EQS-News: 2G Energy lifts EBIT margin slightly to 3.1% in the first half of the year (previous year: 3.0%)

2G Energy lifts EBIT margin slightly to 3.1% in the first half of the year (previous year: 3.0%)

• EBIT at a high level (EUR 4.1 million, previous year: EUR 4.1 million) despite delayed total operating performance (EUR 150.3 million, previous year: EUR 166.3 million, -10%)
• Positive KPI development
• Strong order intake thanks to diversity of sales markets
• New Chief Sales Officer position strengthening the growing sales activities

Heek, September 05, 2024 - 2G Energy AG (ISIN DE000A0HL8N9), one of the leading international manufacturers of combined heat and power (CHP) systems and producers of heat pumps, is continuing to improve its margin and closes the first half of 2024 with an EBIT margin of 3.1% (previous year: 3.0%).

EBIT at a high level of EUR 4.1 million despite delayed operating performance – slowdown effects due to sector-related bottlenecks

As already reported, in the first half of the year numerous customers were confronted with bottlenecks specific to the energy transition, such as the unavailability of transformers and specialized staff or outstanding permits. As a result, some customers delayed the release of production, meaning that both sales (-3% to EUR 131.2 million; previous year: EUR 135.5 million) and, in particular, total operating performance (-10% to EUR 150.3 million; previous year: EUR 166.3 million) in the first half of 2024 settled below the previous year's figures. Although these sector-related bottlenecks are set to continue, project approvals have now been granted for the projects planned until the end of the year. Consequently, sales and total operating performance will increase in the second half of the year due to both seasonal factors and catch-up effects.

Positive development of KPIs

For years, 2G has been organizing the continuous improvement process in four lead projects, namely digitalization, innovation, partner concept and lead-to-lean. To avoid idle costs, a corresponding focus was placed on the lead-to-lean project in the first half of the year. As a result, the use of temporary and contract workers was adjusted in a timely manner, which is reflected in a reduced cost of materials and a significantly improved cost of materials ratio (62%, previous year: 68%). By contrast, the careful expansion and development of the company's own workforce with a focus on sales was continued in Germany and abroad. For this reason and due to the general wage trend, personnel expenses were up by 11.1% to EUR 35.8 million in the first half of 2024 (previous year: EUR 32.3 million).

Moreover, working capital was also trimmed (-4.1%), which contributed significantly to the continued good liquidity at the half-year reporting date (EUR 9.1 million, previous year: EUR 5.9 million).

The acquisition of NRGTEQ B. V. in the second half of 2023 led to increased depreciation and amortization (EUR 3.3 million, previous year: EUR 2.4 million).  All in all, EBITDA was up by 12% (EUR 7.4 million, previous year: EUR 6.6 million). Accordingly, the EBITDA margin stands at 5.6% (previous year: 4.8 %).

The half-year financial report 2024 is now available for download at https://2-g.com/en/investor-relations/financial-publications.

Strong order intake thanks to diversity of sales markets

As repeatedly reported, the broad positioning of the 2G network opens up numerous sales potentials. 2G is increasingly successful in tapping this potential in Germany and abroad and converting it into concrete orders. As a result, global sales activities, the project pipeline and therefore the order backlog are growing continuously.

"It is pleasing to note that the current strong order intake is heterogeneous, both geographically and in technology terms, as this allows 2G to maintain its independence from specific developments in individual markets," says CEO Christian Grotholt.

New Chief Sales Officer position strengthening growing sales activities

On September 1, Pablo Hofelich was recruited for the newly created position of Chief Sales Officer (CSO). In this role, he will be responsible for global sales activities and will be reporting directly to CEO Christian Grotholt.

 "Against the backdrop of the growing, tremendous opportunities the global energy transition is presenting, the search for a dynamic and experienced top manager was a natural next step," as CEO Christian Grotholt stated. "My colleagues on the Management Board and I are delighted to welcome Pablo Hofelich, a manager with both strong leadership skills and experience in the international project business."   

2G company portrait
The 2G Energy AG Group is an internationally leading manufacturer and system provider of decentralized energy supply systems. The company develops, produces and installs comprehensive solutions in the growing market for highly efficient CHPs and large heat pumps. Digital grid integration and plant control for both types of energy generators, as well as service and maintenance, are further decisive performance criteria.

The product portfolio includes CHP plants in the output range from 20 kW to 4,500 kW for operation with hydrogen, natural gas, biogas and other lean gases, as well as large heat pumps in the range from 100 kW to 2,6000 kW. CHP plants operate with efficiencies of 90 percent and more, while large heat pumps achieve efficiencies of 300 to 500 percent, depending on the general conditions. With its products and services, 2G is at the interface to a decentralized, secure and largely decarbonized energy supply. More than 8,000 2G systems have already been installed worldwide in various applications, supplying electrical and thermal energy to a wide range of customers from the housing industry, agriculture, commercial and industrial companies, energy suppliers, municipal utilities and local government authorities.

2G is positioned worldwide as a system provider for decentralized energy solutions with its combination of CHP plants and large heat pumps. The company benefits from far-reaching synergies of both plant categories, ranging from project development, procurement, and production to the largely identical customer base and regulatory framework as well as sales channels and digital control and service.

2G is consistently expanding its technological leadership through continuous research and development work, both in power plant and pump technologies as well as in specific software development for service and maintenance activities. The digital grid integration consistently implemented by 2G is an indispensable, system-relevant element in the future electricity market design and represents a high market entry hurdle for competitors. The sector coupling required for the success of the energy transition is reflected in 2G's portfolio.

2G employs more than 900 employees at its headquarters in Heek, Germany, in North America, as well as at five other European locations. The company is active in more than 50 countries and generated net sales of EUR 312.6 million in the 2022 financial year. 2G was founded in 1995 and has been listed on the capital market since 2007. The shares of 2G Energy (ISIN DE000A0HL8N9) are listed in the “Scale” segment of the Frankfurt Stock Exchange.

Calendar 2024
November 25        Q3 key figures and business trends
November 25-27  German Equity Forum, Frankfurt

IR contact
2G Energy AG
Benzstrasse 3, 48619 Heek
Phone: +49 (0) 2568 93 47-2795
Fax: +49 (0) 2568 93 47-15
Email: ir@2-g.de
Internet: www.2-g.de