- 29.08.2024, 19:16:14
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- EQS0018
AUSTRIACARD HOLDINGS AG: AUSTRIACARD HOLDINGS AG ANNOUNCES H1 2024 RESULTS
EQS-Media / 29.08.2024 / 19:15 CET/CEST
AUSTRIACARD HOLDINGS AG
ANNOUNCES H1 2024 RESULTS
August 29^th, 2024: AUSTRIACARD HOLDINGS AG (ACAG) revenues and profitability growth
accelerates in H1 2024 driven by technology segment expansion.
• H1 2024 Group Revenues increase by 7.0% vs H1 2023 reaching € 192.0m, driven by a near
quadrupling of Digital Transformation Technologies’ revenues and good growth in the
Document Lifecycle Management segment.
• From a geographic cluster point, Central Eastern Europe & DACH Revenues grow by 14.2% to
€ 121.6m and Türkiye, Middle East and Africa Revenues grow by 24.5% to € 37.5m, driving
the Group’s revenues.
• Improved sales mix leads to a 10.1% gross profit increase to € 48.8m and a gross profit
margin of 25.4% vs 24.7% in same period LY
• Sales mix composition with much higher technology component, together with contained
OPEX, significantly enhance operating profitability, leading to a 11.2% Adj. EBITDA
increase, to € 28.8m, and a margin of 15.0%.
• Net Profit after Tax reached € 11.2m, and the margin stood at 5.9%.
• On track to reach or exceed 2024 guidance
CEO COMMENTARY
AUSTRIACARD HOLDINGS AG Group Vice-Chairman and CEO, Manolis Kontos, noted:
“Consistent with the potential we had highlighted in the first quarter of 2024, growth
accelerated significantly in the second quarter driven by an approx. 13% increase in
revenues, leading H1 2024 to 7% revenues increase and an even stronger EBITDA growth of
11.2%. Our strategy to transition the company into a technology solutions provider is already
materializing, with the revenues of that segment increasing 4 times to € 16.3m compared to €
4.4m in H1 2023.
Growth was also achieved in the Document Lifecycle Management segment, while Secure Chip &
Payment Solutions recorded a slight decrease on a reported level due to the discontinuation
of low margin wholesale chip module sales business, resulting from our decision to focus on
selling complete smart card solutions.
We continue expanding in Türkiye, Middle East and Africa, a geographical cluster from which
we have high expectations for growth, while retaining our commanding presence in all markets
that we operate, as well as the Challenger/Neo Banks, where more sophisticated products like
metal cards prove to be a strong marketing tool for our B2B clients that are looking for
innovation in their offering.
We are on track to meet or exceeded our guidance of 10% revenue growth and a higher
percentage EBITDA growth, resulting from enhanced operating synergies and an improved sales
mix more skewed towards Digital Transformation Technologies.”
GROUP BUSINESS PERFORMANCE
Business performance of AUSTRIACARD HOLDINGS Group as monitored by Management
The following analysis is based on the business performance as monitored by Group management
excluding effects of IAS 29 Hyperinflation accounting and with a separate presentation of
Special Items (e.g. Management participation programs etc.) below adjusted Profit (Loss)
before tax.
Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 % Q2 2024 Q2 2023 D '24-'23 %
in € million
Revenues 192.0 179.5 12.5 7.0% 102.3 91.1 12.4%
Costs of material & mailing (104.3) (101.5) (2.8) 2.8% (56.7) (50.8) 11.7%
Gross profit I 87.7 78.1 9.7 12.4% 45.7 40.3 13.2%
Gross margin I 45.7% 43.5% 2.2% 44.6% 44.3%
Production costs (38.9) (33.7) (5.2) 15.4% (19.4) (17.9) 8.5%
Gross profit II 48.8 44.3 4.5 10.1% 26.3 22.5 17.0%
Gross margin II 25.4% 24.7% 0.7% 25.7% 24.7%
Other income 2.0 2.0 0.0 0.7% 1.1 1.4 -20.0%
Selling and distribution (11.8) (11.5) (0.4) 3.1% (6.2) (6.0) 3.0%
expenses
Administrative expenses (14.3) (12.5) (1.8) 14.1% (8.2) (6.9) 18.0%
Research and development (3.5) (3.5) (0.1) 2.3% (1.8) (1.8) 1.7%
expenses
Other expenses (0.6) (0.6) (0.0) 5.1% (0.3) (0.5) -31.4%
+ Depreciation,
amortization and 8.2 7.6 0.6 8.3% 4.2 3.9 9.7%
impairment
adjusted EBITDA 28.8 25.9 2.9 11.2% 15.1 12.5 20.8%
adjusted EBITDA margin 15.0% 14.4% 0.6% 14.8% 13.7%
- Depreciation,
amortization and (8.2) (7.6) (0.6) 8.3% (4.2) (3.9) 9.7%
impairment
adjusted EBIT 20.5 18.3 2.3 12.4% 10.9 8.6 25.8%
Financial income 0.2 0.1 0.1 116.5% 0.2 0.1 84.1%
Financial expenses (3.9) (3.0) (1.0) 32.4% (1.9) (1.5) 25.6%
Result from associated 0.1 0.0 0.1 n/a 0.1 0.0 n/a
companies
Net finance costs (3.6) (2.9) (0.7) 24.8% (1.7) (1.5) 13.4%
adjusted Profit (Loss) 17.0 15.4 1.6 10.1% 9.2 7.2 28.3%
before tax
Special items (2.1) (0.7) (1.4) 191.1% (0.7) 1.2 -160.1%
Profit (Loss) before tax 14.9 14.7 0.2 1.2% 8.5 8.4 0.9%
Income tax expense (3.6) (2.7) (0.9) 34.5% (2.2) (1.2) 82.2%
Profit (Loss) 11.2 12.0 (0.7) -6.2% 6.2 7.2 -13.0%
In H1 2024 AUSTRIACARD HOLDINGS Group’s Revenues reached € 192.0m increasing by € 12.5m or
7.0% compared to the same period in 2023. The growth was mainly driven by Digital
Transformation Technologies, which increased by € 11.9m and nearly quadrupled their revenues
compared to last year. This is the result of the focus given by the Group in this solution
category. The main contributors to this stage are public sector digitalization projects in
Greece as well as continued growth of this solution category in the Romanian market. Document
Lifecycle Management also contributed to the growth, increasing by € 2.8m or 5.1%, mainly
driven from the Romanian market.
Revenues by solution category H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Secure Chip & Payment Solutions 118.7 120.8 (2.2) -1.8%
Document Lifecycle Management 57.0 54.3 2.8 5.1%
Digital Transformation Technologies 16.3 4.4 11.9 271.7%
Total 192.0 179.5 12.5 7.0%
Secure Chip & Payment Solutions are slightly lower vs last year by € -2.2m or -1.8%. However,
if we exclude from the comparative period the impact of our strategic decision to
de-prioritize wholesale chip module sales and focus in selling complete smart card solutions
(with total effect amounting to € 15.5m), the like-for-like organic growth of the Secure Chip
& Payment category recorded is € 13.4m or 12.8%. The growth is coming from both regular
banking cards sales as well as high end metal cards offered to our clients which have a
significantly higher selling price per card and are accompanied by increased revenue from
personalization and fulfilment services.
Revenues by Segments H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Western Europe, Nordics, Americas 64.9 67.3 (2.4) -3.6%
Central Eastern Europe & DACH 121.6 106.5 15.1 14.2%
Türkiye / Middle East and Africa 37.5 30.1 7.4 24.5%
Eliminations & Corporate (31.9) (24.3) (7.6) 31.1%
Total 192.0 179.5 12.5 7.0%
From a geographical segment perspective, revenue growth was driven by CEE and MEA with
revenue increases of € 15.1m or 14.2% and € 7.4m or 24.5% respectively being mainly
attributable to digitalization projects in the CEE segment and to Secure Chip & Payment
solutions in the MEA segment. The WEST segment lagged compared to 2023 by € 2.4m or -3.6%
mainly due to the above-described de-prioritization of wholesale chip module sales totalling
€ 13.9m in this segment. Excluding this impact, like-for-like revenues from WEST increased by
€ 11.5m or 21.7% with metal payment cards, personalization & fulfilment services being the
main driver of this strong growth. The increase of Eliminations & Corporate mainly reflects
the increase in intra-segment revenues between the CEE and the MEA segment related to payment
card deliveries to the Turkish market.
Gross profit I increased by € 9.7m or 12.4% reaching € 87.7m as a result of revenue and
margin growth. Gross margin I improved from 43.5% to 45.7%, mainly due to a higher proportion
of service revenues without associated material costs.
Gross profit II grew by € 4.5m or 10.2%, reaching € 48.8m. Gross margin II improved by 0.7
percentage points and reached 25.4% mainly as a result of a different sales mix having higher
contribution from Digital Services.
Operating expenses (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Production Costs (38.9) (33.7) (5.2) 15.4%
Selling and distribution expenses (11.8) (11.5) (0.4) 3.1%
Administrative expenses (14.3) (12.5) (1.8) 14.1%
Research and development expenses (3.5) (3.5) (0.1) 2.3%
+ Depreciation & amortization 8.2 7.6 0.6 8.3%
Total (60.4) (53.6) (6.8) 12.6%
Operating expenses as a percentage of Sales 31.4% 29.8% 1.5%
Operating expenses (OPEX) excluding depreciation, amortization and impairment increased by €
6.8m, or 12.6% totalling to € 60.4m. A significant part of the Production costs increase (€
3.0m) relates to the consolidation of Pink Post in Romania (company offering distribution &
postal services enabling us to provide end to end services in that market), which was first
consolidated in the Group post the majority stake acquisition in March 2023. Administrative
expenses increased by € 1.8m as a result of the strengthening of the Group management team
following the Group’s listing and reorganization in H1 2023. In addition, OPEX also increased
due to adjustments on salaries and other costs due to inflation. As a proportion of revenues,
OPEX increased by 1.5 percentage points to 31.4%, compared to 29.8% in the first six months
of 2023.
Adjusted EBITDA increased by € 2.9m, or 11.2%, from € 25.9m to € 28.8m, due to revenue and
gross margin growth. The adjusted EBITDA margin increased by 0.6 percentage points from 14.4%
to 15.0% in H1 2024.
Adjusted EBIT improved by € 2.3m, or 12.4% and reached € 20.5m, fully offsetting the € 0.6m
increase in depreciation & amortization, related to machinery and equipment added in the
previous year to support business expansion.
Adjusted profit before tax increased by € 1.6m or 10.1% reaching € 17.0m as the growth in
EBIT was partially offset by the increase in net finance costs amounting to € 0.7m resulting
from the hike in interest rates and the higher average outstanding financial debt.
Special items included in H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Management participation programs EBITDA (2.1) (0.6) (1.4) 228.5%
Expense from financial assets and
liabilities at fair value through Profit before tax (0.0) (0.1) 0.1 -69.5%
profit or loss
Total (2.1) (0.7) (1.4) 191.1%
Profit decreased by € 0.7m or 6.2% and reached € 11.2m which is mainly attributable to the
normalization of the expenses for management participation programs (€ +1.4m) which in H1
2023 had been positively affected by a provision release and higher corporate income tax
expenses (€ +0.9m), resulting from a change in tax rules in Romania and the United Kingdom.
In more detail, expenses for management participation programs (SOP) amounted to € 2.1m in H1
2024 compared to only € 0.6m in H1 2023.
Effect of IAS 29 Hyperinflation
As presented in the table below, the application of IAS 29 Hyperinflation with respect to our
Türkiye-based operations, hyperinflation accounting led to increased Revenues by € 3.3m
reaching € 195.4m in 1-6 2024 compared to an increase of € 1.6m to € 181.2m in 1-6 2023.
Hyperinflation accounting also increased Operating expenses (OPEX) and adjusted EBITDA in the
IFRS Income statement compared to the Management Income statement by € 0.2m compared to €
0.1m in 1-6 2023. Also adjusted EBIT increased by € 0.2m (2023: € 0.0m) and adjusted Profit
before tax by € 0.3m (2023: € 0.0m) due to Hyperinflation accounting.
With respect to Profit before tax and Profit in 2024, Hyperinflation accounting led to only
minor differences as both the IFRS Income statement and the Management Income Statement
showed € 14.9m and € 11.2m respectively.
1-6 2024 1-6 2023
Impact of IAS 29 Hyperinflation IAS29
in € million IFRS IAS29 Effect MGMT IFRS Effect MGMT
Revenues 195.4 3.3 192.0 181.2 1.6 179.5
Gross Profit I 88.2 0.5 87.7 78.3 0.3 78.1
Gross Profit II 49.1 0.3 48.8 44.3 0.1 44.3
OPEX (60.6) (0.2) (60.4) (53.7) (0.1) (53.6)
adjusted EBITDA 29.0 0.2 28.8 26.0 0.1 25.9
adjusted EBIT 20.8 0.2 20.5 18.3 0.0 18.3
adjusted Profit before tax 17.2 0.3 17.0 15.4 0.0 15.4
Profit before tax 14.9 (0.0) 14.9 15.0 0.3 14.7
Profit 11.2 (0.1) 11.2 12.3 0.3 12.0
FINANCIAL POSITION
Total assets increased by € 18.4m from € 321.7m on 31 December 2023, to € 340.1m on 30 June
2024 as a result of higher current assets (€ +10.3) and non-current assets (€ +8.1m). The
increase in non-current assets relates to the acquisition of new subsidiaries resulting in
additional goodwill amounting to € 3.8m as well as regular investing activities. The increase
in non-current liabilities is related to the increase in financial liabilities (€ +5.4m) as
well as to contingent purchase price liabilities in connection with M&A activity (€ +1.7m).
As a result of the profits generated and share-option expense recognized in the relevant
reserve in equity, Total Equity increased by € 13.7m to € 120.8m. The Equity ratio of the
AUSTRIACARD Group improved from 33.3% on 31 December 2023 to 35.5% on 30 June 2024.
Consolidated statement of financial position 30/06/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Non-current assets 164.9 156.8 8.1 5.2%
Current assets 175.2 164.9 10.3 6.3%
Total assets 340.1 321.7 18.4 5.7%
Equity 120.8 107.2 13.7 12.8%
Non-current liabilities 122.7 115.2 7.5 6.5%
Current Liabilities 96.6 99.3 (2.7) -2.8%
Total Equity and Liabilities 340.1 321.7 18.4 5.7%
Net Working Capital increased by € 15.9m or 27.3%, from € 58.2m as of 31 December 2023 to €
74.1m on 30 June 2024. This increase is due to higher inventory levels (€ +11.5m), especially
of raw materials (chips), and higher trade receivables
(€ +3.9m) related to increase in revenues. As percentage of revenues (12 months rolling), net
working capital increased from 16.6% to 20.4% in line with Q1 2024 as well as close to the
industry benchmarks but significantly above the comparative as of 30 June 2023 when stock
levels were still significantly affected by Covid-19-related supply chain issues.
Working Capital 30/06/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Inventories 69.6 58.2 11.5 19.7%
Contract assets 18.9 20.4 (1.5) -7.4%
Current income tax assets 0.9 0.8 0.1 14.1%
Trade receivables 48.6 44.7 3.9 8.8%
Other receivables 16.3 17.1 (0.7) -4.3%
154.4 141.1 13.3 9.4%
Current income tax liabilities (4.2) (3.0) (1.2) 40.7%
Trade payables (45.8) (43.6) (2.2) 5.0%
Other payables (18.0) (18.3) 0.3 -1.8%
Contract liabilities (10.9) (17.4) 6.6 -37.8%
Deferred income (1.4) (0.5) (0.9) 176.9%
(80.2) (82.9) 2.7 -3.2%
Net Working Capital 74.1 58.2 15.9 27.3%
The Group’s Cash flow from operating activities increased by € 5.7m in the first half of 2024
from € 2.5m in 2023 to
€ 8.3m in 2024 as a result of the strong operating performance which was partially offset in
cash-flow terms in the increase in the Net working capital.
The Cash flow from investing activities came in at a net outflow of € 10.3m and related to
M&A activity (€ 1.3m net of cash received), € 2.2m for upgrading our digital security
printing capabilities in order to be able to implement new business opportunities for the
African markets and regular investments in plant and equipment, inhouse development of
software and similar operating investments.
Cash from financing activities had a net outflow of € 0.9m compared to an inflow of € 0.3m in
the same period in 2023. This outflow primarily relates to interest (€ 3.5m) and lease
payments (€ 1.8m) as well as loan repayments (€ 6.5m) which were mostly offset by taking out
new loans (€ 10.6m).
Statement of cash flows H1 2024 H1 2023 D '24-'23 D '24-'23%
in € million
Cash flows from operating activities 8.3 2.5 5.7 226.6%
Cash flows from investing activities (10.3) (7.7) (2.6) 33.8%
Cash flows from financing activities (0.9) 0.3 (1.1) -436.7%
Net decrease in cash and cash equivalents (2.9) (4.9) 2.0 -40.6%
Capital expenditure incl. ROU, excl. M&A (CAPEX) (11.8) (9.9) (1.9) 19.5%
Net Debt increased by € 8.3m from € 95.0m as of 31 December 2023 to € 103.3m as of 30 June
2024 due to the increase in Net working capital. Net Debt / Adjusted EBITDA (rolling 12
months) essentially remained stable near 2.0x (1.9x).
Net Debt 30/06/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Cash and cash equivalents (20.9) (23.8) 2.9 -12.3%
Loans and borrowings 124.2 118.9 5.4 4.5%
Net Debt 103.3 95.0 8.3 8.7%
Financial performance indicators
Key performance indicators H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Revenue 192.0 179.5 12.5 7.0%
Gross profit I 87.7 78.1 9.7 12.4%
Gross profit I margin 45.7% 43.5% 2.2% n/a
Gross profit II 48.8 44.3 4.5 10.1%
Gross profit II margin 25.4% 24.7% 0.7% n/a
Total OPEX excluding depreciation (60.4) (53.6) (6.8) 12.6%
Total OPEX excluding depreciation as % on sales -31.4% -29.8% -1.6% n/a
adjusted EBITDA 28.8 25.9 2.9 11.2%
adjusted EBITDA margin 14.97% 14.40% 0.57% n/a
adjusted EBIT 20.5 18.3 2.3 12.4%
adjusted EBIT margin 10.7% 10.2% 0.5% n/a
adjusted Profit before tax 17.0 15.4 1.6 10.1%
adjusted Profit before tax margin 8.8% 8.6% 0.3% n/a
adjusted Profit after tax 13.3 12.7 0.6 4.9%
adjusted Profit after tax margin 6.9% 7.1% -0.1% n/a
Profit after Tax 11.2 12.0 (0.7) -6.2%
Profit after Tax margin 5.9% 6.7% -0.8% n/a
Operating Cash Flow 8.3 2.5 5.7 226.6%
Operating Cash Flow as % on sales 4.3% 1.4% 2.9% n/a
Net Equity / Total Assets (30 June vs. 31 December) 35.5% 33.3% 2.2% n/a
Net Working Capital as of 30 June 74.1 43.9 30.2 68.9%
Working Capital as % on sales (12 months) 20.4% 12.4% 7.9% n/a
Net Debt as of 30 June 103.3 87.1 16.3 18.7%
Net Debt / Adjusted EBITDA (12 months) 2.0 1.9 0,0 n/a
REPORT ON SEGMENTS
Western Europe, Nordics, Americas
Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Revenues 64.9 67.3 (2.4) -3.6%
Costs of material & mailing (35.9) (38.3) 2.3 -6.1%
Gross profit I 28.9 29.0 (0.1) -0.2%
Gross margin I 44.6% 43.1% 1.5%
Production costs (11.3) (10.7) (0.6) 5.8%
Gross profit II 17.6 18.3 (0.7) -3.7%
Gross margin II 27.1% 27.2% -0.1%
Other income 0.1 0.5 (0.4) -85.3%
Selling and distribution expenses (4.4) (4.6) 0.2 -4.4%
Administrative expenses (4.3) (4.4) 0.1 -2.6%
Research and development expenses (0.5) (0.4) (0.1) 37.0%
Other expenses (0.0) (0.1) 0.0 -38.1%
+ Depreciation, amortization & impairment 3.0 2.7 0.3 11.2%
adjusted EBITDA 11.5 12.1 (0.6) -5.1%
adjusted EBITDA margin 17.7% 18.0% -0.3%
- Depreciation, amortization & impairment (3.0) (2.7) (0.3) 11.2%
adjusted EBIT 8.5 9.4 (0.9) -9.8%
The Western Europe, Nordics and Americas (WEST) segment reported Revenues of € 64.9m in the
first half of 2024, down by € 2.4m or 3.6% compared to H1 2023. However, if we exclude from
the comparative period the impact of the de-prioritization of chip module sales, resulting
from our focus in selling complete smart card solutions, which amounted to € 13.9m in this
segment, the organic like-for-like growth of this solution category amounts to € 11.5m or
21.7%. The growth is coming from both regular banking cards sales as well as high end metal
cards offered to our clients which have a significantly higher selling price per card and are
accompanied by increased revenue from personalization and fulfilment services.
Gross profit I essentially stayed stable at € 28.9m despite lower revenues as gross margin I
increased by 1.5 percentage points to 44.6%. This margin improvement is mainly due to the
reduction of revenues from sale of chip wafers which was partially compensated by the
increase in sales of metal payment cards.
Gross profit II decreased by € 0.7m or 3.7% from € 18.3m to € 17.6m due to the inflation
related increase in production costs, personnel costs and higher depreciation charges. Gross
margin II essentially stayed stable at 27.1%.
Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Production costs (11.3) (10.7) (0.6) 5.8%
Selling and distribution expenses (4.4) (4.6) 0.2 -4.4%
Administrative expenses (4.3) (4.4) 0.1 -2.6%
Research and development expenses (0.5) (0.4) (0.1) 37.0%
+ Depreciation, amortization & impairment 3.0 2.7 0.3 11.2%
Total (17.5) (17.3) (0.1) 0.7%
Operating expenses as a percentage of revenues 26.9% 25.8% -5.3%
OPEX came in at € 17.5m in the first six months of 2024 increasing slightly by € 0.1m or 0.7%
as increased costs due to inflation related salary increases were mostly compensated by
savings with other operating expenses and utility and maintenance expenses. As a percentage
of revenues, OPEX increased from 25.8% to 26.9% in H1 2024 due to the decrease in revenues.
Adjusted EBITDA reached € 11.5m decreasing by € 0.6m or 5.1% compared to H1 2023 while
adjusted EBITDA margin came in at 17.7% decreasing by 0.3 percentage points. This decrease in
adjusted EBITDA is mainly due to the reversal of an allowance for doubtful receivables in the
US market which increased Other income by € 0.5m in 2023. Adjusted EBIT came in at € 8.5m
decreasing by € 0.9m or 9.8% mainly as a result of lower Other income and higher depreciation
& amortization.
Central Eastern Europe & DACH
Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Revenues 121.6 106.5 15.1 14.2%
Costs of material & mailing (67.8) (62.4) (5.4) 8.6%
Gross profit I 53.8 44.0 9.7 22.1%
Gross margin I 44.2% 41.4% 2.9%
Production costs (25.2) (20.9) (4.2) 20.3%
Gross profit II 28.6 23.1 5.5 23.7%
Gross margin II 23.5% 21.7% 1.8%
Other income 1.9 1.5 0.4 28.7%
Selling and distribution expenses (6.6) (6.3) (0.3) 4.8%
Administrative expenses (9.2) (7.3) (1.9) 26.3%
Research and development expenses (2.9) (2.9) (0.0) 1.1%
Other expenses (0.5) (0.4) (0.1) 29.5%
+ Depreciation, amortization & impairment 5.0 4.7 0.3 6.0%
adjusted EBITDA 16.2 12.4 3.8 31.0%
adjusted EBITDA margin 13.3% 11.6% 1.7%
- Depreciation, amortization & impairment (5.0) (4.7) (0.3) 6.0%
adjusted EBIT 11.2 7.6 3.5 46.4%
The Central Eastern Europe & DACH (CEE) segment reported Revenues of € 121.6m increasing by €
15.1m or 14.2% compared to the first half of 2023. This revenue increase was mainly driven by
the start of the implementation of public digitalization projects in Greece and growth in the
Digital Transformation Technologies business in general which contributed € 11.9m additional
revenue. The Secure Chip & Payment Solutions business of the CEE segment grew by € 2.7m
mainly as a result of higher payment card deliveries to the MEA segment.
Gross profit I increased by € 9.7m, or 22.1%, as a result of revenue and gross margin growth.
Gross margin I improved by 2.9 percentage points from 41.4% to 44.2%. This improvement was
mainly due to a higher share of service-related revenues and lower third-party mailing costs.
Gross profit II increased by € 5.5m or 23.7% from € 23.1m to € 28.6m mainly as a result of
revenues growth and economies of scale as the increase of Production costs only partially
compensated the growth in additional gross margin. The Gross Margin II thus improved by 1.8
percentage points to 23.5%.
Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Production costs (25.2) (20.9) (4.2) 20.3%
Selling and distribution expenses (6.6) (6.3) (0.3) 4.8%
Administrative expenses (9.2) (7.3) (1.9) 26.3%
Research and development expenses (2.9) (2.9) (0.0) 1.1%
+ Depreciation, amortization & impairment 5.0 4.7 0.3 6.0%
Total (39.0) (32.8) (6.2) 18.9%
Operating expenses as a percentage of revenues 32.1% 30.8% 41.2%
OPEX increased by € 6.2m or 18.9% to € 39.0m mainly as a result of the addition of the Pink
Post business in Romania which increased Production costs by € 3m and to higher central cost
allocations included in Administrative expenses as well as due to inflation related salary
increases. As percentage of revenues Operating expenses increased from 30.8% to 32.1% in H1
2024.
Adjusted EBITDA increased by € 3.8m or 31.0% to € 16.2m as a result of revenue and gross
margin growth being complimented by economies of scale. Adjusted EBITDA margin thus improved
by 1.7 percentage points to 13.3%. Adjusted EBIT increased by € 3.5m or 46.4% from € 7.6m to
€ 11.2m essentially in parallel with EBITDA growth.
Türkiye / Middle East and Africa
Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Revenues 37.5 30.1 7.4 24.5%
Costs of material & mailing (30.8) (24.4) (6.5) 26.5%
Gross profit I 6.7 5.8 0.9 16.1%
Gross margin I 17.8% 19.1% -1.3%
Production costs (2.4) (2.1) (0.3) 13.9%
Gross profit II 4.2 3.6 0.6 17.4%
Gross margin II 11.3% 12.0% -0.7%
Other income 0.0 0.0 0.0 n/a
Selling and distribution expenses (0.8) (0.5) (0.2) 47.5%
Administrative expenses (0.4) (0.3) (0.1) 38.0%
Research and development expenses 0.0 0.0 0.0 n/a
Other expenses (0.0) (0.1) 0.1 -78.2%
+ Depreciation, amortization & impairment 0.2 0.2 0.1 34.4%
adjusted EBITDA 3.2 2.8 0.4 15.2%
adjusted EBITDA margin 8.6% 9.3% -0.7%
- Depreciation, amortization & impairment (0.2) (0.2) (0.1) 34.4%
adjusted EBIT 3.0 2.7 0.4 14.1%
The Türkiye, Middle East and Africa (MEA) segment reported Revenues of € 37.5m increasing by
€ 7.4m or 24.5% compared to H1 2023. This growth was driven by strong performance of payment
card sales in the Turkish market.
Gross profit I increased by € 0.9m due to higher revenues, but the Gross margin I decreased
by 1.3 percentage points, from 19.1% to 17.8%, mainly due to a lower share of personalizing
and fulfilment revenues with no associated material costs.
Gross profit II increased by € 0.6m, or 17.4%, from € 3.6m to € 4.2m, as the Gross margin
increase was partially offset by higher Production costs. Gross margin II decreased by 0.7
percentage points to 11.3%, largely due to a lower share of personalization and fulfilment
revenues.
Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 %
in € million
Production costs (2.4) (2.1) (0.3) 13.9%
Selling and distribution expenses (0.8) (0.5) (0.2) 47.5%
Administrative expenses (0.4) (0.3) (0.1) 38.0%
Research and development expenses 0.0 0.0 0.0 n/a
+ Depreciation, amortization & impairment 0.2 0.2 0.1 34.4%
Total (3.4) (2.8) (0.6) 21.6%
Operating expenses as a percentage of revenues 9.1% 9.4% 8.2%
Operating expenses (OPEX) increased by € 0.6m or 21.6% reaching € 3.4m. This increase was
mainly due to higher production costs and selling and distribution expenses to support
further growth in the MEA region. As a percentage of revenues, OPEX decreased from 9.4% to
9.1% in H1 2024.
Adjusted EBITDA grew by € 0.4m or 15.2% to € 3.2m while the adjusted EBITDA margin came in at
8.6% decreasing by 0.7 percentage points. Adjusted EBIT increased by € 0.4m or 14.1% to €
3.0m in parallel with adjusted EBITDA.
The full INTERIM FINANCIAL REPORT of AUSTRIACARD HOLDINGS GROUP AG for the period from
January 1 to June 30, 2024, excerpts of which were used in this H1 2024 Results Press
Release, is available in the Company’s website:
https://www.austriacard.com/investor-relations-ac/
ABOUT AUSTRIACARD HOLDINGS AG
AUSTRIACARD HOLDINGS AG leverages over 130 years of experience in information management,
printing, and communications to deliver secure and transparent experiences for its customers.
They offer a comprehensive suite of products and services, including payment solutions,
identification solutions, smart cards, card personalization, digitization solutions, and
secure data management. ACAG employs a global workforce of 2,700 people and is publicly
traded on both the Athens and Vienna Stock Exchanges under the symbol ACAG.
Contact person: Mr. Dimitrios Tzelepis, Executive Director, Capital Markets, M&A and IR
Tel.: +43 1 61065 - 357
E-Mail: d.tzelepis@austriacard.com
Website: www.austriacard.com
Symbol: ACAG
ISIN: AT0000A325L0
Stock Exchanges: Vienna Prime Market, Athens Main Market
APPENDIX
A. PRIMARY FINANCIAL STATEMENTS
Consolidated statement of financial position
in € thousand 30 June 2024 31 December 2023
Assets
Property, plant and equipment and right of use assets 99,815 96,275
Intangible assets and goodwill 59,784 55,526
Equity-accounted investees 453 324
Other receivables 2,391 2,386
Other long-term assets 45 136
Deferred tax assets 2,389 2,116
Non-current assets 164,877 156,764
Inventories 69,621 58,164
Contract assets 18,879 20,386
Current income tax assets 902 791
Trade receivables 48,611 44,677
Other receivables 16,347 17,082
Cash and cash equivalents 20,886 23,825
Current assets 175,247 164,924
Total assets 340,124 321,688
Equity
Share capital 36,354 36,354
Share premium 32,749 32,749
Own shares (498) 0
Other reserves 18,791 17,303
Retained earnings 32,177 19,995
Equity attributable to owners of the Company 119,573 106,401
Non-controlling interests 1,276 753
Total Equity 120,849 107,154
Liabilities
Loans and borrowings 107,874 102,432
Employee benefits 4,022 4,207
Other payables 1,669 81
Deferred tax liabilities 9,139 8,497
Non-current liabilities 122,703 115,217
Current tax liabilities 4,177 2,968
Loans and borrowings 16,354 16,440
Trade payables 45,817 43,649
Other payables 17,985 18,317
Contract liabilities 10,851 17,442
Deferred income 1,388 501
Current Liabilities 93,571 99,317
Total Liabilities 219,275 214,534
Total Equity and Liabilities 340,124 321,688
Consolidated income statement
in € thousand H1 2024 H1 2023 Q2 2024 Q2 2023
Revenues 195,374 181,166 103,609 91,358
Cost of sales (146,278) (136,780) (77,238) (69,064)
Gross profit 49,096 44,386 26,371 22,294
Other income 1,985 1,973 1,093 1,439
Selling and distribution expenses (11,851) (11,490) (6,164) (5,991)
Administrative expenses (16,372) (13,150) (9,049) (5,718)
Research and development expenses (3,539) (3,460) (1,846) (1,815)
Other expenses (620) (594) (321) (469)
+ Depreciation, amortization and impairment 8,228 7,706 4,233 3,967
EBITDA 26,928 25,370 14,317 13,708
- Depreciation, amortization and impairment (8,228) (7,706) (4,233) (3,967)
EBIT 18,700 17,665 10,084 9,741
Financial income 248 365 74 338
Financial expenses (4,224) (3,041) (2,038) (1,374)
Result from associated companies 129 0 129 0
Net finance costs (3,846) (2,675) (1,835) (1,036)
Profit (Loss) before tax 14,854 14,990 8,248 8,705
Income tax expense (3,674) (2,731) (2,244) (1,247)
Profit (Loss) 11,180 12,259 6,005 7,458
Profit (Loss) attributable to:
Owners of the Company 10,633 11,790 5,555 7,424
Non-controlling interests 546 469 450 34
Profit (Loss) 11,180 12,259 6,005 7,458
Earnings (loss) per share[1][1]
basic 0.29 0.33 0.15 0.20
diluted 0.27 0.33 0.14 0.20
Consolidated statement of cash flows
in € thousand H1 2024 H1 2023
Cash flows from operating activities
Profit (Loss) before tax 14,854 14,990
Adjustments for:
-Depreciation, amortization and impairment 8,228 7,706
-Net finance costs 3,846 2,675
-Other non-cash transactions 1,110 (327)
28,039 25,043
Changes in:
-Inventories (11,457) (10,108)
-Contract assets 1,507 (3,831)
-Trade receivables and other receivables (3,200) (3,006)
-Contract liabilities (6,591) (2,513)
-Trade payables and other payables 2,218 (541)
-Taxes paid (2,262) (2,517)
Net cash from (used in) operating activities 8,255 2,527
Cash flows from investment activities
Interest received 248 110
Acquisition of subsidiary, net of cash acquired (1,297) 0
Payments for acquisition of property, plant and equipment & intangible
assets (9,242) (7,801)
Net cash from (used in) investing activities (10,291) (7,691)
Cash flows from financing activities
Interest paid (3,511) (2,576)
Proceeds from loans and borrowings 10,561 15,250
Repayment of borrowings (6,103) (10,679)
Payment of lease liabilities (1,824) (1,734)
Net cash from (used in) financing activities (877) 260
Net increase (decrease) in cash and cash equivalents (2,913) (4,904)
Cash and cash equivalents at 1 January 23,825 21,628
Effect of movements in exchange rates on cash held (26) (414)
Cash and cash equivalents at 30 June 20,886 16,311
B. SEGMENT REPORTING
Reportable Segments
MEA Total
H1 2024 excl. excl.
in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total
Revenues 61,431 93,147 37,470 0 0 192,049 3,325 195,374
Intersegment 3,448 28,433 33 1,477 (33,389) 0 0 0
revenues
Segment 64,879 121,580 37,503 1,477 (33,389) 192,049 3,325 195,374
revenues
Costs of
material & (35,950) (67,808) (30,818) 0 30,272 (104,303) (2,843) (107,146)
mailing
Gross profit I 28,929 53,772 6,685 1,477 (3,118) 87,745 483 88,228
Production (11,325) (25,183) (2,441) 0 4 (38,944) (188) (39,132)
costs
Gross profit 17,605 28,590 4,244 1,477 (3,114) 48,801 295 49,096
II
Other income 77 1,922 3 (17) 0 1,985 0 1,985
Selling and
distribution (4,416) (6,647) (768) 0 0 (11,831) (20) (11,851)
expenses
Administrative (4,265) (9,222) (423) (3,477) 3,114 (14,274) (29) (14,303)
expenses
Research and
development (495) (2,942) 0 (101) 0 (3,539) 0 (3,539)
expenses
Other expenses (35) (514) (29) (38) 0 (617) (3) (619)
+
Depreciation, 3,025 4,996 206 2 0 8,228 0 8,228
amortization
and impairment
adjusted 11,494 16,182 3,234 (2,156) 0 28,754 244 28,998
EBITDA
-
Depreciation, (3,025) (4,996) (206) (2) 0 (8,228) 0 (8,228)
amortization
and impairment
adjusted EBIT 8,470 11,186 3,027 (2,157) 0 20,526 244 20,770
Financial 226 22 248
income
Financial (3,919) (7) (3,927)
expenses
Result from
associated 129 0 129
companies
Net finance (3,564) 15 (3,549)
costs
adjusted
Profit (Loss) 16,962 259 17,221
before tax
Special items (2,094) (273) (2,367)
Profit (Loss) 14,868 (14) 14,854
before tax
Income tax (3,622) (52) (3,674)
expense
Profit (Loss) 11,246 (66) 11,180
Reportable Segments
MEA Total
H1 2023 * excl. excl.
in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total
Revenues 65,465 83,984 30,097 0 0 179,546 1,619 181,166
Intersegment 1,811 22,504 21 254 (24,591) 0 0 0
revenues
Segment 67,276 106,489 30,119 254 (24,591) 179,546 1,619 181,166
revenues
Costs of
material & (38,278) (62,446) (24,359) 0 23,595 (101,488) (1,352) (102,840)
mailing
Gross profit I 28,998 44,043 5,759 254 (996) 78,058 267 78,326
Production (10,708) (20,940) (2,144) 0 55 (33,736) (204) (33,940)
costs
Gross profit 18,290 23,103 3,616 254 (940) 44,322 63 44,386
II
Other income 523 1,493 0 66 (110) 1,972 0 1,972
Selling and
distribution (4,619) (6,344) (520) 0 6 (11,476) (13) (11,490)
expenses
Administrative (4,380) (7,303) (307) (1,553) 1,036 (12,508) (12) (12,520)
expenses
Research and
development (362) (2,910) 0 (188) 0 (3,460) 0 (3,460)
expenses
Other expenses (57) (397) (135) (6) 9 (587) (7) (594)
+
Depreciation, 2,719 4,712 154 14 0 7,598 107 7,706
amortization
and impairment
adjusted 12,114 12,353 2,807 (1,413) 0 25,861 139 25,999
EBITDA
-
Depreciation, (2,719) (4,712) (154) (14) 0 (7,598) (107) (7,706)
amortization
and impairment
adjusted EBIT 9,395 7,642 2,653 (1,427) 0 18,263 31 18,294
Financial 105 5 110
income
Financial (2,961) 0 (2,961)
expenses
Result from
associated 0 0 0
companies
Net finance (2,857) 5 (2,851)
costs
adjusted
Profit (Loss) 15,406 37 15,443
before tax
Special items (719) 266 (453)
Profit (Loss) 14,687 303 14,990
before tax
Income tax (2,694) (37) (2,731)
expense
Profit (Loss) 11,993 266 12,259
* For comparative purposes segment reporting for H1 2023 was adjusted to be in line with the
calculation of segment results as presented in the consolidated financial statements for the
financial year 2023. This adjustment was necessary since the calculation of the segment
results was revised subsequent to the publication of the H1 2023 results in 2023.
[2]^[1] Earnings per share for H1 2023 were calculated considering retrospectively as per IAS
33.64 the issuance of bonus shares with a ratio of 1:1 which had been implemented in August
2023.
End of Media Release
═════════════════════════════════════════════════════════════════════════════════════════════
Issuer: AUSTRIACARD HOLDINGS AG
Key word(s): Enterprise
29.08.2024 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: ac.contact@austriacard.com
Internet: https://www.austriacard.com/
ISIN: AT0000A325L0
WKN: A3D5BK
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 1978079
End of News EQS Media
1978079 29.08.2024 CET/CEST
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