First half of 2023 with
increase in turnover, result below previous year
Frauenthal Group in the 1st half of 2023:
- Turnover increases by almost 10 % to MEUR 554.7
- Increased costs dampen earnings, which are below last year's level
- Full year 2023: Result expected to be below previous year
"We look back on a good first half of 2023. Even though our market environment remains highly volatile in both divisions, we remain resolutely focused on our customers and are working hard to remain a reliable partner even in the face of headwinds," said Erika Hochrieser, Frauenthal Holding AG Executive Board member responsible for finance, investor relations and sustainability. Frauenthal Group revenue was up 9.8% on the first half of 2022*, to EUR 554.7m, driven by price increases in both divisions and the strong performance of the Energy and Electrical divisions at Frauenthal Handel. Frauenthal Handel generated about 77% of revenue, and Frauenthal Automotive about 23%. The increase in revenue did not translate into corresponding earnings growth due to the tougher cost situation for energy, transport, procurement and personnel. EBITDA was EUR 34.7m, down from EUR 37.5m in the same period last year.
Slight recovery in the automotive sector
The economic environment in the Frauenthal Automotive Division showed a recovery after the pandemic-related supply chain problems: the European commercial vehicle market grew by 13.7% in the first half of 2023 compared with the first half of 2022, and the passenger car market by 16%. However, these figures remain below those of 2019. Frauenthal Automotive expanded revenue by 14.1% to EUR 125.5m, and EBITDA was on a par with the first half of 2022 at EUR 8.4m.
The Frauenthal Distribution Division increased revenue by EUR 34m to EUR 429.2m, and EBITDA was EUR 27.4m, up from EUR 29.9m. "Our declared aim is to make our customers even more successful. In addition to a perfectly coordinated product range, we support our customers with needs-based solutions in the areas of digital, service, logistics and marketing," stressed Thomas Stadlhofer, Frauenthal Holding AG Executive Board member responsible for the Frauenthal Trade Division.
Outlook for 2023
For 2023 as a whole, the Frauenthal Group expects earnings to be down on the previous year, mainly due to higher energy and transport prices and increased staff costs. In parallel, the market environment in both divisions remains highly volatile due to the consequences of the Ukraine-Russia war as well as possible commodity and raw material shortages, interest rate hikes and the decline in construction activity in Austria.
Forecast uncertainty for the European automotive industry is extraordinarily high: material bottlenecks and resulting production stoppages, as well as further price rises for energy and input materials, must be expected at any time. Frauenthal Automotive is working flat out to reduce these effects and guarantee supplies.
Frauenthal Distribution is directly dependent on the construction industry with a slight time lag. Further developments in 2023 will be influenced by the general willingness to invest and the impact of government stimulus programmes, especially in the photovoltaic sector. Frauenthal Handel is countering potential supply bottlenecks with targeted inventory build-up.
*Previous year's figures include continuing operations excluding the Powertrain Business Unit, which was sold in November 2022.