H&R GmbH & Co. KGaA: Preliminary business results 2021

- Provisional operating results (EBITDA) of EUR 131,8 million exceeds previous year and last forecast

Salzbergen, Germany, February 07, 2022. According to preliminary calculations, H&R GmbH & Co. KGaA (abbrev.: H&R KGaA; DE000A2E4T77) achieved a significantly better operating income (EBITDA - consolidated income before tax, other financial income and expenses and depreciation/amortization, impairment and appreciation of fixed assets and property, plant and equipment) of EUR 131.8 million in the financial year 2021 than in the same period of the previous year (2020: EUR 55.8 million).

Based on the improved EBITDA, the other earnings levels also developed extremely positive: EBIT was EUR 80.9 million (2020: EUR -0.3 million), earnings before taxes (EBT) came up at EUR 72.6 million (2020: EUR -10.4 million). All in all, the net result attributable to shareholders amounted to EUR 49.4 million (2020: EUR -9.0 million). This figure was achieved with sales of EUR 1,188.3 million, around 36.1% more than in the previous year (2020: EUR 873.0 million). This was not only due to prices, but also as a result of better volumes.

Overall, a successful year for H&R despite the global pandemic and market volatility

In principle, the circumstances surrounding the COVID-19 pandemic remained key global economic factors of overriding importance in 2021 and shaped economic development directly or at least indirectly. During the year, difficulties within the logistics chains and in the supply of raw materials in particular slowed down the growth of many key industries. For H&R, the good earnings figures for the second and third quarters in particular provided a good financial cushion and, despite a weaker final quarter of 2021 compared to the previous year, secured the best result in the company's history. Q4/2021 contributed a preliminary operating result of EUR 20.6 million to this full-year EBITDA (Q4/2020: EUR 25.1 million). The other earnings levels were inconsistent: EBIT and EBT in the fourth quarter exceeded the previous year at EUR 7.6 million and EUR 5.6 million (Q4/2020: EUR 6.5 million and EUR 2.3 million respectively). ). On the other hand, due to the higher tax expense, the net result attributable to shareholders was down on the previous year at EUR 2.3 million (Q4/2020: EUR 5.8 million). On a quarterly basis, the company generated sales of EUR 310.2 million, up 39.0% on the same period of the previous year (Q4/2020: EUR 223.1 million).

Operating cash flow 2021 positive

For the year as a whole, the operating cash flow fell from EUR 60.1 million to EUR 37.7 million compared to the previous year, despite better consolidated earnings and comparable depreciation. This was primarily due to higher raw material costs, which resulted in a significant increase in net working capital requirements. Higher cash outflows for investments also burdened the free cash flow, which fell from EUR 22.0 million to EUR -11.1 million.

The development for Q4/2021, on the other hand, was significantly more positive: Here, the operating cash flow was higher at EUR 24.6 million after EUR 15.6 million in the same quarter of the previous year. At the same time, free cash flow also recovered significantly to EUR 14.4 million (Q4/2020: EUR 7.7 million).

The balance sheet total at the end of the 2021 financial year was EUR 874.4 million (December 31, 2020: EUR 745.7 million). Equity as of the balance sheet date was EUR 408.6 million (December 31, 2020: EUR 346.9 million). Equity is quoted at 46.7% (December 31, 2020: 46.5%).

For a complete presentation of the business development including the segment reporting and the annual financial statements, H&R KGaA refers to the publication of the 2021 annual report on March 31, 2022.

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.