Romy Acosta, the distinguished Head of Investor Relations at Jost Werke AG, takes viewers on a detailed journey of the company’s financial and operational milestones achieved during the second quarter of 2023.
Kicking off the presentation, Romy beams with pride and discusses what she coins as the most potent second quarter in the company’s history. Despite facing external challenges that could have curbed growth by almost four percentage points, Jost Werke AG emerged resilient. The company reported a remarkable 2.6% increase in sales, accumulating €330 million. Factoring out these challenges, the growth rate impressively could have soared to 6.4% compared to the previous year.
The transport segment significantly contributed to these numbers, marking an ascendancy in global demand. Transport sales skyrocketed, observing a growth of 13%, totalling €263 million. This uptrend was notably driven by the escalating global demand for trucks and trailers, especially in pivotal regions like North America and the Asia Pacific Africa belt. While this upward trend was visible, Europe experienced a slight dip in its trailer demand. However, Acosta quickly reassured viewers that this dip was from an elevated baseline.
Romy conveys a mix of news by shifting the narrative to the agricultural sector. North America and Europe saw a contraction, particularly in the compact sector and medium tractors segment. Yet, the silver lining emerged in the transport sector, which efficiently compensated for these losses, pointing to the company’s diversified strengths.
On a geographical scale, there were varying dynamics at play. Europe and North America navigated through slight contractions in their growth. In stark contrast, the Asia Pacific Africa market was the shining star, boasting a monumental 36% growth. The cherry on top? This rate could have touched a staggering 50% adjusting for external influences. Such a surge wasn’t just a stroke of luck. It was bolstered by unwavering demand from regions like India, the Pacific, and South Africa. Additionally, Acosta highlights the gradual yet definitive recovery of the Chinese market, which had previously faced downturns.
But Jost Werke AG’s commendable journey doesn’t end at sales. Acosta, with palpable enthusiasm, delves into the company’s profitability metrics. Against minor regional sales contractions, the company triumphed in elevating its profitability across all regions. Mirroring this success, the adjusted EBIT grew by an impressive 16%, comfortably outpacing the 3% sales growth. This financial wizardry propelled the adjusted EBIT margin from a solid 10% to a commendable 11.3% for this quarter.
As the presentation wraps, Romy touches upon another significant win for the company – the doubling of their free cash flow, which now stands at a robust €20 million. She points out this was orchestrated thanks to a favourable development in the working capital.
With optimism, Romy Acosta forecasts the latter half of the year. While they anticipate a continuation of the decline of the agricultural sector, she reiterates her confidence in the transport business to counterbalance this trend. In a parting note, Acosta invites viewers to delve deeper into the company’s journey by visiting their official webpage or reaching out to her for a personal touch.
This presentation highlighted Jost Werke AG’s triumphs and underscored its resilience, adaptability, and forward-looking vision, making it an enticing prospect for stock investors worldwide.