Gea continued its positive performance of recent years in the second quarter of 2023 despite a slight decline in order intake. In terms of the key performance indicators organic sales and Ebitda before restructuring charges, results improved again compared with the prior-year quarter. Order intake decreased slightly by just under two percent to €1.4 billion. In organic terms, however, this corresponds to growth of more than two percent. Sales increased by around six percent to €1.3 billion. All divisions contributed to this development.
Sales growth in "Liquid & Powder Technologies" and "Food & Healthcare Technologies" divisions of Gea could not fully compensate for the decline in the other divisions. Among the customer industries, Beverages and especially Chemicals showed strong growth. Nearly all regions increased their sales, with Latin America even significantly exceeding the prior-year quarter by around 21 percent. Sales growth was also evident in almost all customer industries.
“We are pleased that our positive development continues and that we were able to maintain this in the second quarter. Thus, we are confirming our full-year guidance, which we raised in May. We are fully on track to achieve our Mission 26 goals,” says CEO Stefan Klebert. “Looking ahead, I am convinced that sustainability will be a crucial growth driver. Several of our installations for CO2 capture are already successfully in use. We are driving the necessary change in our industries with technology and innovative solutions.”
Operating profit before restructuring charges grew significantly by more than 14 percent to almost €192 million. Net profit improved by 28 percent to €98 million in the second quarter. In the prior-year quarter, Gea had generated a profit of around €77 million.
Despite the difficult economic environment, the machinery and plant manufacturer increased its order intake by half a percent to almost three billion euros in the first six months of the current fiscal year. From January to June, sales increased by nine percent to €2.6 billion. In the reporting period, operating profit before restructuring charges grew significantly by 19 percent to €363 million, compared with €306 million in the prior-year period. In the first half of the year, net profit showed a further increase of around 21 percent to almost €180 million, compared to €149 million in the prior-year period.
Gea confirms the forecast for fiscal 2023, which was raised in May. In terms of sales, the company expects organic growth of more than eight percent. Ebitda before restructuring charges is expected to be in the upper range of the €730 million to €790 million range.
Sustainability is key to Gea's long-term success and therefore an important lever of the company's Mission 26 strategy. By 2030, Scope 1 and Scope 2 emissions are to be reduced by 60 percent and Scope 3 emissions by 18 percent in each case compared with the baseline year 2019. These interim targets have already been validated in 2021 by the Science Based Targets Initiative (SBTi), the globally recognized organization for reviewing climate targets.
By 2040, greenhouse gas emissions along the entire value chain (Scopes 1 to 3) are to be reduced to net zero. Gea is now also seeking independent validation of the steps on this path to Net Zero. Confirmation from SBTi is expected in the first quarter of 2024.
Launched in June 2023 and validated by Tüv Rheinland, the "Add Better" label supports customers in reducing their emissions. The label is used to identify all Gea solutions, from machines and processes to digital solutions and entire plants, that are significantly more resource efficient than their predecessors. This new label makes it easy for customers to see what improvements have been made and how the "Add Better" solution helps them improve their environmental performance.
The "Add Better" portfolio has been expanded in recent weeks to include various solutions that save water in particular. Among them is the "Gea Centrifuge Water Saving Unit," which reduces cooling water consumption by 99.9 percent compared to conventional cooling by recirculating the cooling water in separators. Another example is the "Gea ECOSpin2 Zero" for wet sterilization when filling PET bottles. As a new machine, this aseptic filling block consumes 91 percent less water than the predecessor model. Tüv also validated the "Gea E-Switch Bake" retrofit system for gas tunnel ovens in bakeries. Switching from gas to electricity reduces energy consumption by 14 percent compared to the previous solution, which also sustainably lowers emissions.
