A ThyssenKrupp Nucera banner is displayed in front of the Frankfurt Stock Exchange ahead of ThyssenKrupp Nucera’s IPO July 7, 2023 in Frankfurt, Germany. REUTERS/Kai Pfaffenbach/File Photo acquire license rights
- Q3 sales almost doubled; EBIT increase by 59%
- Planned expansion of the workforce and locations
- Investments in growth weigh on the EBIT margin
BERLIN, Aug 28 (Reuters) – Thyssenkrupp Nucera (NCH2.DE) laid out growth plans on Monday after the company reported strong sales and operating results as the company works to meet growing demand for green hydrogen, considered key for the decarbonization of the German economy.
“Further strong worldwide headcount expansion is planned and necessary to achieve our growth targets,” CEO Werner Ponikwar told reporters after the presentation of the quarterly results.
The company, which Thyssenkrupp (TKAG.DE) majority owns after going public in July with a blockbuster market debut, also wants to expand production with new locations, including in India.
So-called green hydrogen, produced with renewable energy, is still in its infancy but is considered a key energy source on the way to a lower-carbon economy in Germany and other countries in the European Union.
Releasing its first financial results since the IPO, Nucera announced that earnings before interest and taxes (EBIT) increased 59% year-on-year to 7 million euros ($7.56 million) for the third quarter of fiscal 2022/23 be.
Sales almost doubled to EUR 187.5 million, mainly driven by alkaline water electrolysis, where investors see potential for rapid business expansion.
Shares of Nucera rose as much as 5% after the earnings release before settling around 4.2% up by late morning.
The company confirmed its mid- and long-term targets but warned that spending necessary to support its growth strategy would weigh on its EBIT margin, which came in at 3.7% in the third quarter, up from 4.4% a year earlier.
The company expects the EBIT margin to turn negative next quarter, but chief financial officer Arno Pfannschmidt said he still expects a positive result for this fiscal year.
As stated in the stock exchange prospectus, Nucera intends to forgo a dividend for the foreseeable future.
“We want to invest all the funds available to us in growth,” said Pfannschmidt.
($1 = 0.9258 euros)
writing by Rachel More; Edited by Alison Williams, Kirsti Knolle and Mike Harrison
Our standards: The Thomson Reuters Trust Principles.
Comments are closed.