Rheinmetall AG: record result for Rheinmetall, operating margin of 10.5% and cash flow well above the target corridor

DGAP-Ad-hoc: Rheinmetall AG / Key word(s): Annual results
Rheinmetall AG: record result for Rheinmetall, operating margin of 10.5% and cash flow well above the target corridor

11-Feb-2022 / 12:30 CET/CEST
Disclosure of privileged information according to. in Article 17 MAR of Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Record result for Rheinmetall, operating margin of 10.5% and cash flow well above the target corridor

Based on preliminary figures, in the financial year 2021 Rheinmetall AG achieved an operating result of 595 million euros, thus exceeding the previous year’s figure of 149 million euros or approximately 33% (in accordance with IFRS 5, based on the corresponding figure for the previous year, restated for discontinued operations: 446 million euros). The operating profit for the full year is therefore also above current capital market expectations, which – based on the latest consensus estimates of financial analysts, compiled by Vara-Research on 11.2.2022 – assume a operating profit of 570 million euros.

Along with this record result, Rheinmetall achieved in fiscal 2021 a group-wide anticipated operating margin of 10.5%, exceeding the most recent expected margin of approximately 10%. This was partly due to the strong earnings performance in the fourth quarter of 2021, which closed with an operating margin of 16.4%, significantly exceeding the high figure of 13.7% of the previous year. The capital market expected a margin of only 14.5% for the fourth quarter of 2021. The further improvement in profitability is mainly due to strict cost management and a favorable product mix.

Additionally, operating free cash flow for fiscal 2021 exceeded expectations and was above the target corridor of 3% to 5% of sales.

The group’s sales in the 2021 financial year – based on preliminary figures – increased compared to the previous year by 253 million euros to reach 5.658 billion euros. Restated for discontinued operations in accordance with IFRS 5, the figure for the previous year amounts to 5.405 billion euros. Sales increased by around 4.7%, slightly below Rheinmetall’s published forecast for the full year, which at the time predicted a revenue increase of around 6%. The slowdown in sales growth is mainly due to the limited availability of raw materials and semiconductors, which resulted in reduced calls from major customers, coupled with postponements of international project activity from the fourth quarter of 2021 to first quarter of 2022.

Rheinmetall will publish final financial figures and a comprehensive report on business development in 2021 as well as outlook for fiscal year 2022 on March 17, 2022.

February 11, 2022 CET/CEST DGAP distribution services include regulatory announcements, financial/corporate news and press releases.
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