Dragerwerk 2022 Preliminary Results Below Prior Year; Sees Growth And Profitability In FY23

Dragerwerk AG & Co. KGaA (DRWKF.PK) reported that preliminary net sales and EBIT in 2022 significantly below the prior year despite continued high order backlog. It expects to return growth and profitability in fiscal year 2023.

As a result of the limited availability of certain electronic components, among other things due to the corona-related lockdowns at important trading hubs in China, some of products could not be finished and therefore could not be delivered to end customers. Therefore, the potential revenues from the sale of these products could not be realized either, the company said in a statement.

Drager’s preliminary earnings before interest and taxes (EBIT) was negative around 87 million euros in 2022 compared to 271.7 million euros in 2021.

Drager’s net sales in fiscal year 2022 were 11.6 percent (net of currency effects) below the prior-year figure. Annual net sales around 3.04 billion euros down from 3.33 billion euros in the previous year.

Due to strong demand, order intake increased by 2.9 percent (net of currency effects) to around 3.29 billion euros from the prior year.

For the current fiscal year, Drager expects a gradual improvement in the availability of intermediate products and thus an improvement in delivery capacity. Based on the high order backlog, this would enable a significant acceleration in sales recognition and thus – despite the expected higher procurement and personnel costs – a return to growth and profitability.

Drager expects an increase in net sales of between 5.5 and 9.5 percent or 7.0 and 11.0 net of currency effects as well as an EBIT margin of between 0.0 and 3.0 percent in 2023.

The company will publish full and audited results for the 2022 fiscal year on March 9, 2023.

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