28.2.2024
- Group sales increased slightly to € 5.8 billion
- Earnings (EBITDA) stable at previous year’s level
- Several acquisitions successfully completed
- Confidence for 2024 in an environment that remains challenging
Lübeck, 21 February 2024 – The Lübeck-based Possehl Group performed well in the 2023 financial year despite difficult and challenging conditions. With an increase in sales of 6%, the growth path of recent years was successfully continued, with sales adjusted for the precious metals trading volume totalling € 2.9 billion making a significant contribution. According to preliminary figures, EBITDA was on prior year level at almost € 270 million, while consolidated earnings before taxes (EBT) of € 142 million were only slightly below plan and the previous year. Disproportionately high cost increases in particular had a negative impact on earnings. “In view of the difficult macroeconomic environment and a broad-based increase in uncertainty, which hit the capital goods industry particularly hard in the second and third quarters, I am satisfied with the result achieved. Towards the end of the year, many of our divisions were able to make up for a temporary shortfall and put in a good final spurt,” commented Dr Joachim Brenk, Chairman of the Possehl Executive Board, on the past financial year.
Developments in the individual divisions varied considerably. Of the Possehl Group’s ten economically independent divisions, some were able to achieve significant operational improvements. This applies in particular to the Cleaning Technology division. The Hako Group headquartered in Bad Oldesloe not only achieved record sales of € 631 million, but was also able to increase its profitability once again. The majority of Possehl’s operating activities remained stable, with only the semiconductor and supplier business for automotive electronics recording a noticeable decline due to the demand situation. “How well or poorly a company is performing can only be assessed to a limited extent on the basis of short-term performance indicators. That’s why we also look at other, qualitative factors and, in particular, include long-term success parameters such as innovative ability and sustainability in our assessment,” explains Brenk.
The sharp rise in market interest rates over the course of the year and more restrictive financing conditions pose a major challenge for many companies. Due to the positive net liquidity of € 226 million, an extremely solid balance sheet with an equity ratio of 60% and the associated excellent credit rating, Possehl has not yet been affected by these more difficult market conditions. “We had to realise how quickly and dramatically not only market but also financial conditions can change. With our conservative accounting and financing policy, we are well prepared for such unforeseeable changes also in the future,” says Brenk.
In addition to organic growth, Possehl attaches great importance to active M&A activities. This is aimed at both the expansion of existing business areas and the development of new activities. The expansion of the portfolio in the financial year centred on the expansion of the Digital segment under the slogan “From SMEs – For SMEs” and the promising Identification Solutions division. At the beginning of the new year, the Precious Metals Processing division also succeeded in significantly expanding and further internationalising its lucrative coin business through two strategic company acquisitions. Thanks to internal and external growth, the Heimerle + Meule Group has developed into a global leader in the coin business in recent years.
Possehl is entering the current year 2024 with cautious optimism. “The general data and the economic outlook – particularly for the German economy – are currently not good enough for more euphoria. Regardless of this, we still have a lot planned for 2024. For example, we will continue to invest heavily in the digital and ecological transformation and thus in Possehl’s future viability,” says Brenk, looking ahead.
About Possehl
The Possehl Group, which operates worldwide under the leadership of the management holding company L. Possehl & Co. mbH, is a diversified group with currently ten economically independent, decentrally organised divisions. The Possehl Group comprises L. Possehl & Co. mbH and more than 200 subsidiaries in over 30 countries. According to preliminary figures, the Group generated sales of EUR 5.8 billion in the 2023 financial year. Possehl currently employs around 13,300 people worldwide.
The company was founded in 1847 by Ludwig Possehl as a hardware store in Lübeck. The non-profit Possehl Foundation has been the sole shareholder since 1919. This corporate structure enables the Possehl Group to remain independent and forms the basis for long-term entrepreneurial decisions.
