Preliminary Q1 Figures 2023 LION Smart GmbH and LION Smart Production GmbH
- LION Smart Group companies posted lower sales in Q1/2023 compared to previous periods due to preparations for the start of production.
- Revenue is expected to grow over the next few quarters as customer inventories of packs is now low.
- Positive cash flow in Q1/2023.
|Prel. figures in
|LS GmbH Q1/23||LSP GmbH Q1/23||Consol. Q1/23||LS GmbH Q1/22||Cumulative change YoY|
Garching near Munich, 04 May, 2023 –
LION Smart GmbH (LS) and LION Smart Production GmbH (LSP), fully owned subsidiaries of LION E-Mobility AG, today published their preliminary, unaudited financial figures for the first quarter ended March 31, 2023.
Results of operations of LION Smart GmbH and LION Smart Production GmbH as of March 31, 2023
The business performance of the two German operating companies was determined in Q1/23 by the preparation for the start of series production and shipments.
In Q1 sales revenues totaling EUR 8.11M were realized.
The change in work in progress and finished goods decreased by EUR 0.035M compared to December 31, 2022, mainly due to the completion of projects in the first quarter of 2023.
Compared to Q1/2022, total operating performance (sales, own work capitalized, changes in inventories) decreased by EUR 5.01M to EUR 8.08M (Q1/22: EUR 13.09M).
The cost of materials – consisting of cost of raw materials, finished goods and other purchased services – decreased to EUR 6.51M (Q1/22: EUR 11.84M), which is also reflected in the cost of materials ratio of 80.6% compared to last year’s 90.4% (calculated from the ratio of cost of materials to sales and changes in inventories).
Hence, a consolidated gross profit of EUR 1.6 M (Q1/22: EUR 1.25M) was generated for the reporting period, which corresponds to a gross profit margin of 19,4% (Q1/22: 9.6%).
The increase in personnel expenses compared with the year 2022 is mainly due to the expansion of sales activities and the increase in the number of staff at LION Smart Production GmbH. LION Smart GmbH had an average of 44 permanent employees and 8 working students during the last year (previous year: 34 permanent employees and 9 working students). LION Smart Production GmbH hired a total of 13 new employees in 2022 and is planning to increase its work force in 2023 as the production volume grows.
Other operating expenses increased from EUR 0.48M to EUR 0.68M due to the expansion of production in Hildburghausen.
Consolidated earnings before interest and taxes (EBIT) as of March 31, 2023, amount to EUR -0.45M and are – as expected – lower compared to Q1/22 (Q1/22: EUR -0.06M) mainly due to existing inventories of their customers. However, orders are expected to increase in Q2 allowing the companies to achieve the targeted results for 2023.
The consolidated financial result is EUR -0.21M lower than the year before due to new loans received from the parent company (Q1/22: EUR 0.007M) and the associated interest expenses. No repayments were made by TSBT in Q1.
LION Smart GmbH and LION Smart Production GmbH generated a consolidated pre-tax result of EUR -0.66M in the reporting period (Q1/22: EUR -0.07M).
Net assets and financial position as of March 31, 2023
Total assets decreased by 1,5% to EUR 23.56M as of March 31, 2023 (December 31, 2022: EUR 23.93M)
In Q1, no development costs were recognized as own work capitalized. As of March 31, 2023, internally generated intangible assets remained unchanged at EUR 3.18M (December 31, 2022: EUR 3.18M).
Fixed assets increased by 20% to EUR 12.14M (December 31, 2022: EUR 10.09M), due to the acquisition of the production facility. Thereby, tangible assets adjust to EUR 4.28M (December 31, 2022: EUR 2.22M). As of March 31, 2023, intangible assets remain almost the same with EUR 3.28M (December 31, 2022: EUR 3.28M). Loans to companies in which an equity investment is held, which are reported under financial assets, remained unchanged. (December 31, 2022: EUR 2.04M).
Current assets decreased by EUR 2.56M to EUR 11.15M (December 31, 2022: EUR 13.71M). Trade receivables increased by EUR 0.63M compared to the previous year (December 31, 2022: EUR 2.36M). Trade payables also showed a similar development.
As of March 31, 2023, cash and cash equivalents amounted to EUR 2.65M due to bank balances, compared to EUR 2.55M as of December 31, 2022.
The equity of LION Smart GmbH and LION Smart Production GmbH amounted to EUR 5.37M at the end of Q1 (December 31, 2022: EUR 6.0M). The equity ratio as of March 31, 2023, decreased to 22.8% compared to year end 2022 (25.2%).
Accruals amount to EUR 0.71M as of March 31, 2023 (December 31, 2022: EUR 0.74M). Other accruals mainly include personnel costs, such as overtime, vacation not taken and variable salary components.
Current liabilities presented only a slight increase by EUR 0.32M to EUR 17.48M as of March 31, 2023 (December 31, 2022: EUR 17.16M) and consist mainly of trade payables and loans granted by the parent company in 2022. Unchanged to the previous year, there are no liabilities to banks as of March 31, 2023.
Cash flow and financing as of March 31, 2023
Cash flow from operating activities was with EUR 0.11M lower than Q1 of the previous year due to the continued build-up of the production plant and associated expenses in the reporting period (Q1/2022: EUR 0.75M) but remained positive.
As of March 31, 2023, Cash flow from investing activities is insignificantly negative due to the acquisition of licenses and equipment: EUR -0.01M (Q1/2022: EUR -0.29M).
No financial activities were made in Q1 in cash flow from financing activities (Q1/22: EUR 0.55M).
In summary, a positive total cash flow of EUR 0.1M can be reported for Q1 (Q1/22: EUR 1.0M).
Outlook for the fiscal year 2023
We have laid the foundations for growth in the following years.
With this in mind, we repeat our sales guidance of EUR 70-80M for the current year 2023. This would correspond to a sales growth of 30-50% compared to 2022. Our company (LSP) will produce the SE09 battery under license in 2023.
Despite the investments in our product and production facilities, we expect a consolidated positive EBITDA for the full year.
The companies are financed by the parent company. The management is convinced that the course taken is a great starting point for further growth. The companies will continue to invest in products and technologies in the coming years in order to keep up the high technical level of the products and to bring them to market maturity.
About LION E-Mobility AG:
LION E-Mobility AG is a listed Swiss holding company founded in 2011 with promising strategic investments in the e-mobility sector, especially in the field of electrical energy storage and lithium-ion battery system technology. The company holds 100% of the German LION Smart GmbH, a developer of battery packs and battery management systems and 100% of LION Smart Production GmbH, a battery pack manufacturer. LION Smart also holds a 30% stake in TÜV SÜD Battery Testing GmbH, a successful joint venture with TÜV SÜD AG. LION E-Mobility AG also holds 100% of the shares in LION E-Mobility North America Inc. and LION Smart North America Inc..
Responsible for the press release: Board of Directors LION E-Mobility AG
LION Smart GmbH & LION Smart Production GmbH
LION E-Mobility Investor Relations
Phone: +49 (0) 1737025315
Phone: +41 (0) 41 500 54 11
Statements that express or contain forecasts, expectations, views, plans, goals and assumptions regarding future events or performance are not considered historical facts and may therefore be forward-looking statements. Forward-looking statements are based on the expectations, estimates and plans at the time the statements were made, and therefore involve a number of risks and uncertainties that could cause actual results or events to differ materially from those currently anticipated become. LION E-Mobility AG is under no obligation to update the forward-looking statements in this press release.