The operating result (EBIT) decreased by 6.2% to EUR 56.3 million (H1 2022: EUR 60.1 million) mainly due to costs related to the comprehensive investment program. This represents an EBIT margin of 11.3% (H1 2022: 13.6%). In addition, the order intake during the reporting period was EUR 452.5 million (H1 2022: EUR 580.1 million) and the order backlog stood at 458.3 million at the end of the first half of 2023 (H1 2022: EUR 455.7 million).
The Pfeiffer Vacuum sales increase was driven by a strong performance in the Analytics, Industry and R&D market segment. Sales in this market segment improved by 21.7% to EUR 255.6 million (H1 2022: EUR 210.0 million). The Semiconductor and Emerging Technologies market segment sales increased by 4.5% to EUR 241.1 million (H1 2022: EUR 230.6 million). The semiconductor market is currently experiencing a market adjustment after a multi-year high-demand cycle.
The operating result (EBIT) decreased by 6.2% to EUR 56.3 million (H1 2022: EUR 60.1 million) and the EBIT margin was 11.3% (H1 2022: 13.6%). The year-over-year decrease in EBIT was primarily due to higher costs for investments to drive long-term sustainable growth, including the expansion of the global IT environment and the increase of production capacities for accelerating growth.
The book-to-bill ratio, the ratio of order intake to sales, was at 0.91 for the first half 2023, reflecting especially the order slow-down in the semiconductor market. The order backlog of EUR 458.3 million was up 0.6% compared to the previous year (June 30, 2022: EUR 455.7 million).
“The strong sales results in the first half of 2023 underline Pfeiffer Vacuum’s ability to ramp up production, particularly during the last two years”, says Dr. Britta Giesen, CEO of Pfeiffer Vacuum Technology AG. “As expected, market conditions, primarily in the semiconductor market, are currently challenging due to a slow-down in demand. However, we continue to invest in the medium- and long-term growth by modernizing and expanding our production capacities as well as by building a globally integrated IT infrastructure to position Pfeiffer Vacuum for growth and market share gains.”
The gross profit for the first half of 2023 was EUR 184.7 million (H1 2022: EUR 158.1 million). The year-over-year increase of 16.8% is primarily due to the strong sales performance.
Net income decreased by 6.4% to EUR 39.8 million (H1 2022: EUR 42.6 million), representing earnings per share of EUR 4.04 (H1 2022: EUR 4.32).
In sales by region, which describes sales according to the location of the customers in their corresponding region, showed strong sales growth particularly in Europe and the Americas: European sales increased by 20.5% to EUR 171.5 million (H1 2022: EUR 142.3 million). Sales in the Americas contributed with an increase by 12.5% to EUR 140.6 million (H1 2022: EUR 125.0 million). Sales in Asia increased by 6.5% to EUR 184.5 million (H1 2022: EUR 173.1 million).
Solid Balance sheet and cash-flow
Total assets at the end of the second quarter 2023 were EUR 914.2 million, up 5.8% from year-end 2022 (December 31, 2022: EUR 863.7 million). Cash and cash equivalents were EUR 76.6 million (December 31, 2022: EUR 67.8 million). The equity ratio remained at a solid level of 61.4%, slightly below year-end 2022 (December 31, 2022: 61.5%). Capital expenditure in the first half increased significantly to EUR 42.0 million, up 40.8 percent from the same period in 2022, and was mainly used for the building out of production facilities and investing in information technology infrastructure (H1 2022: EUR 29.8 million).
Outlook for the 2023 fiscal year remains unchanged
The Company confirms its previous guidance and continues to expect consolidated sales for the full year 2023 to be approximately at the same level as for the fiscal year 2022 (EUR 916.7 million). The sales volume in the second half of 2023 is expected to be affected by the decline in order volume, primarily due to conditions in the semiconductor market. The EBIT margin expectations for the full year 2023 remain at around 12%, also unchanged from the previous outlook. In addition, capital expenditures of about EUR 100 million are planned for the fiscal year 2023.
Source: Pfeiffer Vacuum Technology AG
