Pfeiffer Vacuum Reports Sustained Strong Demand in First Quarter 2023
Image source: Pfeiffer Vacuum Technology AG
The operating result increased by 2.9%, reaching EUR 32.2 million (Q1 2022: EUR 31.3 million), representing an EBIT margin of 12.8% (Q1 2022: 14.5%). Furthermore, the order intake during the first quarter was EUR 238.7 million (Q1 2022: EUR 286.2 million) and the order backlog stood at EUR 488.3 million at the end of the first quarter 2023 (Q1 2022: EUR 386.4 million). These key financials are in-line with the Company’s forecast for the full fiscal year 2023.
The sales increase was driven by a strong performance in all market segments. Sales in the Semiconductor and Emerging Technologies market segment increased by 10.7% to EUR 124.7 million (Q1 2022: EUR 112.7 million). The sales in the Analytics, Industry and R&D market segment improved by 24.2% to EUR 128.3 million (Q1 2022: EUR 103.3 million) with continued broad-based demand.
The operating result (EBIT) increased by 2.9% to EUR 32.2 million (Q1 2022: EUR 31.3 million) and the EBIT margin was 12.8% (Q1 2022: 14.5%). The year-over-year increase in EBIT was primarily a result of the sales increase and related scale economies. The beneficial developments were partially offset by inflation as well as activities to increase production capacity and the development and expansion of the global IT infrastructure.
The book-to-bill ratio, the ratio of order intake to sales, was at a level of 0.94 for the first quarter 2023. The order backlog of EUR 488.3 million represents an increase of 26.4% compared to the previous year (March 31, 2022: EUR 386.4 million) and a slight decrease of 2.9% compared to year-end 2022 (December 31, 2022: EUR 502.7 million).
“The first quarter 2023 was again strong for Pfeiffer Vacuum”, says Dr. Britta Giesen, CEO of Pfeiffer Vacuum Technology AG. “The demand for our products and services remained at high levels across our market segments. However, we expect a slow-down in demand related to the semiconductor market conditions later in 2023. Our focus will remain on being agile in responding to demand shifts in the market and meeting the requirements of our customers. At the same time, we are positioning Pfeiffer Vacuum for medium- and long-term growth by modernizing and expanding our production capacities as well as by building a globally integrated IT infrastructure.”
The gross profit in the reporting period was EUR 97.6 million (Q1 2022: EUR 78.7 million). The year-over-year increase of 24.0% is due to positive economies of scale related to increased sales.
Net income increased by 2.8% to EUR 22.8 million (Q1 2022: EUR 22.2 million), representing earnings per share of EUR 2.31 (Q1 2022: EUR 2.25).
In sales by region, which describes sales according to the location of the customers in their corresponding region, Asia achieved an increase in sales of 13.7% to EUR 101.6 million (Q1 2022: EUR 89.4 million). Europe showed an increase of 15.2% to EUR 84.8 million (Q1 2022: 73.6 million). Sales in the Americas increased by 25.9% to EUR 66.6 million (Q1 2022: EUR 52.9 million).
Balance sheet and cash-flow
Total assets at the end of the first quarter 2023 were EUR 905.4 million, up 4.8% from year-end 2022 (December 31, 2022: EUR 863.7 million). Cash and cash equivalents were EUR 71.3 million (December 31, 2022: EUR 67.8 million). The equity ratio remained at a solid level of 60.5%, slightly below year-end 2022 (December 31, 2022: 61.5%). Capital expenditures in the first quarter nearly doubled to EUR 21.0 million and were mainly used for expanding production capacity (Q1 2022: EUR 11.1 million).
Outlook for the 2023 fiscal year unchanged
The Company confirms its guidance and continues to expect consolidated sales for the fiscal year 2023 to be approximately at the same level as for the fiscal year 2022 (EUR 916.7 million). The EBIT margin expectations for the full year 2023 remain at around 12%. In addition, capital expenditures of about EUR 100 million are planned for the fiscal year 2023. The Company expects the second quarter 2023 again to be solid due to the currently strong backlog with demand slowing in the later part of 2023 related to semiconductor market conditions.
As announced at the Annual General Meeting of Pfeiffer Vacuum on May 2nd, 2023, the Supervisory Board has decided to extend the Management Board service contract of Dr. Britta Giesen, CEO, for another five-year term until December 31, 2028.
Source: Pfeiffer Vacuum Technology AG