CR Energy AG Financial Performance Update and Future Prospects

CR Energy AG reported its financial performance for the fiscal year 2023, showing figures slightly above the initial projections made in March. The company, under ISIN DE000A2GS625, recorded a decline in year-on-year sales by 14%, totaling €68.8 million, primarily from income generated through its investment business activities. This decrease was mainly due to lower valuation gains within the holding portfolio, although partially offset by a significant 78% increase in cash contributions from holding companies, summing up to €29.8 million.

The company’s EBIT for FY 2023 stood at €66.4 million, up from the preliminary €65 million, marking a margin improvement of 70 basis points to 96.8%. This improvement was attributed to reductions in personnel and other operational expenses. Furthermore, CR Energy highlighted its strong cash generation ability, with a 42% year-on-year increase in CFO, reaching €23.5 million, or €4.16 per share.

Amid its financial disclosures, CR Energy announced plans to launch a European Long Term Investment Fund through its subsidiary, CR Opportunities. This initiative is aimed to secure and optimize existing properties for energy efficiency enhancements and support Terrabau’s real estate projects. The fund, targeting a growth in assets under management by €100 million annually till 2027, will be accessible to both institutional and private investors.

An additional corporate action includes the proposal for issuing bonus shares to shareholders at a 1:3 ratio, shifting €17.7 million from retained earnings to the capital reserve, with plans to resume cash dividends in subsequent years. The stock maintains a "Buy" recommendation with a target price of €48, as per the latest analysis by NuWays AG.