GESCO SE: Preliminary figures for Q3 2023 and change in forecast for financial year 2023

According to preliminary and unaudited figures, Group sales in Q3 2023 amounted to around EUR 138.6 million (Q3 2022: EUR 144.1 million), resulting in preliminary Group sales of around EUR 430.7 million in the first nine months of 2023 (9M 2022: EUR 435.4 million). Operating Group EBIT in the third quarter of 2023 totalled around EUR 8.3 million (Q3 2022: EUR 15.0 million). For the first nine months, the Group generated therefore Group EBIT of around EUR 31.2 million (9M 2022: EUR 40.8 million) before impairments.

The main reasons for the decline in sales and earnings are the effects of falling material prices and the continuing poor development in the construction industry. The subsidiaries AstroPlast Kunststofftechnik and Franz Funke Zerspanungstechnik are particularly affected by the difficult economic situation.

The market position of these subsidiaries does not yet fulfil GESCO's expectations and, in connection with the current economic developments in the construction industry, has led to non-cash impairment losses on the investments of approximately EUR 5 - 6 million in the Healthcare and Infrastructure Technology segment.

Business development in the 3rd quarter was therefore significantly weaker than planned. According to current estimates, the expected recovery in the second half of the year and especially in the fourth quarter will not materialise. This necessitates an adjustment to the previous forecast.

The persistently weak business momentum in recent weeks and the resulting need for balance sheet impairments have prompted the Executive Board to adjust the forecast for the current financial year. The Executive Board now expects consolidated sales of EUR 555 - 575 million for the 2023 financial year (previously: around EUR 600 - 620 million) and consolidated net income after minorities of around EUR 19.5 - 21.5 million (previously: EUR 32 - 34 million) after non-cash impairments of EUR 5 - 6 million.

The interim report for the third quarter and the first nine months of 2023 will be published on 10 November 2023.

About GESCO:

GESCO SE is an industrial group with market- and technology-leading companies in the capital goods industry specialising in process technology, resource technology, as well as healthcare and infrastructure technology. As a Prime Standard-listed company, GESCO SE gives private and institutional investors access to a portfolio of hidden champions in the German industrial SME sector.

Contact:

Peter Alex
Head of Investor Relations & Communications
Phone +49 (0) 202 24820-18
Fax +49 (0) 202 24820-49
E-mail: ir@gesco.de
Internet: www.gesco.de