MBB SE, a diversified industrial group, has reported an 8.2% increase in revenues to €691 million for the first nine months of 2023. Despite this rise, the company experienced a significant 29.8% drop in adjusted EBITDA to €49.6 million, primarily due to unforeseen costs at its subsidiary Friedrich Vorwerk, which impacted overall profitability.
Friedrich Vorwerk, a key part of MBB SE's portfolio involved in the substantial A-Nord project, reported a record order backlog of €1,049 million. However, it also faced challenges, including a precautionary provision of €7.4 million for expected costs in a plant construction project. This provision contributed to the decrease in profitability for the period. Nevertheless, Friedrich Vorwerk has seen revenue growth of 6.4%, reaching €275.1 million.
The Service & Infrastructure segment of MBB SE demonstrated resilience with revenues climbing to €350 million, a 3% increase from last year. In contrast, DTS, another subsidiary within this segment, had a weaker first half of the year but managed to return to its long-term growth path in the third quarter. Despite this recovery, DTS experienced a 7.2% annual drop in revenue to €75.6 million.
The Technological Applications segment showed significant expansion with a 20.5% surge in revenues to €267.7 million, largely propelled by Aumann's robust performance and high order intake of €249.0 million. The recent acquisition of LACOM also bolstered this segment by broadening the company’s portfolio and contributing to an EBITDA margin of 7%.
However, the Consumer Goods segment did not fare as well, with revenues declining by 4.5% and only achieving a breakeven EBITDA.
Looking ahead, most older projects are anticipated to be completed by the end of the year, which presents a positive outlook for Friedrich Vorwerk and its involvement in projects like the A-Nord initiative valued at €600 million. This project operates under a "cost-plus incentive fee" remuneration structure with a bonus-malus clause.
MBB SE's net liquidity remains robust at €392.4 million after nine months, with MBB SE directly holding €320.6 million (EUR1 = USD1.0703) of this amount.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.