HansaMatrix Consolidated Interim Financial Report for the third quarter and 9 months of 2022
During first 9 months of 2022 the Group reported historically highest sales volume of 20.171 million EUR, representing 18% increase compared to the same period of 2021. During first 9 months of 2022 the Group reported 9-month EBITDA result of 1.668 million EUR and operated with 8.3% EBITDA margin. During the third quarter of 2022 the Group reported historically highest revenue in amount of 7.586 million EUR, representing increase by 44% in comparison to the same period of 2021. The Group reported quarterly EBITDA result of 0.430 million EUR and operated with EBITDA margin of 5.67%.
In the third quarter of 2022 the Group reported historically highest revenue from contracts with customers of 7.586 million EUR, representing increase by 44% in comparison to the same period of 2021. The 2022 Q3 sales results showed 16% sales volume increase in comparison with previous quarter – 2022 Q2.
During first 9 months of 2022 the Group reported sales volume increase by 18% compared to the same period of 2021 and revenue reached historically highest 9 months volume 20.171 million EUR.
The growth of revenue was supported by strong demand in key sectors that coupled with active sales process and the global semiconductor deficit has resulted in significant order book volume as at the end of Q3 2022, amounting to 19.2 million EUR, as a result of slightly improving component availability, decreasing by 12% compared to the respective figure as at the end of Q2 2022.
During 2022 Q3 the Group reported quarterly EBITDA result of 0.430 million EUR and operated with net loss result of 0.562 million EUR. The reported EBITDA result shows 54% decrease in comparison with Q3 2021 and remained unchanged compared to previous quarter of 2022 Q2. In Q3 2022 the Group reported net loss 0.562 million EUR as compared to the net profit of 0.295 million EUR in Q3 2021 and net loss of 0.686 million EUR in Q2 2022. Quarterly results represent EBITDA margin of 5.67%.
During the 9m period of 2022 the Group reported EBITDA result of 1.668 million EUR and net loss result of 1.293 million EUR. The reported EBITDA result shows 50% decrease in comparison with 2021 9m. In 9 months of 2022, the Company operated with a net loss of 1.293 million EUR as compared to the net profit of 0.014 million EUR in 9m 2021. In 9 months of 2022, the Company operated with 8.3% EBITDA margin.
Q3 and 9m 2022 EBITDA profitability decrease compared to Q3 2021 and 9m 2021 is explained by changes in the product mix of manufactured products, where higher-added value products proportion decreased, which was influenced by the global semiconductor deficit.
Net profit of the Group in Q3 2022 is negatively influenced by several non-cash related items, the most significant including loss from investments in associates in amount of 0.296 million EUR, USD/EUR exchange rate fluctuations 0.187 million EUR, EIB loan fair value change provisions in amount of 0.083 million EUR and interest expense related to leases in amount of 0.044 million EUR.
The non-cash items negatively influencing net profit of the Company in 9m 2022 include loss from investments in associates 1.081 million EUR, EIB loan fair value change provisions – 0.257 million EUR, USD/EUR exchange rate fluctuations – 0.276 million EUR and interest expense related to leases – 0.128 million EUR.
For better inter-period profitability comparisons, the Company calculates normalized net profit, which in Q3 2022 amounted to negative 0.029 million EUR compared to Q3 2021 0.332 million EUR 9m 2022 normalized net profit amounted to 0.002 million EUR.
In 9m 2022 (including Q2 2022) the Group carried out revaluation of fair value of warrants issued in relation to European Investment Bank (EIB) financing contract, decreasing warrant balance sheet value by 0.498 million EUR (0.083 million EUR in Q3 2022), due to decreasing average weighted price of HansaMatrix stock in 9m 2022 (in Q3 2022), which by the same amount improved net profit in 9m 2022 (in Q3 2022).
TTM – trailing twelve-month period sales ending with September 30, 2022, reached historically highest level of 25.009 million EUR, increasing 10% compared to TTM sales for the period ended at 2021. EBITDA result for the TTM 12-month period reported to be 2.078 million EUR, a decrease of 50% in comparison with 12-month period ended at 2021 Q3, and resulted in a net loss of -3,259 million EUR whereas normalized net profit in this period amounted to -0.308 million EUR. In the end of Q3 2022 averaged EBITDA margin for TTM period of 8.31% was reported.
The definitions of alternative performance indicators (APIs) used in the news release can be found on page 47 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.