BOOSTER Precision Components GmbH: Publication of results for the first nine months of 2024

 BOOSTER Precision Components GmbH: Publication of results for the first nine months of 2024

• Revenues of EUR 128.6 million in 9M 2024, 7.2% below previous year (Q3 2024 vs. Q3 2023: -9.0%)
• EBITDA of EUR 9.7 million in 9M 2024 vs. EUR 16.1 million in 9M 2023 (EBITDA adjusted for one-off costs for the subsequent bond issue: EUR 10.3 million)
• Strengthened operational measures to reduce costs and optimize working capital in Q3

Frankfurt a. M., 29 November 2024 – BOOSTER Precision Components GmbH (bond; ISIN NO0012713520) today published its unaudited consolidated results for the first nine months of 2024.

9M 2024: Demand still affected by general crisis in the automotive industry; one-off consultancy costs and negative currency translation effects have additional negative impact on results

The demand for BOOSTER’s products was still lower-than-expected in the first nine months of 2024, which led to a 7.2% decline in revenues to EUR 128.6 million (9M 2023: 138.5 million). This development reflects the current overall crisis in the automotive industry.

A decline of 39.8% brought the company’s EBITDA down to EUR 9.7 million compared to EUR 16.1 million in the first nine months of the previous year. EBITDA was significantly impacted by an unfavourable product mix and negative currency translation effects due to the weakened Mexican peso. Adjusted for one-off costs for the subsequent bond issue of EUR 0.6 million in May 2024, EBITDA recorded a 36.1% decline, amounting to EUR 10.3 million. The company’s EBIT also fell and totaled EUR 3.3 million in the first nine months (9M 2023: EUR 10.2 million). The Group net result was negative at EUR -5.0 million compared to EUR 1.7 million in the first nine months of the previous year.

Following a 12.3% decline, BOOSTER Group’s total assets as of 30 September 2024 stood at EUR 100.4 million (31 December 2023: EUR 114.5 million). Fixed assets were at EUR 40.9 million, a decrease of 5.8% compared to year-end 2023 (EUR 43.4 million) and current assets fell by 16.2% from EUR 69.9 million to EUR 58.6 million as of 30 September 2024. The decrease of inventories and receivables and other assets reflects the lower sales volume in the reporting period. Cash and cash equivalents went down by EUR 4.2 million to EUR 6.9 million.

Due to the negative Group net result and burdening currency translation effects from the Mexican peso, equity capital dropped by 48.8% to EUR 7.6 million as of 30 September 2024 (31 December 2023: EUR 14.8 million). Total liabilities saw a slight reduction of EUR 7.6 million, standing at EUR 85.2 million as per 30 September 2024. Liabilities to banks rose by EUR 1.1 million and the item bonds by EUR 13.0 million due to the issue of subsequent bonds in order to refinance long term investment loans in the amount of EUR 17.7 million plus current interest of EUR 1.3 million in May 2024. Trade accounts payable and other liabilities saw a reduction of EUR 3.8 million and EUR 0.2 million respectively due to lower sales volumes.

"In the third quarter we further strengthened our operational measures and focused consistently on optimising working capital. This has contributed to a noticeable reduction of inventories on the balance sheet. At the same time, we continue to pursue strict cost management to improve efficiency in all areas and to best adapt to the current market challenges,” says Dr Ralph Wagner, CFO of BOOSTER Precision Components.

Q3 2024

In the third quarter of 2024, the company’s revenues declined by 9.0% year-on-year to EUR 40.3 million (Q3 2023: EUR 44.3 million). EBITDA fell by 59.4% and amounted to EUR 2.0 million, compared to EUR 4.9 million in Q3 2023. The EBIT also decreased and amounted to EUR -0.2 million in Q3 2024 (Q3 2023: EUR 3.0 million) and Group net result for the period was negative at EUR -2.7 million (Q3 2023: EUR -0.2 million).

Jerko Bartolić, Managing Director and CEO of BOOSTER Precision Components: “As expected, Q3 was characterised by seasonally weaker business, which was further impacted by the ongoing challenges in the automotive industry. In view of the difficult market conditions, we continue to focus on intensive sales activities, even though the market situation limits the additional potential we can exploit as all our major customers are reporting lower sales volumes.”

Full-year outlook

In light of the current business development, BOOSTER for 2024 assumes a revenue decline of over 10% (2023: EUR 183.6 million) and a decline of up to 25-30% (excluding extraordinary items) in earnings (EBITDA 2023: EUR 21.3 million). The management will review potential impacts of the significant changes in the current market environment as part of its corporate planning for the financial year 2025 and following. Management is closely monitoring leverage levels and taking necessary steps to ensure covenant compliance.

Robert Lackermeier to become new Managing Director of BOOSTER Precision Components GmbH

On 26 November 2024, the company announced a change in the management team. Robert Lackermeier willl be appointed as an additional Managing Director of the company, effective from 1 January 2025. No later than 1 April 2025, he will additionally assume the role of Chief Executive Officer (CEO). The incumbent Managing Director and CEO, Jerko Bartolić, will leave the company at his own request, effective 31 March 2025. Jerko Bartolić will remain closely associated with the company and support selected projects in an advisory capacity over the next two years.

Stephan Schaller, Chairman of the Supervisory Board of BOOSTER Precision Components GmbH: “On behalf of the Supervisory Board, I would like to thank Jerko Bartolić for his long-standing, extraordinary commitment to the company. He had the far-sightedness to take important strategic decisions to adapt the business model to the requirements of the transforming automotive industry, thus strengthening the company for the long term. Robert Lackermeier comes from outside the company and has in-depth experience in the industrial and automotive sectors. We are pleased to welcome him in the BOOSTER management team and wish him every success in his new role.”

The unaudited consolidated financial statements of BOOSTER Precision Components GmbH for the nine months of the year 2024 will be available under https://booster-precision.com/en/investor-relations/financial-reports.html.

Contact:

BOOSTER Precision Components GmbH
Bockenheimer Landstraße 93
60325 Frankfurt a. M.
T +49 69 76758193
mail@booster-precision.com

About BOOSTER Group

The BOOSTER Group is an international supplier focused on the production and distribution of highly precise metal parts. BOOSTER Group comprises nine companies in five countries with production sites in China, Germany, Mexico and two locations in Slovakia. The BOOSTER Group’s activities currently focus on components for turbochargers, which are primarily used in the automotive sector. As part of BOOSTER’s growth strategy, the product portfolio has been expanded to include components for use in electrified or hydrogen-powered vehicles as well as for industrial or medical applications with a positive impact on efficiency and sustainability. BOOSTER Precision Components GmbH is the holding company of the BOOSTER Group and provides management, consulting and services for its domestic and foreign subsidiaries.

www.booster-precision.com