According to preliminary and unaudited figures, Group sales in the first half of 2024 amounted to around EUR 252.8 million (H1/2023: EUR 292.1 million). In the first six months, the Group generated a consolidated EBIT of around EUR 6.6 million (H1/2023: EUR 22.8 million) and a consolidated net profit after minority interests of EUR 2.0 million (H1/2023: EUR 14.3 million).

The main reasons for the decline in sales and earnings are the ongoing weak economic development in Germany and Europe with noticeably subdued demand at almost all subsidiaries as well as project postponements. Furthermore, the low price level at Doerrenberg is leading to a significant reduction in gross profit and is having a noticeable negative impact on earnings. We do not see any major migration to the competition, so we expect catch-up effects when the economy picks up.

The original forecast for financial year 2024 was based on the expectation of a subdued first half of the year and a noticeable upward trend in the second half of 2024, as advocated by our customers as well as leading associations and economic institutes. Following a weaker than expected second quarter and a continued lack of economic recovery in the sectors relevant to us, GESCO must adjust its forecast for the current financial year as follows:

The Executive Board now expects consolidated sales of EUR 520 - 540 million for the 2024 financial year (previously: EUR 570 - 590 million) and consolidated net income after minority interests of around EUR 8 - 12 million (previously: EUR 26 - 28 million). Due to the continued high level of uncertainty regarding economic development, the Executive Board is extending the forecast range for consolidated net income after minority interests.

All subsidiaries have introduced appropriate measures to safeguard earnings. As usual, some mechanical engineering projects will be delivered in the second half of the year. We therefore anticipate an increase in earnings in the second half of the year.

The half-year report 2024 will be published as planned on 13 August 2024 and explained in a conference call on the same day at 11:30 a.m.

About GESCO:

GESCO SE is an industrial group with market- and technology-leading companies in the capital goods industry specialising in process technology, resource technology, healthcare and infrastructure technology. As a Prime Standard-listed company, GESCO SE gives private and institutional investors access to a portfolio of hidden champions in the German industrial SME sector.

Contact:

Peter Alex
Head of Investor Relations & Communications
Phone +49 (0) 202 24820-18
Fax +49 (0) 202 24820-49
E-mail: ir@gesco.de
Internet: www.gesco.de