Insider information pursuant to Article 17
of the Market Abuse Regulation [MAR]

H&R GmbH & Co. KGaA: Preliminary figures for the third quarter of 2021

- Lower macroeconomic dynamics dampen the third quarter of 2021

- EBITDA for the nine-month period of EUR 111.3 million is nevertheless significantly higher than the previous year

- Expected results could be exceeded by up to a further 10 percent

Salzbergen, Germany, November 2, 2021. H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; ISIN DE000A2E4T77) showed a significant improvement of the company's sales volumes and earnings development at the end of the third quarter of 2021. According to preliminary calculations, the consolidated operating result (EBITDA *) in the third quarter was EUR 36.8 million (Q3-2020: EUR 14.1 million). It clearly exceeded the same quarter of the previous year and also marked the second strongest contribution to operating earnings this year. Compared to the very good previous quarter Q2-2021, however, weaker macroeconomic dynamics became noticeable. At the remaining levels, the results also exceeded the previous year: EBIT closed at EUR 24.1 million after last year's EUR 1.9 million. Earnings before taxes (EBT) in the third quarter of 2021 increased significantly to EUR 22.6 Million (Q3-2020: EUR -0.1 million), the company closed the net income attributable to shareholders with EUR 16.0 million (Q3-2020: EUR -1.2 million). Sales revenues in the third quarter of the current financial year rose to EUR 319.7 million (Q3-2020: EUR 208.1 million), in particular due to higher raw material prices during the current year.

When looking at the entire nine-month period 2021, EBITDA showed a clear improvement compared to last year, due to the already very good half-year figures and based on sales that were also better (Nine months 2021: EUR 878.2 million; nine months 2020: EUR 649.9 million). The company provisionally achieved an operating result (EBITDA) of EUR 111.3 million (Nine months 2020: EUR 30.7 million). Depreciation in an overall amount comparable to the previous year only had a slightly more negative impact on EBIT, which amounted to EUR 73.2 million (Nine months 2020: EUR -6.8 million). Earnings before taxes (EBT) showed a comparable trend at EUR 67.0 million (Nine months 2020: EUR -12.8 million). The shareholders' net result closed at EUR 47.0 million (Nine months 2020: EUR -14.8 million). H&R KGaA thus generated earnings per share of EUR 1.26. With EUR 0.43 (Nine months 2020: EUR -0.40; Q3-2020: EUR -0.03) the third quarter of 2021 contributed more than a third to this amount.

Compared to the previous quarter, however, the three-month period from July to September 2021 lost some of its momentum and was not completely unaffected by macroeconomic trends such as the slower growing economy, international delivery and logistics difficulties and higher energy prices.

The ChemPharm REFINING segment once again made the major contribution to earnings. It performed significantly better in the third quarter of 2021 with an EBITDA of EUR 30.9 million (Q3-2020: EUR 8.7 million) than in the same quarter of the previous year. At EUR 89.8 million (nine months 2020: EUR 15.7 million), the recovery was also at a gratifying level for the nine-month period. Sales in the segment reached EUR 556.2 million for the nine-month period (Nine months 2020: EUR 397.5 million). Our international activities in the ChemPharm SALES segment recorded better operating results overall with EUR 6.6 million in the third quarter and EUR 21.8 million in the nine-month period (Q3-2020: EUR 6.5 million; Nine months 2020: EUR 17.8 Million). Sales in the nine-month period increased significantly to EUR 299.2 million over the previous year (nine months 2020: EUR 229.5 million). The PLASTICS segment generated a significantly improved operating result for the nine-month period compared to the previous year, but remained almost unchanged at the quarterly level compared to 2020. It achieved EUR 0.5 million and EUR 2.3 million (Q3-2020: EUR 0.4 million; Nine months 2020: EUR 0.2 million). Sales remained with EUR 10.9 million and EUR 32.4 million at a subdued level compared to the previous year's figures (Q3-2020: EUR 11.0 million; Nine months 2020: EUR 29.2 million), caused by the still tense conditions of the automotive industry.

Operating cash flow noted weaker in the nine-month period of 2021. During the year, it was primarily impacted by the higher raw material prices and the associated higher net working capital requirement. In total, it amounted to EUR 17.1 million in the third quarter of 2021 (Q3-2020: 41.7 million), free cash flow amounted to EUR -30.4 million (Q3-2020: EUR -5.1 million). As of September 30th the operating cash flow was EUR 13.1 million (Nine months 2020: EUR 44.6 million). The free cash flow stood at EUR -25.5 million after EUR 14.4 million.

The balance sheet total increased from EUR 745.7 million as of December 31, 2020 to EUR 847.1 million. Equity increased from EUR 346.9 million to EUR 402.2 million in the same period. As of September 30, 2021, the Company's equity ratio was 47.5 % (December 31, 2020: 46.5 %).

After a very good development in the first half of 2021, the start of the second half of the year was somewhat more subdued. The company currently sees a similar development for the final quarter. Nevertheless, all indicators continue to point to a very good full-year result, whose minimum expectation of EUR 115.0 million could be exceeded again by up to 10 percent.

The final financial figures and additional information on business performance to date in 2021 will be published as planned on November 12, 2021 in the quarterly statement.
 

* Consolidated income before tax, other financial income and expenses and depreciation / amortization, impairment and appreciation of fixed assets and property, plant and equipment

Contact:
H&R GmbH & Co. KGaA, Head of Investor Relations / Communication, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: ties.kaiser@hur.com
www.hur.com

H&R GmbH & Co. KGaA:
H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil-based chemical and pharmaceutical specialty products and produces high-precision plastic parts.

Forward-looking statements and forecasts:
This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.