Gigaset AG publishes its Annual Report 2021: Revenue up and strong increase in EBITDA in fiscal year 2021 despite the ongoing coronavirus pandemic

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DGAP-News: Gigaset AG / Key word(s): Annual report/Annual results

Gigaset AG publishes its Annual Report 2021: Revenue up and strong increase in EBITDA in fiscal year 2021 despite the ongoing coronavirus pandemic

26.04.2022 / 08:00
The issuer is solely responsible for the content of this announcement.

Press release
Bocholt, April 26, 2022

Gigaset AG publishes its 2021 annual report
Rise in revenue and strong increase in EBITDA in fiscal 2021 despite the ongoing coronavirus pandemic

  • Revenues increased by 1.4% year-on-year to reach 217.1 million euros.
  • EBITDA increases sharply from 1.9 million euros in 2020 to 16.5 million euros
  • Growth segments: 36.8% revenue growth in Smartphones and 39.2% in Professionals

Bocholt, April 26, 2022 – Gigaset AG (ISIN: DE0005156004), an international communications technology company, today published its annual report for 2021. The past financial year was again difficult due to the pandemic ongoing coronavirus. The emergence of the Omicron variant of the virus in the fall, as well as enormous difficulties in the supply of materials and intermediate products around the world, necessitated an adjustment of the sales and EBITDA forecasts for the second fortnight of November. However, the new forecast was eventually fully met or exceeded. Gigaset AG increased its revenues and its operating result (EBITDA).

In total, Gigaset generated consolidated revenue of 217.1 million euros in the 2021 financial year compared to 214.2 million euros the previous year (+1.4%). Tight cost control, effective working capital management and improved gross income drove EBITDA of €16.5m to be well above 2020 (€1.9m ). While demand in the phone segment exceeded the average in 2020 and is gradually starting to normalize, the smartphone and business segments performed particularly well.

“We faced increasing challenges over the past year. We were on track to make 2021 a very good year,” says Thomas Schuchardt, CFO of Gigaset. “Our order books were and are swollen, and the impact of the coronavirus pandemic on topics such as New Work, Homeworking and Digitization has significantly increased demand. However, increasing supply difficulties in counteracted this, and I’m all the more pleased that we were able to grow revenue and in particular EBITDA overall.

“While our overall results are impressive, huge semiconductor supply bottlenecks dashed our hopes for what would have been a very positive year indeed,” adds Klaus Weßing, CEO of Gigaset AG. “We were ultimately unable to make up for the production delays caused by the semiconductor crisis. We have been working since 2020 to make our supply chains more resilient to ensure that we are supplied with chips at the best possible time. future, but we face great challenges.”

Performance by segment
In the Telephones, Smartphones and Smart Home segments, mainly consumer-oriented, revenues in 2021 amounted to 159.9 million euros, down 7.6% compared to the previous year (2020: 173, 1 million euros). In professional business for B2B customers, however, the company generated a strong 39.2% increase in revenue to 57.2 million euros (41.1 million euros).

The Phones segment generated revenues of €140.2 million in fiscal year 2021 (2020: €157.3 million), a decrease of 10.9%. Overall, the fixed telephony market continued to decline and was further impacted last year by hardware supply difficulties. While strict lockdowns and tough measures to tackle the coronavirus in 2020 meant more people were working from home, leading to increased use of the fixed network, telephony habits largely normalized in 2021. This was mainly due to a slight easing of measures and a drop in infection rates in the summer.

The Smartphones segment achieved revenue of EUR 18.2 million (2020: EUR 13.3 million), an increase of 36.8%. This success was supported by the GS3 and GS4 smartphones which were launched at the end of 2020, and by the GS5, which was released at the end of last year. The GX290 Plus and GX290 Pro rugged smartphones, which were developed specifically for outdoor and industrial use, contributed to this success. A particularly pleasing aspect is that Gigaset was able to win various public tenders in the industrial field, such as that of Deutsche Bahn.[1] This was due to the impressive quality of our products, as well as Gigaset’s unique selling point that they are “Made in Germany”.

Revenues of €1.5 million were generated with smart home products in fiscal year 2021 (2020: €2.5 million). Gigaset attributes the decline in particular to smart home solutions which are still seen as an “option”. In times of crisis and rising inflation, customers therefore temporarily refrain from buying such products in favor of other goods.

The Professional segment contributed €57.2 million to consolidated revenue in fiscal year 2021 (2020: €41.1 million) – a strong increase of 39.2%. This was mainly due to the implementation of many projects that had been suspended the previous year and postponed to 2021 due to the coronavirus pandemic. Product developments related to the exclusive agreement with Unify that Gigaset won in 2020 continued successfully in 2021, although they are not yet generating revenue. Under this agreement, Unify will exclusively purchase a family of desk phones developed by Gigaset. The first products are expected to ship in 2022.

Outlook
Even the year 2022 does not allow for detailed projections of a general economic recovery. The uncertainty surrounding the Corona pandemic, which has not yet been overcome, was aggravated by the conflict in Ukraine at the end of February: the effects of the first war in Europe since the end of the Second World War and the resulting sanctions have resulted, particularly in economic terms, cannot be reliably estimated at this time. External factors on which Gigaset’s business also depends include rising energy and material prices, logistical problems and a sharp rise in inflation, as well as bottlenecks in the semiconductor industry, which will continue in the medium term.

General statement of the Management Board for 2022
Barring a sudden and significant pandemic worsening of the supply chain situation, Gigaset expects its financial condition, cash flow and financial performance to develop as follows in fiscal year 2022:

  • A slight increase in turnover and EBITDA
  • Moderately positive free cash flow

The 2021 annual report can be downloaded here.

Gigaset AG, Bocholt, is an international communications technology company. The company is the European market leader for DECT telephones and is also a leader on the international stage, with around 900 employees and business activities in around 54 countries. Its business activities include not only DECT phones, but also an extensive portfolio of smartphones, cloud-based smart home applications and business telephony solutions for SMEs and enterprises.

Gigaset AG is listed in the Prime Standard of Deutsche Börse and is therefore subject to the highest transparency requirements. Its shares are traded on the Frankfurt Stock Exchange under the symbol GGS (ISIN: DE0005156004).

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[1] https://www.cebra.biz/news/unternehmen/06-10-2021-gigaset-gewinnt-ausschreibung-der-deutschen-bahn/

26.04.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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