VAT Group AG / Key word(s): Preliminary Results
VAT continues strong growth; Record Levels for Half-year sales, EBITDA, EBITDA margin and Free cash Flow; Full-Year expectations REMAIN positive
Based on preliminary figures, VAT’s second-quarter and half-year 2022 results are substantially above the previous year’s periods, confirming the positive outlook given earlier in the year. The better performance is the result of unaltered high demand in the first six months and VAT’s strong business execution. Investments in the semiconductor industry continued on record levels as ongoing technology advances and chip shortages require investments in additional capacity in both leading and legacy platforms. This in turn also benefits VAT’s Global Service business which – like the Semiconductor business unit – posted record sales. In addition, the Advanced Industrials business unit continued its growth trend as strategic initiatives in several key areas we re successfully implemented. The Display business unit showed the expected weaker order intake versus the prior year period, while sales increased driven by the execution of orders received in 2021.
Q2 2022 results
VAT recorded preliminary Q2 orders of around CHF 354 million, up 40% compared with the same period a year earlier and 20% higher than the first quarter of 2022. Sales amounted to approximately CHF 286 million, an increase of 28% year-on-year and 9% quarter-on-quarter. FX movements, especially US dollars against Swiss francs had a positive impact on Q2 2022 sales growth of about one percentage point. VAT successfully mitigated the persisting supply chain challenges and was able to satisfy customer demand throughout the quarter. The preliminary second quarter book-to-bill ratio of 1.24 is a strong indicator that growth in VAT’s businesses is based on healthy fundamentals. At the end of June, the order book amounted to approximately CHF 559 million, some 15% higher than at the end of the first quarter of 2022.
Half-year 2022 results
For the first half-year 2022, preliminary orders amounted to approximately CHF 648 million, up 31% compared to a year earlier. Sales increased by 32% to CHF 549 million year-on-year. Preliminary figures indicate that VAT achieved a half-year EBITDA margin around 35%, an increase of more than one percentage point over the restated first half-year level of 2021. This strong performance is based on the higher sales volume and the associated better operational leverage as well as VAT’s ongoing strong operational improvements, mitigating cost inflation for raw materials, logistics and wages. Despite higher working capital to support the continued growth in 2022, preliminary free cash flow reached a first six-month record level substantially above the previous year.
The continued strong order activity in the first six months indicates a sound business environment for the rest of 2022. Despite the high capacity utilization across the entire industry, VAT expects an increase in sales in H2 2022 versus the first six months. A more detailed update on VAT’s expectations for the rest of 2022 and its first sustainability review will be provided with the release of the detailed second quarter and half-year 2022 results on August 4, 2022.
VAT Group (all numbers preliminary and unaudited)
1 Quarter-on-Quarter; 2Year-on-Year
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Financial calendar 2022
Except as otherwise required by law, VAT disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this report.
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1396737 13-Jul-2022 CET/CEST