DJ HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021
HMS Group (HMSG) HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021 10-Jun-2021 / 10:02 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- HMS Group Reports Rub 1.3 billion EBITDA for 3 months 2021 Moscow, Russia - June 10, 2021 - HMS Hydraulic Machines & Systems Group Plc (the "HMS Group", or the "HMS", or the "Group") (LSE: HMSG), the leading pump, oil & gas equipment and compressor manufacturer and provider of flow control solutions and related services in Russia and the CIS, today announces its financial results for the three months ended March 31, 2021. Financial highlights 3m 2021: - Revenue: Rub 11.2 bn (+23% yoy) - EBITDA[1]: Rub 1.3 bn (+21% yoy), EBITDA margin at 11.7% - Operating profit: Rub 566 mn (+114% yoy) - Profit for the period: Rub 52 mn - Total debt: Rub 22.2 bn (+3% yoy) - Net debt: Rub 13.1 bn (+7% yoy) - Net debt-to-EBITDA LTM ratio: 2.52x Operational highlights 3m 2021: - Backlog[2]: Rub 59.0 bn (+25% yoy) - Order intake[3]: Rub 18.4 bn (+50% yoy) Forecast FY 2021: - Revenue: Rub 60.0 bn - EBITDA: Rub 6.5 bn HMS GROUP PERFORMANCE The end of March in 2020 was the start of the outbreak of the COVID-19 pandemic. So the financial effect for the period was very limited due to the short period of time between the start of economic downturn and the end of 3m 2020. In the first three months of 2020, HMS Group ran its business as usual. 3 months 2021 financial Results - Order intake was up to Rub 18.4 billion, by 50% yoy, compared with Rub 12.3 billion for 3m 2020. All business segments, excluding the compressors, demonstrated growth. In terms of contracts type, large contracts increased almost six-fold mainly due to a Rub 7.5 billion oil & gas equipment contract signed in 1Q 2021. - Backlog was Rub 59.0 billion, up by 25% yoy, compared with Rub 47.2 billion at the end of 3m 2020, mainly due to the oil & gas equipment and compressors business segments. In terms of contracts type, both recurring business and large contracts grew, by 6% yoy and 50% yoy respectively, compared with the end of 3m 2020. - Revenue was Rub 11.2 billion, up by 23% yoy, compared with Rub 9.1 billion for 3m 2020, supported by the oil & gas equipment and compressors business segments. - EBITDA was Rub 1.3 billion, up by 21% yoy, implying an EBITDA margin of 11.7%. - Revenue generated by large projects almost tripled (+173% yoy) compared with 3m 2020. This increase was partly offset by lower revenue from recurring business (-18% yoy). EBITDA from large contracts increased 206% yoy, and EBITDA from recurring business declined 71% yoy. - Profit for the period was Rub 52 million, compared with loss for the period at Rub 153 million for 3m 2020. - Free cash outflow was Rub 1.2 billion, compared with free cash inflow of Rub 2.1 billion for 3m 2020, due to working capital requirements for execution of large contracts. in millions of Rub 3m 2021 3m 2020 Change yoy 1Q 2021 4Q 2020 Change qoq Orders 18,439 12,285 50% 18,439 15,304 20% Backlog 59,029 47,240 25% 59,029 53,851 10% Revenue 11,191 9,115 23% 11,191 15,000 -25% EBITDA 1,308 1,077 21% 1,308 1,576 -17% EBITDA margin 11.7% 11.8% 11.7% 10.5% Profit/(Loss) for the period 52 (153) na 52 (593) na Free cash flow (1,193) 2,091 na (1,193) 2,074 na
Expenses and Operating profit - Cost of sales was Rub 9.1 billion, up by 28% yoy, compared with Rub 7.1 billion for 3m 2020, supported by higher
materials and components costs (+43% yoy). Materials and components outpaced the growth in Cost of sales due to a
higher share of material-intensive large contracts under execution.
in millions of Rub 3m 2021 3m 2020 Change yoy Share of 3m 2021 revenue Share of 3m 2020 revenue Cost of sales 9,104 7,127 28% 81.4% 78.2% Materials and components 6,081 4,246 43% 54.3% 46.6% Labour costs incl Social taxes 1,806 1,832 -1% 16.1% 20.1% Depreciation and amortization 537 526 2% 4.8% 5.8% Construction and design [4] 510 734 -31% 4.6% 8.1% Others 170 (211) na 1.5% -2.3% - Gross profit grew to Rub 2.1 billion, by 5% yoy, compared with Rub 2.0 billion for 3m 2020. - SG&A expenses[5] declined by 11% yoy due to decrease in distribution & transportation expenses. Distribution &
transportation expenses were down 34% yoy, mainly due to lower transportation costs and expenses on insurance and
advertising. As a share of revenue, they declined to 2.9%, compared with 5.4% for 3m 2020.
General & administrative expenses stood at Rub 1.2 billion, down by 1% yoy. As a share of revenue, these expenses were down to 10.7%, compared with 13.3% for 3m 2020. - All in all, this led to an operating profit of Rub 566 million, up by 114% yoy, compared with Rub 265 million
during 3m 2020.
in millions of Rub 3m 2021 3m 2020 Change yoy Share of 3m 2021 revenue Share of 3m 2020 revenue Gross profit 2,087 1,988 5% 18.6% 21.8% Distribution & transportation 323 493 -34% 2.9% 5.4% General & administrative 1,203 1,217 -1% 10.7% 13.3% SG&A expenses 1,526 1,709 -11% 13.6% 18.8% Other operating expenses (5) 14 -134% 0.0% 0.2% Operating expenses ex. Cost of sales 1,521 1,723 -12% 13.6% 18.9% Operating profit 566 265 114% 5.1% 2.9% Finance costs 459 481 -4% 4.1% 5.3% - Finance costs were Rub 459 million, down by 4% yoy, compared with Rub 481 million for 3m 2020. The main reason was
lower interest expenses (-10% yoy) due to a lower level of average total debt within the reporting period compiled
with reduced interest rates, compared with 3m 2020. - Average interest rate was reduced to 7.99% p.a., compared with 8.23% p.a. last year.
in millions of Rub 3m 2021 3m 2020 Change yoy Finance costs 459 481 -4% Interest expenses 431 476 -10% Interest rate, average 7.99% 8.23% Interest rate Rub, average 8.11% 8.37%
BUSINESS SEGMENTS PERFORMANCE
Industrial pumps[i] - Order intake was Rub 4.7 billion, up by 5% yoy, compared with Rub 4.5 billion for 3m 2020. - Backlog was Rub 19.2 billion, down 8% yoy, compared with Rub 21.0 billion at the end of 3m 2020. - Revenue stood at Rub 3.6 billion, down by 2% yoy. - Lower recurring business margins compiled with less EBITDA generated by large contracts, consequently, led to the
pumps' EBITDA of Rub 339 million, down by 29% yoy. EBITDA margin was 9.4%, compared with 12.8% during 3m 2020.
in millions of Rub 3m 2021 3m 2020 Change yoy 1Q 2021 4Q 2020 Change qoq Orders 4,722 4,515 5% 4,722 4,429 7% Backlog 19,203 20,961 -8% 19,203 18,227 5% Revenue 3,617 3,693 -2% 3,617 6,311 -43% EBITDA 339 474 -29% 339 1,116 -70% EBITDA margin 9.4% 12.8% 9.4% 17.7%
Oil and Gas equipment & projects (OGEP)[ii] - Order intake grew to Rub 11.4 billion, by 132% yoy, compared with Rub 4.9 billion during 3m 2020, due to a large
Rub 7.5 billion contract signed in the reporting period. - Backlog was Rub 16.2 billion, up by 90% yoy, compared with Rub 8.5 billion at the end of 3m 2020, supported by both
large contracts and regular business. - Revenue was Rub 4.4 billion, up by 43% yoy, compared with Rub 3.1 billion for 3m 2020. - EBITDA stood at Rub 457 million, up by 29% yoy, compared with Rub 354 million for 3m 2020 due to the recovery of
the oil & gas business segment. EBITDA margin stood at 10.4%, compared with 11.5% for 3m 2020.
in millions of Rub 3m 2021 3m 2020 Change yoy 1Q 2021 4Q 2020 Change qoq Orders 11,424 4,934 132% 11,424 3,331 243% Backlog 16,156 8,517 90% 16,156 9,318 73% Revenue 4,390 3,076 43% 4,390 2,890 52% EBITDA 457 354 29% 457 (49) na EBITDA margin 10.4% 11.5% 10.4% -1.7%
Compressors [iii] - Order intake stood at Rub 337 million, compared with Rub 2.6 billion for 3m 2020, due to less contracts signed in
the reporting period. - Backlog increased to Rub 22.3 billion, compared with Rub 16.9 billion at the end of 3m 2020, supported by large
contracts. - Revenue was Rub 3.3 billion, up by 51% yoy, compared with Rub 2.2 billion, due to large contracts. - EBITDA was Rub 486 million, up by 120% yoy, compared with Rub 221 million for 3m 2020, fully due to execution of
large contracts. EBITDA margin was up to 14.7%, compared with 10.1% for 3m 2020.
in millions of Rub 3m 2021 3m 2020 Change yoy 1Q 2021 4Q 2020 Change qoq Orders 337 2,633 -87% 337 7,511 -96% Backlog 22,312 16,928 32% 22,312 24,765 -10% Revenue 3,306 2,194 51% 3,306 6,080 -46% EBITDA 486 221 120% 486 796 -39% EBITDA margin 14.7% 10.1% 14.7% 13.1%
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