AUSTRIACARD HOLDINGS AG ANNOUNCES 2022 RESULTS AND THE COMMENCEMENT OF TRADING OF ITS SHARES ON THE VIENNA AND ATHENS STOCK EXCHANGES
EQS-Media / 23.03.2023 / 20:47 CET/CEST
March 23, 2023: AUSTRIACARD HOLDINGS AG, an Austrian Group with an
international presence and one of the leading providers of Secure Digital
Technology Solutions in Europe and internationally, announced today its
2022 results:
• 2022 revenues reached €314.7m, increasing by 76.9% compared to 2021,
with Payment Products and Services segment growth driven by strong demand
in all markets, and especially, Challenger banks, USA, Türkiye, as well as
the first-time consolidation of TAG Systems UK. The Information Technology
segment grew by expanding its digital transformation business in SEE and
implementing significant security printing projects in Africa.
• Adjusted EBITDA reached €39.4m, growing by 80.5%, with input cost
pressure mitigated by operating efficiency improvements and cost saving
initiatives.
• Cash Flow from operations increased by 211.5% reaching €40.9mm, while
capital expenditure (ex-M&A) stood at €21.6m, double compared to 2021.
• Cards sold reached 127.7mn compared to 88.8mn in 2021 increasing by
43.8%, positioning the Group in the European top tier providers of
EMV-based smart cards and personalization services
• Effecting as of today AUSTRIACARD HOLDING AG shares are trading on the
Vienna (VSE) and Athens stock exchanges (ATHEX) with the Symbol (ACAG)
CEO COMMENTARY
AUSTRIACARD HOLDINGS AG CEO, Panagiotis Spyropoulos noted:
“During 2022 we delivered a strong set of results, nearly doubling our
financial performance compared to 2021, surpassing our targets. I want to
thank all our employees at our 7 production facilities in Andorra,
Austria, Romania, Greece, UK, at our 8 personalization centres in Austria,
Greece, Poland, Romania Spain, Türkiye, UK and the USA, and at our sales
offices across the globe, for their hard work and dedication to the Group.
At the same time, I want to thank our expanding international client base
for their trust.
We are progressing fast towards our target to build a world class company
through organic growth and potentially selected acquisitions that can
enrich our product offering and geographical footprint. We are growing
further our market shares in payment and banking solutions in CEE, the
Nordics and within Challenger Banks, while also expanding in new
geographical areas such as the US, Middle East and Africa . We aim to be
the secure data solutions provider of choice to our clients. At the same
time, in the Information Technology segment we are enhancing our digital
transformation portfolio.”
SIGNIFICANT EVENTS DURING 2022
Business developments
During 2022 AUSTRIACARD HOLDINGS AG (the “Company”) had a strong
performance, growing its business across the board in all geographic and
products areas. Payment products and services offering benefited from
increased customer demand in nearly all sectors and especially with
customers in USA, Turkiye and Challenger Banks in Western Europe after the
COVID-19 affected years of 2020 and 2021.
Dealing with the global shortage of semiconductors and the global supply
chain bottlenecks, our operations and sourcing teams have proven their
resourcefulness and have managed to achieve a significant growth in
production output of payment cards and thus a strong growth in revenues.
Additionally we had a very successful implementation of a major security
printing project related to the August 2022 Kenya elections. The Company
continues on its path to become a partner of choice for digital
transformation solutions in CEE increasing the contribution of these
solutions in the total portfolio offered to its customers.
As expected, we have been affected by price increases by suppliers and
higher energy costs. To mitigate these costs pressure the Company has
implemented measures to improve operating efficiency as well as new cost
saving initiatives. In addition, the Company has proceeded to selective
price increases for its products and services.
Group reorganization and dual listing
During 2022 the decision was taken to merge INFORM Lykos Holding SA with
AUSTRIACARD Holding AG and to apply for listing of AUSTRIACARD Holding AG
on the Vienna and Athens stock exchange. This process has been completed
today with the commencement of trading of the Company’s shares on the
Athens (ATHEX) and Vienna (VSE) Stock Exchanges.
This consolidation will:
• Align the interests of all shareholders of the Company.
• Facilitate access to international financial markets and investors,
resulting from the
increased transparency and visibility derived by trading in two
European stock exchanges.
• Increase the liquidity of Company shares with a higher market
capitalization
• Contribute to a more efficient operating structure with increased
geographical and product
reach, broader cross-selling opportunities and economies of scale.
2022 BUSINESS PERFORMANCE
Key performance indicators 2022 2021 D ’22-’21 D ’22-’21 %
Revenue 314,720,360 177,954,895 136,765,465 76.9%
Gross profit I 140,147,283 80,737,674 59,409,609 73.6%
Gross profit I margin 44.5% 45.4% -0.8% n/a
OPEX excluding
depreciation and 100,048,672 62,426,262 37,622,411 60.3%
impairment
OPEX excluding
depreciation and 31.8% 35.1% -3.3% n/a
impairment as % on sales
Gross profit II 74,013,851 40,900,230 33,113,621 81.0%
Gross profit II margin 23.5% 23.0% 0.5% n/a
adjusted EBITDA 39,379,589 21,813,680 17,565,909 80.5%
adjusted EBITDA margin 12.5% 12.3% 0.3% n/a
adjusted EBIT 24,971,333 9,845,893 15,125,440 153.6%
adjusted EBIT margin 7.9% 5.5% 2.4% n/a
adjusted Profit before tax 20,668,525 7,133,715 13,534,810 189.7%
adjusted Profit before tax 6.6% 4.0% 2.6% n/a
margin
adjusted Profit after tax 17,105,331 4,887,315 12,218,017 250.0%
adjusted Profit after tax 5.4% 2.7% 2.7% n/a
margin
Profit after tax 5,534,793 10,040,519 (4,505,725) -44.9%
Net Equity / Total Assets 31.0% 30.2% 0.8% n/a
Operating Cash Flow 40,874,498 13,122,048 27,752,450 211.5%
Operating Cash Flow as % 13.0% 7.4% 5.6%
on sales
Net Working Capital 24,445,716 28,203,482 (3,757,767) -13.3%
Net Working Capital as % 7.8% 15.8% -8.0%
on sales
Net Debt / adjusted EBITDA 1.9 3.9 (2.0)
Total Liabilities / Net 2.2 2.3 (0.1)
Equity
Net interest expenses 3,483,343 2,215,148 1,268,195 57.3%
adjusted EBITDA / Net 11.3 9.8 1.5
interest expenses
Business performance
AUSTRIACARD HOLDINGS AG revenues reached € 314.7m increasing by € 136.8m
or 76.9% compared to 2021. The main drivers of this revenue increase are
attributed to the strong growth of payment products and solutions, the
provision of security printing forms and ballots for the elections in
Kenya and the first time consolidation of TAG Systems UK (formerly
Nitecrest ltd. and Tag Nitecrest ltd.). From regional perspective, this
increase is due to good business development in the core markets in Europe
and Türkiye as well as to our expansion in the US market.
Gross profit I increased by € 59.4m or 73.6% to € 140.1m in 2022 as a
result of the strong increase in revenues while the Gross margin I
decreased by 0.8 percentage points to 44.5% due mainly to a change in
sales mix. Gross profit II increased by € 33.1m or 81.0% to € 74.0m in
2022 and Gross margin II increased by 0.5 percentage points to 23.5% due
to revenue growth and economies of scale.
Operating expenses excluding depreciation, amortization and impairment
(OPEX) were higher by € 37.6m or 60.3% from € 62.4m to € 100.0m in 2022 as
the OPEX increased due to higher business activity as well as due to the
investment related to the expansion in the US market. Additionally we have
the first time consolidation effect of TAG Systems UK and the costs
related to the group reorganization and stock exchange listing. More
specifically this increase in OPEX is attributable mostly to higher
personnel expenses related to a higher number of employees (first time
consolidation effect of TAG Systems UK and expansion in the USA market),
transportation costs mostly related to the election project in Kenya,
third party services and a price-driven increase in energy costs. As
percentage of revenues Operating expenses reduced from 35.1% to 31.8% in
2022.
Adjusted EBITDA increased by € 17.6m or 80.5% from € 21.8m to € 39.4m in
2022 essentially as a result of the strong operating performance and the
first time consolidation of TAG Systems UK (previously Nitecrest ltd. and
TAG Nitecrest ltd, UK) with an effect of approx. € 4m.
Adjusted EBIT surged by € 15.1m or 153.6% as the increase in adjusted
EBITDA was partially compensated by higher depreciation & amortization
mainly related to acquired customer contracts (€ +1.0m). Adjusted Profit
before tax increased by € 13.5m or 189.7% as the surge in adjusted EBIT
was partially offset by higher interest expenses related to the higher
average balance of outstanding loans and borrowings.
As a result of the strong operating performance adjusted Profit after tax
increased by € 12.2m or 250% from € 4.9m to € 17.1m.
Profit after tax decreased by € 4.5m or 44.9% from € 10.0 million to €
5.5m mainly due to a negative balance of Adjustments amounting to € -11.6m
in 2022 compared to a positive balance of € 5.2m in 2021. In 2022 the
balance of Adjustments essentially relates to non-cash expenses for
management participation plan, expenses due to the revaluation of put
options for shares in a subsidiary, negative effects of hyperinflation
accounting for the subsidiary in Turkey and foreign exchange losses.
Financial position
Total assets increased by € 43.8m from € 226.4m to € 270.2m as of 31
December 2022 which is mainly related to increases in current assets and
liabilities, additions to property, plant and equipment as well as to the
positive fair value of interest rate swaps for hedging purposes. The
reduction in non-current liabilities relates mainly to the usual maturing
of long-term loans and the derecognition of put option liabilities for
shares in a subsidiary which was partially offset by the increase in
long-term liabilities for management participation plan. As a result of
the generated Profit and the increase in Total assets, the Group’s equity
ratio increased from 30.2% to 31.0% as of 31 December 2022.
As of 31 December 2022, Net working capital decreased by € 3.8m or 13.3%
to € 24.4 million due to the high level of Trade payables, Deferred income
and Contract liabilities which more than compensated the increase in
Inventory and Trade receivables. Net working capital requirements as a
percentage of revenues decreased from 15.8% to 7.8% as of 31 December
2022.
The Group’s cash flow from operating activities increased by € 27.8m or
211.5% from € 13.1m to € 40.9m in 2022. This increase is essentially
linked to the improvement of the operating result as well as to the
stabilization of Net working capital.
Net Debt decreased by € 8.5 million from € 85.1 million as of 31 December
2021 to € 76.6 million as of 31 December 2022 due to the positive
cash-flow and the resulting increase in cash and cash equivalents. The
increase in loans and borrowings is mostly due to the increase of lease
liabilities in connection with right-of-use assets. The net debt /
adjusted EBITDA ratio decreased from 3.9x in 2021 to 1.9x as of 31
December 2022.
The 2022 Annual Financial Report of AUSTRIACARD HOLDINGS GROUP is
available at:
https://www.austriacard.com/investor-relations-ac/financial-reporting-ac/
ABOUT AUSTRIACARD HOLDINGS AG
AUSTRIACARD HOLDINGS AG, headquartered in Vienna, with an international
presence and one of the leading providers of Secure Digital Technology
Solutions in Europe.
AUSTRIACARD HOLDINGS AG is the one of the leading B2B providers of secure
data, smart cards and payment solutions in Austria, Scandinavia, Central
and Eastern Europe and South Eastern Europe, while also having significant
market share in many other European countries and Türkiye. The Group is
expanding fast in geographical areas outside Europe, such as the USA where
it has established a new personalization center, and the Middle East &
Africa where sales units have been developed that have already drawn
significant new business. In addition, the Company has become a payment
products and solutions partner of choice for Challenger Banks/Neo Banks, a
growing market segment world-wide.
The Company has a strong pan-European operational footprint, reaching from
the United Kingdom to Greece and Türkiye, with seven production facilities
and seven personalization centres in Europe, as well as an additional
personalization centre in USA. It also has sales offices in Norway, Czech
Republic, Germany, Croatia, Serbia, Jordan, the UAE and a network of
partners and selling agencies around the world. This footprint enables the
provision of a high service level to our customers, confirmed by the very
long lasting relationships we have with our customers. The Group’s
international customer base benefits from a complementary product and
service offering ranging from bill printing, direct mailing and document
processing to payment, transit and ID cards increasingly bundled with
online, mobile and digitalization transformation solutions.
Contact person: Mag. Markus Kirchmayr
Tel.: +43 1 61065 – 384
E-Mail: markus.kirchmayr@austriacard.at
Website: www.austriacard.com
Symbol: ACAG
ISIN: AT0000A325L0
Stock Exchanges: Vienna Prime Market, Athens Main Market
End of Media Release
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Issuer: AUSTRIACARD HOLDINGS AG
Key word(s): Enterprise
23.03.2023 CET/CEST This Press Release was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: AUSTRIACARD HOLDINGS AG
Lamezanstraße 4-8
1230 Vienna
Austria
E-mail: ac.contact@austriacard.com
Internet: https://www.austriacard.com/
ISIN: AT0000A325L0
WKN: A3D5BK
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1591077
Notierung vorgesehen, intended to be listed;
End of News EQS Media
1591077 23.03.2023 CET/CEST
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