Manz (M5Z) Q4 2023 earnings summary

Executive summary

• FY23 revenue was €249.2m, slightly below €251.0m in FY22; orders fell to €195.7m from €359.7m, and year-end backlog declined to €186.5m from €339.9m.

• EBIT recovered to €2.9m from a €4.2m loss, but the €2.4m consolidated net loss and acute liquidity risks remain significant concerns.

• Management expects FY24 revenue growth and positive low-single-digit EBIT margin, while the auditor highlighted material uncertainty related to going concern through May 2025.

Financial highlights

• Revenue €249.2m vs €251.0m; total operating performance €268.1m vs €281.8m; incoming orders €195.7m vs €359.7m.

• EBITDA €14.6m vs €8.0m and EBIT €2.9m vs loss of €4.2m; results included a €13.6m contract-termination effect and €5.7m Customcells share-swap gain.

• Consolidated net loss narrowed to €2.4m from €12.1m; basic EPS improved to -€0.28 from -€1.42.

• Operating cash flow was -€23.9m vs -€2.3m; investing cash flow was €2.5m vs -€22.3m, including €11.5m proceeds from the Customcells Holding stake sale.

Outlook and guidance

• FY24 Group revenue expected to increase at a mid-single-digit rate; EBITDA margin in the mid-positive single digits and EBIT margin in the low-positive single digits; incoming orders expected to rise at a mid-to-upper double-digit rate.

• Mobility & Battery Solutions revenue expected to grow at a low-double-digit rate, with incoming orders forecast to double or triple to ~€65m; Industry Solutions revenue expected to rise at a low-single-digit rate.

• Management expects an equity ratio of ~30%; FY24 outlook depends on project awards, cash receipts, subsidies and extension of foreign overdraft facilities.