JOST WERKE SE JOST WERKE SE - MAY 15, 2024
RESULTS 1ST QUARTER 2024
JOACHIM DÜRR (CEO) & OLIVER GANTZERT (CFO)
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2 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Financial Highlights in Q1 2024
Sales reached €299m in Q1 2024, partially supported by €21m M&A contribution
Adj. EBIT margin remained strong on prior year's level at 11.6% despite sales decline and adj. EBIT reached €35m
Free cashflow more than doubled to €35m and leverage improved down to 0.93x
Adj. EPS at €1.70 per share
with adj. net earnings to sales ratio remaining high at 8.5%
Outlook for 2024 confirmed
3 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Market Development Q1 2024 vs. Q1 2023
EUROPE
NORTH AMERICA
ASIA-PACIFIC-AFRICA
INDUSTRY (volume)
TRUCK MARKET
TRAILER MARKET
TRACTOR MARKET
-18%
-19%
-20%
Market normalization vs. strong pent-up-demand driven Q1 2023
Trailer markets contracted in Q1 2024 compared to strong prior year's quarter
Tractor markets declined further due to uncertainties regarding interest rates
-15% | Market normalization vs. |
strong pent-up-demand | |
driven Q1 2023 | |
-25% | Typical cyclical decline for |
trailers in North America after | |
strong three years of growth | |
Production for compact and | |
-25% | low HP tractors remained weak |
due to destocking effects
+5% Truck demand continued to recover in China and remained robust in other APA countries
+4% Trailer demand remained high, driven by India, the Pacific region and a recovering China
Tractor demand in APA -12% contracted compared to
previous year
ORGANIC
Due to high market shares, -18% JOST sales developed in line
with market in Europe
High exposure to trailer market -28% as well as weakness in compact
sector impacted sales
JOST benefited from solid demand
+5% in Transport and increasing market penetration in agriculture
Note: Market estimates based on LMC, Clear Consulting, FTR, OEM announcements (May 2024)
4 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
KEY FINANCIALS Q1 2024
5 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Europe - Demand normalizes after strong pent-up-effects in prior year
Sales (€m)
Adj. EBIT (€m)
Reported | -7.9% | ||||||
Growth | |||||||
Organic | |||||||
189 | -18.0% | ||||||
174 | |||||||
Q1 2023 | Q1 2024 | |||||||
Adj. EBIT | ||||||||
8.5% | 8.0% | |||||||
margin (%) | ||||||||
Adj. EBIT | -13.1% | |||||||
growth (%) | ||||||||
16.0 | 13.9 |
Q1 2023 | Q1 2024 |
- Cyclical normalization of truck and trailer markets after very strong
pent-up-demand driven prior year's quarter
- Consolidation of JACSA (former: Crenlo do Brasil) and LH Lift increased sales by 19m€ in Region Europe
- FX impacts did not affect sales in Europe in Q1 2024
- Stable supply chains and lower freight rates
- Higher proportion of fixed costs, due to headquarter costs and R&D allocated to Europe
- Adj. EBIT-margin only down by -0.5pp despite higher fixed costs
- Higher share of aftermarket and agricultural business stabilized margin development
6 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
North America - Strong profitability boost despite sales decline
Sales (€m)
Reported | -28.8% | ||
Growth | |||
Organic | |||
-28.0% | |||
103 |
73
Q1 2023 | Q1 2024 |
- Sales burdened by cyclical decline in North America after strong pent-up demand in prior year's quarter
- Strong decline in compact-loader market still ongoing
- FX headwinds of -0.8pp in Q1 2024
Adj. EBIT (€m)
Adj. EBIT margin (%)
Adj. EBIT growth (%)
10.5%
10.8
11.0%
-25.2%
8.1
- Boost in profitability through efficiency gains and portfolio clean-ups
- Strong aftermarket proportion supporting profitability increase
- Quick and effective cost reduction due to high flexibility of business
Q1 2023 | Q1 2024 |
7 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Asia-Pacific-Africa - Robust demand for transport products continues
Sales (€m)
Adj. EBIT (€m)
Reported Growth
Organic
Adj. EBIT margin (%)
Adj. EBIT growth (%)
3.1%
4.9%
5051
Q1 2023 | Q1 2024 | ||||||
22.5% | 20.9% | ||||||
-4.1% | |||||||
11.210.7
- Robust markets in India, Australia, New Zealand & South Africa, surpassing strong basis of prior year
- Ongoing recovery of Chinese truck and trailer market
- LH Lift sales in China supported Q1 growth with €1.7m
- Strong FX headwinds of -5.1pp burdened reported sales growth
- Strong regional profitability due to high share of off-road business
- Slightly less favorable regional mix due to growing China sales
- Increasing proportion of agricultural business
Q1 2023 | Q1 2024 |
8 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Group - JOST maintains strong profitability despite sales decline
Reported | |
Growth | |
Sales (€m) | Organic |
Transport Agriculture |
Adj. EBIT | |
(€m) | margin (%) |
Adj. EBIT | |
EBITAdj. | growth (%) |
-12.7%
-17.7%
342 | 299 | |
76 | ||
72 | -5% | |
266 | 227 | -15% |
Q1 2023 | Q1 2024 |
11.6% | 11.6% |
-12.8%
39.734.6
- Cyclical decline for Transport in Europe and North America (organic -13.5%)
- Markets for agricultural loaders continue to be weak (organic -32.2%)
- FX headwinds of -1.0pp affected reported sales
- Consolidation of M&As supported nominal sales in Q1 with €20.8m (Agriculture share in Q1 2024 = 24% vs 22% in Q1 2023)
- Profitability remains strong despite sales decline
- Resilient aftermarket business in both business lines
- Efficiency gains and strict cost control paired with active portfolio management support strong adj. EBIT margin
Q1 2023 | Q1 2024 |
9 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
Adjusted Net Income and Adjusted EPS improved
1 | - Interest payments for 3rd party debt increased by | |||||||||
6 | €1.4m as a result of rising EURIBOR | |||||||||
35 | + Taxes declined by 19% compared to Q1 2023 | |||||||||
5 | ||||||||||
-5 | ||||||||||
30 | ||||||||||
3 | 28 | Reported EPS amounted to €1.34 (Q1 2023: €1.61) | ||||||||
-5 | 25 | |||||||||
20 | EPS declined due to overall sales decline | |||||||||
PPA D&A adjustment in line with prior year | ||||||||||
Adj. EPS amounted to €1.70 (Q1 2023: €1.99) | ||||||||||
Adj. net earnings to sales ratio remained very | ||||||||||
strong at 8.5%, despite sales decline | ||||||||||
Net Income | Taxes | Finance | EBIT | D&A | Other | Adj. EBIT | Finance | Adj. | Adj. Net | Adj. Net |
Q1 2024 | Q1 2024 | Result | Q1 2024 | of PPA | Exceptionals | Q1 2024 | Result | Tax Rate | Income | Income |
Q1 2024 | Q1 2024 | Q1 2024 | Q1 2023 |
10 | JOST Werke SE - ANALYSTS' AND INVESTORS' CONFERENCE CALL Q1 2024 RESULTS |
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JOST Werke AG published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:24 UTC.
