Amsterdam 17 August 2022 – Cabka N.V. has announced its non-audited results for the first six months ended 30 June 2022, describing them as strong and resilient. The company reported record sales of EUR 102.2 million. This figure represents a 27% Year-on-Year (YoY) top-level growth consisting of 12% YoY organic growth, well outperforming mid-term guidance of high single-digit growth and a 15% sales bump from price effects. The company also implemented various rounds of price increases and indexation to cover the rapidly rising costs for energy and materials, albeit with some delay.
Overall, the company suffered a EUR 1.9 million loss. Comparatively, in the first six months of 2021, the company still earned EUR 1.7 million. Cabka attributes the loss to the costs associated with its listing on Euronet Amsterdam.
From operational activities, the manufacturer managed to achieve a positive result of 0.7 million euros, but this was still 74 percent less than in the first half of 2021, attributable to delay effects.
“The first six months of 2022 have shown operational resilience and strong delivery on strategic objectives,” commented Cabka CEO Tim Litjens. “The listing on Euronext Amsterdam was a milestone for the company enhancing opportunities for growth as well as consolidating its position as a listed leading innovative circular production company with production output made from 87% recycled materials.
“New business continues to come in very strong, leading to record sales of over EUR 102.2 million and good expectations going further powered by our customized solutions knowledge and our highly capable innovation center,” he added.
“Furthermore, Cabka made a major step in the consolidation of its Eco business driving economies of scale. Although the transition temporarily reduced our recycling capacity we are now back on track and the enhanced synergies will pay out. Regretfully, at the start of the third quarter exceptional floods damaged our production facilities in the US. Also, here Cabka showed resilience quickly securing alternative production capacities to maintain supply to key clients.”
Cabka Outlook
The first half of 2022 has been characterized by high overall inflation, particularly manifesting itself through significantly higher energy, material, and labor costs, the company noted. In response, Cabka announced multiple rounds of price increases effective in January, April, and August this year.
While the material markets are starting to plateau or even show some relief, the energy market remains highly volatile, recently moving to new highs. As a result, margins will continue to be impacted short-term until prices stabilize.
Highlights
Financial Highlights
- Record sales of EUR 102.2 million representing a 27% Year-on-Year (YoY) top-level growth consisting of 12% YoY organic growth, well outperforming mid-term guidance of high single digit growth, and 15% YoY price effects
- Various rounds of price increases and indexation successfully implemented, covering the rapidly rising costs for energy and materials, albeit with some delay effect
- Gross profit up EUR 5 million at EUR 47.3 million (2021HY: EUR 42.3 million), gross margin at 46%, without dilution effect of higher pricing and costs 52% (2021HY: 52%)
- Resilient operational EBITDA at EUR 13.1 million (2021HY: EUR 14.7 million); EBITDA margin lower at 13%, due to inflation, ECO restructuring and higher costs for IT, medical & safety, and marketing (post-Covid) (2021HY: 18%)
- Net Income from operations EUR 0.7 million (2021H1: EUR 2.6 million) or EUR 0.03 per share. Net result after non-operational items mainly related to IPO cost EUR -1.9 million
- Net Working Capital at EUR 38.8 million or 20% of sales, in line with mid-term guidance
- Total CAPEX of EUR 13 million at HY2022 including maintenance & replacement investments of EUR 2.4 million, 2% of sales, (mid-term guidance: ~4%)
Strategic & Market Highlights
- Listing of Cabka N.V. on 1 March 2022 after 100% support of Dutch Star Companies shareholders for a business combination of Cabka Group GmbH and Dutch Star Companies TWO B.V. bringing in EUR 45.2 million in new capital (excluding IPO costs)
- Two-tier Board installed with a Management Board consisting of Mr. Tim Litjens CEO and Mr. Necip Küpcü CFO and a Supervisory Board consisting of: Mr. Manuel Beja (Chair) Mr. Gat Ramon (Vice-Chair), Mr. Niek Hoek (Vice-Chair), Mrs. Tova Posner Henkin,
Mrs. Jeanine Holscher, and Mr. Stephan Nanninga - Order intake up 36% compared to same period last year showing continued high growth supported by several high-volume multi-year commercial agreements, like Target announced 16 May, gradually kicking in over the coming years. Facilitates key strategic objectives of continuous innovation, expanding Cabka’s position in large containers and customized solution
- Leverage on ECO products; Restructuring of Eco business completed, leading to closure of Genthin site and consolidation of production capacity in Weira (Germany) enhancing efficiency
Sustainability
- Use of recycled material in products at 87% of total compared to a European average[1] of 14%
- ESG Strategy Project started establishing ESG KPIs; reporting and governance structure on track for publication of first ESG policy and reporting for 2022 to be published in 2023
Source: Cabka