On Friday, H&R GmbH & Co. KGaA, also known as H&R KGaA, reported a trend of recovery in sales and earnings development by the end of the third quarter of 2024. The company's preliminary calculations indicated an operating result (EBITDA) of €24.8 million for the third quarter, which, despite being lower than the €27.2 million of the same quarter in 2023, marks the strongest momentum of the year. EBIT for the quarter stood at €9.0 million, down from €13.0 million in Q3 of 2023, with earnings before taxes (EBT) at €5.8 million, compared to €9.6 million in the previous year. The net income attributable to shareholders was €3.5 million, a decrease from €7.6 million in Q3 of 2023. Revenue saw a slight increase to €338.1 million from €337.2 million in the same quarter last year.
For the first nine months of 2024, H&R KGaA achieved a stable EBITDA of €65.9 million, marginally down from €66.6 million in the same period of 2023. However, sales revenues dipped to €1,013.6 million from €1,036.8 million. Depreciation and amortization expenses rose by about 6.5% year-over-year, resulting in an EBIT of €20.6 million for the nine-month period, compared to €24.1 million in 2023. EBT for the nine months was reported at €11.1 million, down from €15.2 million, with consolidated net income for shareholders at €6.3 million, a decrease from €11.3 million in the previous year.
The ChemPharm REFINING segment, reversing its trend from earlier quarters, made the main contribution to earnings in 2024. Its EBITDA for Q3 was €15.3 million, lower than the €20.9 million of Q3 in 2023, but stable over the nine-month period at €35.8 million, compared to €43.2 million in the previous year. Sales in this segment reached €621.8 million for the nine months, down from €634.1 million in 2023.
The international activities in the ChemPharm SALES segment showed a strong recovery, with an operating result of €9.7 million in Q3 and €30.8 million over the nine months, an improvement from €8.1 million and €21.9 million respectively in the same periods of 2023. Revenue, however, was down to €370.2 million for the nine months and €126.6 million for the quarter from €380.2 million and €129.0 million in the previous year.
The PLASTICS segment reported a reduced operating result of €1.7 million for the nine-month period, with Q3 contributing positively with €0.5 million. Sales were inconsistent, totaling €36.3 million for the nine months and €12.1 million for the quarter, reflecting the ongoing challenges in the automotive industry.
Operating cash flow for the first nine months was €53.8 million, weaker than the €73.0 million of the previous year, largely due to increased interest and income tax expenses. However, the third quarter saw a significant recovery with €48.3 million, and free cash flow reached €36.2 million. As of September 30, 2024, the company's total assets had risen to €943.6 million from €903.2 million at the end of 2023, with equity increasing to €464.5 million from €457.6 million, resulting in an equity ratio of 49.2%.
H&R KGaA is on track to achieve a similar result to the previous year and expects to reach the forecasted range. The company will provide further details on its 2024 performance with the publication of the final financial figures in the quarterly statement on November 14, 2024.
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