7. Adjustments
Management adjusts the result for the financial year for certain expenses and income in connection with realized M&A transactions in order to manage the Group's operations. Adjustments are made in accordance with the management approach in segment reporting. Hence, the following results, which are adjusted by these expenses, reflect the Management Board’s perspective.
Acquisition-related expenses and income as part of realized M&A transactions are adjusted. These may include, for example, costs for legal advice, due diligence, auditing, expert opinions, travel expenses and similar. In addition, integration expenses are adjusted following acquisitions within the first twelve months. This includes all forms of external consulting, severance costs, IT connection and other external implementation and integration costs.
In addition, effects from the purchase price allocation (PPA), such as expenses from depreciation, amortization and impairments of property, plant and equipment and intangible assets from revaluation effects, so-called step-up effects, are adjusted over time.
The following table shows the reconciliation for the adjusted result.
Profit and loss net of adjustments | T090 | ||||
|---|---|---|---|---|---|
in EUR thousands | 2024 unadjusted | Integration costs | Step-up effects from purchase price allocations | Total adjustments | 2024 adjusted |
Revenue | 1,155,128 | 1,155,128 | |||
Changes in inventories of finished goods and work in progress | 6,194 | 6,194 | |||
Other own work capitalized | 6,562 | 6,562 | |||
Raw materials and consumables used | -500,031 | 302 | 302 | -499,729 | |
Gross profit | 667,853 | 302 | 302 | 668,155 | |
Other operating income and expenses | -176,856 | 116 | 116 | -176,740 | |
Employee benefits expense | -337,930 | -337,930 | |||
EBITDA | 153,067 | 116 | 302 | 418 | 153,485 |
Depreciation | -57,955 | 758 | 758 | -57,197 | |
EBITA | 95,112 | 116 | 1,060 | 1,176 | 96,288 |
Amortization | -37,795 | 33,827 | 33,827 | -3,968 | |
Operating profit (EBIT) | 57,317 | 116 | 34,887 | 35,003 | 92,320 |
Financial costs - net | -23,299 | -23,299 | |||
Profit before income tax | 34,018 | 116 | 34,887 | 35,003 | 69,021 |
Income taxes | -19,227 | -35 | -8,871 | -8,906 | -28,133 |
Profit for the period | 14,791 | 81 | 26,016 | 26,097 | 40,888 |
Non-controlling interests | 95 | 95 | |||
Profit attributable to shareholders of the parent | 14,696 | 81 | 26,016 | 26,097 | 40,793 |
Earnings per share (in EUR) | 0.46 | 0.00 | 0.82 | 0.82 | 1.28 |
(continued) Profit and loss net of adjustments | |||||
|---|---|---|---|---|---|
in EUR thousands | 2023 unadjusted | M&A related costs | Step-up effects from purchase price allocations | Total adjustments | 2023 adjusted |
Revenue | 1,222,781 | 1,222,781 | |||
Changes in inventories of finished goods and work in progress | -8,166 | -8,166 | |||
Other own work capitalized | 3,011 | 3,011 | |||
Raw materials and consumables used | -549,646 | -549,646 | |||
Gross profit | 667,980 | 667,980 | |||
Other operating income and expenses | -192,191 | 188 | 188 | -192,003 | |
Employee benefits expense | -321,750 | -321,750 | |||
EBITDA | 154,039 | 188 | 188 | 154,227 | |
Depreciation | -53,334 | 846 | 846 | -52,488 | |
EBITA | 100,705 | 188 | 846 | 1,034 | 101,739 |
Amortization | -24,582 | 20,324 | 20,324 | -4,258 | |
Operating profit (EBIT) | 76,123 | 188 | 21,170 | 21,358 | 97,481 |
Financial costs - net | -22,670 | -22,670 | |||
Profit before income tax | 53,453 | 188 | 21,170 | 21,358 | 74,811 |
Income taxes | -25,537 | -57 | -5,325 | -5,382 | -30,919 |
Profit for the period | 27,916 | 131 | 15,845 | 15,976 | 43,892 |
Non-controlling interests | 84 | 84 | |||
Profit attributable to shareholders of the parent | 27,832 | 131 | 15,845 | 15,976 | 43,808 |
Earnings per share (in EUR) | 0.87 | 0.00 | 0.50 | 0.50 | 1.37 |
In the fiscal year 2024, expenses of EUR 302 thousand were adjusted within EBITDA (earnings before interest, taxes, depreciation of property, plant and equipment and amortization of intangible assets). These relate to the cost of materials resulting from the valuation of the inventories acquired as part of the purchase price allocation for the acquisition of Teco. In addition, acquisition costs/integration costs in the amount of EUR 116 thousand were adjusted.
In the 2023 fiscal year, acquisition-related expenses in the amount of EUR 188 thousand were adjusted within EBITDA. These relate to expenses in connection with the agreement to acquire the Italian company Teco Srl. There were no integration costs to be adjusted in the 2023 fiscal year.
As in the previous year, depreciation on property, plant and equipment from purchase price allocations in fiscal year 2024 in the amount of EUR 758 thousand (2023: EUR 846 thousand) were adjusted within EBITA (earnings before interest, taxes and amortization of intangible assets) as well as amortization and impairment of intangible assets from purchase price allocations in the amount of EUR 33,827 thousand (2023: EUR 20,324 thousand) within EBIT. The adjustments for amortization and impairment of intangible assets in fiscal year 2024 include impairment losses in the amount of EUR 13,584 thousand (2023: EUR 0 thousand).
The theoretical taxes resulting from the adjustments are calculated using the respective tax rate of each Group entity and are taken into consideration in adjusted earnings after taxes.
Legend
These contents are part of the Non-financial Group Report and were subject to a separate limited assurance examination.