SBF with significant revenue growth in financial year 2022 – significant revenue and earnings growth expected in 2023

SBF with significant revenue growth in financial year 2022 – significant revenue and earnings growth expected in 2023

• Revenue increases to EUR 34.8 million in the 2022 financial year (2021: EUR 31.2 million)
• EBITDA reaches EUR 2.3 million (2021: EUR 5.2 million)
• Continuation of the growth course
• Temporary burden on results due to difficult macroeconomic conditions
• Outlook 2023: Revenue of more than EUR 40.0 million and significantly increasing EBITDA

Leipzig, 26 April 2023 – SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, “SBF”), a listed supplier of LED lighting systems for rolling stock, municipalities, railways and industry, has published its annual report for the year 2022. In a volatile macroeconomic environment, SBF has managed to continue on the growth path of previous years.

Revenue increased by around 12 percent to 34.8 million euros in the 2022 financial year (2021: 31.2 million euros). EBITDA reached around 2.3 million euros after an EBITDA of 5.2 million euros in the previous year. The main reasons for the temporarily lower profitability were the limited availability of materials, order postponements into the new financial year and individual order cancellations due to the Russian embargo. In addition, the increased procurement costs could only be passed on to customers with a time lag.

Rudolf Witt, Member of the Executive Board of SBF AG comments: “The past financial year was characterised by ongoing supply chain problems, the shortage of electronic parts and the sharp rise in procurement costs. Nevertheless, in this challenging environment, we have managed to continue to grow and position ourselves well for the 2023 financial year. With our strategic inventory levels, increased local content requirements and a well-filled order pipeline, we are confident about the future.”

Both segments structurally prepared for further growth
The “Rolling Stock” business unit showed stable development overall. It contributed revenue of EUR 21.0 million* (2021: EUR 21.5 million) and EBITDA of EUR 2.5 million (2021: EUR 3.8 million) to the Group result. The EBITDA margin fell accordingly from 17.7% to 11.9%. In particular, the higher procurement and personnel costs had an impact on the result. Due to the good delivery performance, the high quality of the products and the many years of customer-oriented cooperation, SBF has already received long-term major orders in the past months. The market outlook therefore remains extremely good.

The “Public and Industrial Lighting” business segment achieved a jump in revenues in the 2022 financial year due to the ramp-up of production at the new location in Springe with the newly acquired assets of Nordeon Lighting Solutions GmbH. Segment revenues were EUR 15.1 million* (2021: EUR 11.0 million). Segment EBITDA was EUR -0.1 million (2021: EUR 2.4 million). The decline in the result is due to one-off costs for the integration of the newly acquired assets and the establishment of the location. In addition, this segment was affected by the limited availability of individual components and rising material costs. In order to better meet the challenges in the procurement market in the future and to handle projects even more efficiently, the inventory was strategically expanded at the end of 2022. This provides the necessary flexibility to react to current market conditions and to ensure the ability to deliver. The restructuring of the processes is already showing positive signs, so that the growth prospects in the segment remain extremely good.

Significant growth in revenue and earnings expected for 2023
The company has prepared itself for the challenges – among other things with stronger local content requirements for suppliers. For the current financial year 2023, the Executive Board expects a significant growth in revenue to more than 40 million euros and a renewed increase in EBITDA. In the long term, the Executive Board sees further growth potential due to the positive market environment and planned acquisitions.

* The difference between the added segment revenue and the Group revenue is due to consolidation effects.

About the SBF Group:
SBF is a listed supplier of LED lighting systems for rolling stock, municipalities, railways and industry. With its focus on energy-efficient LED lighting, SBF is benefiting from the megatrends of climate protection and urbanisation and expects double-digit growth rates in the coming years. SBF is focusing on organic and inorganic growth to expand its range of services and increase the depth of value creation.

In the business field “Rolling Stock”, SBF is a Tier 1 supplier of complex ceiling and lighting systems for the world's leading rail vehicle manufacturers. Strong technological competence, high vertical integration and customised customer solutions are the basis for a leading market position in a market with high barriers to entry. In the “Public and Industrial Lighting” business segment, SBF offers modern and smart LED systems for the efficient lighting of industrial plants and infrastructure such as roads and railway stations.

Further information at https://www.sbf-ag.com.

Company contact:

SBF AG
The Board of Directors
Zaucheweg 4
04316 Leipzig
Tel: +49 (0)341 65235 894
E-Mail: info@sbf-ag.com

Press contact:

Kirchhoff Consult AG
Alexander Neblung
Borselstrasse 20
22765 Hamburg
Tel: +49 (0)40 60 91 86 70
E-Mail: sbf@kirchhoff.de