Linz, May 5, 2022. The technology group S&T AG (www.kontron.ag) recorded a strong order intake of EUR 435 million (PY: EUR 404 million) in the first quarter 2022. The quarter ended successfully with largely organic revenue growth of 12.1% to EUR 329.7 million (PY: EUR 294.1 million). EBITDA increased by 4.3% to EUR 29.4 million (PY: EUR 28.2 million) in the same period, while earnings per share rose by 12.5% to 18 cents (PY: 16 cents). The operating cash flow was minus EUR 60.0 million (PY: minus EUR 26.8 million). The weak cash flow resulted mainly from outstanding order deliveries in the amount of approximately EUR 108 million as well as the increase in inventories – both reactions to the ongoing chip shortage. The aim is to reduce overdue deliveries to a large extent in 2022.
Just like the global chip crisis, S&T was not able to fully escape the economic consequences of the Ukraine war and the associated sanctions against Russia. S&T generates around 6% of its revenues with its subsidiaries in Russia, Ukraine, Belarus and Moldova. End of March, S&T AG decided to withdraw as far as possible from these countries, a process which will be largely completed by the end of 2022. The expected costs for this have already been accrued.
Hannes Niederhauser, CEO of S&T AG: “The financial year 2022 will be a year of transformation for us. With project “Focus”, i.e. the sale of our IT Service Division, we are realising one of the most important strategic projects of the last 10 years and are thus setting the course for the further development and profitable growth of the Group. The sale process is proceeding according to plan and is expected to be signed in Q3. Currently, we are facing many challenges, yet we are optimistic for the financial year 2022. In the financial year 2021, we received new orders of around EUR 1,750 million, and in the first quarter of 2022, this positive trend has continued with EUR 435 million. Despite ongoing supply chain issues and the loss of sales in Russia, we continue to expect organic revenue growth of around 12% to EUR 1,500 million in 2022. We will replace the sold IT service revenues with IoT revenues in a timely manner and plan to increase revenues to EUR 2,000 million by 2025 with a significantly increased EBITDA margin of 13%.”