Schweizer Electronic Confirms Consolidated Figures for 2021, Outlook for 2022

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SCHWEIZER publishes the full report for the 2021 financial year and confirms the preliminary figures. The SCHWEIZER Group (in accordance with IFRS) achieved sales of EUR 122.7 million in 2021 (previous year: EUR 98.3 million). This corresponds to an increase of almost 25 percent compared to the previous year, which was made possible by significant market share gains. This growth trend is supported by incoming orders in 2021 to the amount of EUR 175.2 million (previous year: EUR 78.4 million). Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR -8.5 million (2020: EUR -9.5 million). The EBITDA ratio improved compared to the previous year to -6.9 percent (2020: -9.7 percent). The Group excluding China achieved EBITDA of EUR +9.1 million in 2021. This means that both the development of sales and EBITDA are within the company’s expectations. As of 31 December 2021, the equity ratio was 5.3 percent (previous year: 17.4 percent). Taking into account the shareholding (completed in January 2022) in the SCHWEIZER Chinese subsidiary of strategic partner WUS Printed Circuit (Kunshan) Co., Ltd. based in China (WUS), the equity ratio amounts to 10.5 percent. The holding occurred as part of a capital increase, whereby the SCHWEIZER Group received equity of EUR 10.5 million.

Nicolas-Fabian Schweizer, CEO of Schweizer Electronic AG, said: "The past financial year has once again brought many challenges. Even though the general conditions have been different to what we expected in the past two years, we are still very satisfied with what we have achieved. The restructuring of the Schramberg site, which began in 2020, was very successful. After a loss-making year, we were able to achieve a successful turnaround and bring the Schramberg site back into the profit zone in 2021. In 2022, we will continue on this path."

Marc Bunz, Chief Financial Officer, added: "We also expect positive momentum for our business volume in 2022. This expectation is driven by the ongoing ramp-up of our Chinese plant and increased capacity utilization at the plant in Schramberg. Profitability will be clearly determined by development at the Chinese plant, in line with 2021. On the balance sheet, our focus is on strengthening the equity base, especially at our Chinese subsidiary."  

Development in the fourth quarter

In the fourth quarter, the Group’s operating results largely improved compared to the previous quarters. In particular, gross profit recovered significantly to EUR -0.3 million. This can be ascribed in particular to the measures implemented in the new plant in China to reduce local losses. With consolidated sales of EUR 32.4 million, an EBITDA ratio of -4.9 percent was achieved in the fourth quarter. An adjustment to the deferred tax credit for the plant in China, on the other hand, led to an after-tax loss of EUR -8.6 million in the final quarter of 2021.

The results of Schweizer Electronic AG (according to HGB) in Schramberg recorded a very positive development. In 2021, turnover was EUR 90.6 million, an increase of 19 percent compared to the previous year. This was achieved despite the still very difficult European market environment. The clear turnaround was evident in the earnings situation. After a loss in the two previous years, the operating profit (EBIT) amounted to EUR +2.0 million, which corresponds to an improvement of EUR +9.5 million compared to the previous year. The equity ratio of the individual company rose to 43.8 percent (previous year: 41.8 percent).

Expectations for the 2022 financial year

Development for 2022 is difficult to assess due to the geopolitical situation, in particular the war in Ukraine, and the intensified pandemic measures in China. Despite the very high order backlog, there is a great deal of uncertainty. Taking into account the currently known opportunities and risks, the Executive Board expects further sales growth of between +10 and +20 percent for 2022. The start of series production of embedding technology will contribute to this, among other things. It is expected that rising energy and commodity prices will make it more difficult to improve operating results. The EBITDA ratio is expected to be between -4 and +1 percent. Ongoing measures to improve earnings will continue unabated. The expectation for the equity ratio is between 6 and 11 percent. Further capital measures are planned for this purpose.