Manz (M5Z) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 declined 31.4% year-over-year to €133.7 million, mainly due to weak demand in the battery sector and challenging market conditions in Europe and North America.

• Net loss of €25.4 million compared to a net profit of €6.9 million in the prior year, impacted by impairments and order cancellations.

• Strategic repositioning underway, including plans to divest the battery cell business and focus on industrial automation, electronics, and semiconductor packaging.

• New strategic investor acquired a stake (18–20%), raising €9.9 million in fresh capital.

• Restructuring program initiated, including sale of Hungarian subsidiary and executive board changes.

Financial highlights

• EBITDA for 9M 2024 was -€13.3 million (margin -9.3%), down from €19.5 million (margin 9.3%) in 9M 2023; EBIT was -€20.9 million (margin -15.6%), compared to €10.8 million (margin 5.5%) in 9M 2023.

• Q3 2024 revenue was €35.1 million, a 33.7% decrease from Q3 2023; Q3 net loss was €15.2 million.

• Cash flow from operating activities improved to -€14.1 million from -€23.7 million year-over-year; cash and cash equivalents fell to €14.2 million as of September 30, 2024.

• Net debt increased to €46.0 million due to lower cash and cash equivalents.

• Equity ratio decreased to 28.5% as of September 30, 2024, from 35.8% at year-end 2023.

Outlook and guidance

• Revenues for 2024 expected between €170–180 million; EBITDA between -€20 and -€25 million; EBIT between -€30 and -€35 million, excluding further impairment losses.

• No improvement anticipated in the challenging market environment; order intake and backlog remain significantly below prior year.

• Significant impairment losses, especially on goodwill in Mobility & Battery Solutions, expected at year-end.

• Efficiency program aims for cost savings in the lower double-digit million euro range over three years, with first positive effects in 2025.

• Strategic focus shifting to industrial automation, electronics, and semiconductor packaging; battery cell business to be sold.