3% from 35.8% at year-end 2023.

Outlook and guidance

• Revenue and earnings guidance for FY 2024 was reduced; both are expected to be significantly below 2023 levels.

• Market recovery in the battery sector is not expected before 2025.

• European customers remain reluctant to invest in battery production, impacting order intake and backlog.

• Focus remains on efficiency, cost reduction, and strengthening liquidity.

• Strategic shift to expand activities in the high-tech chip industry alongside battery and electronics.