EQS-News: Despite weaker economy and rising interest rates: ANDRITZ significantly increases revenue and earnings in the first half of 2023

EQS-News: Andritz AG / Key word(s): Half Year Results
Despite weaker economy and rising interest rates: ANDRITZ significantly increases
revenue and earnings in the first half of 2023

27.07.2023 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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• Revenue up 24%, net income up 36% compared to H1 2022
• Order intake at 4,713 MEUR at the high level of H1 2022
• Growth trend sustainability intact
• First order in the field of green hydrogen

GRAZ, JULY 27, 2023. International technology group ANDRITZ significantly
increased revenue and earnings in the first half of 2023 compared to the first six
months of the previous year despite the cooling global economy.

With order intake stable, the order backlog at the end of June 2023 was six percent
above the level at year-end 2022. ANDRITZ also expects a significant increase in
revenue and earnings for the full year 2023 compared to the previous year.

Products for sustainable transformation on the customer side remain an important
growth driver. ANDRITZ booked the order for the Luang Prabang hydropower plant in
Laos in the second quarter. In addition, the company succeeded in entering the
business with large-scale plants for the production of green hydrogen in Finland.

CEO Schönbeck: robust business despite difficult conditions
ANDRITZ CEO Dr. Joachim Schönbeck stated: “Business development in the first half
of the year was positive. Despite the weakening economy and rising interest rates
our project activity held up at a good level. We do not anticipate an economic
turnaround in the second half of the year. For our green products, however, we
expect demand to remain stable.”

Overview of key financial figures:

• In the second quarter of 2023, order intake saw very favorable development with
2,292.3 MEUR (+5.2% versus Q2 2022: 2,179.0 MEUR). The Hydro business area in
particular was able to significantly increase its order intake due to the
booking of a major order in Asia. The order intake of the ANDRITZ GROUP
amounted to 4,712.5 MEUR in the first half of 2023 and was thus practically at
the high level of the previous year’s reference period (-1.2% versus H1 2022
4,767.6 MEUR).
 
• The order backlog as of June 30, 2023 amounted to 10,569.0 MEUR and increased
by 5.9% compared to the end of 2022 (9,976.5 MEUR).
 
• Revenue increased in the second quarter of 2023 by 19.9% compared to the
previous year’s reference period (Q2 2022: 1,790.1 MEUR) to reach 2,146.4 MEUR.
All four business areas recorded an increase in revenue, some of them
significant, compared to the previous year. Revenue of the ANDRITZ GROUP in the
first half of 2023 amounted to 4,109.0 MEUR and increased by 23.9% compared to
the previous year’s reference period (first half of 2022: 3,317.0 MEUR).
 
• The EBITA in the second quarter of 2023 amounted to 174.1 MEUR, and was thus
significantly higher than in the previous year’s reference period (+15.4%
versus Q2 2022: 150.9 MEUR). In particular, the Pulp & Paper, Hydro, and Metals
business areas were able to increase their earnings significantly compared to
the reference period of the previous year. Profitability (EBITA margin)
amounted to 8.1% (Q2 2022: 8.4%). EBITA of the ANDRITZ GROUP in the first half
of 2023 increased in line with revenue and reached a very satisfactory level of
332.6 MEUR (+21.7% vs. H1 2022: 273.2 MEUR). EBITA margin was again at a very
solid level of 8.1% (H1 2022: 8.2%).
 
• The net income (without non-controlling interests) increased significantly in
the second quarter of 2023 to 122.3 MEUR (Q2 2022: 95.7 MEUR). In the first
half of 2023, the net income (without non-controlling interests) amounted to
226.8 MEUR (H1 2022: 167.2 MEUR).

 
Following the successful first half of 2023, ANDRITZ confirms its previously
published outlook for the full year 2023. Both revenue and earnings for the full
year will be significantly above the level of 2022.

Major order from Laos for Luang Prabang hydropower plant
In the Southeast Asian state of Laos, ANDRITZ again succeeded in winning an order
for a large hydropower plant and booked this order in the second quarter of 2023.
The customer is Thai construction and energy group CH. Karnchang Co. Ltd. The
hydropower plant in Luang Prabang on the Mekong River is planned with a capacity of
1,470 MW. This makes the plant the largest of its kind in Laos and also one of the
largest hydropower plants ANDRITZ has ever equipped. The plant’s state-of-the-art
turbine-generator units will feature oil-less turbine runners and a fish-friendly
design. The start-up is scheduled for 2029.

Successful entry to green hydrogen sector
For the Kristinestad site in Finland, ANDRITZ will develop the Front-End
Engineering Design (FEED) for a large-scale green hydrogen production plant. The
customer is Koppö Energia, a joint venture of Prime Capital, Frankfurt (75%) and
CPC Finland Oy, Helsinki (25%). On the basis of the FEED study, Koppö Energia
intends to decide in early 2024 on the award of the contract for the engineering
and construction of the plant with a capacity of 200 MW. “This project is a
milestone for the strategic development of ANDRITZ,” said CEO Schönbeck. “Green
hydrogen will play a key role in decarbonizing global industrial production.”

Acquisition of Dan-Web strengthens nonwovens business
With the acquisition of the Danish Dan-Web Group, ANDRITZ expanded its product
range in the Nonwoven sector during the first half of the year. The company builds
airlaid lines for nonwovens and dry molded pulp packaging and parts such as coffee
cups and disposable tableware. ANDRITZ sees great potential for such applications
for avoiding plastic in mass consumption.

Key financial figures at a glance
 

  Unit H1 2023 H1 2022 +/- Q2 2023 Q2 2022 +/- 2022
Revenue MEUR 4,109.0 3,317.0 +23.9% 2,146.4 1,790.1 +19.9% 7,542.9
    – Pulp & Paper MEUR 1,950.2 1,542.5 +26.4% 1,042.3 847.4 +23.0% 3,513.8
    – Metals MEUR 892.2 734.0 +21.6% 470.4 377.5 +24.6% 1,621.2
    – Hydro MEUR 710.5 547.4 +29.8% 354.9 299.7 +18.4% 1,313.0
    – Separation MEUR 556.1 493.1 +12.8% 278.8 265.5 +5.0% 1,094.9
Order intake MEUR 4,712.5 4,767.6 -1.2% 2,292.3 2,179.0 +5.2% 9,263.4
    – Pulp & Paper MEUR 1,836.0 2,031.6 -9.6% 842.7 952.3 -11.5% 4,296.4
    – Metals MEUR 1,177.0 990.7 +18.8% 507.6 489.3 +3.7% 2,008.6
    – Hydro MEUR 1,086.6 1,105.7 -1.7% 657.3 402.2 +63.4% 1,720.5
    – Separation MEUR 612.9 639.6 -4.2% 284.7 335.2 -15.1% 1,237.9
Order backlog
(as of end of period) MEUR 10,569.0 9,859.1 +7.2% 10,569.0 9,859.1 +7.2% 9,976.5
EBITDA MEUR 415.3 362.2 +14.7% 214.9 198.8 +8.1% 825.5
EBITDA margin % 10.1 10.9 – 10.0 11.1 – 10.9
EBITA MEUR 332.6 273.2 +21.7% 174.1 150.9 +15.4% 648.5
EBITA margin % 8.1 8.2 – 8.1 8.4 – 8.6
Earnings Before
Interest and Taxes
(EBIT) MEUR 308.5 241.5 +27.7% 162.5 135.2 +20.2% 572.7
Financial result MEUR -6.8 -18.4 +63.0% 1.5 -7.7 +119.5% -31.8
Earnings Before Taxes
(EBT) MEUR 301.7 223.1 +35.2% 164.0 127.5 +28.6% 540.9
Net income (without
non-controlling
interests) MEUR 226.8 167.2 +35.6% 122.3 95.7 +27.8% 409.6
Cash flow from
operating activities MEUR -79.3 413.2 n.a. -47.9 186.1 n.a. 710.8
Capital expenditure MEUR 93.3 80.5 +15.9% 44.9 41.4 +8.5% 184.4
Employees (as of end
of period; without
apprentices) – 29,927 27,428 +9.1% 29,927 27,428 +9.1% 29,094

All figures according to IFRS. Due to the utilization of automatic calculation
programs, differences can arise in the addition of rounded totals and percentages.
MEUR = million euros. EUR = euros.

– End –

PRESS RELEASE AVAILABLE FOR DOWNLOAD
This press release is available for download at [1]andritz.com/news on the ANDRITZ
web site.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Susan Trast
Vice President Group Communications & Marketing
[2]susan.trast@andritz.com
[3]andritz.com

Stefan Schantl
Head of Investor Relations
[4]stefan.schantl@andritz.com
[5]andritz.com

ANDRITZ GROUP
International technology group ANDRITZ offers a broad portfolio of innovative
plants, equipment, systems, services and digital solutions for a wide range of
industries and end markets. Sustainability is an integral part of the company’s
business strategy and corporate culture. With its extensive portfolio of
sustainable products and solutions, ANDRITZ aims to make the greatest possible
contribution to a sustainable future and help its customers achieve their
sustainability goals. ANDRITZ is a global market leader in all four of its business
areas – Pulp & Paper, Metals, Hydro and Separation. Technological leadership and
global presence are cornerstones of the group’s strategy, which is focused on
long-term profitable growth. The publicly listed group has around 29,900 employees
and over 280 locations in more than 40 countries.

ANNUAL AND FINANCIAL REPORTS
The annual and financial reports are available for download on the ANDRITZ web site
at [6]andritz.com.

DISCLAIMER
Certain statements contained in this press release constitute „forward-looking
statements”. These statements, which contain the words “believe,” “intend,”
“expect,” and words of a similar meaning, reflect the Executive Board’s beliefs and
expectations and are subject to risks and uncertainties that may cause actual
results to differ materially. As a result, readers are cautioned not to place undue
reliance on such forward-looking statements. The company disclaims any obligation
to publicly announce the result of any revisions to the forward-looking statements
made herein, except where it would be required to do so under applicable law.

 

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27.07.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com

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Language: English
Company: Andritz AG
Stattegger Straße 18
8045 Graz
Austria
Phone: +43 (0)316 6902-0
Fax: +43 (0)316 6902-415
E-mail: welcome@andritz.com
Internet: www.andritz.com
ISIN: AT0000730007
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1689261

 
End of News EQS News Service

1689261  27.07.2023 CET/CEST

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