EQS-News: Nabaltec AG with continued revenue and earnings growth in the first nine months of 2022

Nabaltec AG with continued revenue and earnings growth in the first nine months of 2022

• Product segments show stable growth and strong earnings
• Profit for the period additionally impacted by extraordinary tax income
• Full year forecast for 2022 raised again

Schwandorf, 24 November 2022 Nabaltec AG published its interim report for the third quarter of 2022 today, reporting record revenues of EUR 167.2 million for the first nine months. Nabaltec thus achieved growth of 18.9% compared to the same period of last year (EUR 140.6 million). The revenue momentum was thus once again slightly higher than originally expected, largely due to price increases. Operating profit (EBIT) for the first nine months was EUR 23.7 million, compared to EUR 17.0 million in the same period of the previous year.

"So far, Nabaltec's performance has been very stable despite the challenging environment, and we have been able to counteract the uncertainties arising from geopolitics, price increases, the economy and supply chain bottlenecks, among other things by increasing our sales prices," said Johannes Heckmann, the CEO of Nabaltec AG. "Our markets remain intact but ordering behavior has visibly adjusted more to short-term demand. Accordingly, we remain cautious and know that in the current times it is also difficult to forecast the short- and medium-term future. For the first nine months, the segments are proving robust."

Revenues in the "Functional Fillers" product segment were EUR 37.9 million in the third quarter, an increase of 18.1% compared to the same quarter of the previous year (EUR 32.1 million). In the first nine months of 2022, total revenues in the product segment amounted to EUR 113.4 million, compared with EUR 97.7 million in the same period of the previous year (+16.1%). In the "Specialty Alumina" product segment, revenues of EUR 18.5 million were generated in the third quarter, compared with EUR 14.5 million in the corresponding quarter of the previous year, representing growth of 27.6%. In the first nine months of 2022, revenues in the product segment amounted to EUR 53.8 million, compared to EUR 42.9 million in the same period of the previous year (+25.4%).

The operating profit (EBIT) achieved in the first nine months of 2022 was EUR 23.7 million, compared to EUR 17.0 million in the same period of the previous year, with a resulting EBIT margin (EBIT as a percentage of total performance) of 14.1%. In terms of earnings before interest, taxes, depreciation and amortization (EBITDA), Nabaltec generated EUR 33.5 million in the first nine months of 2022, compared to EUR 26.5 million in the same period from last year (+26.4%).

Earnings before taxes were EUR 22.4 million in the nine-month period of 2022. In the same period of 2021, earnings before taxes had amounted to EUR 15.8 million. With respect to taxes on income, a positive extraordinary tax income almost completely offset the income taxes for the period. The corresponding taxes on income of EUR 0.0 million include extraordinary tax income of EUR 6.8 million in the third quarter of 2022, resulting from the contractual cost settlement with Nashtec LLC in financial year 2020. Upon completion of the tax assessment at the end of September 2022 for financial year 2020, the cost compensation granted to Nashtec LLC in 2020 was recognized in full as a tax expense deductible in Germany. Due to the previous uncertainty surrounding this matter, no tax income has been recognized to date.

For the first nine months of 2022, this results in consolidated profit of EUR 22.4 million, compared to EUR 11.0 million in the first nine months of 2021, corresponding to earnings per share of EUR 2.55 for the first nine months of 2022 including the extraordinary tax income of EUR 0.77 per share. In comparison: in the same period from the previous year, earnings per share amounted to EUR 1.25.

Against the backdrop of the very good revenue performance in the first nine months of 2022, Nabaltec is again raising its forecast for 2022 as a whole and now expects revenue growth in the range of 15% to 17% (previously: 12% to 14%) and an EBIT margin in the range of 12% to 13% (previously: 10% to 12%).

Note: Nabaltec AG's interim report for the third quarter of 2022 will be available for download as of 24 November 2022 from the Investor Relations section of www.nabaltec.de/en.

About Nabaltec AG:

Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide and aluminum oxide on an industrial scale through its two product segments, "Functional Fillers" and "Specialty Alumina." The company's product range includes eco-friendly flame retardant fillers and functional additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives have applications in catalysis and in electric vehicles. Nabaltec also produces specialty oxides for use in technical ceramics, the refractory and polishing industries. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

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