- 30.08.2023, 19:31:41
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AUSTRIACARD HOLDINGS AG: AUSTRIACARD HOLDINGS AG ANNOUNCES H1 2023 RESULTS
EQS-Media / 30.08.2023 / 19:31 CET/CEST
AUSTRIACARD HOLDINGS AG
ANNOUNCES H1 2023 RESULTS
August 30^th, 2023: AUSTRIACARD HOLDINGS AG (ACAG) continues its strong
operating performance in H1 2023.
• H1 2023 Group Revenues increased by 32.1% reaching €181.2m, driven by
strong performance in payment products and solutions and the
contribution of the recently acquired majority stake in a postal
services business in Romania.
• Growth was strong across all markets - Western Europe, Nordics,
Americas grew by 30.4% to €68.2m - Central Eastern Europe & DACH grew
by 19.7% to €84.5m - Turkiye, Middle East and Africa grew by 74.7% to
€32.0m.
• Economies of scale largely offset material cost increases, leading
gross profit to a 28.5% increase, at €43.9m.
• General cost control measures contained OPEX, resulting in a 31.5%
Adj. EBITDA increase, to €26.0m, and a margin of 14.4%.
• Net Profit after Tax increased by 156.8% to € 12.3m, improving margin
to 6.8% compared to 3.5% in last year’s half, due to significantly
less adjustments compared to H1 2022.
• To better address its rapid expansion in new markets, during H1 2023
the Company implemented a new corporate structure, based on its major
market segments of Central Eastern Europe and DACH - Western Europe,
Nordics and Americas – Turkiye, Middle East and Africa. The new
structure will facilitate the cross selling of the Groups widening
portfolio of solutions, as well as improve its customer service.
CEO COMMENTARY
AUSTRIACARD HOLDINGS AG Vice Chairman and CEO, Panagiotis Spyropoulos,
noted:
“In the first half of 2023 we continued delivering strong results, posting
32.1% growth in Revenue, 31.5% growth in Adj. EBITDA and 156.8% growth in
Net Profit.
In order to better capitalize on the expanded scale and reach, as well as
on the enhanced solutions portfolio that the recent successful
acquisitions brought to us, we proceeded to the strategic reorganization
of our Group based on geographical areas. We integrated the major markets
in which we operate (Central Eastern Europe & DACH - Western Europe,
Nordics & Americas – Turkiye, Middle East & Africa) into separate
clusters, each of them led by an EVP, member of the Management Board.
This structure will enable us to better address the needs of our customers
through the provision of an expanded integrated portfolio of products and
services with one point of service.
Further to the strong organic growth we drive, we would consider selective
bolt-on acquisitions that could enhance our portfolio, reach and scale,
consistent with our stated strategy to become an international leader in
Payment Solutions, Secure Data Management and Digital Technologies.”
H1 2023 BUSINESS PERFORMANCE
Business performance H1 2023 H1 2022 D '23-'22 D '23 Q2 2023 Q2 2022
in € million -'22 %
Revenues 181.2 137.1 44.0 32.1% 91.4 76.7
Costs of material & (102.8) (75.8) (27.1) 35.7% (51.1) (42.5)
mailing
Gross profit I 78.3 61.4 17.0 27.6% 40.3 34.2
Gross margin I 43.2% 44.7% -1.5% 44.1% 44.6%
Production costs (34.4) (27.2) (7.2) 26.6% (18.3) (14.2)
Gross profit II 43.9 34.2 9.7 28.5% 22.0 20.0
Gross margin II 24.2% 24.9% -0.7% 24.1% 26.1%
Other income 1.5 1.3 0.2 14.2% 0.9 0.6
Selling and distribution (11.0) (10.0) (1.0) 10.5% (5.7) (5.3)
expenses
Administrative expenses (12.5) (9.1) (3.4) 37.4% (6.9) (4.9)
Research and development (3.5) (3.0) (0.5) 16.4% (1.8) (1.6)
expenses
Other expenses (0.1) (0.4) 0.3 -75.6% 0.0 (0.2)
+ Depreciation,
amortization and 7.7 6.8 0.9 13.8% 4.0 3.5
impairment
adjusted EBITDA 26.0 19.8 6.2 31.5% 12.5 12.2
adjusted EBITDA margin 14.4% 14.4% -0.1% 13.7% 15.9%
- Depreciation,
amortization and (7.7) (6.8) (0.9) 13.8% (4.0) (3.5)
impairment
adjusted EBIT 18.3 13.0 5.3 40.7% 8.5 8.7
Financial income 0.1 0.0 0.1 249.3% 0.1 0.0
Financial expenses (3.0) (1.9) (1.1) 56.4% (1.5) (1.0)
Result from associated 0.0 0.0 (0.0) -100.0% 0.0 0.0
companies
Net finance costs (2.9) (1.8) (1.0) 56.9% (1.5) (1.0)
adjusted Profit (Loss) 15.4 11.2 4.2 38.1% 7.1 7.7
before tax
Adjustments (0.5) (4.6) 4.2 -90.2% 1.6 (3.8)
Profit (Loss) before tax 15.0 6.6 8.4 128.0% 8.7 3.9
Income tax expense (2.7) (1.8) (0.9) 51.8% (1.2) (1.2)
Profit (Loss) 12.3 4.8 7.5 156.8% 7.5 2.7
AUSTRIACARD HOLDINGS Group revenues reached € 181.2 million in H1 2023
increasing by € 44.0 million or 32.1% compared to same period of 2022.
From products and services perspective this increase mainly results from a
significant increase in sales of smart cards (€ +19.8 million), as well as
printing and postal services (€ +10.1 million) mainly attributed to the
Romanian market through the majority stake acquisition of Pink Post
solutions business (€ +9.8 million). The number of cards sold increased by
13.1% and reached 68.9 million in the first half 2023. From segment
perspective, all market clusters contributed to the revenue growth
compared to H1 2022 as presented in the table below.
Revenues by Segments H1 2023 H1 2022 D '23-'22 D '23-'22 %
in € million
Western Europe, Nordics and Americas 68.2 52.3 15.9 30.4%
Central Eastern Europe and DACH 84.5 70.6 13.9 19.7%
Türkiye, Middle East and Africa 32.0 18.3 13.7 74.7%
Eliminations & Corporate (3.5) (4.0) 0.5 -12.9%
Total 181.2 137.1 44.0 32.1%
Gross profit I increased by € 17.0 million or 27.6% from € 61.4 million to
€ 78.3 million in the first half of 2023 mainly as a result of profitable
sales growth. Gross margin I decreased by 1.5 percentage points to 43.2%
mainly due to higher material costs and a change in sales mix.
Gross profit II increased by € 9.7 million or 28.5% from € 34.2 million to
€ 43.9 million in the first half 2023 in line with revenue growth and
Gross margin II decreased slightly by 0.7 percentage points to 24.2% as
economies of scale mostly offset the reduction in Gross margin I.
Operating expenses (OPEX) H1 2023 H1 2022 D '23-'22 D '23-'22 %
in € million
Production Costs (34.4) (27.2) (7.2) 26.6%
Selling and distribution expenses (11.0) (10.0) (1.0) 10.5%
Administrative expenses (12.5) (9.1) (3.4) 37.4%
Research and development expenses (3.5) (3.0) (0.5) 16.4%
+ Depreciation & amortization 7.7 6.8 0.9 13.8%
Total (53.7) (42.5) (11.2) 26.5%
Operating expenses as a percentage 29.6% 31.0%
of Sales
Operating expenses as presented in the table above increased by € 11.2
million or 26.5% mainly because of higher personnel costs (€ +7.1 million)
and expenses for third party services (€ 2.3 million). The main underlying
reason for this increase is the incremental business activities, shown by
the increase in headcount by nearly 1,000 employees, among others as a
result of the addition of the Pink Post business in Romania, as well as
the salary inflationary raises and costs associated with the cross-border
merger with Inform P. Lykos, Greece and the new listing at ATHEX and VSE
that was concluded in H1 2023. Nevertheless, OPEX as percentage of
revenues, decreased from 31.0% to 29.6% having the additional activities
being integrated with accretive margin.
Adjusted EBITDA increased by € 6.2 million in the first half of 2023 and
reached € 26.0 million as a result of an increased Gross profit which was
only partially offset by the increase in Operating expenses. As a result
of these economies of scale the adjusted EBITDA margin remained at 14.4%.
Adjusted EBIT increased by € 5.3 million or 40.7% as the increase in
adjusted EBITDA was partially compensated by regular depreciation &
amortization (€ 0.9 million).
Adjusted Profit before tax increased by € 4.2 million or 38.1% as the
increase in adjusted EBIT was partially offset by higher interest expenses
related to the significant increase in interest rates and the ensuing high
interest costs (€ +1.0 million). Profit after tax increased by € 7.5
million or 156.8% from € 4.8 million to € 12.3 million mainly due to a
significantly lower balance of Adjustments as presented in the table below
amounting to € -0.5 million in the first half 2023 compared € -4.6 million
in H1 2022.
Adjustments H1 2023 H1 2022 D '23-'22 D '23-'22 %
in € million Included in
Management participation EBITDA (0.6) (1.3) 0.7 -51.3%
programs
Foreign exchange gains Profit 0.0 0.2 (0.2) -100.0%
before tax
Foreign exchange losses Profit (0.1) 0.0 (0.1) n/a
before tax
Effect Hyperinflation Profit 0.2 (0.4) 0.6 -162.4%
IAS 29 before tax
Expense from financial
assets and liabilities Profit 0.0 (3.1) 3.1 -100.0%
at fair value through before tax
profit or loss
Total (0.5) (4.6) 4.2 -90.2%
H1 2023 FINANCIAL POSITION
Consolidated statement of
financial Position 31/12/2022
in € million 30/06/2023 adjusted D '23-'22 D '23-'22 %
Non-current assets 156.6 153.7 2.9 1.9%
Current assets 127.9 116.4 11.5 9.9%
Total assets 284.6 270.2 14.4 5.3%
Equity 100.9 82.6 18.4 22.2%
Non-current liabilities 83.8 89.6 (5.7) -6.4%
Current Liabilities 99.8 98.0 1.8 1.8%
Total Equity and Liabilities 284.6 270.2 14.4 5.3%
Total assets increased by € 14.4 million from € 270.2 million as of
31.12.2022 to € 284.6 million as of 30.06.2023 which is mainly related to
higher inventory and contract assets due to a higher business activity
level during the financial year. The reduction in non-current liabilities
mainly concerns the de-recognition of put-option liabilities related to a
divisional share option plan that was cancelled in H1 2023.
As a result of the strong earnings and the consolidation of the Group’s
formerly divisional share option plans on the level of the Company as one
equity-settled plan, Equity increased by € 18.4 million and the Group’s
equity ratio increased from 30.6% to 35.5% as of 30 June 2023.
Working Capital
in € million 30/06/2023 31/12/2022 D '23-'22 D '23-'22 %
Inventories 46.2 36.1 10.1 28.0%
Contract assets 14.7 10.9 3.8 35.3%
Current income tax assets 0.2 0.3 (0.1) -39.0%
Trade receivables 42.2 40.0 2.2 5.4%
Other receivables 8.4 7.5 0.9 11.4%
111.6 94.8 16.8 17.7%
Current income tax liabilities (3.9) (3.5) (0.4) 11.4%
Trade payables (42.9) (44.0) 1.1 -2.5%
Other payables (16.1) (12.4) (3.7) 29.8%
Contract liabilities (4.6) (7.1) 2.5 -35.5%
Deferred income (0.3) (3.4) 3.1 -91.8%
(67.7) (70.4) 2.7 -3.8%
Net Working Capital 43.9 24.4 19.5 79.6%
As of 30 June 2023, Net working capital amounted to € 43.9 million
increasing by € 19.5 million or 79.6% compared to 31 December 2022 mainly
as a result of the high growth during this business year which resulted in
higher inventories for raw materials, Contract assets as well as Trade
receivables.
Statement of cash flows H1 2023 H1 2022 D '23-'22 D '23-'22 %
in € million
Cash flows from operating activities 2.5 9.4 (6.9) -73.2%
Cash flows from investing activities (7.7) (8.3) 0.6 -7.0%
Cash flows from financing activities 0.3 4.3 (4.0) -93.9%
Net decrease in cash and cash (4.9) 5.4 (10.3) -190.8%
equivalents
Capital expenditure incl. ROU, excl. (9.9) (13.0) 3.1 -23.7%
M&A (CAPEX)
The Group’s cash flow from operating activities decreased by € 6.9 million
from € 9.4 million in 2022 to € 2.5 million in the first half of 2023.
This decrease is essentially linked to the increase in Net working capital
by € 19.5 million which mostly offset the strong business performance in
the first half of 2023 while in 2022 increase in Net working capital only
amounted to € 8.8 million.
Net cash flow from investing activities was a net outflow of € 7.7
million, mainly related to investments in tangible and intangible assets.
Additions to tangible and intangible assets decreased to € 9.9 million in
2023 from € 13.0 million in the first half of 2022. The investments mainly
relate to research & development, software, photovoltaics installation at
our production facility in Vienna (Austria), finalization of our new
personalization site in the USA, enlargement of our sites in Poland and
the UK to support the increased demand, ramping up our new postal/courier
business in Romania (Pink Post) as well as production and personalization
machinery.
Net cash flow from financing activities was a net inflow of € 0.3 million
compared to a net inflow of € 4.3 million in the first half of 2022 and
mostly relates to the higher use of existing credit lines for financing
net working capital and investments.
Net Debt H1 2023 31/12/2022 D '23-'22 D '23-'22 %
in € million
Cash and cash equivalents (16.3) (21.6) 5.3 -24.6%
Loans and borrowings 103.4 98.2 5.2 5.3%
Net Debt 87.1 76.6 10.5 13.7%
Net debt increased by € 10.5 million from € 76.6 million as at 31 December
2022 to € 87.1 million as at 30 June 2023 which is mainly due to the
increase in Inventory and Contract assets paired with continued investment
in the Group’s businesses. The net debt / adjusted EBITDA (12 months)
ratio decreased from 2.8x in H1 2022 to 1.9x in H1 2023.
H1 2023 KEY PERFORMANCE INDICATORS
Key performance indicators H1 2023 H1 2022 D '23-'22 D '23-'22 %
in € million
Revenue 181.2 137.1 44.0 32.1%
Gross profit I 78.3 61.4 17.0 27.6%
Gross profit I margin 43.2% 44.7% -1.5% n/a
Gross profit II 43.9 34.2 9.7 28.5%
Gross profit II margin 24.2% 24.9% -0.7% n/a
Total OPEX excluding depreciation 53.7 42.5 11.2 26.5%
Total OPEX excluding depreciation 29.6% 31.0% -1.3% n/a
as % on sales
adjusted EBITDA 26.0 19.8 6.3 31.5%
adjusted EBITDA margin 14.4% 14.4% -0.1% n/a
adjusted EBIT 18.3 13.0 5.3 40.7%
adjusted EBIT margin 10.1% 9.5% 0.6% n/a
adjusted Profit before tax 15.4 11.2 4.3 38.1%
adjusted Profit before tax margin 8.5% 8.2% 0.4% n/a
adjusted Profit after tax 12.7 9.4 3.3 35.5%
adjusted Profit after tax margin 7.0% 6.8% 0.2% n/a
Profit after Tax 12.3 4.8 7.5 156.8%
Profit after Tax margin 6.8% 3.5% 3.3% n/a
Net Equity / Total Assets 35.5% 30.6% 4.9% n/a
Operating Cash Flow 2.5 9.4 (6.9) -73.2%
Operating Cash Flow as % on sales 1.4% 6.9% -5.5% n/a
Net Working Capital as of 30 June 43.9 37.0 6.8 18.5%
Working Capital as % on sales (12 12.2% 15.8% -3.6% n/a
months)
Net Debt as of 30 June 87.1 93.9 (6.8) -7.3%
Net Debt / Adjusted EBITDA (12 1.9 2.8 (0.9) n/a
months)
Non-financial indicators H1 2023 H1 2022 D '23-'22 D '23-'22 %
Number of sold cards (in million) 68.9 61.0 7.9 13.1%
Average number of employees in 1,998 1,392 606 43.5%
Full-time equivalents
Number of employees in Headcount as 2,573 1,456 1,117 76.7%
of 30 June
The full INTERIM FINANCIAL REPORT of AUSTRIACARD HOLDINGS GROUP AG for the
period from January 1 to June 30, 2023, excerpts of which were used in
this H1 2023 Results Press Release, is available in the Company’s website:
https://www.austriacard.com/investor-relations-ac/
ABOUT AUSTRIACARD HOLDINGS AG
AUSTRIACARD HOLDINGS AG, headquartered in Vienna, with an international
presence is one of the leading providers of Secure Digital Technology
Solutions in Europe.
AUSTRIACARD HOLDINGS AG is one of the leading B2B providers of smart
cards, personalization and payment solutions, as well as secure data
management and digitalization 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 very strong pan-European operational footprint, reaching
from the United Kingdom to Greece and Türkiye, with seven production
facilities and seven personalization centers in Europe, as well as an
additional personalization center in USA, employing currently around 2,500
people. 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
business relationships. The Group’s international customer base benefits
from a complementary product, services and solutions portfolio, with the
offering ranging from bill statements management, document digitalization
and workflows, to payment solutions, transit and Identity cards,
increasingly bundled with online, mobile and digitalization transformation
solutions.
Contact person: Mr. Dimitrios Tzelepis, Executive Director, Capital
Markets, M&A and IR
Tel.: +43 1 61065 - 357
E-Mail: [email protected]
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): Finance
30.08.2023 CET/CEST This Press Release was distributed by EQS Group AG.
www.eqs.com
══════════════════════════════════════════════════════════════════════════
Language: English
Company: AUSTRIACARD HOLDINGS AG
Lamezanstraße 4-8
1230 Vienna
Austria
E-mail: [email protected]
Internet: https://www.austriacard.com/
ISIN: AT0000A325L0
WKN: A3D5BK
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1715371
Notierung vorgesehen, intended to be listed;
End of News EQS Media
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