Nabaltec AG publishes report for the third quarter of 2023

Nabaltec AG publishes report for the third quarter of 2023

• Consolidated revenues of EUR 155.8 million in the first nine months (-6.8% compared to the same period of the previous year)
• Weak industry momentum and lack of impetus from customers continue to dampen demand in the third quarter
• EBIT of EUR 13.1 million in the first nine months of 2023 (same period in 2022: EUR 23.7 million)

Schwandorf, 23 November 2023 – Nabaltec AG published its report for the third quarter of 2023 today. According to the report, the company posted consolidated revenues of EUR 155.8 million in the first nine months of 2023, down from EUR 167.2 million in the same period of last year (-6.8%). In the third quarter of 2023, consolidated revenues amounted to EUR 49.8 million after EUR 56.5 million in the same quarter of the previous year (-11.9%). Sales volumes declined across both the "Functional Fillers" and "Specialty Alumina" product segments, which is attributable to weak industry momentum that has been clearly evident since the second quarter of 2023. Nabaltec's operating result (EBIT) amounted to EUR 13.1 million in the first nine months of 2023 (same period of last year: EUR 23.7 million), a decrease of 44.7%. The EBIT margin (EBIT as a percentage of total performance) was 8.4% in the first nine months of 2023.

"Signs of a noticeable slowdown in the industry's momentum had already emerged in the second quarter of this year, and this trend solidified over the course of the third quarter. Nabaltec was unable to escape this development," said Johannes Heckmann, CEO of Nabaltec AG. "The turnaround in the boehmite product range in the third quarter of 2023 compared to the two previous quarters is encouraging."

In the "Functional Fillers" product segment, Nabaltec posted revenues of EUR 109.9 million in the first nine months of 2023. Revenues in this segment amounted to EUR 113.4 million in the first nine months of last year (-3.1%). In the third quarter of 2023, revenues in the "Functional Fillers" segment amounted to EUR 35.6 million, which corresponds to a decline of 6.1% compared to the same quarter in 2022 (EUR 37.9 million). Revenues for boehmite increased in the third quarter of 2023 compared to the first two quarters of 2023. Revenues in the "Specialty Alumina" product segment amounted to EUR 14.1 million in the third quarter of 2023 after EUR 18.5 million in the same quarter of the previous year (-23.8%). In the first nine months of 2023, this segment therefore generated revenues of EUR 46.0 million after EUR 53.8 million in the same period of the previous year (-14.5%). The ongoing weakness in the steel industry is leaving its mark here.

Nabaltec AG posted earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 22.7 million in the first nine months of 2023, compared to EUR 33.5 million in the same period of 2022 (-32.2%). Operating cash flow amounted to EUR 14.8 million in the 2023 reporting period after EUR 29.0 million in the same period of the previous year. The significantly lower result for the period had an impact here. Free cash flow for the first nine months of 2023 amounted to EUR 6.6 million.

Nabaltec AG adjusted its forecast for the year as a whole on 4 August 2023 in light of the current market trend, which is characterized by generally weak demand and continued destocking by customers. The company now expects a year-on-year decline in revenues in a range of 4% to 6%. On the earnings side, the company forecasts an EBIT margin for 2023 in a range of 6% to 8%.

Note: Nabaltec AG’s interim report for the third quarter of 2023 will be available for download as of 23 November 2023 at www.nabaltec.de/en/investor-relations/financial-reports.

About Nabaltec AG:

Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide and aluminum oxide on an industrial scale through its two product segments, "Functional Fillers" and "Specialty Alumina." The company's product range includes eco-friendly flame retardant fillers and functional additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives have applications in catalysis and in electric vehicles. Nabaltec also produces specialty oxides for use in technical ceramics, the refractory and polishing industries. Nabaltec maintains production sites in Germany and the US and plans to continue to develop its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.

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