Interim report - Q2 2021/22 - Half year

Roblon reports better-than-expected revenue and earnings for the first half of 2021/22 and adjusts expectations for the full-year
Interim report – H1 2021/22 (the period 1 November 2021 – 30 April 2022)

Highlights of the interim report of the Roblon Group:
As expected, the Group was adversely impacted by COVID-19 in the first half of 2021/22, facing logistics challenges, supply shortages of raw materials and other market impacts. Despite these challenges, the Group’s reported revenue and earnings for the first half of 2021/22 exceeded the guidance for the period. This positive development can be attributed to the Composite product group and to the European part of the FOC product group, while the US subsidiary did not perform as expected.

As described in company announcement no. 1/2022, the Group acquired the Czech company Vamafil spol. s.r.o at 3 January 2022, and in this connection increased its long-term credit facilities by DKKm 75 to support the acquisition of Vamafil and the Group’s growth strategy.

• In H1 2021/22, the order intake rose to DKKm 207.1 (DKKm 150.4) and the order book at 30 April 2022 was DKKm 103.4 (DKKm 73.1).
• Revenue amounted to DKKm 178.1 (DKKm 103.0). Both product groups, but particularly FOC, recorded improvements compared with the year-earlier period.
• The gross margin of 49.9% (44.8%) for the first half was positively affected by a favourable product mix and improved profitability in the FOC product group.
• Operating profit before depreciation, amortisation and impairment and special items (EBITDA) was DKKm 12.6 (a loss of DKKm 18.6).
• EBIT before special items was a loss of DKKm 0.5 (a loss of DKKm 28.2).
• Special items relating to the acquisition of Vamafil in the Czech Republic amounted to a net expense of DKKm 3.6 (DKKm 0).
• Roblon’s equity at 30 April 2022 stood at DKKm 219.9 (DKKm 216.4).
• Cash flow from operations for H1 2021/22 was a net outflow of DKKm 18.6 (an outflow of DKKm 22.0), adversely affected by an increase of approximately DKKm 30 in working capital. The increase mainly related to the higher level of activity, increasing raw materials prices, the business acquisition and larger inventories of critical raw materials.

Guidance for full year 2021/22
The guidance is still subject to uncertainty due to the adverse impacts of COVID-19 in all the Group’s markets, most recently reflected in an adverse impact on the FOC product group in the USA.

Roblon has ceased all sales to Russia and Belarus as a result of the war in Ukraine. Historically, the Group has not had significant business activities in either Russia, Belarus or Ukraine.

Supply shortages of certain raw materials and components are expected to remain a challenge.

At the end of the first half of 2021/22, Management adjusts the full-year guidance for 2021/22 as follows:

• revenue in the DKKm 360-390 range against earlier mDKK 330 to 370 (2020/21: DKKm 249.9);
• operating profit before depreciation, amortisation and impairment and special items (EBITDA) in the range of DKKm 17-27 against earlier DKKm 8 to 27 (2020/21: a loss of DKKm 12.6);
• operating profit/loss before special items (EBIT) in the range of a loss of DKKm 10 to a profit of DKKm 0 against earlier a loss of DKKm 19 to a profit of DKKm 0 (2020/21: a loss of DKKm 32.9);
• special items relating to restructuring costs amounting to an expense of around DKKm 8 (2020/21: DKKm 0)

Head office building put up for sale
In early 2020, the Group decided to put its head office in Frederikshavn up for sale. There are currently no potential buyers of the buildings, but the sales process continues. After the sale, the Group’s Danish activities will all be located at Roblon’s facilities in Gærum, which currently house production and various administrative functions. As well as generating positive synergies in the day-to-day operations, this initiative is also expected to have a positive impact on Roblon’s results and equity going forward.

Frederikshavn, 17 June 2022
Roblon A/S

Jørgen Kjær Jacobsen                 Lars Østergaard
Chairman of the Board        Managing Director and CEO

Enquiries regarding this announcement should be addressed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300

Attachment

• Company Annoucement no 9 - 2022