EQS-News: AUSTRIACARD HOLDINGS AG / Key word(s): Quarter Results
AUSTRIACARD HOLDINGS AG ANNOUNCES 9M 2024 RESULTS
15.11.2024 / 09:34 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AUSTRIACARD HOLDINGS AG
ANNOUNCES 9M 2024 RESULTS
November 14^th, 2024: AUSTRIACARD HOLDINGS AG (ACAG) strategy of expansion in new markets and
technology services drives a strong operating performance in 9M24.
• Q3 2024 Group Adj. Revenues increased by 29.6% and as such improving the 9M 2024
comparable growth vs 9M 2023 to 14.0% and reaching € 298.3m.
• Performance is driven by 3 factors: a) near tripling of Digital Transformation revenues,
b) strong growth in Document Lifecycle Management from MEA region, and c) Secure Chip &
Payment segment increased revenue from the metal cards business.
• Underlying 9M 2024 organic growth of the largest segment being Secure Chip & Payment at
20.8%.
• From a geographic cluster point, Central Eastern Europe 9M Revenues grow by 8.3% to
€ 173.9m due to digitalization projects, Western Europe, Nordics, Americas grow by 13.8%
to
€ 105.7m due to metal card strong contribution, and Türkiye, Middle East and Africa
Revenues grow by 28.5% to € 57.9m led by the combination of security printing and digital
services.
• 9M 2024 Group Adj. EBITDA increased by 18.1%, reaching € 43.1m, due to revenue and gross
profit growth, reaching a margin of 14.4% on Sales compared to 13.9% in 9M 2023.
• Net Profit after Tax increased by 10.1% to € 16.3m, with a margin of 5.4%.
• 9M 2024 operating cash flow generation at € 18.9m, compared to € -1.1m in 9M 2023.
CEO COMMENTARY
AUSTRIACARD HOLDINGS AG Group Vice-Chairman and CEO, Manolis Kontos, noted:
“The 9M 2024 results exemplify the validity of our strategy for growth based on geographic
and market share expansion, as well as product and services portfolio enhancement. Our focus
is to capture all possible growth areas of the segments in which we operate, by capitalizing
on our expertise and the long-standing relationships we have with our clients.
During the third quarter we posted strong performance with Revenues increasing by approx.
30%, leading 9M 2024 results to a 14.0% growth, due to strong performance in new markets, and
contribution of both new products and digital services.
Notably, we expanded in Secure Chip & Payment solutions with novel products such as metal
cards, in Document Lifecycle Management with complex security printing combined with digital
services projects in MEA, and in Digital Transformation Technologies with state and private
sector projects.
Adj. EBITDA increased by 18.1% to € 43.1m due to revenue and gross profit growth, leading to
enhanced margin of 14.4%, while Net Profit after Tax grew by 10.1% to € 16.3m.
We have also managed to increase our operating cash flow generation in the process to address
the working capital challenge and we continue to work in this direction of working capital
normalization.
As we had outlined in the beginning of 2024, growth accelerated in all markets as the year
progressed, enabling us to deliver results in line with our 2024 full year guidance.”
GROUP BUSINESS PERFORMANCE
Amounts and percentage rates in this interim management report were rounded, and the addition
of these individual figures can therefore produce results that differ from the totals shown.
Business performance of AUSTRIACARD HOLDINGS Group as monitored by Management
The following analysis is based on the business performance as monitored by Group management
excluding effects of IAS 29 Hyperinflation accounting and with a separate presentation of
Special Items (e.g. Management participation programs etc.) below adjusted Profit (Loss)
before tax.
Business performance 1-9 2024 1-9 2023 D '24-'23 D '24-'23 % Q3 2024 Q3 2023 D '24-'23 %
in € million
Revenues 298.3 261.5 36.7 14.0% 106.2 82.0 29.6%
Costs of material & (160.8) (145.3) (15.5) 10.7% (56.5) (43.8) 29.0%
mailing
Gross profit I 137.5 116.2 21.2 18.3% 49.7 38.2 30.2%
Gross margin I 46.1% 44.4% 1.6% 46.8% 46.6%
Production costs (64.2) (52.0) (12.1) 23.3% (25.2) (18.3) 37.9%
Gross profit II 73.3 64.2 9.1 14.1% 24.5 19.9 23.2%
Gross margin II 24.6% 24.5% 0.1% 23.0% 24.2%
Other income 3.0 3.2 (0.1) -4.7% 1.0 1.2 -13.7%
Selling and distribution (17.9) (17.5) (0.4) 2.3% (6.1) (6.1) 0.7%
expenses
Administrative expenses (21.1) (18.9) (2.2) 11.7% (6.8) (6.4) 6.9%
Research and development (5.7) (5.2) (0.5) 9.1% (2.2) (1.8) 22.4%
expenses
Other expenses (1.1) (0.9) (0.2) 22.9% (0.5) (0.3) 56.4%
+ Depreciation,
amortization and 12.6 11.7 1.0 8.3% 4.4 4.1 8.4%
impairment
adjusted EBITDA 43.1 36.5 6.6 18.1% 14.3 10.6 35.1%
adjusted EBITDA margin 14.4% 13.9% 0.5% 13.5% 12.9%
- Depreciation,
amortization and (12.6) (11.7) (1.0) 8.3% (4.4) (4.1) 8.4%
Impairment
adjusted EBIT 30.4 24.8 5.6 22.8% 9.9 6.5 51.8%
Financial income 0.3 0.2 0.2 101.7% 0.1 0.0 68.7%
Financial expenses (6.2) (4.8) (1.4) 29.2% (2.3) (1.8) 24.0%
Result from associated 0.1 0.1 0.1 139.1% 0.0 0.1 -100.0%
companies
Net finance costs (5.8) (4.6) (1.2) 25.5% (2.2) (1.7) 26.7%
adjusted Profit (Loss) 24.7 20.2 4.5 22.2% 7.7 4.8 60.7%
before tax
Special items (3.0) (2.3) (0.8) 34.1% (0.9) (1.5) -39.7%
Profit (Loss) before tax 21.7 18.0 3.7 20.7% 6.8 3.3 107.7%
Income tax expense (4.9) (3.5) (1.4) 41.1% (1.3) (0.8) 63.6%
Profit (Loss) 16.8 14.5 2.3 15.7% 5.5 2.5 121.7%
Revenues by solution category 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Secure Chip & Payment Solutions 181.8 171.1 10.7 6.2%
Document Lifecycle Management 95.4 82.1 13.3 16.2%
Digital Transformation Technologies 21.1 8.3 12.8 153.4%
Total 298.3 261.5 36.7 14.0%
In the first nine months of 2024, AUSTRIACARD HOLDINGS Group's Revenues reached € 298.3m
increasing by € 36.7m or 14.0% compared to the same period in 2023. This growth was largely
driven by Digital Transformation Technologies, which increased by € 12.8m, or 153.4% compared
to last year. This is the result of the focus given by the Group to this solution category.
The main contributors are public sector digitalization projects in Greece as well as
continued growth of this solution category in the Romanian market. Document Lifecycle
Management also contributed significantly increasing by € 13.3m or 16.2%, primarily as a
result of a new security printing contract in the MEA region.
Secure Chip & Payment Solutions’ revenue increased by € 10.7m or 6.2% compared to last year.
If we exclude from the comparative period the impact of our strategic decision to
de-prioritize wholesale chip sales and focus on selling complete smart card solutions with
the total effect amounting to € -20.6m, the like-for-like organic growth of the Secure Chip &
Payment category amounts to € 31.3m or 20.8%. This growth is supported by banking and
transportation card sales and especially by premium high-end metal cards sales (€ +20.5m),
which have a significantly higher price per card and are accompanied by additional revenue
from personalization and fulfillment services.
Revenues by Segments 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Western Europe, Nordics, Americas 105.7 92.9 12.8 13.8%
Central Eastern Europe & DACH 173.9 160.6 13.4 8.3%
Türkiye / Middle East and Africa 57.9 45.1 12.8 28.5%
Eliminations & Corporate (39.2) (37.0) (2.2) 6.0%
Total 298.3 261.5 36.7 14.0%
From a geographical perspective, revenue growth was evenly spread across the three segments
with each segment growing by approx. € 13.0m. Growth in the Central Eastern Europe & DACH
(CEE) segment was primarily driven by the solution category Digital transformation and in the
Middle East and Africa (MEA) segment by a new security printing contract. Revenue growth in
the segment Western Europe, Nordics, Americas (WEST) mainly relates to Secure Chip & Payment
solutions and more specifically to high demand for premium metal payment cards and
personalization and fulfillment services. The increase in Eliminations & Corporate primarily
reflects higher inter-segment revenue with the MEA segment.
Gross profit I increased by € 21.2m or 18.3% reaching € 137.5m as a result of revenue growth.
Gross margin I improved from 44.4% to 46.1%, mainly due to a higher proportion of service
revenues without associated material costs.
Gross profit II increased by € 9.1m or 14.1%, reaching € 73.3m. Gross margin II improved by
0.1 percentage points and reached 24.6% mainly as a result of a different sales mix having
higher contribution from services and security printing in the MEA.
Operating expenses (OPEX) 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Production Costs (64.2) (52.0) (12.1) 23.3%
Selling and distribution expenses (17.9) (17.5) (0.4) 2.3%
Administrative expenses (21.1) (18.9) (2.2) 11.7%
Research and development expenses (5.7) (5.2) (0.5) 9.1%
+ Depreciation & amortization 12.6 11.7 1.0 8.3%
Total (96.3) (82.0) (14.3) 17.4%
Operating expenses as a percentage of Sales 32.3% 31.4% 0.9%
Operating expenses (OPEX) excluding depreciation, amortization and impairment increased by €
14.3m or 17.4% totalling to € 96.3m. The increase in Production costs by € 12.1m or 23.3%
mainly relates to the implementation of a new security printing business in the MEA region
and to Digital transformation services in CEE as well as to the consolidation of Pink Post in
Romania (company offering distribution & postal services enabling us to provide end to end
services in that market), which was first consolidated in the Group in March 2023.
Administrative expenses increased by € 2.2m or 11.7% mainly as a result of the strengthening
of the Group management team following the Group’s listing and reorganization in H1 2023. In
addition, OPEX also increased due to adjustments on salaries and other costs due to
inflation. As a proportion of revenues, OPEX increased by 0.9 percentage points to 32.3%,
compared to 31.4% in the first nine months of 2023.
Adjusted EBITDA increased by € 6.6m or 18.1%, from € 36.5m to € 43.1m, as a result of the
increase in gross margin and the adjusted EBITDA margin increased by 0.5 percentage points
from 13.9% to 14.4% in the first nine months of 2024.
Adjusted EBIT improved by € 5.6m or 22.8% reaching € 30.4m, more than offsetting the € 1.0m
increase in depreciation & amortization related to investments in machinery and equipment to
support business expansion.
Adjusted Profit before tax increased by € 4.5m or 22.2% reaching € 24.7m as the growth in
EBIT was partially offset by the increase in net finance costs by € 1.2m related to the hike
in interest rates and the higher average outstanding financial debt.
Special items included in 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Management participation programs EBITDA (2.9) (1.9) (1.0) 53.3%
Foreign exchange losses Profit before tax (0.1) (0.3) 0.2 -55.7%
Expense from financial assets and
liabilities at fair value through Profit before tax (0.0) (0.1) 0.1 -94.5%
profit or loss
Total (3.0) (2.3) (0.7) 34.1%
Profit increased by € 2.3m or 15.7%, reaching € 16.8m. This increase is due to the strong
operating performance and the resulting growth in adjusted Profit before tax which was
partially compensated by higher costs related to Special items and higher corporate income
tax expenses. Costs included in Special items increased by € 0.7m or 34.1% due to the
normalization of expenses for management participation programs (SOPs), which in 2023 were
lower due to a one-time provision release in connection with a restructuring of the then
existing SOPs. Additionally, corporate income tax expenses increased by € 1.4m due to higher
Profit before taxes and changes in tax regulations in Romania and the UK leading to a higher
effective tax rate of 22.7% compared to 19.4% in 2023.
Effect of IAS 29 Hyperinflation
As presented in the table below, the application of IAS 29 Hyperinflation with respect to our
Türkiye-based operations, hyperinflation accounting led to increased Revenues by € 5.2m
reaching € 303.5m in 1-9 2024 compared to an increase of € 9.7m to € 271.2.m in 1-9 2023.
Hyperinflation accounting also increased Operating expenses (OPEX) and adjusted EBITDA in the
IFRS Income statement compared to the Management Income statement by € 0.4m compared to €
0.8m in 1-9 2023. Also adjusted EBIT increased by € 0.4m (2023: € 0.8m) and adjusted Profit
before tax by € 0.4m (2023: € 0.8m) due to Hyperinflation accounting.
The IFRS Income Statement shows a Profit before tax of € 21.2m, while the Management Income
Statement shows € 21.7m. Similarly, Profit in the IFRS Statement amounts to € 16.3m compared
to € 16.8m in the Management Income Statement.
1-9 2024 1-9 2023
Impact of IAS 29 Hyperinflation IAS29
in € million IFRS IAS29 Effect MGMT IFRS Effect MGMT
Revenues 303.5 5.2 298.3 271.2 9.7 261.5
Gross Profit I 138.3 0.8 137.5 117.9 1.7 116.2
Gross Profit II 73.8 0.5 73.3 65.2 1.0 64.2
OPEX (96.7) (0.4) (96.3) (82.8) (0.8) (82.0)
adjusted EBITDA 43.5 0.4 43.1 37.3 0.8 36.5
adjusted EBIT 30.9 0.4 30.4 25.6 0.8 24.8
adjusted Profit before tax 25.1 0.4 24.7 21.0 0.8 20.2
Profit before tax 21.2 (0.4) 21.7 18.2 0.3 18.0
Profit 16.3 (0.5) 16.8 14.8 0.3 14.5
FINANCIAL POSITION
Total assets increased by € 20.8 from € 321.7m on 31 December 2023, to € 342.5m on 30
September 2024 as a result of higher current assets (€ +14.4m) and non-current assets (€
+6.3m). The increase in non-current assets relates to the acquisition of new subsidiaries
resulting in additional goodwill amounting to € 3.8m as well as regular investing activities.
The increase in non-current liabilities is related to the increase in financial liabilities
(€ +9.8) as well as to contingent purchase price liabilities in connection with M&A activity
(€ +1.7m). As a result of the profits generated and share-option expense recognized in the
relevant reserve in equity, Total Equity increased by € 14.4m to € 121.6m. The Equity ratio
of the AUSTRIACARD HOLDINGS Group improved from 33.3% on 31 December 2023 to 35.5% on 30
September 2024.
Consolidated statement of financial position 30/09/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Non-current assets 163.1 156.8 6.3 4.0%
Current assets 179.4 164.9 14.4 8.8%
Total assets 342.5 321.7 20.8 6.5%
Equity 121.6 107.2 14.4 13.5%
Non-current liabilities 127.2 115.2 11.9 10.4%
Current Liabilities 93.7 99.3 (5.6) -5.6%
Total Equity and Liabilities 342.5 321.7 20.8 6.5%
Net Working Capital increased by € 19.2m, or 32.9%, from € 58.2m on 31 December 2023, to €
77.4m on 30 September 2024. This increase is mainly due to higher inventory levels (€
+14.1m), especially in raw materials (chips) and to trade receivables (€ +6.5m) linked to
revenue growth. The decrease in contract liabilities (advance payments received) also
contributed to the increase in Net working capital (€ +10.6m). As a percentage of revenues
(12-month rolling), Net Working Capital increased from 17.0% to 19.9%. This KPI aligns
closely with industry benchmarks but is notably higher than last year.
Working Capital 30/09/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Inventories 72.3 58.2 14.1 24.3%
Contract assets 17.3 20.4 (3.1) -15.1%
Current income tax assets 0.4 0.8 (0.4) -52.2%
Trade receivables 51.2 44.7 6.5 14.6%
Other receivables 13.7 17.1 (3.4) -19.8%
154.9 141.1 13.8 9.8%
Current income tax liabilities (3.6) (3.0) (0.6) 20.9%
Trade payables (42.6) (43.6) 1.1 -2.5%
Other payables (23.3) (18.3) (5.0) 27.3%
Contract liabilities (6.8) (17.4) 10.6 -60.8%
Deferred income (1.2) (0.5) (0.7) 135.1%
(77.5) (82.9) 5.4 -6.5%
Net Working Capital 77.4 58.2 19.2 32.9%
Statement of cash flows 1-9 2024 1-9 2023 D '24-'23 D '24-'23%
in € million
Cash flows from operating 18.9 (1.1) 20.0 -1,835.5%
activities
Cash flows from investing (12.0) (9.3) (2.7) 29.0%
activities
Cash flows from financing (6.1) 0.5 (6.6) -1,272.0%
activities
Net decrease in cash and 0.8 (9.9) 10.7 -108.4%
cash equivalents
Capital expenditure incl. (16.2) (13.9) (2.3) 16.5%
ROU, excl. M&A (CAPEX)
The Group’s Cash flow from operating activities increased by € 20.0 in the first three
quarters of 2024 from € -1.1m in 2023 to € 18.9m in 2024 as a result of the strong operating
performance which was partially compensated by the increase in the Net working capital.
The Cash flow from investing activities came in at a net outflow of € 12.0m and related to
M&A activity (€ 1.3m net of cash received), upgrading our digital security printing
capabilities (€ 2,6m) in order to be able to implement new business opportunities for the
African markets, regular investments in plant and equipment and inhouse development of
software to enhance our digital solutions offering and similar operating investments.
Cash flow from financing activities had a net outflow of € 6.1m compared to an inflow of €
0.5m in the same period in 2023. This outflow primarily relates to interest (€ 5.9m) and
lease payments (€ 3.3m) and dividend payments to shareholders and non-controlling interest (€
4.1m) as well as loan repayments (€ 9.4m) which were partially compensated by increased usage
of existing financing long-term financing facilities.
Net Debt increased by € 9.0m from € 95.0m as of 31 December 2023 to € 104.0m as of 30
September 2024 due to the increase in Net working capital. Net Debt / Adjusted EBITDA
(rolling 12 months) decreased from 2.3x in 1-9 2023 to 1.9x in 1-9 2024.
Net Debt 30/09/2024 31/12/2023 D '24-'23 D '24-'23 %
in € million
Cash and cash equivalents (24.5) (23.8) (0.7) 2.8%
Loans and borrowings 128.5 118.9 9.6 8.1%
Net Debt 104.0 95.0 9.0 9.4%
Financial performance indicators
Key performance indicators 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Revenue 298.3 261.5 36.7 14.0%
Gross profit I 137.5 116.2 21.2 18.3%
Gross profit I margin 46.1% 44.4% 1.6% n/a
Gross profit II 73.3 64.2 9.1 14.1%
Gross profit II margin 24.6% 24.5% 0.0% n/a
Total OPEX excluding depreciation (96.3) (82.0) (14.3) 17.4%
Total OPEX excluding depreciation as % on sales -32.3% -31.4% -0.9% n/a
adjusted EBITDA 43.1 36.5 6.6 18.1%
adjusted EBITDA margin 14.4% 13.9% 0.5% n/a
adjusted EBIT 30.4 24.8 5.6 22.8%
adjusted EBIT margin 10.2% 9.5% 0.7% n/a
adjusted Profit before tax 24.7 20.2 4.5 22.2%
adjusted Profit before tax margin 8.3% 7.7% 0.5% n/a
adjusted Profit after tax 19.8 16.7 3.0 18.2%
adjusted Profit after tax margin 6.6% 6.4% 0.2% n/a
Profit after Tax 16.8 14.5 2.3 15.7%
Profit after Tax margin 5.6% 5.5% 0.1% n/a
Operating Cash Flow 18.9 (1.1) 20.0 -1835.5%
Operating Cash Flow as % on sales 6.3% -0.4% 6.8% n/a
Net Equity / Total Assets (30 September vs. 31 35.5% 33.3% 2.2% n/a
December)
Net Working Capital as of 30 September 77.4 58.0 19.4 33.4%
Working Capital as % on revenues (12 months) 19.9% 17.0% 2.9% n/a
Net Debt as of 30 September 104.0 96.7 7.3 7.5%
Net Debt / Adjusted EBITDA (12 months) 1.9 2.3 (0.4) n/a
REPORT ON SEGMENTS
Western Europe, Nordics, Americas
Business performance 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Revenues 105.7 92.9 12.8 13.8%
Costs of material & mailing (61.7) (52.6) (9.1) 17.2%
Gross profit I 44.0 40.3 3.7 9.2%
Gross margin I 41.6% 43.3% -1.7%
Production costs (17.0) (16.0) (0.9) 5.8%
Gross profit II 27.0 24.2 2.8 11.4%
Gross margin II 25.5% 26.1% -0.5%
Other income 0.0 0.6 (0.5) -91.6%
Selling and distribution expenses (6.8) (7.1) 0.3 -4.0%
Administrative expenses (6.3) (6.6) 0.3 -4.1%
Research and development expenses (1.1) (0.4) (0.8) 207.2%
Other expenses (0.1) (0.1) (0.1) 71.6%
+ Depreciation, amortization & impairment 4.7 4.1 0.6 13.6%
adjusted EBITDA 17.4 14.8 2.5 17.1%
adjusted EBITDA margin 16.4% 16.0% 0.4%
- Depreciation, amortization & impairment (4.7) (4.1) (0.6) 13.6%
adjusted EBIT 12.7 10.7 2.0 18.4%
The Western Europe, Nordics and Americas (WEST) segment reported Revenues of € 105.7m in the
first nine months of 2024, higher by € 12.8m or 13.8% compared to same period last year. If
we exclude from the comparative period the impact of our strategic decision to de-prioritize
wholesale chip sales and focus on selling complete smart card solutions with the total effect
amounting to € 18.4m in this segment, the organic like-for-like growth of this solution
category amounts to € 31.2m or 41.9%. This increase is mainly related to sales of high-end
metal cards (€ +20.8m) which have a significantly higher selling price per card as well as to
sales of regular payment cards and fulfillment and postal services, especially in the
Challenger Bank segment.
Gross profit I increased with € 3.7m or 9.2% to € 44.0m due to increased revenues while Gross
Margin I decreased by 1.7 percentage points to 41.6%. The reduction in Gross margin I is a
result of increased metal cards sales in this region with proportionally higher material
expenses.
Gross profit II increased by € 2.8m or 11.4% from € 24.2m to € 27.0m due to higher Gross
Profit I. Gross margin II decreased by 0.5 percentage points reaching 25.5% as
economies-of-scale helped to partially compensate the reduced Gross margin I.
Operating expenses excl. D, A&I (OPEX) 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Production costs (17.0) (16.0) (0.9) 5.8%
Selling and distribution expenses (6.8) (7.1) 0.3 -4.0%
Administrative expenses (6.3) (6.6) 0.3 -4.1%
Research and development expenses (1.1) (0.4) (0.8) 207.2%
+ Depreciation, amortization & impairment 4.7 4.1 0.6 13.6%
Total (26.5) (25.9) (0.6) 2.2%
Operating expenses as a percentage of revenues 25.1% 27.9% 4.5%
OPEX came in at € 26.5m in the first nine months of 2024 increasing slightly by € 0.6m or
2.2% compared to 2023 as increased costs for production personnel were mostly compensated by
savings in Administrative and Selling and distribution expenses, especially with third party
services, transportation and other operating expenses. The increase in Research and
development expenses relates to our development effort with respect to our digital offering
in the payment space. As a percentage of revenues, OPEX decreased from 27.9% to 25.1% in
first nine months of 2024 due to the increase in revenues.
Adjusted EBITDA reached € 17.4m increasing by € 2.5m or 17.1% compared to the same period
2023 while adjusted EBITDA margin came in at 16.4% increasing slightly by 0.4 percentage
points as a result of Gross margin increase and cost control in all functions. Adjusted EBIT
came in at € 12.7m increasing by € 2.0m or 18.4% as a result of good operating performance
compensating the increase in depreciation and amortization by € 0.6m.
Central Eastern Europe & DACH
Business performance 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Revenues 173.9 160.6 13.4 8.3%
Costs of material & mailing (97.2) (92.9) (4.3) 4.7%
Gross profit I 76.7 67.7 9.0 13.3%
Gross margin I 44.1% 42.2% 1.9%
Production costs (37.4) (32.5) (4.9) 15.0%
Gross profit II 39.4 35.2 4.2 11.8%
Gross margin II 22.6% 21.9% 0.7%
Other income 2.9 2.5 0.4 17.9%
Selling and distribution expenses (9.9) (9.4) (0.5) 5.1%
Administrative expenses (12.5) (11.2) (1.4) 12.2%
Research and development expenses (4.5) (4.3) (0.1) 3.2%
Other expenses (0.7) (0.7) (0.0) 0.3%
+ Depreciation, amortization & impairment 7.5 7.1 0.4 5.5%
adjusted EBITDA 22.1 19.1 3.0 15.7%
adjusted EBITDA margin 12.7% 11.9% 0.8%
- Depreciation, amortization & impairment (7.5) (7.1) (0.4) 5.5%
adjusted EBIT 14.6 12.0 2.6 21.7%
The Central Eastern Europe & DACH (CEE) segment reported Revenues of € 173.9m increasing by €
13.4m or 8.3% compared to the first nine months of 2023. This revenue increase was mainly
driven by growth with Digital Transformation Solutions in Romania and Greece, especially by
public digitalization contracts, which contributed € 12.8m additional revenue
Gross profit I increased by € 9.0m or 13.3% and Gross margin I improved by 1.9 percentage
points from 42.2% to 44.1% due to revenue growth and a higher share of service-related
revenues with no or lower associated Costs of material & mailing.
Gross profit II increased by € 4.2m or 11.8% from € 35.2m to € 39.4m mainly as a result of
revenues growth and economies of scale as the increase of Production costs only partially
compensated the growth in Gross profit I. The Gross Margin II improved by 0.7 percentage
points to 22.6%.
Operating expenses excl. D, A&I (OPEX) 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Production costs (37.4) (32.5) (4.9) 15.0%
Selling and distribution expenses (9.9) (9.4) (0.5) 5.1%
Administrative expenses (12.5) (11.2) (1.4) 12.2%
Research and development expenses (4.5) (4.3) (0.1) 3.2%
+ Depreciation, amortization & impairment 7.5 7.1 0.4 5.5%
Total (56.8) (50.4) (6.5) 12.8%
Operating expenses as a percentage of revenues 32.7% 31.4% 48.4%
OPEX increased by € 6.5m or 12.8% to € 56.8m mainly as a result of the addition of the Pink
Post business in Romania which increased Production costs by € 3.4m and to higher central
cost allocations included in Administrative expenses as well as due to inflation related
salary increases. As percentage of revenues Operating expenses increased from 31.4% to 32.7%
in the first nine months of 2024.
Adjusted EBITDA increased by € 3.0m or 15.7% to € 22.1m as a result of Gross profit growth
being complimented by economies of scale and cost control in the support functions. Adjusted
EBITDA margin thus improved by 0.8 percentage points to 12.7%. Adjusted EBIT increased by €
2.6m or 21.7% from € 12.0m to € 14.6m as a result of the strong operating performance being
only partially compensated by an increase in depreciation and amortization by € 0.4m or 5.5%
to € 7.5m.
Türkiye / Middle East and Africa
Business performance 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Revenues 57.9 45.1 12.8 28.5%
Costs of material & mailing (39.2) (36.1) (3.1) 8.6%
Gross profit I 18.8 9.0 9.7 107.6%
Gross margin I 32.4% 20.0% 12.4%
Production costs (9.9) (3.6) (6.3) 173.8%
Gross profit II 8.9 5.4 3.5 63.7%
Gross margin II 15.3% 12.0% 3.3%
Other income 0.0 0.0 0.0 n/a
Selling and distribution expenses (1.2) (1.0) (0.2) 17.7%
Administrative expenses (1.3) (0.6) (0.7) 111.0%
Research and development expenses 0.0 0.0 0.0 n/a
Other expenses (0.2) (0.1) (0.1) 75.3%
+ Depreciation, amortization & impairment 0.5 0.5 0.0 7.5%
adjusted EBITDA 6.7 4.1 2.5 61.8%
adjusted EBITDA margin 11.5% 9.1% 2.4%
- Depreciation, amortization & impairment (0.5) (0.5) (0.0) 7.5%
adjusted EBIT 6.2 3.7 2.5 68.6%
The Türkiye, Middle East and Africa (MEA) segment reported Revenues of € 57.9m increasing by
€ 12.8m or 28.5% compared to first nine months in 2023. This growth was driven by a new
security printing contract in the African market contributing
€ 10.4m additional revenues and by the Turkish Secure Chip & Payment solutions market growing
by € 2.5m or 5.5%.
Gross profit I increased by € 9.7m or 107.6% and Gross margin I increased by 12.4 percentage
points, from 20.0% to 32.4% due to the different gross margin profile of security printing
projects with comparatively lower attributed Costs of material & mailing.
Gross profit II increased by € 3.5m, or 63.7%, from € 5.4m to € 8.9m and Gross margin II
improved by 3.3 percentage points to 15.3% as the Gross profit I increase was only partially
reduced by higher Production costs associated with the new security printing contract.
Operating expenses excl. D, A&I (OPEX) 1-9 2024 1-9 2023 D '24-'23 D '24-'23 %
in € million
Production costs (9.9) (3.6) (6.3) 173.8%
Selling and distribution expenses (1.2) (1.0) (0.2) 17.7%
Administrative expenses (1.3) (0.6) (0.7) 111.0%
Research and development expenses 0.0 0.0 0.0 0.0%
+ Depreciation, amortization & impairment 0.5 0.5 0.0 7.5%
Total (11.9) (4.8) (7.1) 147.7%
Operating expenses as a percentage of revenues 20.6% 10.7% 55.4%
Operating expenses (OPEX) increased by € 7.1m or 147.7% reaching € 11.9m. This increase was
mainly due to higher Production costs, especially for Personnel costs, Third party and
Transportation expenses to support the implementation of the new security printing contract.
As a percentage of revenues, OPEX increased from 10.7% to 20.6% in the first nine month of
2024.
Adjusted EBITDA increased by € 2.5m or 61.8% to € 6.7m and the adjusted EBITDA margin came in
at 11.5% increasing by 2.4 percentage points. Adjusted EBIT increased by € 2.5m or 68.6% to €
6.2m essentially in parallel with adjusted EBITDA.
ABOUT AUSTRIACARD HOLDINGS AG
AUSTRIACARD HOLDINGS AG leverages over 130 years of experience in information management,
printing, and communications to deliver secure and transparent experiences for its customers.
They offer a comprehensive suite of products and services, including payment solutions,
identification solutions, smart cards, card personalization, digitization solutions, and
secure data management. ACAG employs a global workforce of 2,500 people and is publicly
traded on both the Athens and Vienna Stock Exchanges under the symbol ACAG.
Contact person: Mr. Dimitrios Tzelepis, Executive Director, Capital Markets, M&A and IR
Tel.: +43 1 61065 - 357
E-Mail: d.tzelepis@austriacard.com
Website: www.austriacard.com
Symbol: ACAG
ISIN: AT0000A325L0
Stock Exchanges: Vienna Prime Market, Athens Main Market
APPENDIX
A. PRIMARY FINANCIAL STATEMENTS
Consolidated statement of financial position
in € thousand 30 September 2024 31 December 2023
Assets
Property, plant and equipment and right of use assets 99,968 96,275
Intangible assets and goodwill 59,003 55,526
Equity-accounted investees 395 324
Other receivables 1,543 2,386
Other long-term assets 0 136
Deferred tax assets 2,188 2,116
Non-current assets 163,096 156,764
Inventories 72,297 58,164
Contract assets 17,315 20,386
Current income tax assets 378 791
Trade receivables 51,190 44,677
Other receivables 13,701 17,082
Cash and cash equivalents 24,483 23,825
Current assets 179,364 164,924
Total assets 342,460 321,688
Equity
Share capital 36,354 36,354
Share premium 32,749 32,749
Own shares (739) 0
Other reserves 18,526 17,303
Retained earnings 34,295 19,995
Equity attributable to owners of the Company 121,185 106,401
Non-controlling interests 403 753
Total Equity 121,588 107,154
Liabilities
Loans and borrowings 112,268 102,432
Employee benefits 4,003 4,207
Other payables 2,177 81
Deferred tax liabilities 8,709 8,497
Non-current liabilities 127,157 115,217
Current tax liabilities 3,589 2,968
Loans and borrowings 16,218 16,440
Trade payables 42,575 43,649
Other payables 23,318 18,317
Contract liabilities 6,837 17,442
Deferred income 1,178 501
Current Liabilities 93,715 99,317
Total Liabilities 220,872 214,534
Total Equity and Liabilities 342,460 321,688
Consolidated income statement
in € thousand 1-9 2024 1-9 2023* Q3 2024 Q3 2023*
Revenues 303,494 271,193 108,120 90,027
Cost of sales (229,712) (205,959) (83,434) (69,179)
Gross profit 73,782 65,234 24,686 20,848
Other income 3,004 3,152 1,019 1,179
Selling and distribution expenses (17,967) (17,603) (6,117) (6,114)
Administrative expenses (24,013) (20,859) (7,642) (7,709)
Research and development expenses (5,717) (5,240) (2,179) (1,780)
Other expenses (1,113) (927) (493) (332)
+ Depreciation, amortization and impairment 12,626 11,656 4,397 3,951
EBITDA 40,601 35,414 13,672 10,044
- Depreciation, amortization and impairment (12,626) (11,656) (4,397) (3,951)
EBIT 27,975 23,758 9,275 6,093
Financial income 351 189 102 (176)
Financial expenses (7,214) (5,761) (2,990) (2,720)
Result from associated companies 129 54 0 54
Net finance costs (6,734) (5,518) (2,888) (2,843)
Profit (Loss) before tax 21,241 18,240 6,387 3,250
Income tax expense (4,980) (3,478) (1,306) (748)
Profit (Loss) 16,260 14,762 5,081 2,503
Profit (Loss) attributable to:
Owners of the Company 16,222 14,160 5,589 2,370
Non-controlling interests 38 602 (508) 133
Profit (Loss) 16,260 14,762 5,081 2,503
Earnings (loss) per share(1)(1)
basic 0.45 0.40 0.15 0.07
diluted 0.42 0.39 0.14 0.06
* For comparative purposes 1-9 2023 external IFRS reporting was adjusted to properly reflect
and include the effects of IAS 29 Hyperinflation accounting with respect to our operations in
Türkiye.
Consolidated statement of cash flows
in € thousand 1-9 2024 1-9 2023*
Cash flows from operating activities
Profit (Loss) before tax 21,241 18,240
Adjustments for:
-Depreciation, amortization and impairment 12,626 11,656
-Net finance costs 6,734 5,518
-Other non-cash transactions 2,739 (504)
43,340 34,910
Changes in:
-Inventories (14,133) (20,219)
-Contract assets 3,072 (2,713)
-Trade receivables and other receivables (3,132) (5,719)
-Contract liabilities (10,605) 813
-Trade payables and other payables 3,919 (4,942)
-Taxes paid (3,567) (3,219)
Net cash from (used in) operating activities 18,894 (1,089)
Cash flows from investment activities
Interest received 306 151
Dividends received from associated companies 58 0
Acquisition of subsidiary, net of cash acquired (1,297) 0
Payments for acquisition of property, plant and equipment & intangible (11,053) (9,447)
assets
Net cash from (used in) investing activities (11,986) (9,292)
Cash flows from financing activities
Interest paid (5,880) (3,856)
Proceeds from loans and borrowings 17,339 25,655
Repayment of borrowings (9,422) (17,689)
Payment of lease liabilities (3,315) (2,610)
Acquisition of own shares (739) 0
Dividends paid to non-controlling interest (429) (72)
Dividends paid to owners of the company (3,627) (909)
Net cash from (used in) financing activities (6,074) 518
Net increase (decrease) in cash and cash equivalents 833 (9,862)
Cash and cash equivalents at 1 January 23,825 21,628
Effect of movements in exchange rates on cash held (175) (533)
Cash and cash equivalents at 30 September 24,483 11,233
* For comparative purposes 1-9 2023 external IFRS reporting was adjusted to properly reflect
and include the effects of IAS 29 Hyperinflation accounting with respect to our operations in
Türkiye.
B. SEGMENT REPORTING
Reportable Segments
MEA Total
1-9 2024 excl. excl.
in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total
Revenues 102,159 138,218 57,876 0 0 298,253 5,240 303,494
Intersegment 3,503 35,696 47 2,210 (41,457) 0 0 0
revenues
Segment 105,663 173,914 57,924 2,210 (41,457) 298,253 5,240 303,494
revenues
Costs of
material & (61,712) (97,194) (39,160) 0 37,277 (160,789) (4,393) (165,181)
mailing
Gross profit I 43,951 76,720 18,764 2,210 (4,180) 137,465 848 138,313
Production (16,964) (37,356) (9,873) 0 5 (64,188) (343) (64,531)
costs
Gross profit 26,987 39,363 8,891 2,210 (4,175) 73,277 505 73,782
II
Other income 49 2,893 10 50 0 3,003 1 3,004
Selling and
distribution (6,774) (9,927) (1,224) 0 0 (17,925) (43) (17,967)
expenses
Administrative (6,305) (12,521) (1,323) (5,112) 4,175 (21,086) (45) (21,131)
expenses
Research and
development (1,127) (4,489) 0 (101) 0 (5,717) 0 (5,717)
expenses
Other expenses (120) (723) (195) (68) 0 (1,106) (5) (1,111)
+
Depreciation, 4,658 7,474 490 3 0 12,626 0 12,626
amortization
and impairment
adjusted 17,368 22,071 6,651 (3,018) 0 43,072 413 43,484
EBITDA
-
Depreciation, (4,658) (7,474) (490) (3) 0 (12,626) 0 (12,626)
amortization
and impairment
adjusted EBIT 12,710 14,597 6,160 (3,021) 0 30,446 413 30,859
Financial 305 38 343
income
Financial (6,185) (14) (6,200)
expenses
Result from
associated 129 0 129
companies
Net finance (5,751) 24 (5,728)
costs
adjusted
Profit (Loss) 24,695 437 25,131
before tax
Special items (3,018) (872) (3,890)
Profit (Loss) 21,677 (436) 21,241
before tax
Income tax (4,917) (63) (4,980)
expense
Profit (Loss) 16,759 (499) 16,260
Reportable Segments
MEA Total
1-9 2023 excl. excl.
in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total
Revenues 90,066 126,385 45,067 0 0 261,517 9,676 271,193
Intersegment 2,821 34,176 25 739 (37,761) 0 0 0
revenues
Segment 92,886 160,561 45,092 739 (37,761) 261,517 9,676 271,193
revenues
Costs of
material & (52,633) (92,861) (36,054) 0 36,272 (145,277) (8,020) (153,296)
mailing
Gross profit I 40,253 67,700 9,038 739 (1,489) 116,240 1,656 117,896
Production (16,038) (32,492) (3,606) 0 90 (52,046) (617) (52,663)
costs
Gross profit 24,215 35,207 5,432 739 (1,399) 64,194 1,039 65,234
II
Other income 585 2,454 0 326 (214) 3,152 0 3,152
Selling and
distribution (7,055) (9,447) (1,040) 0 15 (17,528) (76) (17,603)
expenses
Administrative (6,573) (11,155) (627) (2,115) 1,590 (18,880) (99) (18,979)
expenses
Research and
development (367) (4,348) 0 (525) 0 (5,240) 0 (5,240)
expenses
Other expenses (70) (720) (111) (7) 9 (899) (26) (926)
+
Depreciation, 4,101 7,084 456 15 0 11,656 0 11,656
amortization
and impairment
adjusted 14,837 19,074 4,110 (1,566) 0 36,455 838 37,294
EBITDA
-
Depreciation, (4,101) (7,084) (456) (15) 0 (11,656) 0 (11,656)
amortization
and impairment
adjusted EBIT 10,736 11,990 3,654 (1,581) 0 24,799 838 25,638
Financial 151 30 181
income
Financial (4,788) (41) (4,829)
expenses
Result from
associated 54 0 54
companies
Net finance (4,583) (11) (4,594)
costs
adjusted
Profit (Loss) 20,217 827 21,044
before tax
Special items (2,251) (553) (2,804)
Profit (Loss) 17,966 274 18,240
before tax
Income tax (3,485) 7 (3,478)
expense
Profit (Loss) 14,480 282 14,762
(2)^(1) Earnings per share for 1-9 2023 were calculated considering retrospectively as per
IAS 33.64 the issuance of bonus shares with a ratio of 1:1 which had been implemented in
August 2023.
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15.11.2024 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com
═════════════════════════════════════════════════════════════════════════════════════════════
Language: English
Company: AUSTRIACARD HOLDINGS AG
Lamezanstraße 4-8
1230 Vienna
Austria
E-mail: ac.contact@austriacard.com
Internet: https://www.austriacard.com/
ISIN: AT0000A325L0
WKN: A3D5BK
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 2031269
End of News EQS News Service
2031269 15.11.2024 CET/CEST
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